title
AWARD PHASE 2 OF THE PROGRESSIVE DESIGN-BUILD CONTRACT FOR THE SOUTH STOCKTON SYSTEM GROUNDWATER WELL REHABILITATION AT WELL SSS8 PROJECT AND AMEND THE FISCAL YEAR 2022-23 ANNUAL BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Award Phase 2 of the Progressive Design-Build Contract for the Guaranteed Maximum Price (GMP), in the amount of $5,425,255, between the City and PCL Construction, Inc., of Tempe, AZ, for the final design, engineering services during construction, construction, and permitting of the South Stockton System Groundwater Well Rehabilitation at Well SSS8, Project No. UH22008 (Exhibit 1 to the Resolution).
2. Authorize the City Manager to execute Amendment No.1 to the Progressive Design-Build Contract for Phase 2 work.
3. Approve the filing of Notice of Exemption No. NOE41-22 under the California Environmental Quality Act (CEQA) for the South Stockton System Groundwater Well Rehabilitation at Well SSS8, Project No. UH22008 (Exhibit 2 to the Resolution).
4. Transfer funds in the amount of $400,000 from the Water Utility Fund Balance to the South Stockton System Groundwater Well SSS8, Project No. UH22008.
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.
body
Summary
If approved by Council, this action will amend the Progressive Design-Build Contract with PCL Construction, Inc. for the final design, engineering services during construction, construction, and permitting of the wellhead treatment improvements to rehabilitate South Stockton System Groundwater Well Rehabilitation at Well SSS8 (Project No. UH22008) located next to Ernie Shropshire Park in South Stockton. Wellhead treatment and water treatment facility improvements are necessary for Well SSS8 to meet the State Water Resources Control Board (SWRCB) Drinking Water Standards and the requirements of California law.
The Progressive Design-Build Contract was anticipated to be executed in two phases. On March 22, 2022, by Resolution No. 2022-03-22-1212, Council authorized the City Manager to execute a Progressive Design-Build Contract with PCL Construction, Inc., in the amount of $485,591, to perform Phase 1 design services for the South Stockton System Groundwater Well Rehabilitation at Well SSS8 Project.
If approved, this action will award Phase 2 of the Progressive Design-Build Contract, in the amount of $5,425,255, to PCL Construction, Inc. for the final design, engineering services during construction, construction, and permitting for the South Stockton System Groundwater Well Rehabilitation at Well SSS8 Project.
DISCUSSION
Background
As listed in the most recent MUD Water Utility Master Plan and Urban Water Management Plan, there are two drinking water supply sources for the South Stockton System (SSS), including potable water purchased from Stockton East Water District and groundwater wells. Currently, there are a total of five groundwater wells in the South Stockton System, and only two wells are in active status. The remaining groundwater wells were placed into the inactive status and require rehabilitation prior to being brought back into service.
Groundwater Well SSS8 is located next to Ernie Shropshire Park in South Stockton and will be the first water well from the South Stockton System to be rehabilitated. Wellhead treatment for the removal of water quality constituents is a standard industry practice and will be used to meet new SWRCB Drinking Water Standards and requirements of California law.
On March 22, 2022, by Resolution No. 2022-03-22-1212, Council authorized the City Manager to execute a Progressive Design-Build Contract with PCL Construction, Inc. in the amount of $485,591. PCL Construction, Inc. subcontracted with Hazen and Sawyer to perform Phase 1 design services for the South Stockton System Groundwater Well Rehabilitation at Well SSS8 Project.
The Phase 1 engineering services performed by Hazen and Sawyer advanced the design to the 60 percent completion level. PCL Construction, Inc. provided cost estimates for equipment and subcontractors to develop a GMP for Phase 2 of the Project.
Present Situation
PCL Construction, Inc. and City staff agreed upon the GMP and schedule for Phase 2, which is now presented to City Council for approval.
Phase 2 of the Progressive Design-Build Contract includes the following scope of services:
1. Final Design,
2. Permitting,
3. Construction, and
4. Engineering Services During Construction.
ENVIRONMENTAL CLEARANCE
It has been determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) guidelines as specified under Article 19, 15302(c) of the CEQA guidelines because it concerns the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.
In addition, the proposed project is consistent with the Government Code Section 65402 and the GPU (Land Use Policy 6.3) because it improves existing utility services to ensure that all neighborhoods have access to well-maintained public facilities that meet community service needs.
LOCAL EMPLOYMENT ORDINANCE
This project is subject to the Local Employment Ordinance, and all applicable requirements will be conditioned upon PCL Construction, Inc.
The contract amount is over $100,000 and subject to the Local Employment Ordinance, which requires that “all City contracts for public works or improvements of the estimated value or City subsidy of $100,000 or more shall contain provisions pursuant to which the contractor promises to make a good faith effort, with the assistance of local labor union hiring halls or community organizations designated by the City to employ qualified individuals who are, and have been for one year prior to the effective date of the contract, residents of Stockton in sufficient numbers so that no less than 50 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Stockton residents.”
COMMUNITY WORKFORCE AND TRAINING AGREEMENT
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 the effective date. The South Stockton System Groundwater Well Rehabilitation at Well SSS8 Project is subject to the requirements of CWTA.
FINANCIAL SUMMARY
Funds will be transferred in the current fiscal year in the amount of $400,000 from the Water Utility Fund Balance to the Rehabilitation of South Stockton System Groundwater Well SSS8 Project UH22008.
There is no impact to the City’s General Fund or any other unrestricted fund because of taking the recommended action.