DATE: AUGUST 20, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, DIRECTOR
BY: JOSIE LANTACA, ASSISTANT ENGINEER
TITLE: SANITARY SEWER SPOT REPAIR AND IMPROVEMENTS
CIP NO. 9010
RECOMMENDED MOTION:
A motion to:
Approve the plans and specifications for the Sanitary Sewer Spot Repair and Improvements, CIP No. 9010; Accept the withdrawal of bid from the apparent low bidder, Mountain Cascade, Inc.; Approve award of contract to the second low bidder, Sierra Construction & Excavation, Inc. for the Sanitary Sewer Spot Repair and Improvements; CIP No. 9010 in the amount of $3,352,170 (Base Bid plus Additive Bid Items B, C, D, E, F); Approve the transfer of ARPA funds from 8192 Stormwater Green Infrastructure in the amount of $230,678, 9086 Natividad Creek Silt in the amount of $62,000, and 9727 Gabilan Creek Silt in the amount of $61,861; and Approve a 20% project contingency and soft costs in the amount of $670,435.
EXECUTIVE SUMMARY:
The Sanitary Sewer Spot Repair and Improvements, CIP No. 9010 is one of the projects identified as part of the “Investments in Water and Sewer” funded with the American Rescue Plan Act (ARPA). The project was advertised for bidding on July 3, 2024, and bids were opened on July 30, 2024. The apparent low bidder, Mountain Cascade, Inc., requested that it be allowed to withdraw its bid due to clerical errors made in entering the final pricing. The bid from Sierra Construction & Excavation, Inc., the second low bidder, exceeds the Engineer’s estimate and additional funds will need to be allocated to award the project.
BACKGROUND:
The Sanitary Sewer Spot Repair and Improvements, CIP No. 9010 is one of the projects identified as part of the “Investments in Water and Sewer” funded with the American Rescue Plan Act (ARPA). The repair locations included in the Sanitary Sewer Spot Repair and Improvements project are based on the Sanitary Sewer Master Plan Update (SSMP) approved by City Council on May 2, 2023 (Resolution No. 22648). The list is a result of findings from closed circuit television (CCTV) pipeline video inspections, and maintenance staff’s areas of concern. Staff prioritized the CIP list according to the pipe and facility conditions. The extent of repairs was surveyed, and the design was provided by Wallace Group. Plans and specifications were reviewed and approved by the City Engineer on July 3, 2024. Table 1 provides the CIP number and locations included in the Sanitary Sewer Spot Repair and Improvements Project.
Table 1. Sanitary Sewer Spot Repair and Improvements Project CIP No
Street Name/Location/Description
Base Bid:
CIP 7
Davis Rd/Market St Overpass Bunker Repair
CIP 13
Riker Street Sewer Main Repair
CIP 14B
Villa Street Sewer Main Repair
CIP 14C
Capitol Street Sewer Main Repair
CIP 17
Donner Way Sewer Main Repair
CIP 18
San Miguel Avenue Sewer Main Repair
Additive Bid Item B:
CIP 12A
Del Monte Avenue Sewer Main Repair
Additive Bid Item C:
CIP 16
Highway 101/N. Main Street Overpass Bunker Repair
Additive Bid Item D: Concrete Pavement Replacement
Additive Bid Item E: Hot Mix Asphalt
Additive Bid Item F: Class 2 Aggregate Base
The scope of work includes traffic control, removal or abandonment of existing sanitary sewer mains, installation of sanitary sewer mains, removal, replacement and/or installation of sanitary sewer manholes, reconnecting of existing sanitary sewer laterals to new sanitary sewer mains, sewer bypassing, replacement of vault doors, and trench restorations as specified on the project plans and specifications.
