TO: HONORABLE MAYOR FROM: Matt Cano
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: October 3, 2022
Approved Date
10/11/22
COUNCIL DISTRICT: 4, 5, 6, 8, 10
SUBJECT: AWARD OF CONTRACT FOR THE 9703 - LARGE TRASH CAPTURE
DEVICE INSTALLATION PROJECT PHASE VII
RECOMMENDATION
(a) Report on bids and award of contract for the 9703 – Large Trash Capture Device Installation Project Phase VII to the lowest responsive and responsible bidder, KJ Woods Construction, Inc., in the amount of $7,488,000; and
(b) Approve a construction contingency of 15% in the amount of $1,123,200.
OUTCOME
Award of the construction contract to KJ Woods Construction, Inc. will enable the 9703 – Large Trash Capture Device Installation Project Phase VII to proceed on schedule and help achieve a 90% trash load reduction by June 30, 2023, to meet the regulatory goal established by the San Francisco Bay Regional Water Quality Control Board (RWQCB) for city-wide trash load reduction in the Municipal Storm Regional Permit (MRP). Approval of a 15 percent contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the project.
BACKGROUND
In May 2022, RWQCB issued the MRP 3.0 which become effective July 1, 2022. Provision C.10 of the MRP 3.0 requires all permittees, including the City of San José (City), to reduce the amount of trash discharging from their storm drain system by 90% by June 30, 2023 and 100% by June 30, 2025. Under these regulatory mandates and conditions, the City is required to COUNCIL AGENDA: 10/25/22
FILE: 22-1566
ITEM: 3.4
HONORABLE MAYOR AND CITY COUNCIL
October 3, 2022
Subject: 9703 - Large Trash Capture Device Installation Project Phase VII
implement measures to prevent or capture trash that enters into the stormwater system prior to discharging into any waterways.
To date, the City has installed and operated a total of 32 Large Trash Capture (LTC) devices to collect the trash from approximately 12,837 acres of watershed and has met the requirement in the previous stormwater permit of reducing the trash load by 80% by 2019.
This project will install the additional new LTC devices at the following six locations (see attached maps):
- Alexian Drive near the intersection of Jackson Street (Council District 5) - Quimby Road near the intersection of Interlude Street (Council District 8) - Hartog Drive near the intersection of Charcot Avenue (Council District 4) - Blossom Hill Road between Indian Avenue and Blossom Avenue (Council District 10) - Airport Boulevard near Guadalupe River (Council District 6) - East San Antonio Street near Lower Silver Creek (Council District 5)
Installing these additional new devices will help to meet the RWQCB MRP 3.0 Provision C.10 requirements that requires to the City to achieve a 90% trash load reduction by June 30, 2023.
These devices will capture trash so it can be removed prior to entering the local waterway and will serve a combined watershed of approximately 1,234 acres. All devices installed must be selected from the certified list posted on the RWQCB website. In addition, the project must meet a stringent deadline where all units must be installed and fully functional by June 30, 2023.
Construction is scheduled to begin in December 2022 with substantial completion in June 2023.
ANALYSIS
Bids for this project were opened on September 15, 2022 with the following results:
Contractor
City Bid Amount Over/(Under)
Percent
Engineer’s Estimate -- $8,970,000.00 --
KJ Woods Construction, Inc. San Francisco $7,488,000.00 (17%) JMB Construction, Inc South San Francisco $8,426,440.00 (6%) Ranger Pipelines, Inc. San Francisco $9,249,099.50 3%
Mountain Cascade, Inc. Livermore $9,984,968.50 11%
HONORABLE MAYOR AND CITY COUNCIL
October 3, 2022
Subject: 9703 - Large Trash Capture Device Installation Project Phase VII
The lowest bid submitted by KJ Woods Construction, Inc. is 17 percent below the Engineer’s Estimates. Upon analysis of bids and a following up with the apparent lower bidder, the low bid can be attributed to lower-than-expected costs for installing the following: LTC devices, storm pipes, pavement restoration, and curb/gutter replacement. Due to the high inflation rate and unstable market prices, the costs of those items are unpredictable and vary depending on their availability.
It should be noted that this is a specialty project utilizing new technology which requires a unique unit design solution for each location. City staff estimated the costs of the project based on the previous phases in the program and lessons learned from recent projects. Despite this baseline of information, bids in the current market have missed staff’s best estimate of costs.
City staff is confident in KJ Woods Construction, Inc.’s ability to complete this project at the bid amount and recommends that the contract be awarded to KJ Woods Construction, Inc.
KJ Woods Construction, Inc. is a contractor experienced in the installation of LTC devices and has been involved in the installation of previous LTC devices within the City since the beginning of this program in 2010. Recently, KJ Woods Construction, Inc. completed the installation of a total of six LTC devices for the 8151 - Large Trash Capture Device Installation Project – Phase VI that was awarded by the Director of Public Works on November 28, 2018.
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 10 percent of the total contract amount. Due to the uniqueness of these devices, staff recommends a 15 percent contingency, which should be sufficient to account for the following unforeseen conditions that might arise in the construction:
- Final selection of the LTC device from the RWQCB certified list will be determined by the contractor and may need to be modified during construction, - Extensive underground work and potential high groundwater level due to the weather condition,
- Other unanticipated work necessary to complete this project that is mandated by the MRP.
