TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
Jim Shannon
SUBJECT: See Below DATE: April 7, 2025
Approved:
Date:
2/15/25
COUNCIL DISTRICTS: 1, 3, 4, 5, 6
SUBJECT: Actions Related to the 10421 - Sanitary Sewer Condition Assessment Fiscal Year 2024-2025 Package III Project
RECOMMENDATION
(a) Report on bids and award of contract for the construction of 10421 - Sanitary Sewer Condition Assessment Fiscal Year 2024-2025 Package III Project, to the lowest responsive, responsible bidder, National Plant Services, Inc., in the amount of $965,068;
(b) Approve a 10% contingency in the amount of $96,507; and
(c) Adopt the following 2024-2025 Appropriation Ordinance amendments in the Sewer Service and Use Charge Capital Improvement Fund:
(1) Decrease the Unrestricted Ending Fund Balance by $817,000, and (2) Increase the Infrastructure - Sanitary Sewer Condition Assessment appropriation to the Public Works Department by $817,000.
SUMMARY AND OUTCOME
Award of the contract to National Plant Services, Inc. enables the 10421 - Sanitary Sewer Condition Assessment Fiscal Year (FY) 2024-2025 Package III Project (Project) to proceed with construction to clean and assess the condition of the City’s sanitary sewer system. The completion of the Project will provide information related to the condition of the pipelines and allow staff to plan for future repairs as needed. Approval of the 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project. Approval of the recommended appropriation actions will ensure sufficient funding for the Project and other priority projects in 2024-2025.
COUNCIL AGENDA: 4/29/25
FILE: 25-438
ITEM: 2.14
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
BACKGROUND
The Department of Public Works has developed a condition assessment program to video inspect and evaluate the condition of the City’s sanitary sewer pipelines via Closed Circuit Television. This Project is part of this condition assessment program and will clean and assess the condition of approximately 330,000 linear feet (62 miles) of six-inch to 10-inch diameter sanitary sewer pipelines within Council Districts 1, 3, 4, 5, and 6 as shown in the attached Project Location Map. (Attachment A – 10421 - Sanitary Sewer Condition Assessment FY 2024-2025 Package III Location Map).
Defects found on the sewer pipelines will be observed, analyzed, and coded in accordance with the National Association of Sewer Service Companies Pipeline Assessment and Certification Program standards. This data will then be incorporated into the City’s InfoMaster database to be used for asset management and scoping future projects.
The Project is scheduled to begin in July 2025 with substantial completion in January 2026.
ANALYSIS
Bids were opened on January 16, 2025 with the following results.
TABLE 1
Contractor
Bid Amount Variance
Amount
Over/(Under)
Percent
Engineer's Estimate $945,213 -- --
Coastline Water Resources, Inc.
(Roseville) (non-responsive) $651,876 ($293,336) (31)
National Plant Services, Inc.
(Long Beach) $965,068 $19,855 2
Champion Cleaning Services, Inc.
(Cincinnati, OH) $978,486 $33,273 4
Nor-Cal Pipeline Services
(Roseville) (non-responsive) $1,648,835 $703,619 74
Able Septic
(San Jose) (non-responsive) $1,694,196 $748,983 79
Pipe & Plant Solutions, Inc.
(Hayward) $2,413,375 $1,468,163 155
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
Procurement Issues
The bids from Coastline Water Resources, Inc., Nor-Cal Pipeline Services, Inc., and Able Septic were deemed non-responsive for failing to provide the correct type of California Air Resources Board Certificate of Reported Compliance for the bidder.
Bid Price Analysis
The low bid submitted by National Plant Services, Inc. is 2% above the Engineer’s Estimate. The bid is considered acceptable for the work involved.
Contractor Responsibility Analysis
National Plant Services, Inc. has successfully completed multiple sanitary sewer condition assessment projects of similar scope for the City of San José, including 10088 – Sanitary Sewer Condition Assessment FY 2022-2023 Package III completed in August 2024, and 9577 – Sanitary Sewer Condition Assessment FY 2020-2021 Package II completed in March 2022.
