AgdaPkt 2012-07-09 - Laserfiche WebLink

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6.1.B. - Page 2 and responsible bidder. The low bid of $318,691.50 submitted by Aquatic Environments, Inc. is 59.3% higher than the engineer's estimate of $200,000. Staff based the engineer's estimate on the cost to dredge the lagoon last year. Staff attributes the variance to project uncertainties. Quantities were, and remain, uncertain, as to how much material is to be removed from inside the discharge pipes and the amount will not fully be known until work begins. Consequently, bids were higher than estimated to reflect this risk. Based upon a thorough review of the bids received, staff believes the low bid of $318,691.50 is reasonable and responsive, and recommends awarding the contract to Aquatic Environments, Inc. This project requires several environmental permits from the Army Corps of Engineer, the Regional Water Quality Control Board, the San Francisco Bay Conservation and Development Commission, US Fish and Wildlife Services and the State Marine Fisheries. The City's environmental consultant has been working on obtaining the permits and the issuance of these permits is imminent. The Contract Document for this project specifically requires the issuance of these permits as a condition of the award of this contract. Therefore, Council is asked to award this contract contingent on the City's receipt of the required environmental permits. Oracle Corporation operates a lagoon which also discharges to this slough proximate to the City's discharge structure. The City is working cooperatively with Oracle on this project since Oracle also desires to improve the discharge from their lagoon. Oracle has selected Aquatic Environment, Inc. as its contractor to dredge the portion of the lagoon for which it is responsible. The timing of the City's project is important since the City's and Oracle's portions of the work should be performed at the same time to save mobilization and impacts on permitting. This authorization is being pursued now to ensure that this project can proceed this summer as soon as the permits are issued. ALTERNATIVES Council may choose not to award the contract and direct staff to reject all bids, redesign and/or offer this project again for public bid, or delay award to this project until next fiscal year. FISCAL IMPACT Funds for this project were approved and appropriated in Fiscal Year 2010/11 budget, as GID 1-64 Maintenance and Operation Fund — Marine Parkway Pump Station which has an available balance of $593,768 as of May 31, 2012. ENVIRONMENTAL REVIEW As the lead agency, City of Redwood City has determined that the Belmont Slough Maintenance Dredging Project meets the California Environmental Quality Act (CEQA) exemption criteria as set forth in Section 15304.G of the CEQA Regulations. Furthermore, this project has been designed compliant with the city's Engineering Standards and accepted practices.