CITY OF SAN MATEO
4 5
1 1
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: {{section.name}} Account Number: 72-4674 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: November 06, 2023
SUBJECT:
Wastewater Treatment Plant Transfer Pumps Improvements Project – Agreement RECOMMENDATION:
Award an agreement to GSW Construction, Inc. for construction of the Transfer Pumps Improvements Project in an amount not to exceed $810,400; establish a contingency fund in an amount not to exceed $162,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue change orders within the contingency amount.
BACKGROUND:
The wastewater treatment plant (WWTP) is an aging facility, and the Clean Water Program (CWP) includes a variety of capital improvement projects to rehabilitate and upgrade the equipment and processes. The Transfer Pumps Improvements Project (Project) is a component of the CWP and includes replacing the WWTP’s transfer pumps to support anaerobic digester operations. The improvements also include structural improvements to the pump pedestals, piping modifications, and electrical improvements. The existing pumps have parts that are currently challenging to source replacement parts for since the model is no longer supported by the manufacturer. Replacing the pumps will reduce operational risks and future maintenance costs.
In May 2023, the project was first advertised for competitive bids, with only a single bid submitted. That bid of $998,200 was significantly higher than the engineer’s estimate. On August 21, 2023, Council adopted a Resolution to reject the sole bid and authorized a second Notice Inviting Bids. Staff worked with the design engineer to revise the contract documents and update the costs to advertise the project again.
A Notice Inviting Sealed Proposals and Bidding Documents were issued to advertise the Project on September 5, 2023, in compliance with Municipal Code section 3.60.030. Five (5) bids were submitted and opened on October 4, 2023, with the following results:
Contractor Bid Amount ($)
GSW Construction 810,400
Westcal Design and Build 841,000
Valentine Corporation 966,369
Telstar Instruments 1,197,998
Mountain Cascade 1,320,000
GSW Construction submitted the lowest bid of $810,400, which is higher than the engineer’s estimate of $512,750. Staff’s review of the submitted bid has determined that the low bidder is responsive and responsible. The costs associated with
CITY OF SAN MATEO
4 5
1 1
the electrical improvements of the Project caused the largest cost variance and were the hardest to estimate due to market conditions. Since there is available funding to absorb the cost and staff believe pricing will not improve, staff recommends for Council to award the agreement to GSW Construction, Inc. for an amount not to exceed $810,400 and establish a construction contingency of $162,000.
Based on staff’s prior experience with projects at the WWTP, the Project presents a higher risk profile than other typical City construction contracts. The construction area is surrounded by ongoing WWTP operation and maintenance activities, and the on-going construction associated with the WWTP Upgrade & Expansion Project and the Immediate Action Projects, Package III. The requested contingency (20% of the construction contract) will allow staff to mitigate the risk that changes to the plant operations and other active construction efforts may require of this Project, as well as impacts due to unanticipated conditions.
BUDGET IMPACT:
There are sufficient funds in the CWP WWTP Annual Major Components (46t090) project to fund this contract and contingency.
ENVIRONMENTAL DETERMINATION:
The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council, on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Agreement
Att 2 - Bid Summary
STAFF CONTACT
Deryk Daquigan, Acting Public Works Deputy Director
[email protected]
(650) 522-7287
Brad Underwood, Director of Public Works
[email protected]
(650) 522-7303