REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW15-12 for Morse Avenue Landscape Strip Remedial Soil Excavation
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $224,350 to Pacific States Environmental Contractors, Inc. of Dublin for Morse Avenue Landscape Strip Remedial Soil Excavation (Public Works Project No. PW-14/09-15). Approval is also requested for a 15% construction contingency in the amount of $33,653. A higher contingency amount than the customary 10% is being requested to allow for potential additional soil excavation and removal that may be required based on sampling that will be conducted during construction.
ENVIRONMENTAL REVIEW
The CEQA determination for the entire park project, inclusive of the landscape strip site location being awarded for construction in this Report to Council, is a mitigated negative declaration, as adopted by the City Council on October 8, 2011 (RTC No.11-226).
BACKGROUND AND DISCUSSION
This project is to provide soil remediation for the landscape strip along the new Seven Seas Park frontage. The arsenic-containing soil for the 5-acre park site was remediated in FY 2012/13, but the landscape strip soils were left in place surrounding the existing mature trees lining the park site. Subsequent to the remediation and prior to park construction, the trees died and were removed.
The scope of work for this project is to remove the existing contaminated soils in conformance with the Removal Action Workplan (RAW) prepared for the park site, as reviewed by the Department of Toxic Substances Control (DTSC), and backfill with landscape soil. Approximately 1,600 tons of impacted soil will be removed and replaced. Landscaping and extension of the irrigation will be completed under a separate contract. The project was bid as follows:
Bid Notice: Advertised in The Sun on November 21, 2014;
Provided to 18 Bay Area Builder's Exchanges;
Posted on Onvia Demandstar public procurement network; and
Published on the City's website.
Bid response: 13 contractors requested bid documents.
Bid Results: Sealed bids were publicly opened on December 10, 2014;
Three responsive bids were received.
The lowest responsible and responsive bid was from Pacific States Environmental Contractors, Inc., of Dublin in the amount of $224,350. The Bid Summary is attached.
It should be noted that a lower bid in the amount of $217,528 was received from DECON Environmental Services, Inc. of Hayward, but a letter from the firm was received on January 30, 2015 notifying the City that the company would be permanently discontinuing operations, effective immediately, and would not be able to complete any work if awarded a contract by Council. DECON offered to pay to the City the difference in bid pricing, an amount of $6,821, which was received on February 3. A settlement agreement and mutual release was also executed by both parties.
In addition to the proposed contract award to Pacific States Environment, staff recommends approval of a 15% contingency on this project to allow for potential additional soil excavation and removal, which may be required as the result of soil sampling and analysis that will be done at the job site during construction.
FISCAL IMPACT
Project costs are as follows:
Construction $224,350
Construction contingency (15%) $33,653
Total costs $258,003
Budgeted funds are available in Capital Project 808352 (Seven Seas Park Development), funded by the Park Dedication 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) Award a contract, in substantially the same format as Attachment 2 to the report and in the amount of $224,350, to Pacific States Environmental Contractors, Inc. for the subject project, and authorize the City Manager to execute the contract when all the necessary conditions have been met; and 2) Approve a 15% construction contingency in the amount of $33,653.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract