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The new water facilities necessary to serve the VCSP area included improvements to an existing (but standby) Zone 7 turnout (a turnout is a large metering and valve vault used to control and meter water deliveries from the Zone 7 water transmission system into the City's transmission and distribution system), construction of a new water booster pumping station (to be located on the same site as the Livermore Pleasanton Fire Department Station No.5), a new water storage reservoir located at an appropriate elevation and of an appropriate size within the VCSP area, and a new reservoir access road and pipeline to connect the reservoir to the new pump station, turnout and VCSP water infrastructure. All of these facilities, including the access road, need to be constructed in order to provide water to the developing VCSP area since the water facilities on either side of the area were unable to do so. That is, during the summer months, pumping stations on either side of the VCSP are overburdened, and have to use their spare or emergency pumps just to keep up with normal summer demands. This can lead to low water pressures, water service interruptions, and potentially inadequate water supply for the area. Sealed bids for the Turnout NO.6 Improvement Project were opened on October 17, 2006. Seven bids were received, with the low bid of $231,312 submitted by Gateway Pacific Contractors Inc. The Engineer's estimate for this project was $300,000. On November 30, 2006, sealed bids were opened for the Booster Pump Station. Seven bids were received, with the low bid of $1,785,700 submitted by JMB Construction, Inc. The Engineer's estimate for this project was $2,000,000. Both of these structures will augment and provide potable water to the future Vineyard A venue Reservoir Tank currently under construction by Gateway Pacific Contractors, Inc. Attached to this staff report is a summary table of the consulting engineer's estimates for the projects and all bids received. The bids received were considered very competitive since there were seven bidders on each project and the successful bids were below the engineer's estimate. Staff recommends award of both contracts to the above firms along with approval of direct purchase contracts for the required electrical controls, switchgear, telemetry and water testing equipment and for installation of the fmal landscaping around the pump station. Staff will bring back to Council contracts for construction management, soils/material engineering and testing and any contracts for the equipment and landscaping noted above as necessary, at a later date. On September 19, 2006, Council also approved an amendment to a Purchase and Sale Agreement with Threehand Partnership to acquire the tank site parcel, access road and pipeline easements, and included in that amendment, a cap on the cost to complete construction of the roadway to the tank and all improvements to serve both the City and the private development lots, of $1,888,000. With this approval, and the bids received for the two remaining major water facility needs within the VCSP, the City now knows the costs for Page 4 of9