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The other issue is time. CalOES/FEMA had approved a 6-month time extension ending <br />in December 2016 and following the second bid rejection, the City requested and <br />anticipates a second extension of a 6-month time period ending on June 2017. <br />Staff recommends awarding the contract to Con-quest Contractors, Inc. for the <br />Responsive and Responsible Low Bid of $1,073,950.00. Staff believes that this is the <br />best and most economical option to complete this important water system <br />emergency/seismic response improvement work as outlined in the Grant proposal. <br />ALTERNATIVES <br />1. Reject all bids and complete the project with 100% City’s funding in the <br />future. The City may have to return Grant funds received for the project. <br />2. Reject all bids and cancel the project. These system emergency response <br />improvements will not be done, and the City may have to return Grant funds <br />received for the project. <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 />Supplemental funding in the amount of $400,000.00 will be transferred from the Water <br />Fund Capital Projects – Distribution System Replacement Program. Seventy five <br />percent of the project’s construction cost will be reimbursed by FEMA/Cal OES <br />through the FY2012 Pre-Disaster Mitigation Competitive Grant which was accepted <br />by the City Council on September 9, 2013. <br />ENVIRONMENTAL REVIEW <br />As the lead agency, City of Redwood City has determined that the Redwood Shores <br />Potable Water Transmission System Seismic Improvement Project meets the California <br />Environmental Quality Act (CEQA) exemption criteria as set forth in Section 21080(b)(4) <br />(disaster preparedness) of the Public Resources Code. Furthermore, all improvements, <br />maintenance and upgrades as proposed are categorically exempt from the <br />requirements of the California Environmental Quality Act (CEQA) per Section 15301 (b) <br />(Existing facilities of both investor and publicly-owned utilities used to provide electric <br />power, natural gas, sewerage, or other public utility services) and (d) (Restoration or <br />rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment <br />to meet current standards of public health and safety). <br />This project does not require a National Pollutant Discharge Elimination System <br />(NPDES) General Permit for stormwater discharges associated with construction and <br />land disturbance activities pursuant to Attachment A.2 of Order 2010-0014-DWQ which <br />exempts projects to update existing lines and facilities. However, the proposed <br />construction will employ stormwater pollution prevention best methods and practices. <br />6.1.B. - Page 3