DATE: June 2, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Approving Addendums No. 1 and No. 2, Rejecting the Bid from Devaney Engineering, Inc., and Awarding a Contract to SubTerra Construction, Inc., for the FY 2024 Water Line Replacement Project, Project No. 07072, in a Not-to-Exceed Amount of $8,665,745
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RECOMMENDATION
Recommendation
That City Council adopts the attached resolution (Attachment II) approving Addendums No. 1 and No. 2, providing minor revisions to the project specifications and plans, rejecting the bid from Devaney Engineering, Inc., and awarding the construction contract to SubTerra Construction, Inc., for the FY24 Water Line Replacement Project, Project No. 07072, in an amount of $7,877,950 and approving $787,795 in administrative construction contingency for a total contract amount not-to-exceed $8,665,745.
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SUMMARY
The FY24 Water Line Replacement Project will improve water supply reliability by replacing approximately 15,000 linear feet of existing cast iron and asbestos cement (ACP) pipes ranging from 6 to 12-inch diameters with new 8 or 12-inch polyvinyl chloride (PVC) or earthquake resistant ductile iron (ERDIP) pipes. This project takes place at three locations, where needed, in the City and all the pipe replacement will be done by traditional open-cut method.
On May 5, 2026, eleven (11) bids were received. The lowest bidder, Devaney Engineering, requested to withdraw their bid due to multiple errors in their bid proposal. Staff recommends that Council reject the lowest bid and award the contract to the second lowest responsible and responsive bidder, SubTerra Construction, Inc., in the amount of $7,877,950, which is $1,422,050, or 15.3%, below the Engineer’s Estimate of $9,300,000. Furthermore, Staff is requesting Council’s approval of Addendums No. 1 and No. 2, which provided minor revisions to clarify the specifications and plans, and approval of $787,795 in Administrative Construction Contingency for potential change orders.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution