REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $2,095,507.09 to PC, Inc. for the Department of Public Safety Emergency Generator Replacement Re-Bid, Waiver of Minor Bid Irregularities, Finding of California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c), and Approve Budget Modification No. 15 in the Amount of $344,659 (PW24-02)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $2,095,507.09 to PC, Inc. of Santa Maria, CA for the Department of Public Safety Emergency Generator Replacement Re-Bid and for approval of a 10% construction contingency in the amount of $209,551. Staff is also recommending the waiver of minor bid irregularities for two (2) bidders and approval of Budget Modification No. 15 in the amount of $344,658 to fund the project.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for awards of public works contracts exceeding $250,000.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by affirmative votes of at least four members to authorize the transfer of unused balances appropriated for one purpose or another, or to appropriate available revenue included in the budget.
ENVIRONMENTAL REVIEW
The proposed project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines section 15301(c) as the project involves the maintenance or repair of existing facilities involving negligible or no expansion of use beyond that presently existing.
BACKGROUND AND DISCUSSION
The Department of Public Safety (DPS) Emergency Generator Replacement Re-Bid (Public Works Project No. PR-24-02, Project 833750) was created to provide reliable backup power to the main DPS building at the City Hall campus. The existing generators have been in service for approximately 41 years. They are several years beyond the lifecycle requirements per City Fleet replacement scheduling and have experienced problems that impact their reliability. The scope of the project consists of replacing the generators and associated electrical equipment, including the automatic transfer switch, reconfiguration of the generator enclosure, removal of the underground diesel fuel storage tank. It also covers provision of temporary access with gates to the secure DPS parking lot and other associated work necessary to minimize disruption to the DPS building during construction.
Due to the age of the existing generators and their reliability issues, the City has rented portable generator units and wiring as a backup electrical power source until construction begins. The contractor will provide temporary backup power during the construction period. This will provide reliable temporary generator power to the entire DPS building in the event of both an unplanned power outage and existing generator failure.
The project was put out for construction bidding in 2022. The City received one (1) bid, but the sole bidder later requested to withdraw their bid due to a mathematical error. The bid was withdrawn in accordance with SMC Section 2.09.100(c). City staff contacted plan holders to survey why bids were not submitted and updated the project documents to attract a larger pool of potential bidders.
The Re-Bid project was advertised on DemandStar on December 22, 2023. Forty-five (45) contractors requested bid documents. Sealed bids were opened on February 7, 2024, with seven responsive and responsible bids received. The bid summary is contained in Attachment 1 to this report.
The bid submitted by A CST Group Inc. DBA Dynasel USA contained errors in bid item #5, leading to discrepancies in the bid amounts. The correct total amount should be $2,788,028 instead of the initially stated $2,578,028 on the bidder’s form. Pursuant to the City’s bid requirements, the unit price takes precedence.
Similarly, the bid submitted by California Plus Engineering, Inc. exhibited a mathematical error, resulting in a revised total base bid amount of $4,380,000 instead of the intended $4,390,000. Notably, the bid lacks a unit cost for item #5 but provides a total cost for the same item. In compliance with the City's bid requirements, the unit price takes precedence.
Staff recommends awarding the project to PC, Inc. of Santa Maria, CA as the lowest responsive and responsible bidder, in the amount of $2,095,507.09 and approval of a 10% construction contingency in the amount of $209,551, for a total of $2,305,058.
FISCAL IMPACT
Funding in the amount of $2,281,331 is available in Project 833750 - Public Safety Emergency Generator Replacement, but estimated project costs are expected to exceed available budget by $344,658.
|
833750 - Public Safety Emergency Generator Replacement |
|
|
Available Budget |
$2,281,331 |
|
Remaining design expenditures |
($62,064) |
|
Generator rental |
($158,867) |
|
Special inspections and material testing |
($100,000) |
|
Available for Construction Contract |
$1,960,400 |
|
Construction Contract + Contingency |
$2,305,058 |
|
Additional Budget Needed |
($344,658) |
The longer than anticipated generator rental expenses charged to the project through the design and re-bid process have drawn down the available budget. Therefore, Budget Modification No. 15 is proposed to fully fund the project.
Budget Modification No. 15
FY 2023/24 Budget Modification
|
General Fund |
Current |
Increase/(Decrease) |
Revised |
|
Expenditures |
|
|
|
|
Project 833750 - Public Safety Emergency Generator Replacement, |
$2,281,331 |
$344,658 |
$2,625,989 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Budget Stabilization Fund Reserve |
$78,339,283 |
($344,658) |
$77,994,625 |
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially form as Attachment 2 to the report in the amount of $2,095,507.09 to PC, Inc.;
- Approval of a 10% construction contingency in the amount of $209,551;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Waive the minor irregularities for the bids from A CST Group Inc. DBA Dynasel USA and California Plus Engineering, Inc.;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c); and
- Approve a Budget Modification No. 15 in the amount of $344,659.
Staff
Prepared by: David Battaglia, Purchasing Offer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract