REPORT TO THE CITY COUNCIL
May 25, 2017
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: MICHAEL CARBAJAL, Planning Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Reject all bids to the Phase 2 Regional Transmission Mains Segment B Project (Bid File 3451) (Council District 5, Fresno County)
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RECOMMENDATION
Staff recommends the City Council reject all bids received for the Phase 2 Regional Transmission Mains Segment B Project.
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, is seeking to reject all bids received for the Phase 2 Regional Transmission Mains Segment B Project. There were three bids submitted, the two lowest bidders were not responsive to Good Faith Effort requirements, and the third bid was $1,777,623, or 47%, above the engineer's estimate of $3,800,000.
BACKGROUND
On February 26, 2015, the City Council adopted a five-year water utility rate plan to finance the construction of a five-year water capital plan totaling approximately $429 million. The five-year capital plan included the construction of the Phase 2 Regional Transmission Mains that will convey water from the Southeast Surface Water Treatment Facility (Facility) to the existing water distribution system through a network of approximately 13 miles of large diameter pipelines. The Project is the third of four Phase 2 Regional Transmission Main segments that will be constructed and it includes the construction of approximately 1.25 miles of 42- to 20-inch diameter pipeline.
On January 7, 2016, the City Council authorized the Director of Public Utilities to accept and execute a $63,100,000 SRF Low-Interest Loan through the Board for construction of the Phase 2 Regional Transmission Mains. The SRF low-interest loan will fully finance the construction of the Phase 2 Regional Transmission Mains.
Contractor Pre-Qualification Process
In accordance with the Construction Management Act, the Department o...
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