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ANALYSIS <br />Two bids were received for the Sanitary Sewer Pump Station Improvements Project - <br />P.S. No. 13 and P.S. No. 16 by the bid deadline on April 19, 2017. The bid amounts are <br />summarized in the table below. <br /> <br />BIDDER BID AMOUNT <br />Casey Construction Inc.- Emerald Hills $1,404,140.00 <br />Fort Bragg Electric, Inc.- Fort Bragg $1,787,152.00 <br />ENGINEER’S ESTIMATE $860,000.00 <br /> <br />The low bid of $1,404,140.00 submitted by Casey Construction Inc. is 63% higher <br />than the engineer’s estimate of $860,000.00 for the cost of construction, and 27% lower <br />than the second lowest bid. Staff have researched and evaluated the two bids and <br />determined that the variance of the higher bid price is due to a highly competitive <br />construction market. Specifically, high demand for labor and materials with particularly <br />sharp increases electrical and mechanical component pricing such as the two motor <br />control center ($300,000 increase compared to the average market setting), <br />submersible pumps (15% increase), wet well coating (30% increase), etc. Staff also <br />determined that only two bids were received because of the specialty of the project that <br />limits capable contractors. <br /> <br />The engineer’s estimate was based on average market conditions and the construction <br />costs of similar pump station improvement projects from the last few years. Given more <br />recent market conditions, the low bid appears reasonable and balanced. Staff <br />recommends awarding the contract to Casey Construction Inc. In addition, Casey <br />Construction Inc. has successfully completed similar projects in the past and is a <br />qualified contractor. <br /> <br />Sufficient reserved cash flow balance of $1,611,287.36 in the current fiscal year pump <br />station rehabilitation program budget, and upcoming funding appropriations for the <br />Fiscal Year 2017-2018 would ensure undisrupted completions of this project and other <br />planned pump station improvement projects. <br /> <br />Construction is anticipated to begin in August 2017 and conclude within 150 calendar <br />days. Notification of the proposed work will be mailed to area residents, property <br />owners, business owners, and schools in July 2017. The contractor is required to <br />distribute an additional notice 14 days in advance of the start of work in their <br />immediate area. Signage that contains project information will be posted at the <br />construction sites and updates on the progress of construction will be available on the <br />City’s website. <br /> <br /> <br />6.1.C. - Page 2