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THE CITY OF 7 CITY COUNCIL AGENDA REPORT pL£ASANTONo July 21, 2009 Community Development Engineering Division TITLE: APPROVAL OF PLANS AND SPECIFICATIONS, REVIEW OF BIDS, AND AWARD OF CONSTRUCTION CONTRACT TO KNIFE RIVER CONSTRUCTION IN THE AMOUNT OF $411,760 FOR THE ANNUAL WATER REPLACEMENT PROJECT, CIP NO. 081028 SUMMARY Plans and specifications were prepared for the City's Annual Water Replacement project. The subject project consists of installing new water main, water service connections, and various related appurtenances on East Angela Street, Commerce Drive and Commerce Circle. Bids were received, but the apparent low bidder made a material error in its bid and has requested that its bid be withdrawn. Staff is recommending the contract be awarded to the second low bidder, Knife River construction, in the amount of $411,760. RECOMMENDATION 1. Approve the plans and specifications for the subject project. 2. Review the bids received. 3. Allow the apparent low bidder, BonaTech Engineering, to be relieved of its bid due to mathematical errors. 4. Award the construction contract to Knife River Construction of Stockton, California, the second low bidder, in the amount of $411,760. 5. Authorize the City Manager to enter into the construction contract. 6. Authorize the transfer of $150,183 from CIP No. 091028 (Annual Water Replacement Project) to CIP No. 081028. 7. Authorize the Director of Community Development to approve and execute contract change orders for a contingency amount not to exceed $82,350 (20% of the construction contract), if necessary, for related subject project work. FINANCIAL STATEMENT This project will improve water service and decrease maintenance costs. Although this Annual Water Replacement Project (CIP No. 081028) was allocated $400,000 as part of the FY 2008 -09 Capital Improvement Program, $50,000 was set aside for the Operations Services Department to replace aging water pumps and motors. Additionally, the remaining balance of FY 2007- 2008's Annual Water Replacement Project (CIP No. 071028), in the amount of $20,743, was transferred into this current project. For these reasons, the available funding for this project is $370,743 and additional funding will be necessary to augment that balance. Staff recommends transferring $150,183 from the 2009 -2010 Annual Water Replacement (CIP No. 091028) project balance to the proposed project.