On July 3, 2024, the project was advertised for bidding, and bids were opened on July 30, 2024, with the following results (see attached Bid Tabulation Sheet for details):
Contractor
Total Bid
(Base Bid plus all Additive Bid Items)
Mountain Cascade, Inc. (Livermore, CA)
$2,678,960.00
Sierra Construction & Excavation, Inc. (Bakersfield, CA) $3,744,516.00
Pacific Underground Construction, Inc. (San Jose, CA)
$4,089,950.00
Anderson Pacific Engineering Construction, Inc. (Santa Clara, CA) $4,245,650.00
Monterey Peninsula Engineering (Marina, CA)
$4,660,800.00
Engineer’s Estimate
$3,271,800.00
Monterey Peninsula Engineering’s (MPE) bid was inadvertently left out in the reading of the bids during the public meeting held virtually via Zoom, at bid opening. However, MPEs bid is valid, and thus included in the bid tabulation.
On August 6, 2024, a “Withdrawal of Bid” request letter was received from Mountain Cascade, Inc. (MCI). MCI is requesting that it be allowed to withdraw its bid due to clerical errors made when entering the final pricing, which made MCI’s bid materially different than what it intended to submit. The error occurred when MCI mistakenly omitted entering manhole lining subcontractor pricing, related to support costs, and subcontractor listing in its final bid. The clerical error resulted in the bid total excluding $575,797.20 in costs, or 21.5% less than MCI intended. Staff recommends that the withdrawal of bid request from MCI be accepted.
Sierra Construction & Excavation, Inc. (SCEI) is the second low bidder. SCEI’s bid is 14.45% above the engineer’s estimate but is deemed reasonable. Staff has conducted reference check on SCEI from the North of River Sanitary District (NORSD) (Bakersfield), and NORSD has very positive review regarding SCEI on their work performance on five similar jobs over the course of six to seven years.
To allow award to move forward with the limited budget, staff recommends award of Base Bid plus Additive Bid Items B, C, D, E, F to Sierra Construction & Excavation, Inc., the second apparent low bidder, in the amount of $3,352,170.00. Staff is recommending exclusion of Additive Bid Item A, Mae Avenue based on limited available funding. The improvement plans for the sewer repairs for Mae Avenue will be held and implemented when a future sewer project is funded.
The “Local Purchasing Preference Ordinance” is not applicable to this project because the project is funded with ARPA funds.
CEQA CONSIDERATION:
This project has been reviewed per the California Environmental Quality Act (CEQA) Guidelines and has been determined to be Categorically Exempt in accordance with Section 15301 (Class 1) because the project involves the maintenance of existing public facilities/utilities with no expansion of use.
STRATEGIC PLAN INITIATIVE:
The project addresses the City Council’s Strategic Goals of Infrastructure and Environmental Sustainability and Economic Development.
DEPARTMENTAL COORDINATION:
The process of administering this project involves Public Works, Finance, and Legal Departments.
Public Works Department coordinated the preparation of the project plans, specifications, and estimates, administered the bidding process, and will manage and inspect the project during construction. Finance Department manages the proper disbursement of funds, and Legal Department reviews pertinent documents/contracts.
FISCAL AND SUSTAINABILITY IMPACT:
There is no impact to the General Fund for this project. The Sanitary Sewer Spot Repair and Improvements project is one of the identified projects listed as part of the “Investments in Water and Sewer” funded with the American Rescue Plan Act (ARPA). The 8190 Water and Sewer Work has a total budget allocation of $4,620,000 in ARPA funds. Based on expenditures as of July 3, 2024, the remaining balance is $3,812,717 from the 8190 Water and Sewer Work fund. The estimated construction cost for this project including contingencies, soft costs, and admin overhead is $4,072,605.00 as outlined below.
Construction Cost $3,352,170
Contingencies (15%) 502,826
Soft Costs (5%) 167,609
Administrative Overhead 50,000
Total Estimated Project Costs $4,072,605 A transfer of ARPA funds is recommended to proceed with project award and to close the funding gap for construction.
ATTACHMENTS:
Resolution
Location Map
Bid Tabulations
Mountain Cascade Withdrawal Letter
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Transfer amounts could be lower due to ongoing transactions.
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