AgdaPkt 2004-09-27 - Laserfiche WebLink

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Cv� I �-1 REPORT To the Honorable Mayor and City Councii From the Ci Mana er September 27, 2004 Subject Redwood City Recycled Water Project — Disinfection, Storage and Pumping Facilities Recommendation By motion approve the pre-purchase of construction steel by SBSA in the amount of $799,000 for the Redwood City/SBSA Recycled Water Disinfection, Storage and Pumping Facilities and request that the SBSA Commission award the construction steel bid to the low bidder, Skyline Steel LLC of Rancho Cordova, California. Background On July 26, 2004, the City Council approved the Agreement for Production and Delivery of Recycled Water ("Agreement") and the Lease Agreement for Recycled Water Treatment / Storage / Pumping Facility Site ("Lease") befinreen SBSA and the City. The Agreement and companion Lease provide all of the legal, operational and financial details of the long-term partnership arrangement between the two agencies, and are considered the foundation of the project implementation process. Section 4.1.1 of the Agreement reads as follows: "Preqaration of Final Construction Contract and Biddinq Document SBSA, with the assistance of the Covello Group, Inc. or another qualified engineering firm approved by City, will develop construction schedules, perform constructability reviews of design documents, prepare materials to use for pre- qualification of contractors, evaluate purchase of long lead-time construction materials, and other necessary pre-construction activities. No materials will be purchased by SBSA without prior written approval by City of the contract terms and price." Also on July 26, 2004, The City Council authorized the SBSA Commission to proceed with pre-construction bid for construction steel for the Disinfection, Storage and Pumping Facilities on the SBSA site. The construction industry has been affected recently with substantial cost escalation of steel and concrete, the finro major materials that the SBSA facilities will be made of. Therefore, timing is increasingly important, and the idea of accelerating the schedule to mitigate cost increases bears consideration. Specifically, the recommendation from the project team was to proceed with call-for- bids as soon as possible for pre-purchase of the steel sheet piling (750 tons) required for the excavation to construct the permanent recycled water facilities on the unstable bay muds which underlie the entire construction site. It is expected that approximately 600 tons can be salvaged at the end of the project which could be credited back to the project account.