TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:July 2, 2024
SUBJECT: Hill Canyon Treatment Plant Metal Awning Replacements (CI 5742)
RECOMMENDATION:
1. Approve the project design, specifications, and Addendum No. 1 for the construction of the Hill Canyon Treatment Plant (HCTP) Metal Awning Replacements Project (CI 5742).
2. Award construction contract for HCTP Metal Awning Replacements Project (CI 5742) to GSE Construction Company Inc. (GSE) of Livermore, CA, in the amount of $1,018,500, plus a contingency of $101,850.
3. Approve budget appropriation in the amount of $885,350 from A/C #624-0000- 341-9900 (Wastewater Capital Fund, Net Position) to A/C #624-8250-682-8300 (Wastewater Capital Fund, Metal Awning Replacements Project CI 5742).
4. Authorize expense in the amount of $1,120,350 ($1,018,500 construction contract, $101,850 construction contract contingency) from A/C #624-8250-682- 8300 (Wastewater Capital Fund, CI 5742 HCTP Metal Awning Replacements Project).
5. Delegate authority to the City Engineer to approve changes in the design, plans, specifications, and working details of the project on work directives and change orders up to the approved contingency amount.
6. Find that the project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to 14 CCR 15311.
LEVINE ACT ITEM: No
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FINANCIAL IMPACT:
$885,350 Increase to the Adopted FY 2024-25 Wastewater Fund Capital Budget. $885,350 increase in budget is requested for the HCTP Metal Awning Replacements Project (CI 5742). $260,000 is available in FY 2024-25 carryover budget for CI 5742. The estimated total project cost is $1,145,350.
BACKGROUND:
The City’s HCTP treats wastewater from the community of Thousand Oaks. Constructed in the 1960s with major improvements over the following decades, HCTP provides tertiary-level treatment.
To comply with environmental permit regulations, certain chemicals are necessary for the City to treat the wastewater properly and effectively. Due to the volume of required chemicals, it is more economical and efficient to buy in bulk and store them on-site at HCTP. There are three chemical storage areas located near the South Headworks (Attachment #1). Two are covered by metal canopies which were constructed in 1999 as part of the HCTP Phase I Expansion Project. The canopies are also needed to shield and protect the chemical tanks and associated equipment from the elements, which extends their service life.
The previously constructed canopies have surpassed their intended service life and currently exhibit rust and deterioration. Additionally, two newly added storage tank areas lack proper canopies over the tanks, which leaves them vulnerable to the elements. It is necessary to install canopies over these two areas to provide adequate protection. Work area lighting will also be installed under the new canopies.
The project was originally advertised for bids on October 27, 2023; however, the single bid that was received on January 10, 2024, in the amount of $989,821 was rejected by City Council on February 27, 2024, to allow staff to rebid the project in an effort to seek lower bids.
DISCUSSION/ANALYSIS:
City Council authorized staff to re-bid the project on February 27, 2024, and the Notice Inviting Bids was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement portal on March 15, 2024, per the Public Contract Code Section 22037 and Thousand Oaks Municipal Code 3-
10.306. One bid was received on May 1, 2024, as follows:
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Contractor’s Name, City Bid Amount
1. GSE Construction Company, Inc. (Livermore, CA) $1,018,500 The only construction bid (low bid) submitted was from GSE for $1,018,500, which is the same firm that bid the project in January 2024. Over 2,400 vendors were notified about the bid through the City’s procurement portal, with 567 project views, and 40 vendors who ultimately downloaded the bid documents. Staff conducted additional outreach to contractors and manufacturers, letting them know about the City’s desire to obtain multiple bids, however, only one bidder submitted a bid on the project.
The engineer’s estimate for the project was $750,000. The discrepancy between the engineer’s estimate and the construction bid amount reflects the current construction bidding environment as the California construction cost index has increased 35 percent since 2021. Although the current bid is approximately 3 percent higher than the previous bid from January 2024, postponing the project further will likely result in even higher construction costs due to the current construction bidding environment. Based on the consistency of the bid amounts in both rounds of bidding, staff is confident that these construction costs are reasonable.
The bid package submitted by GSE has been reviewed and found to be in order, and no bid protests have been received. GSE has successfully completed other projects for the City. Staff recommends awarding the construction contract to GSE.
The estimated project costs are as follows:
Design & Engineering Support Services (previously approved) $ 25,000.00 Metal Awning Construction Contract (this action) $ 1,018,500.00 Metal Awning Construction Contingency (this action) $ 101,850.00 Total Estimated Cost $ 1,145,350.00
This construction phase is expected to start by late Summer 2024 and be fully completed by Spring 2025. The project design, specifications, and Addendum No. 1 were completed by the consultant in February 2024 and are available for review by request to the Public Works Department by e-mail at [email protected] or by phone at (805) 449-2400.
This project was determined to be categorically exempt from CEQA by City Council on February 27, 2024, pursuant to CCR 14 Section 15311 (minor structures accessory to existing facilities).
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This project meets City Council’s Top Ten Priorities #7: “Public Works + Infrastructure Investments.”
Community Outreach: This project will be limited to work at the HCTP and is not expected to impact neighboring residences. The work will be at the east end of the plant and will have a limited impact on plant operations. Construction-related impacts to hiking trail users will be minimal.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Paul Weinstein, Associate Analyst
Attachments:
Attachment #1 – Vicinity and Location Maps
Documents Provided Under Separate Cover:
#1 – Project Plans and Specifications
DPW: 850-20\pw\ev\Council\2024\070224\CI 5742\ HCTP Metal Awning Replacements staff report.docx