DATE: March 26, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: RANCHO DEL ORO/JP STEIGER WATER MAIN REPLACEMENT PROJECT AWARD OF CONTRACT
RECOMMENDATION
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Staff recommends that the City Council award a public works agreement to T.E. Roberts, Inc., in the amount of $2,186,301, for the construction of the Rancho Del Oro/JP Steiger Water Main Replacement Project; authorize the City Engineer to execute Change Orders up to a total of 15 percent of the contract value for any unforeseen conditions; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The Rancho Del Oro (RDO) Transmission, a 24” concrete-mortar-lined and coated steel main, has been partially out of service since September 2021 due to a previous water main break. A temporary repair has been implemented, but the pipeline requires repair and rehabilitation to re-establish full service to the JP Steiger supply reservoir. The RDO Transmission main (Project) is a reservoir outlet feed to the City’s largest pressure zone with the highest percentage of customer demand, making this a priority construction project for the City.
The Project includes using trenchless technology to minimize impacts to the public, reduce project costs, reduce construction time, and minimize traffic closures. The total length of water main rehabilitation extends 3,200 feet along Via Rancho Road and Rancho Del Oro Drive, starting from the existing JP Steiger reservoir, located across Via Rancho Road from El Camino High School, and ending at the Craven Road intersection with Rancho Del Oro Drive. The Project also includes valve installations, water service replacements, and appurtenance installations to facilitate construction and future operations. Construction is expected to last approximately six months, and work near El Camino High School will be limited to school summer recess to minimize impacts.
On February 4, 2025, three bids were received and formally opened. The apparent low bidder is T.E. Roberts, Inc. with a total bid in the amount of $2,186,301. Staff has reviewed the bid documents submitted by T.E. Roberts and find that its bid, bid bond, and references are in accordance with City standards, and that T.E. Roberts is a responsive and responsible bidder.
Additionally, staff recommends authorizing the City Engineer to execute Change Orders up to 15 percent of the contract value for any unforeseen conditions. Because this infrastructure is underground and not easy to inspect, the true condition of the pipe won’t be known until construction begins, and therefore, staff is asking for more than the typical 10% contingency in the event of an unexpected condition that is not readily apparent from available information.
FISCAL IMPACT
The amount of the construction contract with T.E. Roberts is $2,186,301.
The Project will be charged to the Water Pipeline Replacement account 908163620712.5703.10600, which has a current available balance of $2,705,668; therefore, sufficient funds are available. This cost represents construction in the amount of $2,186,301 and a fifteen-percent contingency in the amount of $327,945.
Funding for this project will come from the Water Fixed Asset Replacement Fund 712.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on March 18, 2025.
CITY ATTORNEY’S ANALYSIS
The bid documents were previously reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract. City Council also has discretion to reject all bids and re-advertise.
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Prepared by: Neil Irani, Senior Civil Engineer
Approved by: Michael Gossman, Assistant City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. PWA