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6.1 E <br /> Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From �he Ci Mana er <br /> September 27, 2010 <br /> SUBJECT <br /> Award of Contract—2010-2011 Sewer Rehabilitation Project <br /> RECOMMENDATION <br /> Approve, by motion, the contract documents and award the standard form contract for <br /> the 2010-2011 Sewer Rehabilitation Project to Southwest Pipeline And Trenchless <br /> Corp. of Gardena for their responsive and responsible low bid of $537,275.00 and <br /> authorize the City Manager to increase the contract amount, if necessary, up to 10% of <br /> the amount awarded. <br /> BACKGROUND <br /> The city systematically replaces sections of aging sewer infrastructure to ensure the <br /> continued reliability of the system. Each year, staff from Building, Infrastructure and <br /> Transportation and Public Works Services departments identify pipelines that required <br /> excessive maintenance or experienced repeated ser�ice disruptions and target those <br /> pipelines for improvement. <br /> . Recently, staff has employed closed circuit television inspection services (CCTV} to <br /> better assess the condition of the system. CCTV technology helps to identify pipe <br /> defects such as cracks, offset joints, and root intrusion that can be remediated before a <br /> service failure. These types of repairs ensure a fully funetioning system as defects in <br /> the sewer collection system allow ground water to infiltrate the pipelines thereby <br /> reducing their capacity to collect sewerage during wet weather conditions. <br /> The 2010-2011 Sewer Rehabilitation Praject includes rehabilitation of pipe segments in <br /> the sewer basin bordered by IlVhipple Avenue, Hopkins Avenue, EI Camino Real, <br /> Edgewood Road, and Upland Road. This project will rehabilitate approximately 5,050 <br /> linear feet of sewer main. Cured-in-place-pipe (CIPP} trenchless technology methods <br /> will be used for most of the rehabilitation work. Some pipe defects, particularly those <br /> resulting in pronounced misalignment, cannot be mitigated with trenchless technology; <br /> therefore, excavation of these locations is required to mitigate the defects. <br /> Seventeen (17) general contractors purchased the plans for the project. However, only <br /> two (2) bids were received at the bid opening on September 8, 2010 and are <br /> summarized below. Staff attributes the limited number of bidders to the specialization <br /> re uired that fewer contractors can rovide. <br /> Bidder Bid Amount <br /> Southwest Pi eline And Trenchless Cor . --Gardena $537,275.00 <br /> J.F. Pacific Liners, Inc. --Vacaville $641,395.00 <br /> En ineer's Estimate $742,040.00 <br /> Recommended Bidder: Southwest Pipeline And Trenchless Corp. <br /> Substantiation: Southwest Pipeline And Trenchless Corp. is the lowest responsive and responsible <br /> bidder. <br /> The low bid of $537,275.�0 submitted by Southwest Pipeline And Trenchless Corp. is <br /> approximately 27.6% lower than the engineer's estimate of$742,000.00. Staff believes <br /> this variance is due to the decrease in cost of the pipe lining material as trenchless <br /> technology becomes more widely available. Southwest Pipeline And Trenchless Corp. <br />