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<br /> '(p.1 ß- <br />. <br />June 14, 2004 <br />Subject <br />Rejection of Bids - Lakeview Reservoir Rehabilitation Project <br />Recommendation <br />Reject all bids for the Lakeview Reservoir Rehabilitation Project, direct return of all bid <br />securities, and readvertise. <br />Background <br />This project was to rehabilitate a 70 year old reservoir that holds approximately one (1) <br />million gallons of drinking water. The structure has a failing roof, which is increasingly <br />unsafe for public works personnel to access, and the reservoir does not meet current <br />seismic requirements, making the structure unreliable in the event of a major <br />earthquake. The roof is proposed to be replaced and columns reinforced along with <br />other structural additions. New inlet and outlet pipe modifications are also proposed to <br />improve connections to the water system. <br />Three (3) bids received at the bid opening on June 2, 2004, are summarized below: <br /> No. Bidder , Bid Amount <br /> 1. Abhe & Svoboda, Inc - Prior Lake, MN $817,770.00 * <br /> 2. Spiess Construction Co. Inc - Santa Maria, CA $836,758.00 <br /> 3. Proven Manaaement, Inc. - San Francisco, CA $930,950.00 <br /> <br /> Average: $861,826.00 <br />The average bid of $861,826 was 38% higher than the Engineer's Estimate of $625,000 <br />for the cost of construction. <br />Staff have carefully analyzed the bids and interviewed the contractors to discover the <br />reasons behind the high bids. <br />The project site has limited access, making mobilization of needed equipment difficult, <br />which brought up those prices. The cosrof concrete has been on the rise this summer, <br />due to a material shortage, and regionally concrete prices have jumped dramatically. <br />The roof material (polyurethane foam) (proposed for this project) is a highly specialized <br />application, which has potentially reduced the amount of subcontractors capable of <br />bidding this portion of the project. <br /> Page 1 of 2 <br />