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The low bid of $2,083,000 was received from Anderson Pacific Engineering Construction, Inc. of Santa Clara, California. Past work performed by Anderson Pacific Engineering Construction, Inc. was verified to be satisfactory. Therefore, staff recommends award of the construction contract to the lowest responsible bidder, Anderson Pacific Engineering Construction, Inc. Due to delays in acquiring the required land rights from Caltrans, Anderson Pacific Engineering Construction, Inc. extended their bid price until March 26, 2011. Budget A summary of the project budget is presented in Attachment 2 to this report. As indicated in that attachment, a total of $4,197,209 in funding has been approved for this project to date. Expenses and encumbrances to date total $561,150, resulting in current available funding of $3,636,059. With a construction budget estimated at $2,775,742, there are sufficient funds for the subject construction and related construction support services. Staff recommends that the construction contingency percentage for this project be set at a value of $208,300 (10% of the contract amount) for necessary related project work. Carollo Engineers Contract Amendment No.1: On February 19, 2008, City Council approved a contract with Carollo Engineers in the amount of $390,000 to provide specialty engineering services including completion of a pre- design study, preparation of a detailed Plans and Specifications, and support services during the bid period. During the design phase, additional work was requested by the City to salvage the existing generator, modify electrical and instrumentation plans and review design alternatives if a Caltrans easement could not be obtained. The additional scope of work has resulted in Carollo costs initially exceeding the contract by $63,000, however that amount has been negotiated to $32,000 (Attachment 4, Exhibit B). The construction management services were originally planned to be performed by an outside consultant. To reduce costs, the construction management services will be performed by City staff with assistance from Carollo Engineers, which will perform the specialty engineering reviews and provide technical assistance. Carollo Engineers has proposed to perform this work for a not -to- exceed amount of $267,827.00 (see Attachment 4, Exhibit B). Amendment No. 1 to the contract with Carollo Engineers is for $299,827 and includes the $32,000 for additional design services and a not -to- exceed amount of $267,827 for construction services. Consultant Selection for Specialty Inspection Services Because of the specialty inspection and testing services required for construction of the pump station, retention of a consulting firm is necessary. Using the City's consultant database and responding to letters of interest submitted by consultants, a total of five (5) firms were invited to submit proposals. Four firms responded with a proposal, and staff determined ENGEO Incorporated to be the most qualified firm. Parameters used Page 3 of 4