City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01520 12/12/2023 Consent Item 20.
Sump 151 Outfall Replacement [Published for 10-Day Review 11/30/2023] File ID: 2023-01520
Location: District 2, Represented by Councilmember Loloee Recommendation: Adopt a Resolution: 1) approving the contract plans and specifications for the Sump 151 Outfall Replacement Project (W14130600); 2) awarding the contract to T&S Construction Company, Inc. for an amount not-to-exceed $3,795,000; 3) authorize a budget transfer in the amount of $1,000,000 from the Storm Drainage Fund (Fund 6011) fund balance to the Drainage Sump Replacement/Rehabilitation Program (W14130600, Fund 6011) and a budget transfer of $1,000,000 from the Drainage Sump Replacement/Rehabilitation Program (W14130600, Fund 6021) to the Storm Drainage Property Related Fee Fund (Fund 6021) fund balance in the amount of $1,000,000 to reimburse the use of Storm Drainage Funding, and 4) authorizing the City Manager or City Manager’s designee to execute the construction contract with T&S Construction Company, Inc.
Contact: Peter Wright, Project Manager, [email protected], (916) 808-1433; Brett Grant, Supervising Engineer, [email protected], (916) 808-1413; Sherill Huun, Engineering & Water Resources Division Manager, [email protected], (916) 808-1455; Pravani Vandeyar, Director, [email protected], (916) 808-3765; Department of Utilities
Presenter: None.
Attachments:
1-Description/Analysis
2-Contract
3-Resolution
Description/Analysis
Issue Detail: Staff recommends Council award a construction contract to T&S Construction Company, Inc., to replace existing outfall pipes at Sump 151 and install new positive closure devices.
Policy Considerations: City Council approval is required to award construction contracts of $250,000 or more. The action requested conforms with City Code Chapter 3.60, Articles I and III, which provide for award of competitively bid contacts to the lowest responsible bidder. This item
File ID: 2023-01520 12/12/2023 Consent Item 20.
shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on November 30, 2023, in compliance with the City Code.
Economic Impacts: This project is expected to create 15.18 total jobs (8.73 direct jobs and 6.45 jobs through indirect and induced activities) and create $2,343,165.83 in total economic output ($1,476,915.33 of direct output and another $866,250.50 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations: The subject project was reviewed and determined to be subject to provisions of the California Environmental Quality Act (CEQA). An initial study was conducted for the Sump Stations Improvements Project that evaluated the subject project’s physical effects on the environment. In compliance with CEQA all potential significant effects of the project could be mitigated to a less-than-significant level and a mitigated negative declaration (MND) was prepared and circulated for public comment. On August 10, 2021, the City Council adopted the MND and mitigation monitoring plan (MMP) (Resolution No. 2021-0245) that covers the subject project. None of the circumstances set forth in CEQA Guidelines Section 15162 are present and the MND and MMP are adequate for the project. No further environmental review is necessary. The project applied for and received a Streambed Alteration Agreement from the California Department of Fish and Wildlife for work in and around the water side of the levee.
The adopted initial study/mitigated negative declaration for the Sump Station Improvements Project is available at the Community Development Department’s webpage located at the following link:
https://www.cityofsacramento.org/Community-Development/Planning/Environmental/Impact-Reports Sustainability: The proposed project is consistent with the 2035 General Plan as it improves infrastructure reliability by replacing damaged, substandard and impaired drainage outfall pipes with those that meet current standards and will efficiently convey stormwater.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The project was advertised, and two bids were received and opened on October 11, 2023. T&S Construction Company, Inc. was the lowest responsible bidder.
The bid results are as follows:
File ID: 2023-01520 12/12/2023 Consent Item 20.
Contractor Amount
T&S Construction Company, Inc. $3,795,000
Valentine Corporation $4,533,369
The Engineer’s construction cost estimate was $2,787,180. The significantly higher bids are a result of recent inflation and uncertainty due to poor access to some of the pipes within the sump station.
