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SUMMARY: The project provides for the conversion of overhead utilities to <br /> underground utility services on private properties along First Street and <br /> Kott'mger Drive, as part of the First Street Underground Utility District. <br /> Plans and specifications were prepared for the subject project and the <br /> project was originally advertised for bids in October and November, <br /> 2004. On January 4, 2005 Council rejected all bids for the project and <br /> authorized staff to rebid the project. The project was readvertised and <br /> one bid was received. The bid of $229,000 was received from Prism <br /> Engineering of Campbell, California. Staff recommends the contract be <br /> awarded to Prism Engineering. <br /> <br />Honorable Mayor and Members of the City Council: <br /> <br />BACKGROUND <br /> <br />On December 17, 2002, by resolution, the City Council formed Underground Utility District <br />No. 02-1 (UUD 02-01) which provided for the undergrounding of the existing overhead utility <br />lines on First Street from West Angela Street to Stanley Boulevard, and on Kottinger Drive <br />from First Street to St. Mary's Creek. The bulk of the undergrounding conversion work will <br />be done by PG&E. The City's efforts towards this work are divided into two projects. The <br />ftrst contract provided for the conversion of streetlights from PG&E poles to independent <br />fixtures (CIP NO. 25071A). The City Council approved the award of that construction contract <br />to Richard A. Heaps in the amoum $480,342. Included was the conversion of City standard <br />street lighting within the Underground District to decorative lighting, and the replacement of <br />existing cobra-head lighting fixtures along First Street from Vineyard Ave to Old Stanley Blvd. <br /> <br />The second contract constructs private utility conversions on private property (CIP NO. <br />025071B). Under the newly formed district, the City Council previously opted to provide for <br />the design and construction costs for converting from overhead to underground services for <br />residential properties and has invoked Rule 20A provisions, which pays for the construction of <br />the underground conduit trenching 100 feet into private property and up to $1500 for each <br />electrical panel box conversion for both residential and commercial properties. Under these <br />provisions, commercial properties will pick up any additional costs for their conversion not <br />covered under Rule 20A provisions. <br /> <br />BIDDING PROCESS <br /> <br />The project was advertised on October 31st, November 7th and November 21st, 2004. Bids <br />were opened on December 2, and only one bid was received. In talking to other plan holders, <br />several reasons were cited for not bidding the project, which included: the nature of work and <br />difficulty dealing with (42) separate property owners; dealing with the uncertainty and <br />unpredictability of PG&E's schedule; the duration of the project (1-1/2 to 2 years); the number <br /> <br />SR 05:048 <br />Page 2 of 4 <br /> <br /> <br />