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W A T E R E N E R G Y l I F € RIVERSIDE PUBLIC UTILITIES �~ Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: July 20, 2012 ITEM NO: 6 SUBJECT: REJECTION OF BIDS FOR THE PALMYRITA BOOSTER STATION MODIFICATION PROJECT—BID NO.7069,WORK ORDER NO.1 214100;TERMINATION OF FUNDING AGREEMENT NO.5010A103 WITH CALIFORNIA DEPARTMENT OF PUBLIC HEALTH ISSUE: That the Board of Public Utilities consider rejection of all bids for the Palmyrita Booster Station Modification Project, Bid No.7069 and recommend thatthe City Council authorize termination of Funding Agreement No. 5010A103 with the California Department of Public Health. RECOMMENDATIONS: That the Board of Public Utilities: 1. Reject all bids for the Palmyrita Booster Station Modification Project, Bid No. 7069; and 2. Recommend that the City Council authorize termination of Funding Agreement No. 501 OA103 with the California Department of Public Health in the amount of$283,500. BACKGROUND: The Palmyrita Booster Station Modification Project was originally planned to help augment the potable water supply available to the Riverside Public Utilities Department(RPU) by reducing the discharge pressure on existing groundwater wells located in RPU's North Orange well field, which draw water from the Riverside South Groundwater Basin. This project was envisioned to involve construction of a new booster pump station at the existing Palmyrita Water Treatment Facility, which would relieve a portion of the system pressure, thereby enhancing production rates of the existing groundwater wells. In August 2008, the City received a letter of commitment from the California Department of Public Health (COPH)for a Proposition 50 Grant in the amount of$283,500. The grant was based on a fifty-percent project funding contribution to be matched by the City. Due to California's budget concerns,the State Proposition 50 Grant funding was delayed by a few years. On April 22, 2011, a funding agreement was executed between the City and COPH, at which time staff began the process of preparing construction plans and specifications for the project. On April 30, 2012, bids were opened, and SCW Contracting was the lowest responsive bidder. For informational purposes, the bids received are summarized below as follows: COMPANY CITY LOCATION BID TOTAL 1. SCW Contracting Fallbrook, CA $768,143.00 2. Genesis Construction Hemet, CA $824,777.00