PUC says low bid received for New Irvington Tunnel; authorizes request for Board hearing on property acquisition

Julie Labonte, director of the Water System Improvement Program, told commissioners that the PUC received four bids for the New Irvington Tunnel and that the apparent low bid — from the Southland Contracting/Tutor Perini joint venture — was $226,700,000, roughly 10% below the engineering estimate of $253,000,000 and about $50 million lower than the next-lowest bid. Labonte said Barnard Construction has filed a protest; staff are reviewing that protest with HRC and plan to return to the commission for contract award consideration at the second meeting in May.

Labonte said the tunnel requires property rights from five owners; staff have reached agreement with two owners and continue negotiations with three others. To protect the project schedule — which is linked to planned system shutdowns — the commission approved a motion to authorize the general manager to press the Board of Supervisors to hold a public hearing on a resolution of necessity to acquire temporary or permanent property interests, and to proceed in parallel with continued negotiations. Labonte noted the eminent‑domain (M & N Domain) process can take six to nine months.

On smaller WICIP projects, Labonte updated commissioners that a $3 million Lawrence Livermore Lab improvements project showed a 55‑day delay but the contractor agreed to a non‑compensable time extension; a Roselle Crossover project ($2.8 million) is forecast about 34 days late but remains within contingency expectations. Staff said they remain confident these small projects can be completed within contingency allowances.

The commission moved, seconded and approved item 20 (authorize request for hearing on resolution of necessity) by voice vote. Staff will return with contract‑award recommendations for the Irvington Tunnel after the protest review.