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BACKGROUND On November 15, 2016, Council awarded the contract for this project to the lowest responsible bidder, D&D Pipelines, Inc. in the amount of $937,200. This recycled water project was the first phase of recycled water main down Valley Avenue and extended 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 first phase was timed to be completed prior to the pavement reconstruction of Valley Avenue. The second phase will extend the piping down Valley Avenue across the Arroyo del Valle Bridge to reach Koll Center Parkway, the Alameda Fairgrounds, Bernal Park Phases I and II, Wild Rose Park, Pleasanton Township Square, and Pleasanton Gateway. The project contingency was used to add an additional 1,095 linear feet south of the Arroyo del Valle between Valley Avenue and south of Koll Center Parkway. Ranger Pipelines, Inc. installed 200 feet of 12-inch recycled water main for $58,697 through the intersection of Valley Avenue and Bernal Avenue prior to the resurfacing of the intersection which was completed in fall of 2016. The work was performed as a change order under the Recycled Water Infrastructure Phase IA project (CIP No. 14126), but was ineligible for reimbursement through the project's funding source. The work was instead charged to this project, CIP 16148. On April 10, 2017, the City Manager authorized a change order for $95,000 to replace the Madden Pressure Reducing Station, and authorized a $95,000 increase in the project contingency from $208,270 to $302,270. The City's Utilities Division scheduled the replacement of the Madden Pressure Reducing Station, located at 1780 Foothill Road, utilizing City and on-call forces. Due to winter storm work, City forces were not be able to provide the required labor to install the pressure reducing station. The installation of the station has been delayed for two years and is in need of replacement prior to the increased summer water demands that normally pick up in May. The existing station was located on John Madden's property and needed to be relocated to a City-owned property approximately 500 feet south of the existing station. The lowest proposal to complete the work was by D&D Pipelines, Inc. and so was added as a change order to this project as authorized by the City Manager. DISCUSSION Budget The final construction contract cost, including contract change orders, is $1,277,608. Three change orders — including the balancing change order — were issued on the project for a total of $290,408. The first change order for $171,528 was for the 1,095 linear feet extension of pipeline south of the Arroyo del Valle Bridge to install piping on Valley Avenue prior to the resurfacing of the roadway. The second change order for $95,500 was for the installation of the Madden Pressure Reducing station and billed to the Bi-Annual Pressure Reducing Station Improvements, CIP No. 16122. Page 2 of 3