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The project consists of the following improvements to promptly restore water service if <br />these important transmission pipe lines are damaged due to an earthquake, or other <br />event. <br /> <br />1) Installation of four structures for emergency bypass connections on the Topaz <br />transmission Pipeline that supplies water to the Redwood Shores area. <br />2) Installation of five structures for emergency bypass connections on the local <br />water system at Redwood Shores. <br />3) Installation of inline valves at Twin Dolphin Drive. <br />4) Installation of inline valves without interrupting water service at Marine Parkway. <br />5) Provide 12 inch hoses and fittings to install bypasses in case of emergency. <br /> <br />The Engineer’s Probable Cost Estimate of this project is in the range of $650,000- <br />$750,000. The City received two bids as listed below: <br /> <br />Bidder Bid Amount <br />Cratus, Inc. of San Francisco $970,000.00 <br />Ranger Pipelines, Inc. of San Francisco $1,585,000.00 <br /> <br />Staff has evaluated the two bids and has determined that both bids are much higher <br />than the Engineer’s Probable Cost Estimate, and show several extreme discrepancies. <br />The probable reason for these discrepancies is that the proposed improvements are <br />uncommon and require recently developed technologies with which a majority of <br />contractors are not familiar. In addition to the Project Bid Announcement, staff contacted <br />numerous contractors to invite them to bid the project. <br /> <br />Staff will revise the Contract Documents to provide more precise information on the <br />equipment, methods, and material suppliers and will then repeat the extensive <br />communication to contractors to increase the possibilities of a better bid. <br /> <br />ALTERNATIVES <br />None. <br /> <br /> <br />FISCAL IMPACT <br />Funds for the general work of this project were approved and appropriated in the Fiscal <br />Year 2015/16 budget as Water Fund Capital Projects – Water System Seismic Update. <br />Seventy five percent of the project’s construction cost will be reimbursed by FEMA/Cal <br />OES through the FY2012 Pre-Disaster Mitigation Competitive Grant which was <br />accepted by the City Council on September 9, 2013. <br /> <br />ENVIRONMENTAL REVIEW <br />The rejection of bids is not a project as defined by CEQA <br /> <br />6.1.D. - Page 2