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ADOPT RESOLUTION TO AUTHORIZE THE SIERRA NEVADA STREET SANITARY SEWER REHABILITATION PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. NOE13-20 under the California Environmental Quality Act for the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029.
2. Approve the plans and specifications for the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029.
3. Appropriate funds in the amount of $752,475 from the Wastewater Utility Fund Balance to the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029.
4. Award a Construction Contract in the amount of $2,291,738 to SAK Construction, LLC of O’Fallon, MO, for the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) has implemented a Condition Assessment Program for the City’s sewer infrastructure. This program generates a prioritized list of replacement and/or rehabilitation projects for inclusion in the City’s Capital Improvement Plan (CIP). The program identified a 36-inch sewer trunk line approximately 1,900 linear feet along Sierra Nevada Street between Hazelton Avenue and Worth Street for rehabilitation (Attachment A). The project was included in the 2018-23 Five-Year CIP.
On February 10, 2022, the City received two bids for this project. Staff recommends award of the Construction Contract to the lowest responsible bidder, SAK Construction, LLC, in the amount of $2,291,738. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE13-20 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.
To fully fund the construction of the project, staff recommends appropriating funds in the amount of $752,475 from the Wastewater Utility Fund Balance to the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029. Construction is anticipated to be completed by March 2023.
DISCUSSION
Background
The MUD has implemented a Condition Assessment Program for the City’s sewer infrastructure comprised of Closed-Circuit Televised Video inspection, pipe cleaning, and engineering evaluation. This program generates a prioritized list of sewer replacement and/or rehabilitation projects for inclusion in the City’s CIP. The program identified a 36-inch sewer trunk line approximately 1,900 linear feet along Sierra Nevada Street between Hazelton Avenue and Worth Street for rehabilitation (Attachment A). The project was included in the 2018-23 Five-Year CIP. The City retained Kjeldsen, Sinnock & Neudeck, Inc. to design the project, and plans were completed in November 2021.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was applied to this project as the estimated construction cost is more than $1 million.
Present Situation
On December 27, 2021, the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029, was advertised for bids including a bid schedule with a base bid and one additive bid alternative (Add Alternate). The Add Alternate includes optional improvements that can be included with the base bid provided there is available funding. The Add Alternate provides for various additional repairs and replacements to the sanitary sewer system.
On February 10, 2022, two bids were received with the following results:
COMPANY NAME BASE BID ALTERNATE BID TOTAL BID
SAK Construction, LLC $1,834,838 $456,900 $2,291,738
(O’Fallon, MO)
Saboo, Inc. $2,402,400 $229,000 $2,631,400
(Brentwood, CA)
Engineer’s Estimate $1,603,870 $188,000 $1,791,870
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Application of the Local Business Preference has no effect on the bid order. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
This project is required to be awarded based on the lowest bid received for the base bid. The base bid from SAK Construction, LLC, the lowest responsible bidder, is responsive and regular in all respects. SAK Construction, LLC has the proper license to perform the work. The total bid is approximately 28 percent above the engineer’s estimate. Staff has reviewed the bids and determined there are minimal opportunities to reduce costs, and lower bids are not likely if the project is re-advertised. The bid results reflect a recent trend of increasing costs in the construction industry due to labor and materials shortages. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to SAK Construction, LLC of O’Fallon, MO, in the amount of $2,291,738, which includes the base bid and the Add Alternate.
The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(b) of the CEQA guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE13-20 under CEQA.
Construction is anticipated to be completed by March 2023.
FINANCIAL SUMMARY
The current unencumbered balance in the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029, is not sufficient to award a Construction Contract to SAK Construction, LLC in the amount of $2,291,738. With the appropriation of $752,475 from the Wastewater Utility Fund Balance, Account No. 6518-000-800007-610-612-00-65-000-000, to the Sierra Nevada Street Sanitary Sewer Rehabilitation, Project No. UW18029 (formerly M18029), sufficient funds will be available to award a Construction Contract.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map