BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive Report of Bids, Ratify Addenda, Approve the Contingency Fund, and Award the Construction Contract to Ranger Pipelines Incorporated, for the West Pipeline Inspection and Rehabilitation Project - Phase 2, as Part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002, Contract No. 0719 in the Sum of $17,479,040 (City of Saratoga, City of Cupertino, and City of Los Altos, Districts 5 and 7).
End
RECOMMENDATION: Recommendation
A. Ratify Addenda No(s). 1, 2, and 3 to the Contract Documents for the West Pipeline Inspection and Rehabilitation Project - Phase 2;
B. Award the Construction Contract to Ranger Pipelines Incorporated, located in San Francisco, CA, in the sum of $17,479,040; and
C. Approve a contingency sum of $1,747,904 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
The objective of the West Pipeline Inspection and Rehabilitation Project - Phase 2 (Project) is to increase the reliability and useful life of the pipeline.
The Project scope includes completely draining and removing all water from the West Pipeline in the section between Cox Line Valve and Granger Turnout, performing repairs on pipeline appurtenances, abandoning outfalls, replacing line valves, installing new line valves and vaults, providing support for a manned internal pipeline inspection, procuring long-lead material, installing supervisory control and data acquisition (SCADA) system components, installing corrosion protection systems, and performing internal pipeline repair work as identified during the inspections. A portion of the work related to installing new line valves will be funded by the Safe, Clean Water and Natural Flood Protection Program Project A3: Pipeline Reliability Project, also known as the IRP2 Additional Line Valve Project, Project No. 26764001, and another portion of the work will be funded by the Treated Water Isolation Valve Project, Project No. 94084007.
Project Background
The West Pipeline is included in Santa Clara Valley Water District’s (Valley Water) Pipeline Maintenance Program (PMP) and is an identified capital effort in the 10-Year Pipeline Inspection and Rehabilitation Project. The PMP defines the activities associated with maintenance and repair of water supply conveyance systems including pipelines, appurtenances, electrical systems, control systems, and structures, throughout Valley Water’s jurisdiction.
The purpose of the 10-Year Pipeline Inspection and Rehabilitation Project is to maintain the integrity of the approximately 150 miles of large-diameter raw and treated water transmission pipelines, extend their useful life, and address infrastructure reliability concerns. Other projects completed as part of the 10-year Inspection and Rehabilitation Project include: Snell Pipeline, Santa Clara Conduit Rehabilitation & Pacheco Sectionalizing Vault Replacement, Almaden Valley Pipeline, Pacheco Conduit, Cross Valley and Calero Pipelines, and Central and Parallel East Pipelines.
West Pipeline
The West Pipeline (WPL) consists of approximately 9.1 linear miles of 84-inch to 30-inch welded steel pipe (WSP) and bar-wrapped pipe (BWP) with four distributary lines. It conveys treated water from the Rinconada Water Treatment Plant to various water retailers in multiple cities in the northwest corridor of Santa Clara Valley. The first segment of West Pipeline was constructed in 1965 and a second segment was constructed in 1967 to expand the service to Mountain View. The West Pipeline is owned and operated by Valley Water. It begins at Rinconada Water Treatment Plant, runs northwest primarily along the Union Pacific Railroad (UPRR) corridor, through the Town of Los Gatos, the cities of Campbell, Saratoga, Los Altos, Cupertino, and ends at Granger Turnout.
The West Pipeline will be inspected and rehabilitated in two phases. The first phase (this contract) covers the pipeline from Rinconada Water Treatment Plant to the Cox Line Valve. One additional line valve will be installed during this phase. Phase 2 is from the Cox Line Valve to the Granger Turnout with the installation of two additional line valves. The construction of Phase 1 of the Project is expected to be completed in October 2026 and is planned to transition to Phase 2 in November 2026.
