Sunday, April 20, 2014
YOLO COUNTY NEWS
99 CENTS

Water project RFP adjustments will yield millions in savings, agency says

By
From page A1 | April 21, 2013 | Leave Comment

The Woodland-Davis Clean Water Agency board took action last week to trim the overall price tag of the two cities’ surface water project by another $10 million.

The board amended the request for proposals documents last week, asking the two remaining design-build-operate teams competing for the contract to submit bids that are 10 percent cheaper than the $245 million price tag agency officials have estimated the project will cost to build.

Effectively, agency officials say, the cost of the project to Davis and Woodland has been reduced to about $235 million, potentially saving residents on their water bills as the two cities ramp up water rates to pay off the project.

Rates in Davis are set to go up on May 1, with subsequent increases set for each Jan. 1 for the next five years, to begin paying off the project.

Approved by Davis voters on March 5, the project will pump water from the Sacramento River, treat it and pipe it to Davis and Woodland. The new water supply largely will replace each city’s dependence on ground water.

“With this amendment, we’ve set a very aggressive maximum price by driving down the cost of these project elements to $151.5 million,” Bill Marble, chairman of the water agency board and a member of the Woodland City Council, said in a statement. “That’s a 20 percent decrease from original engineering estimates. This will directly translate into cost savings and lessen pressure on rates over the long run.”

The board also adopted amendments that require the winning contractor to utilize competitive bidding processes — which must include local companies and resources — when selecting the subcontractors and construction materials they’ll amass to build the project.

This is especially important, said Dennis Diemer, general manager of the water agency, because 70 percent of the work on the project will be performed by subcontractors selected by the design-build-operate team.

Further, the board will have the ability to monitor the books of the DBO contractor in order to ensure the quality and efficiency of their work for the remaining 30 percent of the project.

“(Last week’s) actions continued the agency’s work to fiercely protect ratepayers’ financial interests by lowering project costs,” Mayor Joe Krovoza said in a statement. “In addition, we’ll satisfy our requirements for absolute transparency and better ensure the contractor’s pricing is competitive and comparable to industry norms.”

The aggressive actions come only months after the CDM/United Water team removed itself from the bidding process and had to be talked back in after raising concerns over the risks it was being asked to take on to put together a bid for the project.

Veolia Water North America also left the bidding process late last year, leaving just two teams to compete for the project.

However, while the agency tightened the strings on the RFP process in some places, Diemer said it also sweetened the deal for the two remaining bidders by allocating $250,000 to be given to the losing contractor. Diemer said the process of putting together a bid can cost up to $1 million or more.

The agency also has taken other measures to ease the burden on the bidding contractors, such as streamlining the bid submittal review process and making adjustments to the indemnity and default provisions of the contract.

“Through our conversations with the DBO teams I think we’ve made some adjustments, a number of changes, to address their concerns,” Diemer said Friday. “(We also made) changes that address risk transfer concerns that they had.”

The agency board will pick one of the two contracts after the proposals have been submitted in September and will consider awarding the contract in October.

Meanwhile, the agency and the two cities it represents are still hoping to receive state revolving funds, which are lower-interest loans that they can use to reduce the overall cost of the project. Agency officials also are still waiting for state funds worth $16.7 million that would match a federal monetary commitment for the water intake facility, which they have assumed into the overall cost of the project.

Construction on the project is estimated to begin later this year.

— Reach Tom Sakash at tsakash@davisenterprise.net or 530-747-8057. Follow him on Twitter at @TomSakash

Tom Sakash

Tom Sakash covers the city beat for The Davis Enterprise. Reach him at tsakash@davisenterprise.net, (530) 747-8057 or @TomSakash.
LEAVE A COMMENT

