title
AWARD A PROFESSIONAL SERVICES AGREEMENT TO GATEWAY PACIFIC CONTRACTORS, INC. TO DESIGN AND CONSTRUCT THE DELTA WATER TREATMENT PLANT GROUNDWATER RECHARGE BASIN PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Award a Professional Services Agreement to Gateway Pacific Contractors, Inc. of Sacramento, CA, in the not-to-exceed amount of $11,483,248 to design and construct the Delta Water Treatment Plant Groundwater Recharge Basin Project (UH21005) and associated infrastructure.
It is also recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The Municipal Utilities Department (MUD) investigated the potential of groundwater recharge at the Delta Water Treatment Plant (DWTP) as part of the City conjunctive water management program. The program combines the use of surface water and groundwater in a coordinated way to ensure a reliable and sustainable water supply, particularly in dry years or during extended droughts.
To further investigate the potential for groundwater recharge at the DWTP, the MUD contracted with Geosyntec Inc. to conduct a geotechnical investigation and preparation of a hydrogeologic characterization report on a 70-acre field at the DWTP site. The report’s findings confirmed that the soil characteristics support the feasibility of constructing a groundwater recharge project at the DWTP.
Staff recommends the City Council adopt a resolution awarding a Professional Services Agreement to Gateway Pacific Contractors, Inc. of Sacramento, CA, in the not-to-exceed amount of $11,483,248, to design and construct the Delta Water Treatment Plant Groundwater Recharge Basin Project (UH21005).
DISCUSSION
Background
In 2012, the MUD dedicated the Delta Water Supply Project (DWSP), a key component of the City’s conjunctive use program and, to help balance groundwater levels in the Eastern San Joaquin Groundwater Subbasin. The DWSP provides surface water supplies to nearly 200,000 customers in north Stockton. The project included a river diversion and pumping station to convey water to the 30-million gallon per day DWTP located along Lower Sacramento Road, north of Eight Mile Road between the City of Stockton and the City of Lodi.
The DWSP was designed, in part, to protect the groundwater basin through conjunctive management of water resources and to improve the City’s water supply reliability portfolio. The construction of groundwater recharge basins adjacent to the treatment plant will increase the City conjunctive management capacity. When complete, the project will allow the City to directly recharge the groundwater basin using water from sources including Water Right Permit 21176, contract supplies from Woodbridge Irrigation District (WID), and possibly stormwater runoff from the City of Lodi. Water recharged into the groundwater basin can be stored and pumped during dry years or extended droughts. The basins will also help to balance groundwater levels in the critically over-drafted Eastern San Joaquin Groundwater Subbasin to help meet the Region’s Sustainable Groundwater Management Act requirements.
On June 14, 2022, by Resolution 2022-06-14-1208, the City Council awarded a professional services agreement to Geosyntec Inc. to perform geotechnical investigations and hydrogeologic characterization of the soil profiles at the DWTP site. Geosyntec Inc. completed the subsurface investigation in December 2023. The study confirmed the feasibility of constructing a groundwater recharge project at the DWTP.
Present Situation
On February 2, 2024, the City advertised an RFP to design and construct groundwater recharge basins at the DWTP. On April 4, 2024, four (4) proposals were received from the following firms:
|
Consultant |
Location |
Price |
|
Gateway Pacific Contractors, Inc. |
Sacramento, CA |
$11,483,248 |
|
George Reed Inc. |
Modesto, CA |
$21,380,290 |
|
Goodfellow Bros. |
Lodi, CA |
$24,861,000 |
|
Mountain Cascade, Inc. |
Livermore, CA |
$20,534,862 |
|
Engineering Estimate with 10% Contingency |
$11,377,631 |
A selection committee comprised of staff and consultants evaluated and ranked all proposals based on each firm’s understanding of the work, experience with similar work, qualifications of proposed team, project approach, and cost. Gateway Pacific Contractors, Inc. met or exceeded the requirements and was found to be the most qualified based on the RFP criteria and their proposal (Attachment A). Furthermore, Gateway Pacific Contractors, Inc. was the only firm with specific experience in the design and construction of groundwater recharge basins in California.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, the City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support such an exception:
1. A strict cost-competitive basis for the selection of professional services may lower the quality and thoroughness of the services provided.
2. Use of the RFP process is appropriate for this Professional Services Agreement because it relies on the evaluation of professional qualifications and performance as the basis for the selection of a vendor, which is a typical practice for this type of work. Use of these criteria resulted in the selection of a vendor with specific experience in design and construction of groundwater recharge basins in California.
3. Considering the size, complexity, and schedule requirements of the project, the City does not have sufficient staff resources nor the expertise to design and construct a project of this size.
4. The City negotiated the contract following a regular Request for Proposal process in accordance with SMC section 3.68.070.A.3.
Staff recommends that the City Council adopt a resolution to award a Professional Services Agreement to Gateway Pacific Contractors, Inc. in the not-to-exceed amount of $11,483,248 to design and construct the Delta Water Treatment Plant Groundwater Recharge Basin Project (Exhibit 1 to the Resolution).
LOCAL EMPLOYMENT ORDINANCE
On September 1, 2009, the City Council adopted a Local Employment Ordinance requiring that 50 percent of the workforce on public works projects of at least $100,000 reside in the City of Stockton. The contract amount for this project is more than $100,000 and subject to the Local Employment Ordinance.
COMMUNITY WORKFORCE AND TRAINING AGREEMENT
On July 26, 2016, the City Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective on August 25, 2016, and applies to all Public Works projects over $1,000,000 that are bid after the effective date. This project is subject to the requirements of the CWTA.
FINANCIAL SUMMARY
In 2021, the MUD applied for grant funding for project feasibility and future construction under the Department of Water Resources Sustainable Groundwater Management Act (SGMA) Round 1 grant program and the Integrated Regional Water Management Program. The project will be granted $300,000 and $2,000,000 from these programs, respectively.
There are sufficient funds available in the Water Capital Improvement Projects Fund under Project Number UH21005 for the design, permitting, and construction work. The remaining funds will be budgeted in FY 2025-26 as part of the annual budget development process.
There is no impact to the General Fund, or any other unrestricted funds, from this action.
Attachment A - Proposal