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SR - AGR-6472 - RESERVOIR 5 VALVES REPLACEMENT1. SUBJECT Award of contract — Bid No. 167 -37 Reservoir 5 Valves Replacement 2. SUMMARY Three bids for the Reservoir 5 Valve Replacement Project were received and opened on April 13, 2017. The apparent low bidder is Valverde Construction, Inc. _771 3. RECOMMENDED ACTION Award a contract in the amount of $67,540 to Valverde Construction, Inc. and authorize the Mayor and the City Clerk to execute on behalf of the City. 4. FISCAL IMPACT Funds are available to cover the cost of the purchases as follows: 600.8011.51401.00000 Repair to Buildings & Fixed Equipment $106,504 5. STRATEGIC PLAN GOAL(S) Provide for a safe community — b. Provide and maintain infrastructure necessary to ensure the safety of the public. 2. Be a fiscally healthy community — d. Effectively manage and develop City assets. 4. Provide outstanding public service — b. Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 6.0: Ensure water, sewer, and storm drain systems that meet the needs of residents and businesses. Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the community. Economic Development Element Goal 6.0: Provide sufficient infrastructure to support anticipated economic development and growth. Policy 61: Provide public improvements to support commercial, industrial and institutional uses. 7. DISCUSSION and BACKGROUND Reservoir 5 Pump Station is located on the Reservoir 5 site adjacent to Cannon St., north of Chapman Ave. It was constructed in 1967 and lifts and delivers water from Zone 2 to the residents in the southeast area of Orange by Newport Blvd. and Chapman Ave. There are two pumps delivering approximately 3,000 gallons per minute at this station. Due to the age of this facility, the buried valves used to isolate the pumps and allow maintenance to the station have failed and are not operational. As the valves are buried more than 20 feet below the grounds surface, Water Division staff is unable and unequipped to safely make repairs. Staff therefore contacted and consulted with qualified contractors to formulate an appropriate repair solution. Bids were requested through the informal bid process to replace the existing valves. Below are the bids results: 1. Valverde Construction, Inc. $ 67,540 2. CHI Construction, Inc. $ 72,000 3. Paulus Engineering, Inc. $ 88,000 Staff has conducted a due diligence review of the lowest bidder, Valverde, Inc. They are a qualified and capable contractor that can safely perform the repair work at Reservoir 5 Pump Station. They have also completed some repair work for the City in the past. Therefore, staff is recommending that Valverde Construction, Inc. be awarded the contract in an amount not to exceed $67,540. 8. ATTACHMENTS Contract Agreement