Financial Considerations: The total estimated cost for the project is $4,594,800, based on the low bid of $3,795,000 and including construction contingency, inspection, and staff time. With this agreement, the current project budget of $3,600,000 will be exceeded. Staff estimates an additional $1,000,000 is needed to complete the project.
Sufficient funding exists in the Drainage Sump Replacement/Rehabilitation (R&R) Program (W14130600, Fund 6021). However, the Storm Drainage Property Related Fee Fund (Fund 6021) is in litigation and the funding is on hold. To provide sufficient funding for this project and to reimburse the funding sources, the following budget transfers are recommended:
Name Fund Amount
Storm Drainage Fund Balance 6011 ($1,000,000)
Drainage Sump R&R Program (W14130600) 6011 $1,000,000
Drainage Sump R&R Program (W14130600) 6021 ($1,000,000) Storm Drainage Property Related Fee Fund Balance 6021 $1,000,000 DOU intends to reimburse the Storm Drainage Fund (fund 6011) from the Storm Drainage Property Related Fee Fund (fund 6021) in the Fiscal Year that the litigation is successfully resolved.
There are no General Funds planned or allocated for this project.
Local Business Enterprise (LBE): T&S Construction Company, Inc. is an LBE.
Background: In 2016, the Department of Utilities observed a sink hole above the outfall pipes at Sump 151. Subsequent CCTV inspection revealed that the sink hole was caused by holes in the outfall pipes. After temporary repairs were made, City DOU staff retained Kennedy Jenks to conduct a detailed condition assessment of the outfall pipes. In general, the outfall pipes associated with pumps 1-5 are heavily corroded and have significant wall loss. Holes in the pipe were observed and, in many cases, wall loss of 60-80% was also observed. The 42” diameter steel outfall pipe associated with pump 6 was recently replaced with a new HDPE pipe, which remains in good condition. In 2020, Peterson Brustad Inc, was commissioned to design the replacement of the five outfall pipes in poor condition. HDPE will be installed in lieu of steel pipe because HDPE has
File ID: 2023-01520 12/12/2023 Consent Item 20.
significantly better corrosion resistance, lower cost, greater flexibility, and a lower coefficient of friction. The replacement pipes will also be raised to be above the 200-year flood elevation and positive closure devices will be installed. This project was originally included as part of the Pump Outfalls Replacement Project (W14130615). Due to delays in permitting, this project was not completed at the time of the other outfall replacements included in that original project.
CONTRACT
ROUTING SHEET
Contract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.
General Information (Required)
Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________ Assessor’s Parcel Number(s): ________________________________________________________________ Contract Effective Date: _________ Contract Expiration Date (if applicable): _________ $ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________ Other Party: ______________________________________________________________________________ Project Title: _____________________________________________________________________________ Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________ City Council Approval: if YES, Council File ID#: __________ Contract Processing Contacts
Department: ______________________________
Contract Coordinator: _______________________
Project Manager: ___________________________
______
Department Review and Routing
(Signature) (Date)
(Signature) (Date)
(Signature) (Date)
(Signature) (Date)
Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.) _______________________________________________________________________________________ ------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ T & S Construction Co., Inc.
W14130609
Utilities
12/12/2023
Peter Wright
B23141311021
[email protected]
Sump 151 Outfall Replacement
2023-01520YES
Jacqueline Martinez
$3,795,000.00
otherwise required by law to conduct a criminal conviction history background check; or (2) a position that will -the-Box Ordinance does not prevent
of the application process after initially determining whether the applicant meets the minimum employment qualifications.
