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2 DATE: December 16, 2024
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City/District Manager
FROM: Andrew Brozyna, Public Works Director City/District Engineer Laura Galli, Engineering Manager
Ryan Marquez, Senior Civil Engineer
DEPARTMENT: Public Works
SUBJECT: AWARD OF CONSTRUCTION CONTRACT TO WEST STAR
ENVIRONMENTAL, INC. IN THE AMOUNT OF $3,147,259 FOR
THE CONSTRUCTION OF THE FUEL SYSTEMS
IMPROVEMENTS PROJECT (CIP 301-700); THE EXECUTION
OF A TASK ORDER WITH CONSOR PMCM, INC. IN THE
AMOUNT OF $303,270 FOR CONSTRUCTION MANAGEMENT
AND INSPECTION SERVICES; APPROVING THE TRANSFER
OF $286,000 FROM FUND 405 TO FUND 301; APPROVING THE
TRANSFER OF $286,000 FROM FUND 455 TO FUND 301;
APPROVING THE APPROPRIATION OF $222,000 TO ACCOUNT
NUMBER 301-0910-700-4251
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors adopt the attached resolutions authorizing:
1. The Mayor/President to execute an agreement with West Star Environmental, Inc. in the amount of $3,147,259 for the construction of the Fuel Systems Improvements Project (CIP 301-700); and
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2 2. The establishment of a construction contingency in the amount of $315,000 with authorization given to the City/District Manager or his designee, to execute contract change orders up to the contingency amount; and
3. The Mayor/President to execute a task order with Consor PMCM, Inc. in the amount of $303,270 for Construction Management & Inspection services for the Fuel Systems Improvements Project (CIP 301-700); and
4. The establishment of a contingency in the amount of $30,000 for the task order with Consor PMCM, Inc. with authorization given to the City/District Manager or his designee to execute contract amendments up to the contingency amount; and
5. The transfer of $286,000 from Fund 405, Water Enterprise CIP Fund, to the City CIP Fund 301; and
6. The transfer of $286,000 from Fund 455, Waste Water Enterprise CIP Fund, to the City CIP Fund 301; and
7. The appropriation of $222,000 from Fund 301 to the Fuel Systems Improvement Project Account 301-0910-700-4251.
EXECUTIVE SUMMARY
Three (3) bids were received and opened on Tuesday, November 19, 2024 at 2:00PM.
After reviewing the bids, the bid submitted by West Star Environmental, Inc. (West Star) in the amount of $3,147,259 was determined to be the lowest responsible and responsive bid. Consor PMCM, Inc. (Consor) will provide construction management and inspection services throughout the duration of construction. Consor is an on-call consultant and has experience in this field. Construction is anticipated to start in summer 2025 (due to long lead times for delivery of tanks) and will have 135 calendar days to complete. Total funding in the amount of $4,000,000 is budgeted for the project, of which approximately $325,000 has been encumbered for design. To fully fund construction, an additional budget appropriation of $222,000 is required.
BACKGROUND
The City/District has an unleaded fuel system and a diesel fuel system that provides fuel for the vehicles and equipment owned by the City/EMID including two lagoon pump engines and pumps, and the emergency generator serving the Corporation Yard buildings, Lift Station 59, and Lift Station 25. These systems also provide fuel to the San Mateo Consolidated Fire Department.
The existing fueling systems to be replaced include:
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2 1. Two 10,000-gallon underground unleaded storage tanks (UGSTs) with two fuel dispensers, installed in the early 1990s at the entrance outside of the Corporation Yard on Lincoln Centre Drive. The existing tanks and fuel dispenser will be removed, and new above ground storage tanks (AGSTs) and fuel dispensers will be constructed next to the Corporation Yard Vehicle Maintenance Building.
2. Two 5,000-gallon above AGSTs, installed in the early 1990s, in an open concrete vault with canopy immediately adjacent to and west of the lagoon pump station building. The tanks provide diesel fuel for vehicles and equipment via a single fuel dispenser and for the day tank for the lagoon pump engines. The diesel fuel system also stores fuel for the emergency generators at EMID’s lift stations which is trucked to lift stations, as needed by staff. The existing tank will be removed, the vault filled in, canopy removed, and new above ground tanks with dispensers will be constructed adjacent to the entrance gate between the lagoon pumphouse and Tank 3.
3. One 210-gallon day tank for diesel fuel, installed in the early 1960’s, inside the lagoon pump station building. The day tank provides fuel to the two lagoon pump engines and the large emergency generator serving the Corporation Yard Buildings and Pump Station 59. This tank will be replaced in the same vicinity as its current location.
In addition to replacement and relocation of the above fuel systems, the project consists of the replacement of the existing dispensers and fuel control software.
In February 2021, following a competitive procurement, the City/EMID engaged TAIT to perform a detailed analysis of the City/EMID’s existing fuel systems, prepare a conceptual engineering assessment, and develop a Technical Memorandum outlining recommendations for improvements for design.
At the Council/Board meeting on August 1, 2022, the Council/Board adopted City Resolution No. 2022-91 approving a Request for Proposal (RFP) to provide professional engineering services for CIP 301-700. One proposal was received. It was determined prudent to advertise again, to encourage more proposals.
At the Council/Board meeting on January 17, 2023, The Council/Board adopted City Resolution No. 2023-6 and EMID Resolution No. 3701 approving the issuance of the RFP to provide professional engineering services for CIP 301-700.
