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remote areas along the private-gated road -~ Santos Ranch Road -- which receives very <br />little drive-by traffic), the removal of underground pipe raceways, using a bolted water <br />tank vs. a new welded tank, etc. The potential cost savings of these changes, as <br />estimated by the contractor, is approximately $420,000. <br /> <br />While there will be additional costs incurred to revise the plans and specifications to <br />reflect the recommended changes (this amended design contract will be brought to City <br />Council as a separate staff report if this alternative is selected by Council), it is <br />anticipated that at least the above amount, if not more, could be trimmed from a future <br />construction contract if the project were rebid with these changes made and some <br />additional value engineering work to be done by City staff and the project design <br />consultant. There is no guarantee, however, that these cost savings (the $420,000) or <br />additional value engineering cost savings, will be realized since the work will be subject <br />to the Public Bid Process and governed by market conditions at the tune the public bids <br />are being prepared. Nonetheless, staff believes that substantial costs savings can be <br />realized by incorporating the suggested design changes and recommends that the changes <br />be incorporated and the project be rebid. <br /> <br />RECOMMENDATION <br /> <br />Based upon a review of all of the alternatives described above, staff is recommending to <br />Council to reject all bids and proceed with managing the project as described in Alternate <br />3 above. This recommendation includes redesigning and value engineering the project <br />and then putting it back out to bid as soon as practical for City staff and the design <br />consultants to do so. Based upon Council approval of staffs recommendation to reject <br />all bids for this project, staff will prepare a recommendation in the near future for City <br />Council to authorize an amendment to the design consultant's contract to include the cost <br />saving and value engineering approach for the project. <br /> <br /> Respectfully submitted, <br /> <br />Rob Wilson Susan Rossi Nelson Fialho <br />Director of Public Works Director of Finance City Manager <br /> <br /> SR 05:036 <br /> Page 6 of 6 <br /> <br /> <br />