Addenda Ratification
Three (3) addenda were issued during the bid advertisement period to clarify the Project Contract Documents and answer bidders’ questions. To formally incorporate the Addenda into the Project Contract Documents, staff recommends that the Board ratify the addenda.
West Pipeline Inspection and Rehabilitation Project - Phase 2 Specifications were provided by separate communication to the Board for their review prior to taking the recommended action to adopt the Plans and Specifications for bid advertisement. The addenda were also provided by separate communication to Valley Water’s Board of Directors for their review prior to taking the recommended action to ratify. To protect sensitive information related to the project, all parties interested in accessing the Plans and Specifications, and Addenda were registered as a vendor at the Valley Water Vendor Portal and submitted a completed Non-Disclosure Agreement (NDA) to access the Contract Documents.
Contract Award
A report of bids received at the bid opening for the Project on August 20, 2025, is summarized in Table 1, including the Engineer’s estimate for Project budgeting purposes (refer to the Financial Impact section).
The lowest responsible bid was submitted by Ranger Pipelines Incorporated of San Francisco, CA. The bid submitted by Ranger Pipelines Incorporated is 2% above the Engineer’s estimate of $17,160,700.
Staff reviewed the bid proposals and recommends the Board award the Construction Contract to Ranger Pipelines Incorporated as the responsible bidder, submitting the lowest responsive bid.
Table 1: Bid Summary
|
Contractor, Location |
Bid Price |
Award Amount |
|
Ranger Pipelines Incorporated |
$17,479,040 |
$17,479,040 |
|
Con-Quest Contractors, Inc. |
$19,177,490 |
|
|
Steve P. Rados, Inc. |
$20,567,669 |
|
|
Mountain Cascade, Inc. |
$21,912,965 |
|
|
Cratus, Inc. |
$24,689,400 |
|
|
Engineer’s Estimate: $17,160,700. |
Contingency Funds
The Contract award sum for the Project is $17,479,040. To allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project, staff recommends the Board approve encumbering a contingency amount of $1,747,904, which amounts to 10% of the contract amount for the subject Project.
The above contingency amount was estimated due to the known and unknown risks, such as:
1. Unforeseen internal conditions and field conditions that may be different from the baseline and as-built information used in preparation of the Project Contract Documents;
2. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
3. Coordination issues and risks associated with weather conditions; and
4. Coordination issues with operations and maintenance activities.
Approval of individual change orders for the Project will be subject to approval at the following designated amounts:
|
Engineering Unit Manager: |
$100,000 |
|
Deputy Operating Officer: |
$300,000 |
|
Chief Operating Officer |
$400,000 |
|
Assistant CEO |
$500,000 |
|
CEO: |
Up to the Total Amount of the Contingency |
Relevant Prior Board Actions
On September 24, 2024, the Board considered Addendum No. 2 to the 2007 PMP EIR prior to adopting the plans and specifications and authorizing advertisement for bids for the West Pipeline Inspection and Rehabilitation Project - Phase 1.
On April 8, 2025, the Board adopted Resolution 2025-22 specifying intent to consider undertaking the Project and setting the time and date for a public hearing on the Final Engineer’s Report for the 2025 Pipeline Maintenance Program.
On April 22, 2025, the Board held a public hearing and adopted Resolution 2025-26 certifying the Final 2025 PMP EIR, and Resolution 2025-25 approving the PMP Engineer’s Report.
Outreach to Bidders
The Notice to Bidders was made available to Valley Water’s registered PlanetBids vendors with the appropriate classifications to perform the Work. Chambers of Commerce, plan rooms (Builder Exchanges), and Valley Water’s website were also used to solicit interest in the Project. Broader advertising efforts also included three placements of the Invitation to Bid in the San Jose Post-Record.
Small Business Program
This project was advertised incorporating the Small Business Enterprise (SBE) Outreach Program that establishes a small business subcontracting participation goal of at least 30 percent for non-SBE Bidders. The contractor met the goals of the program by demonstrating compliance through the Good Faith Effort process.
