REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to Able Construction Group, Inc. for On-Call Sewer Line Maintenance and Repair Services (F21-154)
Report
REPORT IN BRIEF
Approval is requested to award a contract in an amount not to exceed $400,000 to Able Construction Group, Inc of San Jose for On-Call Sewer Line Repair and Maintenance Services for the Environmental Services Department for a one-year period. Approval is also requested to authorize the City Manager to modify and renew the contract for two additional one-year periods subject to available budget, if pricing and service remain acceptable to the City.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City’s sanitary sewer system consists of approximately 300 miles of sewer mains (ranging from 4-48 inches in diameter). It has over 9,800 feet of force mains, 5 pump stations ,5,287 manholes, and over 29,500 laterals. The system serves the residents and businesses of Sunnyvale, as well as 1,200 customers in the Cities of Cupertino (Rancho Rinconada) and San Jose. It conveys wastewater to the Sunnyvale Water Pollution Control Plant by major interceptor pipelines located along Lawrence Expressway, Borregas and Mathilda Avenues.
This project funds urgent and emergency repairs to the sanitary sewer system and associated appurtenances and equipment to assure consistent operation and serviceability. Examples of work completed under this project include repairs to manholes, small spot or main line segment repairs, repairs or replacement of failed sewer laterals, lift station pump replacement, and repairs identified by CCTV camera inspections.
This project is differentiated from other sewer main replacement projects by its intent to respond to unplanned or emergency needs that may come up during a year. This project will address unanticipated emergencies and equipment failures that require a rapid response for continued sewer system reliability and to avoid sewer overflows. These types of repairs are urgent in nature, and delays could result in adverse effects to public health and the environment should overflows occur.
The Invitation for Bids was posted on the City’s DemandStar public procurement network on June 2. It was directly provided to known contractors who specialize in sewer line maintenance and repairs in the Bay Area. Sealed bids were publicly opened on June 30 with two responsive bids received (see Attachment 1 - Bid Summary).
The City is recommending awarding multiple contracts based on the varying low bid items. This provides primary and backup contractors. Staff recommends awarding the attached contract to Able Construction Group in an amount not-to-exceed $400,000 as the primary contractor based on its bid being the lowest on the bid items with the highest estimated cost. Staff intends to award a secondary contract to Pacific Underground Construction in an amount not-to-exceed $100,000 under the City Manager’s contract approval authority based on it providing the lowest bid for the remaining bid items.
FISCAL IMPACT
Funds will be used on as needed basis only. Funding is available in Project 805253 - Sewer Emergency Repair and Replacement.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
- Award a contract in substantially the same form as Attachment 2 to the report in an amount not to exceed $400,000 to Able Construction Group, Inc. for on-call sewer and maintenance repair;
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Authorize the City Manager to amend and renew the contract for two additional one-year periods, subject to available budget, if pricing and service remain acceptable to the City.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft On-Call Services Agreement