June 8, 2004

SUBJECT: Award of Bid No. F0304-65 for Water Main Replacement at Gresham, Cypress, Britton and Duane Avenues

REPORT IN BRIEF

Approval is requested for the award of a contract to Pacific Underground Construction, Inc., of San Jose for construction of the Gresham, Cypress, Britton and Duane Avenue Water Main Replacement Project for the Department of Public Works Engineering Division Project Administration (Project # UW-03/01-04).

BACKGROUND

This water main replacement project includes two Infrastructure Projects budgeted in FY 2003-04. The scope of work includes replacing existing 4-inch and 6-inch cast iron water mains with 6-inch and 8-inch PVC water mains and installing five fire hydrants within Gresham Avenue (Duane Avenue to Arbor Avenue) and Cypress Avenue (Fair Oaks Avenue to Britton Avenue).

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff. The bid was structured so that the Gresham and Cypress Avenue portions of the work is the Base Bid, Britton Avenue (Duane Avenue to Fair Oaks) is Additive Alternate 1, and Duane Avenue (Gresham Avenue to Worley) is Additive Alternate 2.

The Notice Inviting Bids was published in The Sun on April 28, 2004. The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia procurement network. Seven contractors requested bid documents.

Sealed bids were publicly opened on May 19, 2004. Two responsive bids were received.

Bidder

Base Bid

Additive Alternate #1

Additive Alternate #2

Engineer's Estimate

$200,000

__________

__________

Pacific Underground Construction, Inc., of San Jose

$175,265

$34,150

$16,400

West Valley Construction Company, Inc., of Campbell

$186,100

$55,250

$36,550

Staff recommends acceptance of the Base Bid and both Additive Alternates from Pacific Underground Construction, Inc., the lowest responsive and responsible bidder.

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects.

FISCAL IMPACT

Project costs include:

Construction (Base Bid and both Additive Alternates)

$225,815

Contingency (15% of construction costs)

$33,872

Total cost

$259,687

Funds for this project are available in Public Works Infrastructure Projects for Water Line Replacement - 822850 (Gresham & Britton) and 822860 (Cypress & Duane).

RECOMMENDATION

It is recommended that Council:

1.

Award a contract, in substantially the same form as the attached draft and in the amount of $225,815, to Pacific Underground Construction, Inc., for the Gresham, Cypress, Britton and Duane Avenue Water Main Replacement Project; and

2.

Approve a project contingency in the amount of $33,872.


Prepared by:


Elaine Wesely
Purchasing Officer


Reviewed by:


Mary J. Bradley
Director, Finance


Reviewed by:


Marvin Rose
Director, Public Works


Approved by:


Amy Chan
City Manager


Attachments

Draft General Construction Contract (.pdf format)