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File #: 25-0665    Version: 1 Name:
Type: Water Utility Enterprise Item Status: Agenda Ready
File created: 7/25/2025 In control: Board of Directors
On agenda: 9/23/2025 Final action:
Title: Receive Report of Bids, Ratify Addenda, Approve the Contingency Fund, and Award the Construction Contract to Cratus, Inc. for the South County Recycled Water Pipeline Phase 1C Project, Project No. 91094009, Contract No. C0723 in the Sum of $3,270,000 (City of Gilroy, Unincorporated Santa Clara County, District 1).
Attachments: 1. Attachment 1: Addenda 1, 2, 3, and 4, 2. Attachment 2: Project Delivery Chart, 3. Attachment 3: Site Map
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 Cratus, Inc. for the South County Recycled Water Pipeline Phase 1C Project, Project No. 91094009, Contract No. C0723 in the Sum of $3,270,000 (City of Gilroy, Unincorporated Santa Clara County, District 1).


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RECOMMENDATION: Recommendation
A. Ratify Addenda No(s). 1, 2, 3, and 4 to the Contract Documents for the South County Recycled Water Pipeline Phase 1C Project;
B. Award the Construction Contract to Cratus, Inc., located in San Francisco, California, in the sum of $3,270,000; and
C. Approve a contingency sum of 15% in the amount of $490,500 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.


Body
SUMMARY:
The objective of the South County Recycled Water Pipeline Phase 1C Project (Project) is to expand the existing recycled water distribution system in the City of Gilroy to serve additional customers and improve existing service through system redundancy, as planned in the South County Recycled Water Master Plan.
The Project scope includes installing approximately 3,200 linear feet of 24-inch diameter pipe from the east of Luchessa Avenue to Cameron Boulevard. The pipeline connects the 36-inch recycled water pipeline installed as a part of Phase 1B to the South County Regional Wastewater Authority's (SCRWA) 12-inch recycled water pipeline to create redundancy in the system.

Project Background
In 2004, the Santa Clara Valley Water District (Valley Water) and SCRWA, with the participation of the Cities of Gilroy and Morgan Hill, jointly prepared the South County Recycled Water Master Plan (2004 Master Plan). The 2004 Master Plan was updated in 2015 (2015 Master Plan Update) and approved by both the SCRWA Board and Valley Water's Boar...

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