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A BACKGROUND The project extends the recycled water infrastructure backbone down Valley Avenue from Paseo Santa Cruz to the Arroyo Del Valle Bridge prior to the upcoming pavement reconstruction of Valley Avenue under the One Bay Area Grant (OBAG) project, which is scheduled for the summer 2017 The OBAG project will reconstruct Valley Avenue from Hopyard Road to Bernal Avenue This recycled water project is the first phase of recycled water main down Valley Avenue and will extend the recycled water from the north terminus of Paseo Santa Cruz to the Arroyo Del Valle Bridge to provide recycled water to the City's Valley Avenue parkway landscaping The second phase will extend the piping down Valley Avenue across Arroyo Del Valle Bridge to reach Koll Center Parkway, Alameda Fair Grounds, Bernal Park Phase I and II, Wild Rose Park, Pleasanton Township Square, and Pleasanton Gateway Ranger Pipelines, Inc installed 200' of 12" recycled water main for $58,697 through the intersection of Valley Avenue and Bernal Avenue prior to the resurfacing of the intersection completed in Fall 2016 The work was performed as a change order under the Recycled Water Infrastructure Phase IA project (CIP NO 14126), but is not eligible for reimbursement through that project's funding source so it was charged to this project DISCUSSION Bids The City received bids on September 23, 2016 to install 6,375 feet of recycled water main from Paseo Santa Cruz to the Bernal and Valley Avenue intersection, matching the OBAG I roadway reconstruction limits Bids were received from four contractors D&D Pipelines, Ranger Pipelines, KJ Woods Construction and Con-Quest, ranging from $1,657,550 to $1,960,805 D&D Pipelines was the apparent low bidder The bids received exceeded the programmed funding and additional funding was not available Staff recommends rejection of all bids received on September 23, 2016 Because of the inadequate funding, staff then reduced the project scope to stop the project short of the Arroyo Del Valle Bridge, reducing the piping to 3,745 feet to fit within the available programmed funding The updated plan sets were sent to the original plan holders and the project re-advertised with the reduced scope Sealed bids for the reduced scope project were opened on October 25, 2016 There were fourteen plan holders and the City received seven bids, ranging from the low bid amount of $987,200 from D&D Pipelines, Inc , to $1,169,990 The low bid amount is approximately 1 4% lower than the engineer's estimate of$1,001,100 (see Attachment 1) Past work performed by D&D Pipelines, Inc was verified to be satisfactory Staff recommends award of the construction contract to the lowest responsible bidder, D&D Pipelines, Inc Professional Services It is anticipated that contract engineering services will be necessary to aide in generation of water line profiles to meet the aggressive schedule identified in the contract Carlson Management, Inc , performed these services for the Recycled Water Infrastructure Phase IA project This consultant has submitted a proposal to provide the profile design services and shop drawing reviews, and aide in project management for a not-to-exceed amount of $26,036 A task authorization will be issued under the existing on call contract that Carlson Management, Inc has with the City Page 2 of 3