Contingency
San José Municipal Code Section 27.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of a building or buildings. The standard 10% contingency is appropriate for this Project.
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed the bidders for compliance with the City’s Wage Theft Prevention Policy on January 16, 2025, and again on January 30, 2025. No wage theft issues were identified.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is not applicable to this Project because the Engineer’s Estimate is under $1.21 million.
Local and Small Business Analysis
The recommended contractor is not a local or a small business enterprise. However, D&M Traffic Services, a listed subcontractor, is a local business enterprise located in the City of Santa Clara.
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
COST SUMMARY/IMPLICATIONS
The proposed operating and maintenance costs of the Project have been reviewed and it has been determined that the Project will have no significant adverse impact on the operating budget.
1. TOTAL COST OF PROJECT:
Project Delivery*
$ 370,800
Construction 965,068
Contingency 96,507
TOTAL PROJECT COSTS $1,432,375
Prior Year’s Expenditures 121,071
TOTAL REMAINING PROJECT COSTS $1,311,304
*Project delivery includes $141,017 for design services and $229,783 for inspection, construction management, and project closeout costs.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Closed Circuit Television Inspection $ 396,000
Cleaning of Pipelines 478,000
Other Construction Costs 91,068
TOTAL AGREEMENT/CONTRACT AMOUNT $ 965,068
3. SOURCE OF FUNDING: 545 - Sewer Service and Use Charge Capital Improvement Fund.
The Recommendation includes budget actions to allocate $817,000 from Ending Fund Balance to the Infrastructure - Sanitary Sewer Condition Assessment appropriation.
This appropriation has an ongoing allocation to fund the condition assessments; however, additional funding is needed to supplement existing funding for the construction of 10421 - Sanitary Sewer Condition Assessment Fiscal Year 2024-2025 Package III Project as well as other projects as displayed in Table 2. Funding needs for these projects beyond this fiscal year will be included in the development of the 2025- 2027 Proposed Biennial Capital Budget and 2026-2030 Capital Improvement Program.
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
Based on an analysis of funding requirements and allocation amounts, the appropriation’s current budget is insufficient to support the Project and other priority projects, contingency amounts, and associated staff costs. This has been due to a variety of reasons, including rapidly changing labor and material costs, variances between early Engineer’s Estimates and bid award amounts, and increases in contingency needs. Many of these circumstances have been exacerbated by impacts to supply chains, originating during the COVID-19 pandemic, which are still having ripple effects today, as well as additional market circumstances and forecasts that have arisen in recent months. Due to these factors, along with the necessity to deliver high priority projects, contract awards have outpaced budgeted levels this year, requiring an adjustment to ensure available budgetary capacity to support the awarded contracts.
Table 2 identifies the additional funding need in 2024-2025 for the Infrastructure- Sanitary Sewer Condition Assessment appropriation.
TABLE 2
Project Award Date Total Project
Cost
Remaining
Project Costs in
2024-2025*
10388-Sanitary Sewer Condition
Assessment FY 2023-2024 Package VI 6/11/2024 $2,241,000 $1,884,000 10300-Sanitary Sewer Condition
Assessment FY 2023-2024 Package IV 12/3/2024 $2,073,000 $1,909,000 10427 - Sanitary Sewer Condition
Assessment FY 2024-2025 Package II 1/6/2025 $1,730,000 $1,546,000 10421- Sanitary Sewer Condition
Assessment FY 2024-2025 Package III 4/29/2025 $1,432,000 $1,178,000 Total Remaining Project Costs in 2024-2025 $6,517,000
Current Budget $5,700,000
Additional Funding Needs in 2024-2025 $817,000
*Remaining project costs in 2024-2025 consist of the encumbered contract amounts and the estimated project delivery costs through June 30, 2025. The funding needed to support remaining project delivery costs next fiscal year will be included in the 2025-2027 Proposed Biennial Capital Budget and 2026-2030 Capital Improvement Program.
