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Page 3 of 4 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org Table #1: List of Bidders Bidder Total Bid Amount Cratus, Inc.$1,673,600.00 KJ Woods Construction, Inc.$2,438,000.00 After performing a bid evaluation, the apparent low bid submitted by Cratus, Inc. was determined to be responsive and responsible. Staff also conducted reference checks and recommend awarding the contract to Cratus, Inc. Staff also recommends authorizing the City Manager a 20% construction contingency, rather than the typical 10% contingency, given the complexity of the work involved. Additional construction contingency funds may be needed to address unknown and unforeseen conditions. Two risk factors are the depth of the recycled water line, and impacts associated with groundwater. The recycled water line will lie under the alignment of Redwood Creek on Marshall Street between Jefferson Avenue and Main Street, and will lie up to a maximum depth of 18 feet below existing grade (generally utilities are within 10 feet below grade). This means there could be additional utility crossings and a higher potential for unknown below grade conditions to be discovered during construction. Geotechnical reports indicate groundwater could be present during construction, but due to seasonal variations in groundwater level, the groundwater may have no impact (groundwater table being below the bottom of the excavation) or may have strong impact (high groundwater leading to difficulty during ‘jack and bore’ construction operations). These complexities could increase construction costs above the usual 10% construction contingency. A 20% construction contingency would allow the project to handle more issues that arise during construction without pausing work and having the contractor wait on standby while staff requests additional funding. The contract specifies conditions and procedures for issuing change orders. Construction is expected to commence by September 2024 and be completed within 60 days. Staff will notify all residents, businesses, and departments (including the Fire Department that has frontage along Marshall Street) who might be affected by the construction. Notification strategies will include direct mailers, deployment of the digital construction message signs, temporary “No Parking” signs, and coordination with the City’s communication team. Staff will also provide construction updates on the City’s website. FISCAL IMPACT This project does not require General Fund funding. Funds for the Redwood City Recycled Water Project Main City Distribution System - Phase 2.C.1 were previously approved as part of the Recycled Water Distribution System Phase 2 Extension (Project #85116) from Enterprise Fund 686 Water Capital Projects, 6.B. - Page 3 of 4 27