TO: HONOR ABLE MAYOR FROM: Kerrie Romanow
AND CITY COUNCIL Matt Cano
S
UBJECT: SEE BELOW DATE: February 28, 2022
Approved Date
3/3/2022
S
UBJECT: REPORT ON BIDS AND AWARD OF CONSTRUCTION CONTRACT FOR 8748- STORM DRAIN SYSTEM IMPROVEMENT PROJECT REBID
AT THE SAN JOSE – SANTA CLARA REGIONAL WASTEWATER
FACILITY
RECOMMENDATION
R
eport on bids and award of construction contract to the low bidder, Ranger Pipelines, Inc., in the amount of $6,333,000 for the 8748 - Storm Drain System Improvement Project Rebid and approve a 20 percent construction contingency in the amount of $1,266,600.
OUTCOME
A
ward of the construction contract to Ranger Pipelines, Inc. (Ranger) will allow for construction and completion of the Storm Drain System Improvement Project (Project), which will rehabilitate the existing storm drain system to protect critical infrastructure at the San José-Santa Clara Regional Wastewater Facility (RWF). Approval of a 20 percent contingency will provide funding for unanticipated work that is necessary for the proper and timely completion of the Project.
BACKGROUND
T
he storm drain system at the RWF consists of pipelines, manholes, catch basins, sub- catchments, junction structures, channels, discharge points, and pump stations. There are approximately 24,000 feet of storm drain pipes that range from 2 to 66-inches in sizes. Runoff generally enters the storm drain system via catch basins. The RWF has seven existing storm water pump stations. Some of the infrastructure are 20 to 60 years old and many of the components have been in operation beyond their useful life. Given the age and long-term use of the storm drain system, the RWF experiences localized flooding within the main operational area which is caused by runoff during heavy rainfall events. A flood protection study, flood risk analysis, and condition assessments of the RWF’s storm drainage system identified COUNCIL AGENDA: 3/22/2022
FILE:
ITEM:
6.1 22-357
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: 8748 – Storm Drain System Improvement Project Rebid
improvements necessary to protect the RWF from floods. The condition assessments also determined that many components in the storm and sanitary systems are damaged, blocked, or nearing the end of their useful life. Therefore, there is an urgent need to rehabilitate the existing systems.
The Project will rehabilitate and upgrade the existing storm drain system to protect RWF’s critical infrastructure, including equipment, tunnel entrances, and buildings, from flooding during 10-year 24-hour to 100-year 24-hour storm events. The Project specifically includes:
a. Replacement of pumps at the Paint Shop, Los Esteros, and Lagoon pump stations. b. Rehabilitation of pump stations to resolve issues with wet wells, access, labeling, lighting, signing, trip hazards, vegetation control, catch basins, inlets, floats, electrical cabinets, and other appurtenances.
c. Replacement of approximately 2,800 feet of stormwater pipes with Categories 4 and 5 structural damages in accordance with the National Association of Sanitary Sewer Company (NASSCO).
d. Replacement of pipes with reversed slope.
e. Upgrades/improvements of inlets that are challenging to maintain (e.g., Zanker pump station).
f. Inspection, flushing, and cleaning of remaining stormwater pipes (approximately 5,500 feet).
g. Waterproofing tunnel entrances.
h. Replacement of NASSCO Category 4 and 5 sanitary sewer pipes (structurally damaged pipes), approximately 1,000 feet.
i. Inspection, flushing, and cleaning remaining sanitary sewer pipes (approximately 1,700 feet).
ANALYSIS
The project was first advertised on September 15, 2021, and four bids were received and opened on November 4, 2021. However, due to various irregularities found in the bids, all bids were rejected, and the project was re-advertised on December 1, 2021. Following the rebid, two bids were received and opened on December 16, 2021. The lowest responsive bid was from the Ranger Pipelines, Inc. in the amount of $6,333,000. The bid from the second lowest bidder, McGuire and Hester, was determined to be non-responsive for failure to include a required Insurance Cost Worksheet.
Contractor Bid Amount Variance Amount Over/Under
(Percent)
Ranger Pipelines, Inc.
(San Francisco, CA)
$6,333,000 $1,613,443 (20.3)
Engineer’s Estimate $7,946,443 - -
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: 8748 – Storm Drain System Improvement Project Rebid
The responsive bid was below the Engineer’s Estimate. The discrepancy between the Engineer’s Estimate and the bid amount may be attributed to the following factors:
• Equipment vendor quotes used on the bid are likely lower than the quotes used in the Engineer’s Estimate due to the competitive nature of the bidding process, • The Engineer’s Estimate for mitigation costs for known hazardous materials may have been more conservative than the contractor’s estimate, and • The Engineer’s Estimate for project-related mark-ups may have been more conservative than the contractor’s estimate.
The bid from Ranger is 20.3 percent under the Engineer’s Estimate. Staff has reviewed the bid and considers it responsive and reasonable for the work involved and recommends awarding the construction contract to Ranger.
