TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
SUBJECT: See Below DATE: May 19, 2025
Approved
Date:
5/27/25
COUNCIL DISTRICT: 6
SUBJECT: Report on Bids and Award of Contract for the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project
RECOMMENDATION
(a) Report on bids and award of contract for the construction of 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project to the lowest responsive, responsible bidder, SubTerra Construction, Inc., in the amount of $1,338,796; and
(b) Approve a 10% contingency in the amount of $133,880.
SUMMARY AND OUTCOME
Award of the contract to SubTerra Construction, Inc. enables the construction of the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project (Project) which will provide necessary sewer improvements that will minimize the risk of wastewater leaking out of sanitary sewer pipes and entering adjacent storm sewer pipes as required by the Exfiltration Abatement Program. Approval of a 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project.
BACKGROUND
The City of San José Department of Public Works developed an Exfiltration Abatement Program to minimize risk of wastewater leaking out of sanitary sewer pipes and entering adjacent storm sewer pipes. This Project is part of the program and will repair and rehabilitate sanitary sewer segments that are either crossing above or are adjacent to (within 10 feet) an existing storm sewer pipe. The sanitary sewer segments included in COUNCIL AGENDA: 6/10/25
FILE: 25-642
ITEM: 2.21
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Report on Bids and Award of Contract for the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project
this Project are located at various locations in City Council District 6 (Attachment A – 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI – Project Location Map).
This Project will video inspect the condition of 29 selected six-inch, eight-inch, and 10- inch diameter vitrified clay pipe sanitary sewer segments totaling approximately 7,200 linear feet; perform necessary point repairs on defective pipe segments; and install cured-in-place pipe liner accordingly. This Project also includes the rehabilitation of existing manholes, and the reconnection of active sanitary sewer service laterals.
Construction is scheduled to begin in September 2025 with substantial completion in January 2026.
ANALYSIS
Bids were opened on April 24, 2025, with the following results.
Contractor
Bid Amount Variance
Amount
Over/(Under)
Percent
SubTerra Construction, Inc.
(San Francisco) $1,338,796 ($28,150) (2)
Engineer's Estimate $1,366,946 -- --
C2R Engineering, Inc.
(Los Altos) $1,488,780 $121,834 9
Devaney Engineering, Inc.
(San Francisco) $1,521,122 $154,176 11
Bid Price Analysis
The low bid submitted by SubTerra Construction, Inc. is 2% below the Engineer’s Estimate. Staff considers the low bid to be acceptable for the work involved.
Contractor Responsibility Analysis
SubTerra Construction, Inc. has successfully completed multiple sanitary sewer projects for the City of San José, including 9331 – Mabury Yard Sanitary Sewer Replacement, accepted in October 2023 and 9584 – Cast Iron Sewer Replacement Fiscal Year 2020- 2021 Package II, accepted in May 2023.
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Report on Bids and Award of Contract for the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project
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 bidders for compliance with the City’s Wage Theft Prevention Policy on April 24, 2025, and again on April 30, 2025. No wage theft issues were identified.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is applicable to this Project because the Engineer’s Estimate is over $1.21 million.
Local and Small Business Analysis
The recommended contractor is not a local business or a small business enterprise. No local or small business enterprises were listed as subcontractors.
EVALUATION AND FOLLOW-UP
No additional follow up action with the City Council is expected at this time.
COST SUMMARY/IMPLICATIONS
The source of funding for the Project is through the 545 Sewer Service & Use Charge Capital Improvement Fund. The proposed operating and maintenance costs of this Project have been reviewed and it has been determined that the Project will have no significant adverse impact on the Sewer Service and Use Charge Fund or General Fund operating budgets. This Project is consistent with the City Council-approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy.
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Report on Bids and Award of Contract for the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project
1. TOTAL COST OF PROJECT:
Project Delivery* $ 527,324
Construction (See Cost Breakdown Below) 1,338,796
Contingency 133,880
TOTAL PROJECT COSTS $2,000,000
Prior Year’s Expenditures 109,243
TOTAL REMAINING PROJECT COSTS $1,890,757
*Project delivery includes $152,243 for design services and $375,081 for inspection, survey and materials lab services, construction management, and project closeout costs.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Mobilization, Traffic Control $ 95,000
Point Repairs 560,000
Cured-in-Place Pipe Liner Installation 494,274
Manhole Rehabilitation 30,000
Other Construction Costs 159,522
TOTAL CONTRACT AMOUNT $1,338,796
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
No.
Appn.
No.
Appropriation
Name
Total
Appropriation
Amount for
Contract
2024-2025
Adopted
Capital
Budget Page
Last Budget
Action
(Date, Ord.
No.)
545 4271
Urgent
Rehabilitation and
Repair Projects
$9,905,000 $1,338,796 209
4/29/2025
Ord. No.
31189
Project costs and associated expenses are expected to be incurred within the 2025- 2026 fiscal year. All funding is subject to the appropriation of funding by City Council.
HONORABLE MAYOR AND CITY COUNCIL
May 19, 2025
Subject: Report on Bids and Award of Contract for the 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI Project
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget 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 June 10, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Exempt, File No. ER23-189. CEQA Guidelines Sections 15301(b) Existing Facilities, and 15302(c) Replacement or Reconstruction. (Attachment B – Statement of Exemption, ER23-189.)
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
Director of Public Works
For questions, please contact Mathew Nguyen, Public Works Deputy Director, at [email protected] or (408) 535-8300.
ATTACHMENTS
A – 10505 – Sanitary Sewer Repairs Fiscal Year 2024-2025 Package VI – Project Location Map
B – Statement of Exemption ER23-189
Attachment A
200 E. Santa Clara Street, 3rd FL San José, CA 95113 tel (408) 535-3555 www.sanjoseca.gov/pbce
Planning, Building and Code Enforcement
CHRISTOPHER BURTON, DIRECTOR
STATEMENT OF EXEMPTION
FILE NO. ER23-189
LOCATION OF PROPERTY Citywide
PROJECT DESCRIPTION Public Project Exemption for sewer inspection, removal and replacement, and rehabilitation work. These types
of projects would include the inspection, replacement,
and rehabilitation of existing sewer mains ranging from approximately 4- to 44-inch in diameter and associated
facilities (e.g. manholes) located in the public-right-of- way and/or in a public utility easement (PUE)
throughout the City of San Jose. These projects 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. These projects may
also result in replacing the existing sewer pipeline
with a different material than the original but will not increase the size of the sewer pipelines and will not
result in expansion of capacity. New ass ociated
facilities, such as manholes, may be installed as part
of the replacement work. 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: August 21, 2028
CERTIFICATION
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 1 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 Attachment B
ER22-048 Page 2 of 3
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 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 not 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 inspection, removal and replacement, and rehabilitation of existing sewer segments ranging from approximately 4- to 44-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, removal and replacement, and repair of existing utilities facilities or structures, the project, will not involve expansion of the existing infrastructure. 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 August 21, 2028.
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.
ER22-048 Page 3 of 3
(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 1 and 2 of exemptions as the project will not occur in a sensitive area. (b) Cum
ulative 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 not cumulatively impact traffic, noise, air quality, or water quality. (c) S ignificant 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.
(d) S cenic 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.
(e) H azardous 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. (f) H istorical 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
Date: August 23, 2023
Deputy
Environmental Project Manager:
Tina Garg