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BACKGROUND This project is part of the annual maintenance program that replaces aged water lines that have 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 identified by the City Utilities Division and prioritized 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 resurfacing next summer and the water main replacement needs to be completed prior to paving. In addition, the Johnson Drive water line supplies water lo high demand water customers such as Club Sport, Clorox, Commerce Circle, and customers in the northwest portion of the City service area. Maintaining this water ine in constant working order is critical. This project consists of replacing approximately 3,200 linear feet of old asbestos concrete pipe that was installed in the early 1960s. The existing line i:, located behind the curb and in landscaping areas where there is potential for large tree roots breaking the aged line. The new PVC water main will be located within the public:. roadway. The old line will be abandoned in place so no trees will be affected. The project also includes new service connections and replacement of fire hydrants. DISCUSSION Bids Sealed bids for this project were opened on August 7, 2013. A total of seven bids were received ranging from $547,357 to $745,000 (see Attachment 1, Bid Summary). The engineer's estimate for this project was $565,000. The low bid of $547,357 was received from Mozingo Construction, Inc. of Oakdale, 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 Mozingo Construction, Inc. Budget Adequate funding requires the use of both the current project budget, CIP No. 131028 and part of the original project, CIP No. 111028. Past project related expenses were charged to CIP No. 111028. For purposes of funding this project, it is recommended that the balance of CIP No. 111028 ($430,432) be transferred to CIP No. 131028. Staff recommends that the construction contingency amount for this F roject be set at approximately 15% of the construction contract due to the potential for unknown conditions as evidenced from completed potholes on selected spots along the project's alignment. Funding and estimated expenditures are presented in Attachment 2. Page 2 of 3