San José Municipal Code Section 27.04.050 provides that the contingency for all public works contracts (except those involving the renovation of a building or buildings) cannot exceed ten percent of the total contract amount, except as otherwise approved by Council. Based on previous experience with similar projects at the RWF, it can be a challenge during the planning and design phase to identify and account for all the unknown infrastructure that may exist below ground level. Since the Project is taking place in the congested area in the RWF with many historically unknown buried utilities, staff recommends a 20 percent contingency for this project, which should be sufficient to account for unforeseen conditions that might arise in the construction.
Project Labor Agreement Applicability
The Director of Public Works determined that a Project Labor Agreement is applicable to this Project because the Engineer’s Estimate is over three million dollars, and it does not fall under any of the exemption categories.
Local and Small Business Outreach
Procurement staff used Biddingo to outreach to local and small business enterprises. Chapter
4.12 of the San José Municipal Code defines a “local business enterprise” as one with a legitimate business presence in Santa Clara County and “small business enterprise” as a local business enterprise with 35 or fewer employees. Procurement staff sent bid invitations to 6,929 vendors, and documents were downloaded by 15 vendors, approximately 2 of which were located within Santa Clara County and therefore local. The recommended contractor is not a local or a small business enterprise.
CONCLUSION
Based on staff’s evaluation of the bids, staff recommends awarding the construction contract for the Project to the low bidder, Ranger.
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: 8748 – Storm Drain System Improvement Project Rebid
EVALUATION AND FOLLOW-UP
No follow-up action with City Council is expected at this time. Quarterly progress reports of the RWF Capital Improvement Program will also be submitted to the Treatment Plant Advisory Committee (TPAC) and posted on the City’s website.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
The Project was advertised on Biddingo.com on December 16, 2021, and this memorandum will be posted on the City’s Council Agenda website for the March 22, 2022 City Council Meeting.
COORDINATION
This Project and memorandum have been coordinated with the Departments of Planning, Building and Code Enforcement, Fire, Finance, the City Manager’s Budget Office, and the City Attorney’s Office. This memorandum will be presented at the March 10, 2022, TPAC meeting for consideration.
COMMISSION RECOMMENDATION/INPUT
This item is scheduled to be heard at the March 10, 2022, TPAC meeting. A supplemental memo with TPAC’s recommendation will be included in the amended March 22, 2022, City Council meeting agenda.
FISCAL/POLICY ALIGNMENT
This Project is consistent with the City Council-approved budget strategy to focus on rehabilitating aging RWF infrastructure, improve efficiency, and reduce operating costs. This Project is also consistent with the budget strategy principle of focusing on protecting our vital core services.
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: 8748 – Storm Drain System Improvement Project Rebid
COST SUMMARY/IMPLICATIONS
1. AMOUNT OF RECOMMENDATION/COST OF PROJECT: $6,333,000
Project Delivery*
$5,427,050
Construction $6,333,000
Contingency (20%) $1,266,600
Total Project Costs $13,026,650
Prior Year Expenditures
$2,385,825
Remaining Project Cost $10,640,825
*Project delivery includes $1,676,263 for project management, professional consultant services, and flood risk analysis during feasibility/development, $876,799 for project management, professional consultant services, and environmental studies during design, $196,000 for project management and professional consultant service during bid and award, $2,366,608 for project management and professional consultant services during construction, and $311,380 for project management and professional consultant services during post- construction and project closeout.
The estimated project delivery cost is above average when compared with project delivery costs of other capital improvement projects at other wastewater facilities. This project required extensive condition assessment work, conducting flood risk analysis, and additional environmental support needed due to the environmentally sensitive nature of the project area.
2. COST ELEMENTS OF AGREEMENT/CONTRACT:
3. This is a lump sum contract. $6,333,000
4. SOURCE OF FUNDING: 512 – San José-Santa Clara Treatment Plant Capital Fund.
Of the $10.6 million remaining project cost, $9.2 million is available in the current fiscal year and allows for the full encumbrance of the construction contract. The remaining funding need of $1.4 million for project management costs will be included in the 2022- 2023 Proposed Capital Budget and 2023-2027 Proposed Capital Improvement Program.
5. FISCAL IMPACT: The Project will have no additional impact on the San José-Santa Clara Treatment Plant Operating Fund (Fund 513) or the General Fund.
6. Project Cost Allocation: In accordance with the recommendations set forth in the Capital Project Cost Allocations Technical Memo (Carollo Engineers, March 2016), this project is allocated 100% between the four billable parameters relative to the rolling weighted average distribution of all RWF assets.
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: 8748 – Storm Drain System Improvement Project Rebid
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memorandum.
Fund
#
Appn
# Appn. Name
Total
Appn
Amt. for
Contract
2021-2022
Adopted
Capital
Budget
Page
Last Budget
Action (Date,
Ord. No.)
512 404V Storm Drain
System
Improvements
$9,202,000 $6,333,000 265 10/19/2021
Ord. No.
30682
CEQA
Statutory Exemption, ER20-208, CEQA Guideline Section 15269(b) Emergency Projects.
/s/ /s/
KERRIE ROMANOW MATT CANO
Director, Environmental Services Department Director of Public Works
For questions, please contact Napp Fukuda, Assistant Director, Environmental Services Department at (408) 793-5353.
Attachment A- Storm Drain System Improvement Project Location Map
RE-BID
Attachment A- Storm Drain System Improvements Project Location Map