City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 3, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Award Contract to Sierra Construction & Excavation for the Industrial Wastewater Pipeline, Authorize Task Order #2 with Dudek Consulting, and Authorize Task Order #2 with MNS Engineers
RECOMMENDATION
Staff recommends that the City Council take the following actions:
• Award a construction contract to Sierra Construction & Excavation for the Industrial Wastewater Pipeline Contract and directing the City Manager to Execute a Contract with Sierra Construction and Excavation in the amount of $8,500,000 including a contingency budget of $889,825 for unanticipated field changes.
• Authorize Task Order #2 under a Master Service Agreement with Dudek Consulting for Design Support during Construction in the amount of $292,664 including a contingency budget of $38,174.
• Authorize Task Order #2 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $750,000 including a contingency budget of $57,244.
BACKGROUND
The City’s Municipal Wastewater Treatment Plant (MWWTP) operates under a Waste Discharge Permit from the Central Coast Regional Water Quality Control Board (Regional Board). The MWWTP has a permitted capacity of 1.3 million gallons/day and current sewer flows to the plant are approximately 1.2 million gallons/day (MGD). Therefore, the MWWTP is near its permitted capacity and for several years has struggled to meet the 2006 discharge permit requirements as the MWWTP wasn’t designed to treat AGENDA
ITEM
10 the amount of ag-wash water it receives daily. The ag-wash water is approximately 75% of the wastewater treated at the MWWTP and the ag-wash water contains cleansers and sanitizers that disrupt the biological treatment process.
Through the preparation of a Long-Term Wastewater Management Plan, the City determined that construction of an Industrial Wastewater (IW) System was the most cost effective and expedient approach to expand the City’s wastewater system. The System will collect the ag-wash water discharged from the three large processing facilities in the Business Park and convey it to a new IW Treatment Facility to be constructed on City-owned property just east of the MWWTP.
In April 2023 the Regional Board issued a new Waste Discharge Permit (WDR) that contains requirements the MWWTP is not capable of meeting. Therefore, in addition to constructing the IW System, the City needs to upgrade the MWWTP to comply with the new RWQCB WDR permit.
The City will expand the wastewater system through the following phases:
Phase 1 – The IW System will be delivered under three contracts:
1. Construct the IW Pipeline along Fermin Lane and to the Business Park
2. Construct the IW Treatment Facility.
3. While the IWTF is under construction, issue a contract to rehabilitate the existing 21-inch sewer main constructed in 1981 by shifting sewer flows to the new IW Pipeline.
The CEQA-Plus document for the IW System was completed in October 2021 and construction documents (plans, technical specifications, and cost estimate) were completed in September 2022.
On July 16, 2024 City staff received the fully executed $29M State Revolving Fund (SRF) loan for project construction.
Phase 2 - Upon completion of the IW System, 850,000 gallons of ag-wash water will be shifted from the MWWTP to the IW Treatment Facility. The City will then rehabilitate the MWWTP which includes removing accumulated sludge, lining the treatment ponds, upgrading the aeration system and constructing a new treatment process. When this phase is completed, the MWWTP will meet the Regional Board new permit requirements.
Phase 3 - Add additional treatment processes at the MWWTP to expand the wastewater system capacity to 2.9MGD which will accommodate projected housing growth through 2050.
Phase 4 - Expand the IW System treatment capacity to 3.5 MGD to accommodate additional processing facilities in the City’s Industrial Business Park and add a recycled water component.
REVIEW & ANALYSIS
The construction documents (plans, technical specifications, and cost estimate) for the “Industrial Wastewater Pipeline Project” were prepared by Dudek Consulting.
The project was issued for public bid on June 27 which included a legal notice in the Salinas Valley Tribune and construction documents were provided to the various Builders Exchange for review by contractors. A pre-bid meeting was held on July 10 to allow bidders an opportunity ask questions and view the project alignment.
On August 6 the City received bids from the following contractors:
BIDDER TOTAL BID AMOUNT
1 Sierra Construction & Excavation $7,610,175
2 Ranger Pipelines $7,822,350
3 Specialty Construction $8,196,801
4 Anderson Pacific Construction $8,937,750
5 Monterey Peninsula Engineering $15,329,750
City staff and the MNS Engineers (WW/IW Program Manager) reviewed the bids and determined that the lowest responsive and responsible bid was submitted by Sierra Construction & Excavation. Therefore, staff is recommending the City Council award the construction contract for this project to Sierra Construction & Excavation and that the City Council reject the other submitted bids.
The schedule for the project is in the below table:
In addition to awarding the construction contract to Sierra Construction & Excavation, staff recommends that the following Task Orders are authorized for professional services to support the construction of the IW Pipeline:
1. Authorize Task Order #2 under a Master Service Agreement with Dudek Consulting for Design Support during Construction in the amount of $292,664 including a contingency budget of $38,174. Their August 19, 2024 letter proposal is attached.
2. Authorize Task Order #2 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $750,000 including a contingency budget of $57,244. Their August 26, 2024 letter proposal is attached.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: This project supports our vision by making improvements to the wastewater system to increase its capacity for residential and industrial developments.
Date/Time
Award Construction Contract at City Council Meeting September 3, 2024 Construction Contract Executed September 17, 2024
Preconstruction Meeting / Notice to Proceed September 25, 2024 Contractor Mobilization (approx.) November 4, 2024
Construction Complete July 2025
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Maintaining and improving the wastewater treatment plant enhances the community’s quality of life by providing for treatment and safe disposal of the City’s wastewater.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.
ALTERNATIVES
• Direct staff to not construct this project
• Direct staff to re-advertise and re-bid the project
• Amend or modify staff recommendation.
BUDGET IMPACT
This contract will be funded with the Sewer Rates and Sewer Impact funds.
CONCLUSIONS
Staff recommends that the City Council take the following actions:
• Award a construction contract to Sierra Construction & Excavation for the Industrial Wastewater Pipeline Contract and directing the City Manager to Execute a Contract with Sierra Construction and Excavation in the amount of $8,500,000 including a contingency budget of $889,825 for unanticipated field changes.
• Authorize Task Order #2 under a Master Service Agreement with Dudek Consulting for Design Support during Construction in the amount of $292,664 including a contingency budget of $38,174.
• Authorize Task Order #2 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection in the amount of $750,000 including a contingency budget of $57,244.
Attachments:
1. Contract with Sierra Construction & Excavation
2. Task Order #2 under a Master Service Agreement with Dudek Consulting for Design Support during Construction
3. Task Order #2 under a Master Service Agreement with MNS Engineers for Construction Management and Inspection