The funds budgeted for this project are sufficient to provide for this award and the recommended contingency. On June 16, 2022, the City entered into a Stormwater Mitigation Cooperative Agreement with Caltrans, who will reimburse the City for actual project cost up to a maximum amount of $12,500,000.
PROJECT LABOR AGREEMENT APPLICABILITY
This project is subject to the City’s Project Labor Agreement.
HONORABLE MAYOR AND CITY COUNCIL
October 3, 2022
Subject: 9703 - Large Trash Capture Device Installation Project Phase VII
LOCAL/SMALL BUSINESS OUTREACH
Procurement staff used Bidding 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 10,114 vendors, and documents were downloaded by 30 venders, approximately five of which were located within Santa Clara County and therefore local. The recommended contractor is not a local or a small business enterprise. However, Graham Contractors, a local business enterprise, is listed as a subcontractor and will be performing microsurfacing and slurry seal work valued at approximately $101,000.
CONCLUSION
As a result of the evaluation of bids, staff recommends the award of contract to KJ Woods Construction, Inc. in the total amount of $7,488,000 and approval of a 15 percent contingency in the amount of $1,123,200 to comply the requirements set forth in MRP 3.0 Provision C.10.
EVALUATION AND FOLLOW-UP
No additional follow up action with City Council is expected at this time.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the October 25, 2022 City Council meeting. Due to the roadway closures during construction, City staff will provide more outreach to the neighboring communities which will be impacted by accessibility and detour plans.
HONORABLE MAYOR AND CITY COUNCIL
October 3, 2022
Subject: 9703 - Large Trash Capture Device Installation Project Phase VII
COORDINATION
This project and memorandum were coordinated with the City Attorney’s Office, Environmental Services Department, Department of Transportation, Planning, Building and Code Enforcement Department, Norman Y. Mineta San José International Airport, and the City Manager’s Budget Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
Installation of the LTC units is in alignment with the City’s stormwater urban runoff policies and regulations.
COST SUMMARY/IMPLICATIONS
1. AMOUNT OF RECOMMENDATION/COST OF PROJECT:
Project Delivery* $2,007,572
Construction $7,488,000
Contingency (15%) $1,123,200
Total Project Costs $10,618,772
Prior Year Expenditure to Date ($1,216,614)
Remaining Project Cost $9,402,158
* Project delivery includes $1,216,614 for Design, Bid and Award Services and $790,958 for the construction supports of Construction Inspection, Materials Testing Lab and Survey services, and project closeout costs.
2. SOURCE OF FUNDING: Storm Sewer Capital Fund (Fund 469)
3. OPERATING COSTS: The costs to operate and maintain the LTC devices are still under development, as the needed cleaning frequency of these devices is still developing to City’s operations. Future operation and maintenance costs will be developed upon the completion of installation of new devices.
HONORABLE MAYOR AND CITY COUNCIL
October 3, 2022
Subject: 9703 - Large Trash Capture Device Installation Project Phase VII
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, construction, and contingency costs.
Fund
#
Appn
# Appn Name
Total
Appn
Amt. for
Contract
2022-2023
Proposed
Capital
Budget
Page*
Last Budget
Action (Date,
Ord. No.)
469 7676 Large Trash
Capture Devices $9,000,000 $7,488,000 199 06/21/2022,
30790
* The 2022-2023 Adopted Capital Budget was approved on June 14, 2022 and adopted on June 21, 2022 by the City Council.
CEQA
Public Project for the Citywide Large Trash Capture Device Installation for the installation of new prefabricated manhole Hydro Dynamic Separators or Full Trash Capture devices at various sites throughout the City within the public right-of-way or on City property as part of the trash load reductions requirements set forth in Provision C.10 of the San Francisco Bay Region Municipal Regional Stormwater Permit.
Categorically Exempt, File No. ER21-299, CEQA Guidelines Section 15301, Existing Facilities, adopted on March 17, 2022.
/s/
MATT CANO
Director of Public Works
For questions, please contact Mathew Nguyen, Deputy Director, Public Works Department at (408) 535-8300.
Attachments: Project Vicinity Map
Location Map 1 – Alexian Drive
Location Map 2 – Quimby Road
Location Map 3 – Hartog Drive
Location Map 4 – Blossom Hill Road
Location Map 5 – Airport Blvd
Location Map 6 – E. San Antonio Street
LOCATION MAP
NOT TO SCALELOCATION 1
ALEXIAN DRIVE
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
PROJECT LOCATION
LOCATION MAP
NOT TO SCALELOCATION 2
QUIMBY RD
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
PROJECT
LOCATION
LOCATION MAP
NOT TO SCALELOCATION 3
HARTOG DR
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
PROJECT LOCATION
LOCATION MAP
NOT TO SCALELOCATION 4
BLOSSOM HILL RD
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
PROJECT
LOCATION
85 LOCATION MAP
NOT TO SCALELOCATION 5
AIRPORT BLVD
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
680
PROJECT
LOCATION
87 LOCATION MAP
NOT TO SCALELOCATION 6
E SAN ANTONIO ST
9703-LARGE TRASH CAPTURE DEVICE INSTALLATION PHASE VII
PROJECT
LOCATION