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<br />---s. /(!-¡ <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the Ci Mana er <br /> <br />June 13, 2005 <br /> <br />Subject <br />Award of Contract - 2004-2005 Watermain Replacement Project <br /> <br />Recommendation <br />Award the Contract for the 2004-2005 Watermain Repla~ement Project to the lowest <br />responsible bidder, Shaw Pipeline, Inc. of San Frandsco, California, for their low bid of <br />$973,394.00. <br /> <br />Background <br />Every year the City undertakes a watermain replacement program funded by the <br />Capital Improvement Program Water Fund. This program is designed for systematically <br />replacing water distribution system main lines, which have a history of service <br />disruptions due to age, excessive maintenance requirements, insufficient fire <br />protection, and/or capacity limitations. A priority list is reviewed and updated annually <br />by the Community Development Services Department - Engineering & Construction and <br />Public Works Services, to determine the priority areas to be included in the program <br />each year. This year's program includes the replacement of nearly one and a half (1.3) <br />miles of watermain at various locations (see attachment for project map of the <br />construction area). <br /> <br />The three (3) bids received at the bid opening on June 1, 2005, are summarized below: <br /> <br />No. Bidder Bid Amount <br />1. Shaw Pipeline, Inc. - San Francisco, CA $973,394.00 <br />2, West Vallev Construction - Redwood City, CA $1,271,350.00 <br />3. Pacific Underoround Construction - San Francisco, CA $1,307,000.00 <br /> <br />. The bid of $973,394.00 is 9% higher than the Engineer's Estimate of $890,000 for the <br />cost of construction. The higher bid can be attributed to the abundance of construction <br />projects in the area, and at this period of time. Based on the bids received, staff <br />believes that the bid is reasonable and responsive, and recommends awarding the <br />contract to Shaw Pipeline, Inc. of San Francisco. <br /> <br />Shaw Pipeline, Inc. successfully completed similar projects in the past, and is a <br />qualified contractor. <br /> <br />.- <br /> <br />A complete copy of the agreement is available for review in the City Clerk's Office. <br /> <br />Page 1 of 2 <br />