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Honorable Mayor and Members of the City Council: <br />BACKGROUND <br />In 1997, the City hired a consulting engineering firm specializing in water system facility <br />design to evaluate the existing water facilities constructed by the Pleasanton Township County <br />Water District (PTCWD) on Santos Ranch Road, along Pleasanton Ridge and Kilkare Road. <br />These facilities serve approximately 300 properties within and outside the City limits. The <br />facilities include three booster pump stations, including six pumps, five water storage tanks, <br />and several miles of water mains that range in size from 6 to 12 inches in diameter. The <br />majority of the water lines and tanks were constructed in 1964. The consulting firm <br />recommended the replacement of the pump station piping, electrical equipment, mechanical <br />equipment, portions of the pump station buildings, the recoating of three of the five water <br />tanks and the installation of cathodic protection to the water mains to guard against pipe <br />corrosion. <br />The City has phased the refurbishment recommended by the consulting firm and has <br />completed the recoating of the three water tanks, the installation of the cathodic protection for <br />the existing water mains, and the replacement of sections of pipe at the pipe bends along <br />Santos Ranch Road. Remaining, is the replacement of the three pump stations, including the <br />six pumps and related mechanical and electrical equipment. <br />The project was designed, advertised and put out to public bid in 2005. However, on <br />February 15, 2005, at staff's recommendation, City Council approved the rejection of all bids, <br />to re- engineer and redesign the project in order to reduce costs, and to re -bid the project. The <br />previous lowest responsible bidder submitted a construction bid of $2,778,900. Staff met with <br />the lowest responsible bidder, GSE, the project designer, Tetra Tech, and looked at possible <br />changes in design to reduce costs. Some of the changes included the removal of non - essential <br />amenities such as the paving of the parking areas adjacent to the pump stations, the use of <br />fewer architectural elements on the exterior of the pump station buildings (the buildings are <br />located in fairly remote areas along the private -gated road -- Santos Ranch Road -- which <br />receive very little drive -by traffic), the removal of underground pipe raceways, the use of a <br />bolted 20,000 gallon water tank instead of a new welded tank, the reduction in size of the <br />pump station building footprints, and other cost saving revisions. <br />On March 15, 2005, the City Council authorized a consulting contract amendment with Tetra <br />Tech to redesign these facilities to incorporate cost - reducing recommendations for an amount <br />not -to- exceed $215,160. After completion of the redesign effort, the project was re -bid and <br />bids were opened on December 14, 2005. The lowest responsible bid was submitted by <br />McGuire and Hester, Inc. and the project was awarded to them in the amount of $1,881,450, <br />resulting in a net savings (including redesign costs) of approximately $680,000. <br />SR 06:070 <br />Page 2 of 4 <br />