REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW17-10 for the Wolfe-Evelyn Water Plant Reconstruction Re-bid Project, Finding of California Environmental Quality Act (CEQA) Categorical Exemption and Approval of Budget Modification No. 27 in the Amount of $2,000,000
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $3,428,450 to JMB Construction Inc. of South San Francisco for the Wolfe-Evelyn Water Plant Reconstruction Re-bid project, and for a 10% construction contingency in the amount of $342,845. Approval is also requested for Budget Modification No. 27 in the amount of $2,000,000 to provide additional project funding, as explained below.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contracts to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
The project is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c) for the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.
BACKGROUND AND DISCUSSION
The Wolfe/Evelyn Water Plant is one of the major facilities within the City’s potable water distribution system. The facility, located at 753 Ajax Drive in a residential neighborhood, includes one 5-million gallon water storage tank and a pump station. The mechanical and electrical systems associated with the Plant were built in 1959 and are now past their life expectancy. The associated site improvements, including paving and access to the structures housing the mechanical and electrical components, are not compliant with current standards, and are in need of replacement.
An Invitation for Bids to rehabilitate the facility was initially advertised in May 2016, with two bids being received. The apparent low bidder, Blocka Construction, was allowed to withdraw their bid in conformance with State law due to a material math error. The other bid submitted by Mountain Cascade was rejected by Council (RTC No. 16-0644). Blocka’s bid came in at $3,435,642 and Mountain Cascade’s bid was $3,525,606. Both bids were significantly higher than the available budget of approximately $1,660,000 and the engineer’s estimate of $2,513,000.
The project was re-bid in November 2016, with seven general contractors requesting bid documents. Two bids were received and publicly opened on December 7. The lowest responsive and responsible bid was submitted by JMB Construction. The Bid Summary is contained in Attachment 1. The revised Engineer’s Estimate was estimated at $3,454,500 after taking into account what was learned from the initial bid process. JMB’s bid in the amount of $3,428,450 is within one percent of the revised Engineer’s Estimate, and staff recommends awarding the contract and approving the recommended Budget Modification to move available funding from the Central Well Reconstruction project to the Wolfe/Evelyn Water Plant Upgrade project. It is recommended that the Wolfe/Evelyn Water Plant Upgrade project proceed due to its current condition. The Central Well Reconstruction Project, which is less urgent, will be reprogrammed in the 20-year Financial Plan as part of the upcoming FY 2017/18 Recommended Budget process. The Wolfe/Evelyn Water Plant is a higher priority and more critical to water distribution than installing a new well on Central Ave. Having Wolfe/Evelyn Water Plant in optimum operating condition provides reliability to meet fire and peak water demands. The City already has six operating wells, and with water demand projections continue to be lower than historical water use, a new well supply is not as critical at this time.
As the City has experienced with similar projects, such as the Baylands Storm Water Pump Station No. 2 Rehab (RTC No. 16-0572, June 28, 2016), bids from contractors have been coming in higher than anticipated due to high demand/labor shortages for firms specializing in this type of electrical/mechanical work. Other jurisdictions are experiencing similar results.
FISCAL IMPACT
The majority of funding allocated in Project 825221 - Central Well Reconstruction is recommended to be allocated to Project 825391 - Wolfe/Evelyn Water Plant Upgrade Project in the Water Supply and Distribution Fund in order to fund the contract award recommended in this report. As previously described, the Central Well Construction project will be reprogrammed in the 20-year Financial Plan as part of the upcoming FY 2017/18 Recommended Budget process. Any remaining savings in the Central Well Reconstruction project will return to fund balance at the end of the year.
Budget Modification No. 27 has been prepared to appropriate funding from the Central Well Reconstruction Project to the Wolfe/Evelyn Water Plant Upgrade Project.
Budget Modification No. 27
FY 2016/17
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Supply and Distribution Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 825221 - Central Well Reconstruction |
$2,040,000 |
($2,000,000) |
$40,000 |
|
|
|
|
|
|
Project 825391 - Wolfe/Evelyn Water Plant Upgrade |
$2,270,060 |
$2,000,000 |
$4,270,060 |
Funding Source
This project is funded by the Water Supply and Distribution 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) for the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity; 2) award a contract, in substantially the same form as Attachment 2 to the report and in the amount of $3,428,450 to JMB Construction Inc. and authorize the City Manager to execute the contract when all necessary conditions have been met; 3) approve a 10% construction contingency in the amount of $342,845; and 4) approve Budget Modification No. 27 in the amount of $2,000,000 to provide additional project funding.
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