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W A T [ R £N f R G Y L I f= RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: October 7, 2011 ITEM NO: 12 SUBJECT: CONSTRUCTION OF THE GAGE GAS PIPELINE REPLACEMENT PROJECT, BID NO. 7002 ISSUES: That the Board of Public Utilities consider. 1) approval of a contract award for the Gage Gas Pipeline Replacement Project; and 2) approval of a capital expenditure in the amount of$551,765 to complete the project. RECOMMENDATIONS: That the Board of Public Utilities: 1. Award a contract for the construction of the Gage Gas Pipeline Replacement Project, Bid No.7002, to the lowest responsive bidder, Genesis Construction, of Hemet, California, in the amount of $294,877; and 2. Approve the total capital expenditure of$551,765 for Work Order No. 1112765, which includes all design, construction, change order contingencies, construction management and inspection services for the Gage Gas Pipeline Replacement Project, Bid No. 7002. BACKGROUND: During the heavy rains in December 2010, several segments of the 4-inch diametergas pipeline that supplies natural gas to several of Riverside Public Utilities' (RP U) groundwater well sites(Gage 27-1, 66-1, 27-2 and 29-1) located in the City of San Bernardino became exposed due to significant erosion damage. Several of the exposed segments of pipeline have also been observed to be very old and heavily corroded. Temporary repairs have been made to the exposed pipeline. However, in order to ensure that this gas pipeline would not become further damaged and as a result unable to supply natural gas to the wells, staff selected URS Corporation from RPU's Consultant Panel to design a replacement gas pipeline. On April 1, 2011, the Board of Public Utilities approved a capital expenditure for the consultant engineering services in the amount of$150,000. The work will generally involve the construction of approximately 2,700 linear feet of replacement 4-inch gas pipeline, including a 240 linear foot bore and jack beneath the San Bernardino County Flood Control Channel and the San Bernardino Associated Govemments railroad spur tracks, along with all related incidentals and appurtenances. Bids were opened on August 31, 2011. The lowest responsive bid was submitted by Genesis Construction. Staff has reviewed all provided documentation and has determined that Genesis Construction has met all of the requirements of the project specifications.