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The apparent low bidder, Gelco Services, Inc., is a company specializing in the <br />"trenchless technology" method. The second bidder, West Valley Construction <br />Company, Inc., is a company that does conventional "open trench" method. After <br />analyzing the bids, staff found that the cost for the "trenchless" portion of the work is <br />about the same for both bidders; however, the unit cost of installing sewer services by <br />the "open trench" method from West Valley Construction Company, Inc., is <br />unreasonably high (average of $5,725 per service) vs Gelco Services, Inc. (average of <br />$2,700 per service). After further analyzing, staff realized that the unit cost to replace <br />the existing four (4) inch and six (6) inch sanitary sewer services by "open trench" is <br />about $200 per lineal foot of pipe for West Valley Construction Company, Inc. vs $100 <br />per lineal foot for Gelco Services, Inc., which is a difference of approximately $238,000 <br />for the entire project. <br />Based on previous projects completed by the City, staff believes that the unit cost of <br />$100 per lineal foot is very reasonable for replacing the existing sanitary sewer <br />services. Furthermore, Fermin Construction (who is listed as a sub - contractor to do <br />the "open trench" portion of the work with Gelco Services, Inc.) has done projects in <br />Redwood City before, and is considered a good contractor. Also, Gelco Services, Inc. <br />has successfully completed sewer rehabilitation projects with City of Daly City and the <br />City of San Jose within the past two years. Therefore, the low bid by Gelco Services, <br />Inc., which is 11.3% below the Engineer's Estimate of $630,000, is considered a good <br />and responsive bid. <br />A complete copy of the agreement is available for review in the City Clerk's Office <br />Alternatives <br />Do not approve the contract for the 2002 -2003 Sewer Main Replacement Project, which <br />will leave the existing sewer main in its old and deteriorated condition. <br />Fiscal Impacts <br />Funds in the amount of $1,000,000 have been appropriated in the FY2002 -2003 <br />Capital Improvements Program Budget, Sewer Improvement Fund. <br />M. Saber Sarwary Bruce Liedstrand Ed'Everett <br />Associate Civil Engine Community Development Services Director City Manager <br />MSS:ss <br />s /library/reports /saber /award_2002 -2003 SM Replacement <br />