REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW 18-04 for the Fuel System Upgrade Project located at the Sunnyvale Golf Course, Finding of California Environmental Quality Act (CEQA) Categorical Exemption and Approval of Budget Modification No. 25
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $285,895 to ConstructiCON Corp, of Mountain View, for the replacement of two existing underground fuel tanks with one new, aboveground fuel tank at the Sunnyvale Golf Course. Approval is also requested for a 10% construction contingency in the amount of $28,589 and Budget Modification No. 25 in the amount of $43,632
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder. Pursuant to Chapter 2.09 of the Sunnyvale Municipal Code, City Council approval is required for construction contracts exceeding $100,000.
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 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 proposed project is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 because the project involves the maintenance or repair of existing facilities involving negligible or no expansion of use beyond that presently existing.
BACKGROUND AND DISCUSSION
This project includes demolition, excavation and removal of two existing underground fuel storage tanks (diesel and gasoline), to be replaced with a new single dual-compartment aboveground storage tank system consisting of 1,000 gallons for gasoline and 1,000 gallons for diesel, located at Sunnyvale Municipal Golf Course, 605 Macara Avenue. The existing underground fuel tanks were identified for replacement based on age and other criteria including a conditional assessment report.
The new aboveground fuel system is less expensive when compared to an underground installation, offers easier access when performing system maintenance, and results in a lower annual permit cost.
Staff issued an Invitation for Bids No. PW18-04 on August 18, 2017. Three (3) responsive and responsible bids were received as shown on Attachment 1, Bid Summary. ConstructiCON Corp, submitted the lowest bid at $285,894.85, Balch Petroleum Contractors submitted a bid for $303,720 and GEMS Environmental Management submitted a bid for $315,167.28.
FISCAL IMPACT
Funding for the Upgrading of Fuel Stations project is budgeted in the General Services Fund/Fleet Management Sub-Fund. As an internal service fund, the Fleet Management Sub-Fund collects rental rate revenue from department budgets throughout the City that utilize Fleet resources. While located at the golf course, this fueling station is part of the city-wide fueling solution and available for all departments to use.
The original project budget was established based on the engineer’s estimate. Current available project funding totals $281,632 ($103,132 carryover from FY 2016/17 and $178,500 new FY 2017/18 funding). Of this amount, $10,780 is allocated for remaining design activities and invoices, leaving $270,852 available for construction award. An additional $43,632 is recommended to be funded by the General Fund Budget Stabilization Fund in order to fully fund the construction contract and contingency ($314,484).
Budget Modification No. 25
FY 2017/18
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Reserves |
|
|
|
|
Budget Stabilization Fund |
$33,945,795 |
($43,632) |
$33,902,163 |
|
|
|
|
|
|
Transfers Out |
|
|
|
|
Transfer To General Services Fund / Fleet Sub-Fund |
$21,532 |
$43,632 |
$65,164 |
|
General Services Fund / Fleet Sub-Fund |
|
|
|
|
Transfers In |
|
|
|
|
Transfer From General Fund |
$21,532 |
$43,632 |
$65,164 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
824780 - Upgrading of Fuel Stations |
$281,632 |
$43,632 |
$325,264 |
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 15301, 2) Award a contract in substantially the same form as Attachment 2 to the report in the amount of $285,895 to ConstructiCON Corp for Fuel System Upgrade Project (PW16-03) 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 $28,589; and 4) Approve Budget Modification No. 25 in the amount of $43,632.
Staff
Prepared by: Gregory Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Craig Mobeck, Interim Director of Public Works
Reviewed by: Teri Silva, Interim Assistant City Manager
Approved by: Kent Steffens, Interim City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Contract