BID PROPOSAL GUARANTEE
OBLIGATION: We, the Principal and the Surety, bind ourselves, our heirs, executors, administrators and t described below, to
THE CONDITION OF THIS OBLIGATION IS -
That if the Principal has submitted a bid proposal to the City by the bid proposal due date as set forth in the invitation to bid, which date may be extended by City, for the project described as follows:
Project Name: __________________________________________________________ Project Number: _______________________________________________________ Bid Transaction Number:_____________________________________________ AND if the City awards the contract for the project to the Principal within the time and manner required under the invitation to bid, and the Principal (i) enters into a written contract, in the prescribed form, in accordance with the bid proposal, (ii) files two bonds with the City to guarantee faithful performance and payment for labor and materials, and (iii) files the required insurance policies with the City, all as required by the invitation to bid or by law, then the obligation shall be null and void; otherwise it shall be and remain in full force and effect. The Surety agrees that this obligation is not impaired by any extensions of the time for the award of the contract Principal may grant to City, and any notice to Surety of such time extension is waived. In the event suit is brought upon this bond by the Obligee and judgment is recovered, the Surety shall pay all costs incurred by the Obligee in such suit, including a reasonable attorney's fee to be fixed by the court, which sums shall be additional to the principal amount of this bond.
IN WITNESS WHEREOF, Surety has executed this Bid Proposal Guarantee on the day set forth in the attached notary acknowledgment
Principal/Contractor: Surety:
By:_________________________________ By: ______________________________ Name: Name:
Title: ________________________________ Title:_______________________________ (Seal) Revised: 2020
PRINCIPAL (Contractor legal name and business address)
_____________________________________________________________ _____________________________________________________________ Individual Partnership
Corporation Limited Liability Co.
Other: _______________________
State of Organization formation:
_________________________
SURETY (Name and business address,) (agent name and phone number) __________________________________________________________________________ ______________________________________ __________________________________________________________________________ ______________________________________ _________________________________________________________________________ a corporation duly organized under the laws of the State of and duly licensed to issue surety bonds this bond as authorized by the State of California. California License No. __________________________________
.
Construction and Demolition (C&D) Debris Recycling Requirements Definitions
“
“
Waste Management Plan Attachment 1
Attachment 2
Attachment 3
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
REQUIREMENTS FOR THE LOCAL BUSINESS ENTERPRISE PROGRAM
(LBE Program)
1. INTRODUCTION
The City of Sacramento has a Local Business Enterprise (LBE) Program to provide enhanced opportunities for local businesses to participate in the City's procurement and contracting activities. The Program began with an LBE Preference for bid and proposal evaluation. The Program was then expanded to require minimum LBE Participation levels in specific procurement opportunities.
2. APPLICATION
As summarized in the table below, there are two components to the LBE Program:
a. LBE Preference: For certain contracts, a 5% LBE Preference is applied during the bid evaluation process.
b. LBE Participation Requirement: For certain contracts, a minimum 5% LBE participation level is required for a bidder to be considered responsive.
Contracts Under $250,000 Contracts $250,000 or more
Goods
Non-
Professional
Services
Professional
Services
Public
Projects
Goods
Non-
Professional
Services
Professional
Services
Public
Projects
Apply 5% LBE
Preference* YES YES YES YES NO NO YES NO
Apply 5%
Minimum LBE
Participation
Requirement
NO NO NO
NO
NO
YES YES YES
* LBE Preference only applies if the proposed prime contractor qualifies as an LBE.
Local Business Enterprise: A Local Business Enterprise (“LBE”) means a business enterprise, including but not limited to, a sole proprietorship, partnership, limited liability company, corporation, or other business entity that has a “legitimate business presence” within City limits or the unincorporated area of Sacramento County.
A “legitimate business presence” within City limits or the unincorporated area of Sacramento County means:
a. An established business entity operating within the selected areas for at least 12 consecutive months prior to submission of bid; and
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
b. Legally operating a location in the City of Sacramento or unincorporated area1 of Sacramento County that is either:
(1) a principal business office or workspace; or
(2) a regional, branch, or satellite office with at least one full-time employee.
To qualify as an LBE, firms must meet these two requirements prior to the deadline for submission of bids or proposals. Upon the request of the City, firms shall provide proof of legally operating a location within City limits or the unincorporated County with the following documents:
- Tax returns for the business;
- Utility bill in the name of the business;
- Business license; and/or
- Secretary of State filings.
Exceptions from LBE Preference and Participation Requirements The LBE Program does not apply to procurement processes for contracts funded with federal funds, goods or services purchased through cooperative purchase agreements, or contracts entered into in response to a declared emergency.
