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BACKGROUND This project is part of the annual maintenance program that replaces aged water lines with a potential for breakage and leaks. Service laterals, fire hydrants, and backflow devices that do not meet the current state Department of Public Health standards are also replaced. Water replacement projects are selected from a list of projects put together by the City Utilities Division based on past records of maintenance, potential for failure due to breakage, expected life span of existing pipelines, and scheduling of other CIP projects. Johnson Drive has been scheduled for overlay treatment and the water line needs to be replaced prior to paving. In addition, the Johnson Drive water line supplies water to high demand water customers such as Club Sports, Clorox, Commerce Circle, and customers in the northwest portion of the City service area. Keeping this water line in constant working order is crucial. This project consists of replacing approximately 3,300 linear feet of old asbestos concrete pipe that was installed in the early 1960s. The existing line is located behind the curb and in landscaping areas where there is potential for large tree roots to break the aged line. The new PVC line will be relocated in front of the curb in the street. The old line will be abandoned in place so no trees will be affected. The project also includes new service connections and replacement of the fire hydrants. DISCUSSION Bids Sealed bids for this project were opened on October 23, 2012. A total of thirteen bids were received ranging from $400,400. to $887,270. (see Attachment 2). The engineer's estimate for this project was $450,300. The low bid of $400,400 was received from California Trenchless, Inc. of Dublin, California. All bid documents were found to be in order and past work performed by this contractor was verified to be satisfactory. Staff is recommending award of the construction contract to the lowest responsible bidder, California Trenchless, Inc. Budget Staff recommends that the construction contingency amount for this project be set at approximately 15% of the construction contract due to the potential for unknown conditions evident in potholes performed in selected spots in the project's alignment. Funding and estimated expenditures are presented in Attachment 2. Schedule The proposed schedule for the subject project is as follows: Approval of Plans and Specifications and Award of Contract November 20, 2012 Start of Construction December, 2012 End of Construction April, 2013 Page 2 of 3