AgdaPkt 2004-09-27 - Laserfiche WebLink

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(�.� G�2 The project team ultimately decided against pre-purchasing the steel cofferdam bracing (450 tons) in order to provide subsequent construction bidders with some options as to fabrication and procurement of the bracing system as designed. Two bids received at the bid opening on September 13, 2004, are summarized below: No. Bidder Bid Amount 1. S line Steel LLC — Rancho Cordova, CA $799,000.00 2. L.B. Foster Com an — Ha ard, CA $833,446.00 The low bid of $799,000 is virtually equal to the Engineer's Estimate of $800,000 for the cost of construction. The bids were found to be in order, and it is recommended that the City Council authorize SBSA to award the bid to Skyline Steel Corporation. This is the same supplier that has provided the pre-purchased steel sheet piling for the SBSA Effluent Outfall RepaiNReplacement Project. Alternative Do not proceed with pre-purchase of steel, and instead, advertise for construction bids in the winter of 2004/05 to include purchase and defivery of steel. Based on the market trends cited in the Technical Memorandum (Attached to July 26, 2004 Staff Report), steel costs could escalate from zero to 50% in the next six months. If the 4-month escalation of 10.5% is applied to the two-month time gain realized by pre-purchase, savings could be in the range of $75,000. Additionally, the two-month gain in schedule will mitigate other construction inflation, especially concrete and other steel components. Fiscal Impacts Of the $7.1 million budgeted for the Recycle Water Project to date by the City Council, approximately $5 million was available as of June 30, 2004. The Council will consider a refined financing plan and a connection fee ordinance in the fall of 2004. Prior to the Council's approval of the Recycle Water Project, and the subsequent Task Force report and recommendations, staff had estimated that annual water rate increases ranging from 6% to 9% per year for 10-13 years would be required, to generate the additional revenues needed to finance the Project. A portion of the connection fees collected during that time (could be as much as 40% of total costs) would offset those impacts. I � / � n \ / ry ,_ " — / / � i � � Chu Chang oel Patter n Ed Everett � Manager, Engineering an Communi�r Development City Engineer Construction Services Director cciPO�:ss S/LIBRARY/REPORTS/Chu/award the prepurchase of steel recycled waterl Page 2 of 2