REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW18-01 for City-wide Waterline Replacement 2017, Finding of California Environmental Quality Act (CEQA) Categorical Exemption, and Approval of Budget Modification No. 46
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $3,660,610 to Northern Underground Construction, Inc. of San Jose for the Citywide Waterline Replacement 2017 project. Approval is also requested for a 10% construction contingency in the amount of $366,061 and Budget Modification No. 46 in the amount of $687,521.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contracts to be awarded to the lowest responsive and responsible bidder. Further, pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $100,000 in any one transaction.
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 motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for the project is a categorical exemption pursuant to CEQA Guidelines Section 15302 (c) for replacement or reconstruction of an existing utility system involving negligible or no expansion of capacity.
BACKGROUND AND DISCUSSION
There are over 340 miles of underground water pipelines in the City, varying in size from 4-inch to 30-inch in diameter, with 15 different material compositions. Water mains constructed under ideal conditions are projected to have a useable life of 75-100 years.
Capital Project 825451, City-wide Water Line Replacement, addresses two primary objectives: 1) replace water mains that do not satisfy current fire flow design criteria, and 2) replace aging and deteriorating infrastructure to minimize failures and water service interruption. The Water Line Replacement 2017 project consists of replacement of approximately 6,600 feet of water mains, valves, fire hydrants, service laterals, and non-radio-read water meters at the following locations:
• Pastoria Avenue from Almanor Avenue to Del Rey Avenue (approx. 1830 ft.)
• Coachella Avenue from San Patricio Avenue to San Rafael Avenue (approx. 1200 ft.)
• Borregas Avenue from Ahwanee Avenue to Maude Avenue (approx. 3600 ft.)
The construction project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to Bay Area Builder’s Exchanges on January 26, 2018. Fifteen (15) contractors requested bid documents. Sealed bids were publicly opened on February 21, 2018, with four (4) responsive bids received. The lowest responsive and responsible bid was received from Northern Underground Construction, Inc. in the amount of $3,660,610 as contained in Attachment 1.
FISCAL IMPACT
Funding for this project is budgeted in Project 825451 - City-wide Water Line Replacement. In FY 2017/18, a total of $3,389,150 is available for this project, including unexpended carryover funds from prior years. The construction contract plus 10% contingency to be awarded total $4,026,671. To date, approximately $50,000 has been expended, leaving a shortfall of $687,521. Funding included in FY 2018/19 totals $832,320. Staff proposes to reduce the waterline replacement activities accordingly in that year.
The current water lines at Pastoria, Coachella and Borregas Avenues are aging and deteriorating. Water line replacement at these locations are top priority to reduce the potential for water line breaks and other water service interruptions.
A budget modification is proposed accelerate $687,521 from the FY 2018/19 City-wide Water Line Replacement Budget is recommended. For FY 2017/18, a decrease to the Rate Stabilization Reserve is recommended to offset this action. Upon acceleration of this project from FY 2018/19, the reduction of the project cost in that year will result in a corresponding increase to the Rate Stabilization Reserve in that year.
Budget Modification No. 46
FY 2017/18
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Supply and Distribution Fund |
|
|
|
|
Reserve |
|
|
|
|
Rate Stabilization |
$1,138,358 |
($687,521) |
$450,837 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Project 825451 - City-Wide Water Line Replacement |
$3,389,150 |
$687,521 |
$4,076,671 |
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 a California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines Section 15302 (c) for replacement and reconstruction of existing utility system involving negligible or no expansion of capacity; 2) award a contract in substantially the same form as Attachment 2 to the report in the amount of $3,660,610 to Northern Underground 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 $366,061; and 4) Approve Budget Modification No. 46 in the amount of $687,521 to advance project funding from FY 2018/19 City-wide Water Line Replacement Budget.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract