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ADOPT RESOLUTION TO AUTHORIZE THE WORTH STREET SANITARY SEWER REHABILITATION PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Transfer funds in the amount of $1,119,631 from the Wastewater Fund Balance to the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028.
2. Approve Notice of Exemption No. NOE26-21 under the California Environmental Quality Act for the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028.
3. Approve the plans and specifications for the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028.
4. Award a Construction Contract in the amount of $5,136,310 to SAK Construction, LLC of O’Fallon, MO, for the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028.
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 comprised of Closed-Circuit Televised Video (CCTV) 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 Capital Improvement Plan (CIP). A 36-inch diameter sewer trunk line along Worth Street was identified for rehabilitation. The project will rehabilitate approximately 7,920 linear feet of 36-inch sewer trunk line along Worth Street from Harrison Street to Sierra Nevada Street (Attachment A). The project was included in the 2018-23 Five-Year CIP.
On February 6, 2025, the City received four bids for this project. It is recommended that Council award a Construction Contract to the lowest responsible bidder, SAK Construction, LLC, in the amount of $5,136,310. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE26-21 under the California Environmental Quality Act (CEQA), approving the plans and specifications, and transfer of funds for the project. Construction is anticipated to be completed by December 2025.
DISCUSSION
Background
The MUD has implemented a Condition Assessment Program for the City’s sewer infrastructure comprised of CCTV 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. A 36-inch diameter sewer trunk line along Worth Street was identified for rehabilitation. The project will rehabilitate approximately 7,920 linear feet of 36-inch sewer trunk line along Worth Street from Harrison Street to Sierra Nevada Street (Attachment A). The project was included in the 2018-23 Five-Year CIP.
On September 17, 2019, by Motion No. 2019-09-17-1117, Council approved a Professional Services Contract for design services in the amount of $246,536.99. The project required extensive coordination with both the Burlington Northern and Santa Fe Railroad (BNSF) and Union Pacific Railroad (UPRR) as a portion of the project crosses each railroad corridor. Specifically, the project required the rehabilitation of the existing sewer pipe crossing each railroad corridor, which triggered railroad reviews and permits and/or agreements. Reviews and permits and/or agreements by the railroads took a considerable amount of time to complete and delayed the design completion. Two design amendments were prepared. The first amendment extended the design contract expiration date, and the second amendment added $108,831.50 for additional design work and agreement processing required by BNSF and UPRR. Design and agreements with the railroads were completed towards the end of 2024.
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. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was applied to this project as the estimated construction cost is over $1 million.
Present Situation
On December 17, 2024, the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028, was advertised for bids. On February 6, 2025, four bids were received with the following results:
COMPANY NAME BID AMOUNT
SAK Construction, LLC (O’Fallon, MO) $5,136,310
Insituform Technologies, LLC (Chesterfield, MO) $6,791,648
Lamassu Utility Services, Inc. (Loomis, CA) $8,500,000
Michels Trenchless, Inc. (Brownsville, WI) $9,950,464
Engineer’s Estimate $6,405,180
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.
The bid from SAK Construction, LLC, the lowest responsible bidder, is regular in all respects and has the proper license to perform the work. It is recommended that Council approve the plans and specifications, and award a Construction Contract to SAK Construction, LLC of O’Fallon, MO, in the amount of $5,136,310 for the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028.
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. NOE26-21 under CEQA.
Construction is anticipated to be completed by December 2025.
FINANCIAL SUMMARY
With the transfer of funds in the amount of $1,119,631 from the Wastewater Fund Balance to the Worth Street Sanitary Sewer Rehabilitation, Project No. UW18028, there will be sufficient funds to award a Construction Contract to SAK Construction, LLC in the amount of $5,136,310.
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