REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $5,249,820 to DPI, Inc. for Citywide Water Line Replacement 2023 (Maude & San Aleso) and Finding of California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15302(c) (PW24-17)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $5,249,820 to DPI, Inc. of Livermore;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c);
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Approve a 15% contingency in the amount of $787,473.
Report
BASIS FOR RECOMMENDATION
The Citywide Water Line Replacement Project 2023 (Maude & San Aleso) (Project No. UW-21-03) consists of rehabilitation of two segments of water pipelines located on Maude Avenue from Mathilda Avenue to Fair Oaks Avenue, and San Aleso Avenue from Mathilda Avenue to Ahwanee Avenue. The project was advertised on DemandStar on March 11, 2024. Thirty-nine (39) contractors requested bid documents. Sealed bids were opened on March 27, 2024, with six (6) responsive bids received. DPI, Inc. submitted the lowest responsive and responsible bid in the amount of $5,249,820 (Attachment 1 - Bid Summary).
Maude Avenue is a heavily traveled commercial/industrial collector with an extensive amount of existing underground utilities. A higher than normal 15% contingency is requested for the contract to allow adjustments to be made during construction if unforeseen utility conflicts are discovered.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c) for replacement or reconstruction of an existing utility system and/or facilities involving negligible or no expansion of capacity.
FISCAL IMPACT
Budgeted funds are available in Project 825451 - Replacements and New Installations of Potable and Recycled Water Mains. A project budget financial summary is included as Attachment 3.
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.
Staff
Prepared by: David Battaglia, Purchasing Officer
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
3. Project 825451-Replacements and New Installations of Potable and Recycled Water Mains Budget