TO: HONORABLE MAYOR FROM: Kerrie Romanow
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: January 18, 2023
Approved Date
1/23/23
SUBJECT: REPORT ON BIDS AND AWARD OF CONTRACT FOR 10228 – SOUTH
BAY WATER RECYCLING METERING AND PRESSURE
MONITORING IMPROVEMENTS PHASE 1
RECOMMENDATION
Report on bids and award of construction contract for the 10228 – South Bay Water Recycling Metering and Pressure Monitoring Improvements Phase 1 project to the lowest responsive, responsible bidder, JMB Construction, Inc., in the amount of $2,681,000, and approve a 10 percent contingency in the amount of $268,100.
SUMMARY AND OUTCOME
The award of the contract allows for accurate and remote pressure monitoring and metering to each recycled water retailer, which will provide a reliable source of data for operating the South Bay Water Recycling system. Approval of a contingency will provide funding for any unanticipated work or unforeseen conditions that may arise during construction.
BACKGROUND
In order to systematically monitor the recycled water usage, quality, and pressures within the retailer’s service area, six master metering stations will be installed at the gateways of the retailer’s service area. The volumetric data, water quality, and system pressure information will be collected and transmitted to South Bay Water Recycling via the existing Supervisory Control and Data Acquisition system. This improvement project is programmed to be completed in two phases.
COUNCIL AGENDA: 2/28/23
FILE: 23-271
ITEM: 6.2
HONORABLE MAYOR AND CITY COUNCIL
January 18, 2023
Subject: Report on Bids and Award of Contract for SBWR Metering and Pressure Monitoring Improvements Phase 1
The metering stations were proposed during the system planning and design phases in 1995 but they were removed from the bidding package after value engineering due to limited funding.
This project is to implement and restore the original project intents and system functions.
The South Bay Water Recycling Metering and Pressure Monitoring Improvements projects have two phases. Phase 1 project will install three new master recycled water meters and pressure monitoring stations. Phase 2 project will install another three new master recycled water meters and pressure monitor stations. The new pressure monitoring stations will improve overall system operation reliability. The new master recycled water meters will improve the ability to track recycled water usage between recycled water retailers and assist in the evaluation of overall system performance.
ANALYSIS
The project was advertised for bid on November 2, 2022. Four bids were received by the December 1, 2022 submittal deadline with the following results:
Contractor
City Bid Amount Variance Over/(Under)
Amount Percent
Engineer’s Estimate -- $2,500,000 -- --
JMB Construction, Inc. South San
Francisco $2,681,000 $181,000 7.24%
Pacific Underground
Construction, Inc.
(non-responsive)
San José $5,285,000 $2,785,000 111.40%
Cratus, Inc. San Francisco $3,470,000 $970,000 38.80%
GSW Construction, Inc. San Francisco $3,725,000 $1,225,000 49.00%
Pacific Underground Construction, Inc.’s bid was deemed non-responsive due to the bidder’s failure to provide specific project experience information requested by the City.
Staff recommends that City Council award the contract to the lowest responsive, responsible bidder, JMB Construction, Inc. JMB Construction, Inc.’s bid of $2,681,000 is 7.24% above the Engineer’s Estimate. The higher than anticipated bid amount is attributed to global supply chain issues, increased labor costs related to inflation, and a high volume of other similar projects resulting in reduced contractor interest and availability; for these reasons, re-bid of the project is not expected to result in a significant decrease to the project bid amounts. JMB Construction, Inc. has worked with the City in recent years and successfully completed several projects such as Flower Pump Station Replacement and Magnetic Meter and Valve Replacement.
HONORABLE MAYOR AND CITY COUNCIL
January 18, 2023
Subject: Report on Bids and Award of Contract for SBWR Metering and Pressure Monitoring Improvements Phase 1
Contingency
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. Staff recommends a 10 percent contingency, which should be sufficient to account for unforeseen conditions that might arise in the construction.
Project Labor Agreement Applicability
This project is subject to the Project Labor Agreement, as the Engineer’s Estimate was over $1,200,000.
Local/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 6,629 vendors, and documents were downloaded by 18 vendors, two of which were located within Santa Clara County and therefore local. The recommended contractor is a local but not a small business enterprise. The approximate value of work for JMB Construction Inc. is $2,681,000 for installing three new master recycled water meters and pressure monitoring stations on the recycled water distribution system.
EVALUATION AND FOLLOW-UP
No additional follow-up actions with City Council are expected at this time.
COST SUMMARY/IMPLICATIONS
1. AMOUNT OF RECOMMENDATION:
$2,681,000
2. COST ELEMENTS OF AGREEMENT/CONTRACT:
Project Delivery $938,350
Construction $2,681,000
Contingency $268,100
Total Project Costs $3,887,450
Prior Year Expenditure ($375,340)
Remaining Project Costs $3,512,110
HONORABLE MAYOR AND CITY COUNCIL
January 18, 2023
Subject: Report on Bids and Award of Contract for SBWR Metering and Pressure Monitoring Improvements Phase 1
3. SOURCE OF FUNDING: 570 – South Bay Water Recycling Operating Fund
4. FISCAL IMPACT: There are no cost implications to the General Fund as a result of this action.
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memorandum.
Fund
#
Appn
# Appn Name Total
Appn
Amt. for
Contract
2022-2023
Adopted
Budget Page
Last Budget
Action
(Date, Ord.
No.)
570 0762 Non-Personal /
Equipment $9,231,263 $2,949,100 1045 10/18/2022
30833
Total Current Funding
Available $9,231,263
COORDINATION
This project has been coordinated with the City Manager’s Budget Office and the City Attorney’s Office.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the February 28, 2023 City Council meeting.
This item is scheduled to be heard at the February 9, 2023 Treatment Plant Advisory Committee meeting. A supplemental memorandum with the committee’s recommendation will be included in the amended February 28, 2023 City Council meeting agenda.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
January 18, 2023
Subject: Report on Bids and Award of Contract for SBWR Metering and Pressure Monitoring Improvements Phase 1
CEQA
Categorically Exempt, File No. PP17-050, CEQA Guidelines Section 15301, Existing Facilities; Section 15302, Replace or Reconstruction.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in Government Code section 53083 or 53083.1 or in the City’s Open Government Resolution.
/s/
KERRIE ROMANOW
Director, Environmental Services
For questions, please contact Jeff Provenzano, Deputy Director, Environmental Services Department, at [email protected] or (408) 277-3288.