CITY COUNCIL STAFF REPORT
May 7, 2024 {{section.number}}e
AUTHORIZE THE CITY MANAGER TO AWARD A CONTRACT TO JENNETTE COMPANY, INC., IN THE AMOUNT OF $937,635 FOR CONSTRUCTION OF THE POINT PUMP STATION UPGRADE PROJECT; AUTHORIZE A PROJECT CONTINGENCY OF $330,000; AND AUTHORIZE THE CITY MANAGER TO EXECUTE CHANGE ORDERS IN EXCESS OF 10%
OF THE CONTRACT AWARD AMOUNT, BUT WITHIN THE PROJECT CONTINGENCY AMOUNT OF $330,000
RECOMMENDATION:
Find that the project is exempt from environmental review pursuant to CEQA guidelines section 15302, replacement or reconstruction; award a contract to Jennette Company, Inc. in the amount of $937,635 for construction of the Point Pump Station Upgrade Project (Contract No. 19-CO-ES684); authorize a project contingency of $330,000; and authorize the City Manager to execute change orders in excess of 10% of the contract amount but within the project contingency.
BACKGROUND:
The Point Pump Station is located adjacent to the residence at 52 The Point (along Admiralty Cross). The existing pump station is in need of rehabilitation and upgrading primarily due to its age and normal wear and tear of associated pump station equipment. The project generally consists of the following:
1) The replacement of the pump controls and backing board; 2) The replacement of the existing pumps with new “chopper” pumps able to chop/grind materials such as rags that get flushed and clog conventional centrifugal pumps; 3) The replacement of the wet well and valve vault hatches with fall protection to enhance safety for maintenance personnel;
4) Installation of a wet well suction line within the valve vault to allow maintenance of the station to occur without having to open both the wet well and valve vault hatches. Currently, both hatches must be opened in order for maintenance personnel to set up a bypass of the station. Because the hatches are located within the street, additional staffing resources are required to ensure that proper traffic control is in place and the work area is safely cordoned off from pedestrians; and 5) The addition of a water source and hose bib to aid in cleaning and maintenance operations.
ANALYSIS:
Bids were publicly opened on April 10, 2024, following a full and open formal Request for Bids solicitation with the following results:
BIDDER BASE BID
Jennette Company, Inc. $937,635
Downstream Services, Inc. $1,041,216
Staff reviewed the bid package, insurance, bonding, and references for Jennette Company, Inc.
In accordance with the Standard Specifications for Public Works Construction, Jennette Company, Inc., is the lowest responsible and responsive bidder. Public contracting laws require the City to award the contract to the lowest responsible and responsive bidder, in this case, Jennette Company, Inc.
FISCAL IMPACT:
The Point Pump Station Upgrade Project is included in the FY 2023-24 Capital Improvement Program (CIP). The project’s budget of $1,387,000 from the Wastewater Fund 61071000.97220 (project code 18011) account for both design and construction of the project. To date, $111,803 has been spent or encumbered for engineering design, permit fees and construction support services. This leaves $1,275,197 available for construction. It is recommended that the project be funded as follows:
Project Budget
Capital Improvement Program Budget $1,387,000
Design Fees/Construction Support $111,803
Total Remaining Budget $1,275,197
Construction
Contract Award $937,635
Project Contingency*
(to address change orders)
$330,000
Total Construction Budget $1,267,635
*Coronado Municipal Code (CMC) Section 8.07.020 authorizes the City Manager to execute change orders in an amount up to 10% of the original construction contract price. It is recommended that the City Manager be given authority to execute change orders in excess of 10% of the contract amount but within the proposed contingency amount comprised of all remaining project funds; this provides maximum flexibility during construction to address any unforeseen construction issues that may arise without delay or the need for additional Council action.
ALTERNATIVE:
The City Council may elect to reject all bids and complete the project at a later date; Council may elect to award the contract but not authorize change order work in excess of 10%.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
CEQA Categorical Exemption Class 2, Replacement or Reconstruction.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
None.
Submitted By: Public Services and Engineering Department / Dave Johnson