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November 9, 1999
SUBJECT: Award of Contract and Approval of Budget Modification No. 15 for Homestead Road/Wolfe Road Water Transmission Main (UW-97-01) RTC No. 99-481
REPORT IN BRIEF
On September 29, 1999, the City opened bids for the Homestead Road/Wolfe Road Water Transmission Main project. Five (5) bids were received. Staff is recommending award of the contract to the lowest responsible bidder, Ranger Pipelines, Inc., in an amount of $2,080,000. Staff is also requesting approval of a budget modification of $200,000 due to receiving bids that were higher than anticipated.
BACKGROUND
The Homestead Road/Wolfe Road Water Transmission Main project will create a north/south water supply connection between pressure zones of the City's water system that will provide two important benefits. The first benefit is to increase the reliability of the water distribution system, and increase the capability of the city to continue to distribute water in the event of a disruption of one of the major water supplies. Water supply from either San Francisco Water Department (SFWD) or Santa Clara Valley Water District (SCVWD) could be interrupted by natural disaster or because of operational reasons. Without a connection of pressure zones by this transmission main, it would not be possible to replace the lost supply, either from City wells or from other sources. Such a water supply loss would be difficult for residents, and a serious economic and business problem for water-dependent businesses and industries. The second benefit of the transmission main is that it will give the City's water utility staff flexibility in water supply routing which will be useful in system management, maintenance, and repair activities.
The Homestead Road/Wolfe Road Transmission main will allow the City to supply either northern or southern pressure zones, should either loose their normal water supply. The new transmission main is also designed to be connected to the existing Raynor and Ortega wells in the future.
DISCUSSION
The purpose of this project is to deliver domestic water from one pressure zone to another. The new 16 inch ductile iron transmission main will extend from Wolfe Road-Fremont Road intersection, south along Wolfe Road to Homestead Road; and east along Homestead Road from Wolfe Road to New Brunswick. The transmission main will be physically connected to the existing distribution system along its route, and is pressure-isolated by automatic pressure valves.
This project has been coordinated with planned pavement and intersection projects along Wolfe Road. Pavement reconstruction along Wolfe Road is scheduled to follow immediately after the completion of this project.
Following the bid opening, staff and the design consultant evaluated bid prices to determine why the low bid was more than 20% above the Engineer’s Estimate. The fact that five bids were received evidences that the project was seen as a viable project by potential bidders. Further, the low bid and the next two bids are tightly grouped, indicating the validity of the low bid. With a vigorous construction economy, contractors are busy, and prices are correspondingly high. In advance of the bid opening, prospective bidders made repeated reference to the large number of projects bidding at the same time.
Based on these factors, and the need to complete this project quickly before beginning the long-delayed Wolfe Road pavement reconstruction project, staff is recommending a budget modification of $200,000 to enable bid award with a suitable construction contingency.
For comparison purposes, the Engineer’s Estimate and the bids received are as follows:
| Engineer’s Estimate | $1,729,000 |
| Ranger Pipeline, Inc. | $2,080,000 |
| Mountain Cascade Company | $2,092,979 |
| L. J. Krzich Pipeline, Inc. | $2,161,500 |
| Valley Engineers, Inc. | $2,472,000 |
| Bay Pacific Pipelines, Inc. | $2,702,148 |
Staff has reviewed the bids received, and is recommending award of the contract to the lowest responsible bidder, Ranger Pipelines, Inc.
FISCAL IMPACT
| 1. Project Cost | |
| Construction | $2,080,000 |
| Consultant and other costs | 49,973 |
| Contingency | 200,000 |
| Total | $2,329,973 |
| 2. Project Budget | |
| The current balance including requested carryovers in the project (806550) is $2,129,973. Addition of $200,000 through the proposed modification will provide a total budget of $2,329,973 for this project. | |
BUDGET MODIFICATION No. 15
Fiscal Year 1999-2000
| Water Revenue Fund | |||
| Expenditures | Current | Increase (Decrease) |
Revised |
| Wolfe Homestead Rd. Water Transmission Main (806550) | $2,129,973 | $200,000 | $2,329,973 |
| Fund Balance | |||
| Water Fund 20 Year RAP | $835,119 | ($200,000) | $635,119 |
PUBLIC CONTACT
Posting of the Council Agenda. This report is also available on the City’s Internet home page and at the City Library.
RECOMMENDATION
That the City Council award the contract to the lowest responsible bidder, Ranger Pipelines, Inc, in the amount of $2,080,000 and approve a contingency amount of $200,000. Also that City Council approve a budget modification of $190,027 required to provide this contingency.
Prepared by:
Mark Dettle
City Engineer
Reviewed by:
Marvin A. Rose
Director of Public Works
Reviewed by:
Mary Bradley
Director of Finance
Approved by:
Robert S. LaSala
City Manager
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