3. LBE PREFERENCE
For contracts under $250,000, firms that qualify as an LBE will receive a 5% preference on all City procurement opportunities. For professional service contracts only, this preference also applies to procurement opportunities of $250,000 or more. The proposed prime contractor must qualify as an LBE to receive LBE preference points. Utilizing an LBE subcontractor is not a basis for receiving LBE preference points.
For contracts to be awarded in response to a solicitation for bids, a bid or quotation submitted by a firm that qualifies as an LBE will receive a 5% bid evaluation preference for the purpose of determining the lowest responsible bidder. This means that, for bid evaluation purposes, the total price bid by an LBE shall be reduced by 5%. However, this reduction only applies for bid evaluation purposes, and the resulting contract or purchase order will reflect the actual amount bid by the LBE.
For contracts awarded in response to a solicitation for proposals or qualifications, a firm that qualifies as an LBE shall receive additional points during the scoring process, so the final score
1 “Unincorporated area” generally refers to the part of a county that is not part of any city. The unincorporated area of Sacramento County does not include the cities of Citrus Heights, Elk Grove, Folsom, Galt, Isleton, Rancho Cordova, Rancho Cordova, and Sacramento.
(see https://www.saccounty.gov/Government/Pages/CitieswithintheCounty.aspx ).
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
awarded to the LBE is increased by 5% of the total possible evaluation points.
The City Manager does not have the authority to waive the application of the LBE Preference.
Only the City Council can waive the application of the LBE Preference. No waiver is required for procurements that are otherwise excluded from the LBE Program (as listed above), including federally funded purchases.
4. LBE PARTICIPATION REQUIREMENT
For non-professional service, professional service, and public project contracts of $250,000 or more, a minimum 5% LBE participation level is required. To receive credit for the 5% minimum participation requirement, bidders must either (a) be an LBE, or (b) subcontract with a qualified LBE.
Under City Code section 3.60.270, when the City establishes a minimum participation level for LBE's on a contract, no contractor shall be considered responsive unless its bid or proposal meets the minimum LBE participation level required.
The City Manager (or designee) has the authority to waive or reduce the LBE Participation requirements on some procurement opportunities prior to acceptance of bids or proposals.
PARTICIPATION LEVEL
LBE Participation: The percentage of LBE participation is determined based on the dollar value of the work to be performed. LBE credit may be obtained by utilizing LBE qualified subcontractors or suppliers, as outlined below.
Participation Credit: To receive credit for LBE participation:
1. An LBE contractor or subcontractor must: (1) be responsible for the execution of a distinct element of the work; (2) possess any license or certification required for the work; and (3) actually perform, manage, or supervise the work without subcontracting or otherwise shifting any portion of the work to another subcontractor.
2. An LBE supplier must: (1) furnish materials or equipment that the supplier sells as a recurring, although not necessarily primary, part of its business; and (2) the materials or equipment must be necessary for performance of the work.
Suppliers: Credit for an LBE supplier of materials or equipment is counted as 100% of the amount paid to the supplier for the materials or equipment. To receive this credit, LBE Suppliers must be listed on a Subcontractor and LBE Participation Verification Form and submitted with a bid or proposal.
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
Subcontractors (including Truckers): To receive credit for an LBE subcontractor, the subcontractor must be listed on a Subcontractor and LBE Participation Verification Form and submitted with a bid or proposal.
Truckers: Credit for an LBE trucker is counted as 100% of the amount paid to the trucker for trucking/hauling services, not including any amount paid to the Trucker for the cost of any materials or equipment being transported by the Trucker.
CONTRACTOR AND SUBCONTRACTOR REQUIREMENTS
2 LBE Records: The Contractor shall maintain records of all subcontracts with verified LBE subcontractors and records of materials purchased from verified LBE suppliers for one year after receiving final payment from the City. Such records shall show the name and business address of each LBE subcontractor or supplier and the total dollar amount actually paid to each LBE subcontractor or supplier.
No later than 30 days after completion of the work performed under the contract, a summary of these records shall be prepared, certified correct by the Contractor's authorized representative and furnished to the City. The Contractor shall provide such other information, records, reports, certifications or other documents as may be required by the City, to determine compliance with any provision of the LBE Program or these specifications.
