AgdaPkt 2004-07-26 - Laserfiche WebLink

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8�� REPORT -- ►" " 1 To the Honorable Mayor and City Council From the City Manager July 26, 2004 Subject Redwood City Recycled Water Project — Disinfection, Storage and Pumping Facilities Recommendation By Motion, authorize South Bayside System Authority (SBSA) to call for bids for pre- purchase of construction steel for the Redwood City Recycled Water Disinfection, Storage and Pumping Facilities to be constructed at SBSA Background On June 14, 2004, the City Council reviewed the principles of the proposed Agreement for Production and Delivery of Recycled Water ("Agreement") and the Lease Agreement for Recycled Water Treatment / Storage / Pumping Facility Site ("Lease") between SBSA and the City. The Council also passed a motion (Minute Order No. 04-114), requesting that the SBSA Commission maintain their momentum on preliminary engineering design for Recycled Water Treatment, Disinfection, Storage and Pumping Facilities at SBSA, pending completion and approval of the Agreement. In an earlier action at their meeting of July 26, 2004, the City Council considered the final recommended Agreement and Lease, which together provide all of the legal, operational and financial details of the long-term partnership arrangement between the two agencies. The Agreement and companion Lease are considered the foundation of the project implementation process. The City Council is asked to consider the benefits of authorizing the SBSA Commission to proceed with pre-construction bid and purchase of construction steel for the Disinfection, Storage and Pumping Facilities on the SBSA site. The construction industry has been affected recently with substantial cost escalation of steel and concrete, the two major materials that the SBSA facilities will be made of. Therefore, timing is increasingly important, and the idea of accelerating the schedule to mitigate cost increases bears consideration. Specifically, the recommendation from the project team is to proceed with call-for-bids as soon as possible for pre-purchase of the steel sheet piling (750 tons) and the steel cofferdam bracing (450 tons), required for the excavation required to construct the permanent recycled water facilities on the unstable bay muds which underlie the entire construction site. Once bids are received and evaluated, staff and consultants from Redwood City and SBSA will make a recommendation to the Commission to either proceed or to reject all bids and instead include the steel in the construction documents later. The estimated cost of the steel is $1.3 million, and market prices have been escalating and continue to be volatile. Staff recommends that the estimate be escalated by 15%, and rounded up to $1.5 million. There may be some salvage value to the steel at the Page 1 of 2