Right of Way
All work will be done within Valley Water’s existing easements and within public right-of-way.
Regulatory Permits
Valley Water received a Lake Stream Alteration Agreement (LSAA) from the California Department of Fish and Wildlife in October 2024. An amendment to the LSAA will be completed prior to Contractor’s mobilization.
Staff initiated contact with the City Saratoga, City of Campbell, and the City of Los Altos. The final approved encroachment permits from these cities will be completed by the contractor after the construction contract is awarded and issued prior to construction commencement.
Staff also applied for encroachment permits from Union Pacific Railroad for the construction of two vaults. The final approved encroachment permits will be completed after the construction contract is awarded to the lowest bidder and the contractor information is obtained to execute and finalize the agreement. All permanent structures will be built within the existing easements.
Public Outreach
During construction, appropriate measures will be taken to minimize impacts associated with the Project, such as traffic, noise and dust. Residents and businesses in the Project area will be informed of construction impacts through multiple outreach strategies including social media such as Nextdoor and Facebook, mailers, and signs, and coordination with the City of Saratoga, City of Cupertino, and the City of Los Altos. The construction Contract Documents include requirements and mitigations to minimize impacts to the public during construction.
Next Steps
If the Board approves the recommendations, staff will proceed with administering Project construction, which is anticipated to begin in October 2025 and be completed by February 2027.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental justice impacts associated with the West Pipeline Inspection and Rehabilitation Project - Phase 2. This action is unlikely to or will not result in disproportionate impacts on any specific communities relative to the general population from the implementation of this project. However, this project will enhance the reliability and operational flexibility of the pipeline and address existing system vulnerabilities. Upgrades to the West Pipeline will allow Valley Water to better service communities during times of emergency and future maintenance projects.
FINANCIAL IMPACT:
The West Pipeline Inspection and Rehabilitation Project - Phase 2 (West Pipeline Project) is part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002. Also contributing to the West Pipeline Project are the IRP2 - Additional Line Valve Project, Project No. 26764001, and the Treated Water Isolation Valve Project, Project No. 94084007. All contributing projects are included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2025-29 Five-Year Plan and in the FY 2025-26 Adopted Budget. The total cost for the recommended construction contract, including the change order contingency of $1,747,904, is $19,226,944, which does not change the overall Total Project Cost reflected in the CIP Final 2025-29 Five-Year Plan.
Funds to cover the remaining anticipated construction costs will be included in the biennial budget process and recommended by staff during the annual fiscal year budget process or through budget adjustment(s) if needed.
The West Pipeline Project, Project No. 95084002, is funded by the Water Utility Enterprise Fund (Fund 61) with 95.89% of the costs of the 10-Year Pipeline Inspection and Rehabilitation Project allocated to Zone W-2 (North County), 3.16% to South County Zone W-5, 0.89% to South County Zone W-7, and 0.06% to South County Zone W- 8.
CEQA:
On April 22, 2025, the Board certified an Environmental Impact Report for the 2025 Pipeline Maintenance Program (PMP EIR) (accessible via <https://fta.valleywater.org/dl/qRvvY7YPH2 <https://fta.valleywater.org/dl/qRvvY7YPH2>>). The 2025 PMP provides for the routine inspection, rehabilitation, and maintenance of Valley Water’s raw and treated water pipelines and evaluates the environmental impacts of the PMP activities. All proposed activities for the WPL Project, including the installation and construction of two new underground valves and vaults, are adequately analyzed in the 2025 PMP EIR. During Project construction, Valley Water and its contractor will comply with all applicable BMPs and mitigation measures from the 2025 PMP EIR and permit conditions.
ATTACHMENTS:
Attachment 1: Project Delivery Process Chart
Attachment 2: Project Overview Map
UNCLASSIFIED MANAGER: Manager
Emmanuel Aryee, 408-630-3074