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
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.
* Elsewhere on this agenda, budget actions recommended for 10417 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package I Project and 10290 – Sanitary Sewer Repairs Fiscal Year 2023-2024 Package V Re-Bid Project that further decrease the Ending Fund Balance in the Sewer Service and Use Charge Fee Capital Improvement Fund. Together, these actions result in the Ending Fund Balance decreasing by $12.0 million, from $39.4 million to $27.4 million.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the Planning, Building, and Code Enforcement Department.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 29, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
Fund # Appn.
#
Appropriation
Name
Current Total
Appropriation
Rec. Budget
Action
Amt.for
Contract
2024-2025
Adopted
Capital
Budget Page
Last
Budget
Action
(Date, Ord.
No.)
545 6521
Infrastructure
-Sanitary
Sewer
Condition
Assessment
$5,700,000 $817,000 $965,068 199
02/11/2025
Ord. No.
31176
545 8999 Ending Fund
Balance* $39,350,307 ($817,000) N/A 179
02/11/2025
Ord. No.
31176
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Actions Related to the 10421-Sanitary Sewer Condition Assessment Fiscal Year 2024- 2025 Package III Project
CEQA
Exempt, File No. ER22-048. CEQA Guidelines Sections 15301(b) Existing Facilities, and 15302(c) Replacement or Reconstruction. (Attachment B – Statement of Exemption, ER22-048).
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
MATT LOESCH JIM SHANNON
Director, Public Works Budget Director
For questions, please contact Mathew Nguyen, Public Works Deputy Director, at [email protected] or (408) 535-8300.
ATTACHMENTS:
Attachment A – Project Location Map
Attachment B – Statement of Exemption, ER22-048
ATTACHMENT A - Project Location Map
CITY OF a
SAN JOSE Planning, Building and Code Enforcement
CAPITAL OF SILICON VALLEY CHRISTOPHER BURTON, DIRECTOR
STATEMENT OF EXEMPTION
FILE NO.
LOCATION OF PROPERTY
PROJECT DESCRIPTION
CERTIFICATION
ER22-048
Citywide
Public Project Exemption for sewer rehabilitation work.
These types of projects would include the inspection and rehabilitation of existing sewer mains ranging from
approximately 4- to 30-inch in diameter located in the
public-right-of-way and/or in a public utility easement (PUE) throughout the City of San Jose. This project will evaluate the current condition of each segment of sewer pipeline to determine the appropriate repair method, and deploy pipeline point repairs, Cured-In-Place-Pipe
(CIPP) liners, or removal and replacement of entire
segments to eliminate exfiltration. This exemption is
only valid for projects that are within the scope of work as described below. This exemption will not be valid for segments that have significant impact to scenic
highways, historic resources, or located on a site that is included on any list compiled pursuant of Section
65962.5 of the Government Code.
Expiration date: March 28, 2027.
Under the provisions of Sections 15301(b) and 15302(c) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA) as stated below, this project is found to be exempt from the environmental review requirements of Title 21 of the San José Municipal Code, implementing the California Environmental Quality Act of 1970, as amended. 15301. EXISTING FACILITIES
Class | consists of operation, repair, maintenance, permitting, leasing, licensing, or minor alternation of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The types of “existing facilities” itemized below are not intended to be all-inclusive of the types of projects which might fall within Class 1. The key consideration if whether the project involves negligible or no expansion of an existing use. Examples include but are not limited to:
(b) Existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services 15302. REPLACEMENT OR RECONSTRUCTION
Class 2 consists of replacement or reconstruction of existing structures and facilities where the new
200 E. Santa Clara Street, 3 FL San José, CA 95113 tel (408) 535-3555 www.sanjoseca.gov/pbce
ATTACHMENT B
structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but no limited to:
(c) Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.