Performance of LBE Subcontractors and Suppliers: The LBE subcontractors and suppliers listed by the Contractor shall perform the work and supply the materials or equipment for which they are listed on the Subcontractor and LBE Participation Verification Form, unless the Contractor has received prior written authorization from the City to perform the work with other forces or to obtain the materials or equipment from other sources. Reasons for requesting such authorization would include:
1. The listed LBE subcontractor or supplier fails to execute a written contract based upon the general terms, conditions, plans, and specifications for the project.
2. The listed LBE subcontractor or supplier becomes bankrupt or insolvent.
3. The listed LBE subcontractor or supplier fails to meet the bond requirements of the Contractor.
4. The work performed or the materials or equipment provided by the listed LBE subcontractor or supplier are unsatisfactory or are not in accordance with the plans and specifications.
5. The listed LBE subcontractor or supplier fails to perform its contractual obligations.
2 These requirements only apply to the LBE Participation component of the LBE Program CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
6. It would be in the best interest of the City.
Subcontractor Substitution: No substitution of an LBE subcontractor shall be made at any time without compliance with the Subletting and Subcontracting Fair Practices Act. If an LBE subcontractor is unable to perform successfully and is to be replaced, the Contractor shall make reasonable efforts to replace the original LBE subcontractor with another verified LBE subcontractor. The new LBE subcontractor must be verified at the time of substitution.
CITY OF SACRAMENTO LBE PROGRAM - 5/31/2023
Reporting and Utilization Requirements and Sanctions: Failure to provide specific information, records, reports, certifications or any other documents required for compliance with these specifications, or failure to utilize one or more LBE's in substantial compliance with the LBE utilization indicated in the Contractor's bid or proposal (unless otherwise authorized by the City as provided herein, or when such failure results from changes to the work approved by the City), shall be considered a breach of the contract.
A deduction may be made from the contract amount and the deduction shall not be more than 10% of the value of the work or materials or equipment that the subject LBE(s) were listed to perform or provide in the Contractor's bid or proposal. Deduction shall be made from any payment due the Contractor. This is in addition to any deduction that may be made under any other provision of the Contract, the Sacramento City Code, or State law.
Hearing and Review of Division Manager Decision: Prior to making a deduction pursuant to the Reporting and Utilization Section above, the City shall provide written notice of the proposed deduction to the Contractor. The Contractor may, no later than 5 working days after receiving such notice, provide a written request to the City for a hearing to contest the proposed deduction. Upon receipt of a timely written request from the Contractor, the City shall schedule a hearing before the Division Manager (as defined in the City's Standard Specifications for Public Construction), and written notice of the date, time, and location of the hearing shall be provided to the Contractor not less than 5 working days prior to the date of the hearing.
The hearing shall be conducted in the manner specified in Section 4-8 of the Standard Specifications, and the Division Manager shall prepare and forward to the Contractor a written decision as soon as practicable after the hearing. The Division Manager's decision shall be subject to review in accordance with the provisions of Section 4-9 of the Standard Specifications. Failure to request such review in compliance with the requirements set forth in Section 4-9 shall constitute acceptance of the Division Manager's decision by the Contractor.
Written Notices: The written notices and request described above shall be provided by registered or certified mail (return receipt requested), by personal delivery, or by any other method that provides reliable evidence of the date of receipt. Written notice provided by personal delivery shall be deemed received on the date of delivery.
LBE status is applicable to the following:
• Any Sacramento addresses which encompasses both the City & unincorporated Sacramento County – including neighborhoods like Rosemont, Antelope, Foothill Farms & Walerga.
• North Highlands
• Carmichael
• Fair Oaks
• Orangevale
The map below can be found at: http://www.311.saccounty.net/Pages/Sacramento-County-Maps.aspx For an interactive map showing exact address locations within the City of Sacramento or unincorporated County of Sacramento: http://generalmap.gis.saccounty.net/JSViewer/county_portal.html