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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 Avenue 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 authorization to procure with direct purchase contracts, the required electrical controls, switchgear, telemetry and water testing equipment as well as the installation of the final 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. Included in that amendment is 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 all three major remaining VCSP water facilities and has a good estimate of all remaining and ancillary costs to complete the remaining non-water related facilities. These costs are described and included in the Updated Financing Plan. BID PROTEST A bid protest to the Vineyard Corridor Water Booster Pump Station bid was received from the second low bidder, Albay Construction. The bid protest claimed that JMB Construction, the apparent low bidder, (1) did not properly list all subcontractors that were to potentially perform work valued above the required limit for public works' contracts (more than $10,000 or 0.5 percent of the total bid amount, whichever is greater) and (2) did not have a specialty contracting license (C16) for the installation of the fire sprinkler system as required by the bid specifications. The work items and disciplines in question for the pump station construction were Plastering and Roofing, Louvers and Flashing, and the installation of the Fire Sprinkler System. JMB was faxed a copy of Albay's letter and was asked to respond to the claim. In response, JMB's attorney responded: 1. A listed subcontractor, T.J.&M Masonry, will perform the Plastering and Roofing. T.J.&M Masonry holds a Class B, C8 and C29 license. 2. A listed subcontractor, Blocka Construction, will perform Louvers and Flashing. Blocka Construction holds Class A, B, C10 and C20 licenses. 3. Fire Sprinkler installation will be performed by Emerald Plumbing & Fire Protection Inc., which holds a C16 license. JMB is ordering all materials associated with the fire sprinkler system. The amount to be paid to Emerald Plumbing and Fire Protection for the installation of those materials is under the Page 3 of 6