CONSTRUCTION CONTRACT FOR THE RECYCLED WATER PIPELINE PROJECT, PHASE II PART A / MAJICH BROS., INC.

SUBJECT:

CONSTRUCTION CONTRACT FOR THE RECYCLED WATER PIPELINE PROJECT, PHASE II PART A TO MAJICH BROS., INC.

RECOMMENDATION: That the City Council approve the plans and specifications and award Contract No. UT 0809-06, Recycled Water Pipeline Project, Phase II Part A to Majich Bros., Inc. of Altadena, California, for a bid amount of $289,390 plus a 15% contingency of $43,409 for a total amount of $332,799; and authorize the City Manager to execute said Contract (on file in the Records Management Department) and file a notice of completion at the conclusion of all construction activities related to the project.

COUNCIL GOALS: Develop Strategies And Take Actions To Minimize The Negative Impacts Of The Global Financial Downturn On Ontario’s Economy And The City’s Fiscal Health

Invest In The City’s Infrastructure (Water, Streets, Sewers, Parks, Storm Drains And Public Facilities)

FISCAL IMPACT: The FY 2008-09 Capital Improvement Program includes appropriations from the Water Capital Fund for the construction of the Phase II Part A recycled water pipeline. The total recommended contract authorization of $332,799 includes a 15% contingency ($43,409). There is no impact to the General Fund.

BACKGROUND: The City’s 2005 Urban Water Management Plan (UWMP) identifies the use of recycled water as a critical element of the City’s supply to meet its growing demand for water. Expanding the use of recycled water provides a long-term sustainable water source that is not subject to the same limitations under drought conditions as other potable water supplies. Recycled water is used for irrigation and industrial applications as approved by the California Department of Public Health, and will result in significant reductions in the City’s 2005 UWMP long term reliance on more expensive and increasingly less reliable imported water supplies.

Staff developed a five-year Recycled Water Plan to increase the use of recycled water. On December 6, 2006, the City Council awarded a contract to Boyle Engineering Corporation to prepare design documents and bid specifications for the Recycled Water Plan. The plan consists of four phases totaling approximately 14 miles of pipeline, providing about 3,050 acre-feet per year of recycled water (seven percent of the City’s current total water demand), and initially targets approximately 150 customers. This Phase II Part A will initially provide approximately 425 acre-feet per year of recycled water to 4 customers including Elderberry Elementary School and Munoz Park.

On February 5, 2009, forty-eight (48) bids were received for Phase II Part A. The lowest responsive bid was submitted by Majich Bros., Inc., located in Altadena, California. Majich Bros., Inc. has performed this type of water pipeline construction in the past, has the expertise and the ability to perform the work in a timely manner and is recommended by the design engineer, Boyle Engineering Corporation, Inc. (AECOM). The lowest five bids results are summarized in the table below:

STAFF MEMBER PRESENTING: Ken Jeske, Utilities General Manager

Map of work area