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to the project advertisement, staff repeated extensive communication to contractors <br />with the intention to increase the possibilities of a better second bid. <br />Despite staff’s efforts to obtain a better second bid, the second round of bids were <br />actually higher than the first, so staff is recommending rejecting for a second time. <br /> <br />ANALYSIS <br />The project consists of the following improvements to promptly restore water services <br />in the Redwood Shores area if these important transmission pipe lines are damaged <br />due to an earthquake, or other 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 and fire hydrants for emergency connection at Twin <br />Dolphin Drive. <br />4) Installation of inline valves and one fire hydrant 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 $1,170,000.00 <br />JMB Construction, Inc. of South San Francisco $1,187,800.00 <br /> <br />Staff has evaluated the two bids and has determined that both bids are <br />approximately 56% higher than the Engineer’s Probable Cost Estimate. The most <br />probable reason for the high bids is likely that the construction season is at its peak, <br />and the majority of the contractors who perform this type of special work in the area <br />are very busy. <br /> <br />Staff recommends a rejection of all bids and a rebid the project due to the lack of <br />approved funding. Staff believes that bidding condition in a few months will be better <br />and expects lower winter construction price trends. However, additional funds to shore <br />up the project budget may still be needed and requested at that time. <br />CalOES/FEMA had approved a 6-month time extension ending in December 2016 for <br />the City to complete the construction. If the project is rejected and rebidded, the City <br />will likely need a second 6-month extension to complete the work. This pushes the <br />grant completion date to June 2017. Staff is working with CalOES for a possible grant <br />extension. <br />6.1.H. - Page 2