At the Council/Board meeting on May 1, 2023, The Council/Board adopted City Resolution No. 2023-42 and EMID Resolution No. 3718 awarding a contract for professional engineering services for CIP 301-700 to TAIT.
At the Council/Board meeting on October 21, 2024, the Council/Board adopted City Resolution No. 2024-108 and EMID Resolution No. 3779 approving the plans and 8 0
2 specifications and authorizing the call for bids for the subject project. It was noted that based on the engineer’s estimate, the project was likely going to require additional funding.
ANALYSIS
Three bids for this project were opened on Tuesday, November 19, 2024, at 2:00 PM, with the following results:
$
Over/(Under)
%
Over/(Under)Name of Company Total Bid Engineer’s
Estimate
Engineer’s
Estimate
Engineer’s Estimate $3,100,000 - -
West Star Environmental, Inc. $3,147,259 $47,259 1.5%
Able Maintenance $3,315,941 $215,941 7.0%
GEMS Environmental Mgmt.
Services, Inc. $4,968,171 $1,868,171 60.3%
The lowest responsible and responsive bid, in the amount of $3,147,259 was submitted by West Star. As shown in the table above, West Star is within 2% of the engineer’s estimate.
Staff contacted the references listed by West Star and received positive comments regarding their performance. West Star has met all the bid requirements and provided all the required documents and licenses.
Due to the long lead time (approximately five months) for the fuel tanks, construction is anticipated to start in summer 2025 and will be coordinated with other Capital Projects expected to take place in the Corporation Yard during that time. The contractor will have 135 calendar days to complete the project from Notice to Proceed to Construction, expected in May 2025. Work will be performed in the City’s corporation yard.
Project management will be performed by City/District staff with construction management services provided by Consor via Task Order CON2024-02 (Attachment 3). Consor is familiar with this type of construction and has been successfully working with the District on the Water Tanks and Facilities Improvement Project (CIP 405-660) and Seismic Improvements at Lagoon Pump Station (CIP 301-690).
The attached scope of work assumes the selected construction management team would share an inspector with a second project that is also planned for construction at the Corporation Yard next summer (CIP 455-695). As of this time, the plan to share 8 0
2 resources appears to be feasible. The inspector will divide their time between this project and CIP 695 Lift Station 59 Effluent Improvement Project during the overlapping months of construction. The attached scope of work in the amount of $303,270 (Attachment 3), is reflective of the negotiated agreed upon price for these services.
Staff is requesting a 10% contingency in the amount of $30,000, in case these projects do not align as planned or other unexpected circumstances arise.
CEQA
Categorically Exempt pursuant to CEQA Guidelines Section 15061(b)(3) and 15301(c) – Existing Facilities
FISCAL IMPACT
Below is the current project funding breakdown.
Budget Funding Source Amount
Vehicle Replacement Fund (501) $ 327,946.00
CIP City (301) $2,297,054.00
Water Capital Investment (405) $ 687,500.00
Wastewater Capital Investment (455) $ 687,500.00
Total $4,000,000.00
Below is the proposed projected use of funds.
Expense Amount
Design & Permitting (TAIT) (including 10% contingency) $ 324,667.25 Construction Contract $ 3,147,259.00
Construction Contract Contingency (10%) $ 315,000.00 Construction Management & Inspection Services $ 303,270.00 Construction Management & Inspection Services
Contingency (10%) $ 30,000.00
Miscellaneous Budget $ 100,000.00
Total $ 4,220,196.25
Budget Shortfall $ 220,196.25
Approximately $222,000 of additional appropriation is required to deliver the project.
Upon review of the initial project creation, the funding source breakdown consisted of 50% from Fund 301 (City CIP), 25% from Fund 405 (Water CIP), and 25% from Fund 455 (Wastewater CIP). With the request for an appropriation of $222,000, a rebalancing of the project funding ratio is recommended. This would entail transferring funding in the amount of $286,000 each from Funds 405 & 455 ($572,000 total) into the project budget and returning $350,000 from the project budget (301-0910-700-4251) back to the City CIP Fund 301.
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2 This is accomplished by transferring $286,000 each from Funds 405 and 455 to the City CIP 301 and appropriating $222,000 of that $572,000 to the project budget, thus reimbursing CIP 301 for its overcommitted portion ($350,000) of budget.
The table below illustrates that the total project budget would increase by $222,000, achieves the rebalancing of the funding sources, and reduces the burden on the General Fund by $350,000. The Vehicle Replacement Fund is not included in the calculation as it is already distributed among funds 301, 405, and 455.
Total Project
Budget
VRF
(501)
City CIP
(301)
Water CIP
(405)
WW CIP
(455)
Current
Budget Funding
Sources
$ 4,000,000 $ 327,946 $ 2,297,054 $ 687,500 $ 687,500 Current Funding
Source
Distribution
(already
allocated) 63% 19% 19%
Rebalancing $ 222,000 $0 ($ 350,000) $ 286,000 $ 286,000 Revised Project
Budget &
Funding
Distribution
$ 4,222,000 $ 327,946 $ 1,947,054 $ 973,500 $ 973,500 New Funding
Source
Distribution
(already
allocated) 50% 25% 25%
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Task Order CON2024-02 with Consor for Construction Management Services
Attachment 4 – Construction Agreement with West Star Environmental, Inc.