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

News

Hub of activity: DHS newspaper keeps evolving

By Zoe Juanitas | From Page: A1 | Gallery

 
A springtime ritual

By Wayne Tilcock | From Page: A1 | Gallery

Tom Adams seeks Davis school board seat

By Jeff Hudson | From Page: A1

 
Holy fire ceremony draws thousands in Jerusalem

By The Associated Press | From Page: A2 | Gallery

 
Tour renovated YCCC facility Thursday

By Enterprise staff | From Page: A3

 
Tour Davis Waldorf School on Wednesday

By Enterprise staff | From Page: A3

The fifth annual Tour de Cluck is soon to be hatched

By Special to The Enterprise | From Page: A3 | Gallery

 
Ortiz lawn signs available

By Enterprise staff | From Page: A3

Sign up soon for spring cooking classes

By Enterprise staff | From Page: A3

 
Robb Davis team to rally on Saturday

By Enterprise staff | From Page: A3

Steadfast in their support

By Lauren Keene | From Page: A4, 11 Comments | Gallery

 
Yolo Hospice offers free grief workshops

By Enterprise staff | From Page: A4

Sign up for Camp Kesem caterpillar crawl

By Enterprise staff | From Page: A4

 
Quilters gear up for annual show

By Sebastian Onate | From Page: A4

League hosts a series of candidate forums

By Enterprise staff | From Page: A5

 
KDVS launches fund drive on Monday

By Jeff Hudson | From Page: A5

Calling all Scrabble fans

By Enterprise staff | From Page: A5, 1 Comment | Gallery

 
Hub webpage is seeing traffic increasing

By Zoe Juanitas | From Page: A8

DEVO set to serve up 14th annual Winkler Dinner

By Enterprise staff | From Page: A16 | Gallery

 
Learn Chinese crafts at I-House

By Sebastian Onate | From Page: A16

Preschool open house set at Davis Waldorf

By Enterprise staff | From Page: A16

 
Birch Lane celebrates its 50th anniversary

By Enterprise staff | From Page: A16

Hotel/conference center info meeting set

By Enterprise staff | From Page: A16

 
Lescroart welcomes all to book-launch party

By Special to The Enterprise | From Page: A16 | Gallery

.

Forum

Take ownership of your health

By Special to The Enterprise | From Page: B5

 
Not thrilled with lack of symmetry

By Special to The Enterprise | From Page: A7

Reliving the agony and ecstasy of spring

By Marion Franck | From Page: A7

 
Keep your baby safe

By Special to The Enterprise | From Page: A7

 
Road diet? No, city diet!

By Letters to the Editor | From Page: A12, 5 Comments

We’re reveling in our equality

By Letters to the Editor | From Page: A12, 1 Comment

 
Vote no; it’s fiscally responsible

By Letters to the Editor | From Page: A12, 3 Comments

Rick McKee cartoon

By Debbie Davis | From Page: A12

 
Core values on campus

By Our View | From Page: A12, 3 Comments

 
Bill is an affront to UC Davis ag biotech and local farmers

By Special to The Enterprise | From Page: A13, 3 Comments

Don’t want to sit in Fix 50 traffic? Consider alternatives

By Special to The Enterprise | From Page: A13, 1 Comment

 
.

Sports

UCD softball shut out by Santa Barbara

By Thomas Oide | From Page: B1 | Gallery

 
Aggie men shoot 9-under, lead own tourney

By Bruce Gallaudet | From Page: B1 | Gallery

Stars shine in Woody Wilson Classic

By Evan Ream | From Page: B1, 1 Comment | Gallery

 
Devils burn up the track

By Enterprise staff | From Page: B1

 
UCD roundup: Aggie baseball swept away by Highlanders

By Enterprise staff | From Page: B2

A’s score 3 in ninth, rally past Astros 4-3

By The Associated Press | From Page: B6

 
.

Features

.

Arts

.

Business

Yolo Federal Credit Union gets WISH funds

By Enterprise staff | From Page: A9

 
PG&E pays taxes, fees to county, cities

By Enterprise staff | From Page: A9, 1 Comment

Will Davis get an Old Soul?

By Wendy Weitzel | From Page: A9

 
Pediatricians, nurse practitioner hired at Woodland Healthcare

By Enterprise staff | From Page: A9 | Gallery

Asian stocks mostly higher after mixed U.S. earnings

By The Associated Press | From Page: A9

 
Davis Roots will showcase its graduating startups

By Enterprise staff | From Page: A14

University Honda wins another President’s Award

By Enterprise staff | From Page: A14 | Gallery

 
Dutch Bros. raises $19,000 for girl with leukemia

By Enterprise staff | From Page: A14 | Gallery

.

Obituaries

.

Comics

Comics: Sunday, April 20, 2014

By Creator | From Page: B8