AgdaPkt 2010-02-22 clsd and jnt - Laserfiche WebLink

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6.1C Page 1 REPORT February 22, 2010 SUBJECT Request for Construction Contract Increase - Master Water Meter Replacement Project RECOMMENDATION Authorize, by motion, the City Manager to increase the amount of the contract previously awarded to D&D Pipelines, Inc., up to 15% as necessary to complete the construction of the Master Water Meter Replacement Project (Redwood Shores Apartments and Harborside Apartments). BACKGROUND This project is the fourth master water meter replacement construction project and replaces four eight-inch detector water meters; two at Redwood Shores Apartments and two at Harborside Apartments. The work consists of removing and replacing the existing concrete vault, water meter, piping and other appurtenances, restoring all pavement, landscaping, and pedestrian access ways. The new meters have been previously purchased by the city for installation by the contractor to facilitate increased standardization of equipment. Standardizing equipment that is used throughout the city makes repair and maintenance more efficient, economical, and reliable. On October 19, 2009, the City Council awarded the construction of the Master Water Meter Replacement Project (Redwood Shores Apartments and Harborside Apartments) to the lowest responsible bidder, D & D Pipelines, Inc. of San Francisco for their responsive and responsible low bid of $83,000.00 and authorized the City Manager to increase the contract amount up to 10% jf necessary. Nine bids were received at the bid opening on September 23, 2009. The low bid of $83,000.00 from D & D Pipelines, Inc., was 19.4% lower than the engineer's estimate of $103,000.00 for the cost of construction. Staff attributed the variance to a very competitive bidding environment due to the economic climate. Due to unforeseeable conditions at three of the installation sites, change orders in the amount of $6,739.00 (8.1 % of the contract amount) have been issued. Change orders were generated for additional thrust restraints for pipe fittings, increasing the height of pre-cast concrete vaults to accommodate existing grades, and a new ductile iron reducer fitting. Additional change order activity is anticipated as similar conditions are expected at the fourth and final installation site. Staff estimates additional change order activity not to exceed $5,000.00. Total change order activity will exceed 10% of the original contract amount that the City Manager has been previously authorized to approve. Staff requests that the City Manager now be authorized to approve up to 15% of the original contract amount.