HomeMy WebLinkAboutNew Business #4 5-18-87 -.
~ 'EW BUSINESS
,JO. 4
DATE: MAY 13,. 1987 ~N~r~,~'~'"~' · ~~r.~ ~ ~m
TO:
WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: AWARD OF CONTRACT FOR WATER MAIN REPLACEMENT PROJECT ON ARROYO, OAK
LANE, ALLEMAN, BEVERLY GLEN AND STRATTON WAY
RECOMMENDATION:
For the City Council meeting of May 18, 1.987. It is recommended that the City
Council award the contract to Jana Contracting Company, Buena Park in the amount
of $202,026 for subject project.
It is further recommended that the City Council appropriate an additional-amount
of $40,000 for this project from the Water Fund for Fiscal Year 1987-88.
BACKGROUND:
Only two bids were submitted for the bid opening on May 12, 1987. They are sum-
ma ri zed as follows:
Jana Contracting Company, Buena Park
ARB, Inc., Long Beach
$202,026.00
$218,484.00
The low bid is 19.5% over the engineer's estimate of $169,025. While 15 con-
tractors purchased bid packages, only two responded with bids. The pipeline
market appears to be in a saturated condition resulting in only two bids, and
both of them are well above our estimate. Due to the condition of the existing
water mains, the option of rejecting bids and waiting for a more favorable
market does not seem in the best interest of the City.
BUDGET ANALYSIS:
Low Bid by Jana Contracting Company
Service & Connection Materials to be
Installed by City Forces
Design Services by Consultant
Staking Services by Consultant
Total Cost
Less Budgeted Amount
Shortfall
$202,026.
25,000
6,800
4,500
$238,326
198,700
$ 39,626
o e en ec er
Director of Public Works/City Engineer
en
R~fla"l d E. Wol 'fo~d "
Engineering Services Manager