REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW16-22 for the 2012-13 Sanitary Sewer Main Replacement Phase 3 Project, Make a Finding of California Environmental Quality Act (CEQA) Categorical Exemption and a Finding of Bid Non-responsiveness
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $1,862,072 to Precision Engineering Inc. of San Francisco for Sanitary Sewer Main Replacement. Approval is also requested for a 10% construction contingency in the amount of $186,207, and to make a finding of CEQA categorical exemption. Finally, approval is requested to make a finding of bid non-responsiveness with regard to a bid received from Bay Pacific Pipelines. The bid is non-responsive because the contractor did not acknowledge an addendum issued by the City which made changes to the specifications.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to CEQA Guidelines Section 15302(c), replacement or reconstruction of existing utility systems and/or facilities, involving negligible or no expansion of capacity.
BACKGROUND AND DISCUSSION
Capital Project 825331, Replacement/Rehabilitation of Sanitary Sewer System, provides for the inspection, design, and replacement or rehabilitation of citywide sewer lines. The City has over 280 miles of sewer lines, from six inches to forty-eight inches in diameter, and many of the lines are 50 or more years old. Pipe failures have been occurring and deficiencies have been noted at various locations citywide. The funding provided by this project allows for the replacement or rehabilitation of sewer mains as deficiencies are identified.
This project will replace or rehabilitate approximately 6,800 linear feet of sanitary sewer mains selected by City staff based on reviews of TV inspection data. The pipe ranges in size from six inches to eight inches at the following 10 locations around the City:
1. East Evelyn Avenue between Central Avenue and South Fair Oaks Avenue,
2. America Avenue between East Arques Avenue and East Taylor Avenue,
3. Lori Avenue between Pajaro Avenue and Pastoria Avenue,
4. Shirley Avenue between Pajaro Avenue and Pastoria Avenue,
5. Serra Park (New Brunswick Avenue to Hollenbeck Avenue),
6. Easement within 711 El Camino Real,
7. Easement Within 715 El Camino Real,
8. Easements behind Betty Court and Jackpine Court,
9. Easement between Arbutus Avenue and Britton Avenue, and
10. Britton Avenue in the City of Sunnyvale, California.
Sewer main replacement will be completed through open cut excavation, and sewer main rehabilitation will be done by cured-in-place pipe (CIPP) lining. As part of the project, and to facilitate future ease of maintenance, 144 sewer laterals from the main line to the property lines will be replaced due to poor condition, and property line cleanouts will be installed if none currently exist; 32 manholes will also be rehabilitated or reconstructed.
The project was advertised in the Sunnyvale Sun on June 3, 2016, distributed to sixteen Bay Area Builder’s Exchanges, and published on the City’s website. Fourteen contractors requested bid documents. Sealed bids were opened on July 6, 2016, with seven bids being received. The lowest responsive and responsible bid was received from Precision Engineering. The bid amount is approximately 9% below the engineer’s estimate. A bid in the amount of $1,874,027 was received from Bay Pacific Pipelines (second lowest bid), but it was determined to be non-responsive because the bidder did not acknowledge an addendum issued by the City which modified the specifications.
FISCAL IMPACT
Budget funds are available in Capital Project 825331, Replacement/Rehabilitation of Sanitary Sewer System.
Funding Source
This project is funded by the Wastewater Management Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Make a finding of CEQA categorical exemption pursuant to CEQA guidelines section 15302(c) as it relates to replacement of existing utility systems involving negligible or no expansion of capacity; 2) award a construction contract, in substantially the same form as Attachment 2 to the report and in the amount of $1,862,072 to Precision Engineering Inc.; 3) approve a 10% construction contingency in the amount of $186,207; and 4) make a finding of non-responsiveness for the bid received from Bay Pacific Pipelines for failure to acknowledge a City issued addendum.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: John Stufflebean, Director of Environmental Services
Reviewed by: Manuel Pineda, Director of Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract