Title
Award of Bid No. 21-05 for the Purpose of the Overlook Park Non-Potable Water Booster Station Replacement Project with RMCI, Inc. in the Amount of $1,562,500, plus Applicable Gross Receipts Tax.
Recommended Action
I move that Council approve the Award of Bid No. 21-05 for the Purpose of the Overlook Park Non-Potable Water Booster Station Replacement Project with RMCI, Inc. in the Amount of $1,562,500 and a contingency in the amount of $234,000, for a total of $1,796,500 plus Applicable Gross Receipts Tax.
Utilities Manager Recommendation
The Utilities Manager recommends that Council approve as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve as presented.
Body
The project will replace the existing Overlook Park Irrigation Booster station which has been in service since 1982 and is at the end of its functional life. A detailed description is provided as Attachment A.
Two bids were received for the project. $24,250 separated the two bids indicating that the prices received were a good representation of the project cost. The primary funding source for the project are a Water Trust Board (WTB) award of $800,000 ($480,000 grant and $320,000 loan at 0% interest), and a county match of $120,000, for a total of $920,000. In the fall of 2018 when the WTB application was prepared the project was estimated to cost approximately $1 million, based primarily estimates for similar booster station project costs in 2015. The large overrun is attributed to the extent of the extensive earthwork required due to the existing soil conditions and high market costs for piping, stainless steel mechanical equipment and electrical equipment.
In an attempt to lower the bid cost, the chief procurement officer reached out to the low bidder to attempt to negotiate a lower price on the project based on provisions in the procurement code. This resulted in the contractor lowering their bid by $20,000....
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