ANALYSIS
Public Project Exemption for the review and rehabilitation of existing sewer segments ranging from approximately 4- to 30-inch diameter in size. This project will evaluate the current condition of each segment of sewer main to determine the appropriate repair method and deploy appropriate point repairs, Cured-In- Place-Pipe (CIPP) liners, or removal and replacement of entire segments to eliminate exfiltration. The purpose of this work is to upgrade and ensure efficiency and safety of the existing utility service system. If replacements are needed, the replacement will not increase the size of the sewer mains and will not result in expansion of capacity. Associated equipment, such as manholes, may need replacement as well.
All of the sewer main segments are located within the City boundary. Most are located within the right-of- way and/or a PUE. There are a few segments of sewer mains that are not within the public-right-of way and/or a PUE, within 100 feet of a water way, or within the wildlife survey areas or other fee zones as defined by the Santa Clara Valley Habitat Conversation Plan. Even-so, the type of work proposed would qualify for a Habitat Conservation Plan exemption from all conditions as the proposed work is considered as, “Routine infrastructure maintenance by public agencies within the planning limit of urban growth that do not affect stream, riparian, serpentine, ponds, or wetland land cover types” (Habitat Conservation Plan, Chapter
6.2). In addition, the work taking place would be within existing disturbed areas and the project would not expand the capacity or length of the sewer main segments. Therefore, the project will not result in substantial adverse impact to sensitive biological resources and will not adversely affect creeks or riparian corridor areas.
In addition, as mentioned above, any tree that is not a Heritage tree that must be removed as a result of the project shall be removed and replaced in accordance with the Department of Transportation regulations. This exemption is only valid for projects that are within the scope of work described. This exemption will not be valid for any segments that have significant impacts to scenic highways, historical resources, or in areas that are included on any list compiled pursuant of Section 65962.5 of the Government Code.
As the project consists of inspection and replacement of existing utilities facilities or structures, the project, will not involve expansion of the existing use and will only repair existing public infrastructures. Therefore, the project is exempt to CEQA Guideline Section 15301(b) and 15302(c). Projects that are not within the scope of work will require separate environmental review and determination. This exemption is valid until March 28, 2027.
Exceptions:
CEQA Guidelines Section 15300.2 provides exceptions to the use of a Categorical Exemptions where the use of a Categorical Exemption is prohibited under certain circumstances. The City evaluated the proposed project’s applicability to all of the exceptions under Section 15300.2. An analysis of each of these exceptions in reference to this proposed project is provided below. (a) Location. Class 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located.
Section 15300.2(a) started that a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Section 15300.2(a) does not apply to the Class Category | and 2 of exemptions as the project will not occur in a sensitive area. (b) Cumulative Impact. Based on the above analysis, there is no evidence of a potential significant cumulative impact on the environment from the proposed project. The project proposes review and rehabilitation of existing sewer mains throughout the city. It has been determined that the project will
ER22-048 Page 2 of 3
(c)
(d)
(e)
(f)
Date
not cumulatively impact traffic, noise, air quality, or water quality.
Significant Effect. The proposed project site does not have any unusual circumstances that would negatively impact the environment, thus, the project would not result in any significant environmental effects.
Scenic Highways. It is not anticipated that the specific project sites will results in damage to any scenic resources. If one does, it is subject to 15300.2(d) and may not utilize this categorical exemption.
Hazardous Waste Sites. It is not anticipated that the specific project sites will be implemented in area that is included on any list compiled pursuant to Section 65962.5 of the Government Code. If one does, it is subject to 15300.2(e) and may not utilize this categorical exemption.
Historical Resources. It is not anticipated that the specific project sites will results in damage to any historic resources. If one does, it is subject to 15300.2(f) and may not utilize this categorical exemption
Christopher Burton, Director
Planning, Building and Code Enforcement
vr fo. ‘_ fr z
03/17/9022 far £
l Deputy
Environmental Project Manager:
Nhu Nguyen
ER22-048 Page 3 of 3