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APPROVE RESOLUTION TO AUTHORIZE THE BLACK OAK PUBLIC UTILITY EASEMENT SANITARY SEWER REHABILITATION PROJECT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the Notice of Exemption No. CE017-17 under the California Environmental Quality Act for the Black Oak Public Utility Easement Sanitary Sewer Rehabilitation (Project No. M15002).
2. Approve the plans and specifications for the Black Oak Public Utility Easement Sanitary Sewer Rehabilitation (Project No. M15002).
3. Reject the low bid from SAK Construction, LLC of O’Fallon, Missouri, for the Black Oak Public Utility Easement Sanitary Sewer Rehabilitation (Project No. M15002).
4. Award a Construction Contract in the amount of $1,702,029 to Insituform Technologies, LLC of Chesterfield, Missouri for the Black Oak Public Utility Easement Sanitary Sewer Rehabilitation (Project No. M15002).
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) 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 replacement and/or rehabilitation projects for inclusion in the City’s Capital Improvement Program (CIP). A large diameter pipe segment along Black Oak Public Utility Easement (PUE) between Pershing Avenue and Alexandria Place (Attachment A - Vicinity Map) was identified for replacement by the Condition Assessment Program and included in the FY 2015-16 CIP.
On April 6, 2017, the City received two bids for the project. SAK Construction, LLC (SAK) submitted the low bid in the amount of $1,674,574. This bid is non-responsive, because SAK failed to provide a subcontractor’s dollar amount on the List of Subcontractors bid form. The second low bid from Insituform Technologies, LLC (Insituform) in the amount of $1,702,029 is responsive in all respects.
Staff recommends adopting a resolution approving the plans and specifications for the project, rejecting the low bid, and awarding a Construction Contract to Insituform in the amount of $1,702,029. Staff also recommends that the resolution authorize the filing of Notice of Exemption No. CE017-17 under California Environmental Quality Act (CEQA). Construction is anticipated to be completed by spring 2018.
DISCUSSION
Background
The MUD 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. The MUD’s Condition Assessment Program identified 40-linear feet of 18-inch, 3,257-linear feet of 30-inch, and 450-linear feet of 48-inch sewer trunk line along Black Oak PUE between Pershing Avenue and Alexandria Place for replacement (Attachment A - Vicinity Map). The project was included in the FY 2015-16 CIP. The City retained West Yost Associates to design the project, and plans were completed in January 2017.
Present Situation
On March 2, 2017, the Black Oak PUE Sanitary Sewer Rehabilitation project was advertised for bids. On April 6, 2017, two bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
|
SAK Construction, LLC (O’Fallon, Missouri) |
$1,674,574 |
|
Insituform Technologies, LLC (Chesterfield, Missouri) |
$1,702,029 |
|
Engineer’s Estimate |
$1,767,507 |
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. However, both bidders are located outside San Joaquin County and are not entitled to a bid preference. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
SAK, the apparent low bidder, submitted a bid that failed to provide a subcontractor’s dollar amount on the List of Subcontractors bid form. The second low bidder, Insituform, submitted two Letters of Protest claiming that SAK’s bid was nonresponsive because their List of Subcontractors bid form omitted this required information. In response, SAK submitted a letter providing reasons for the missing information and provided a revised List of Subcontractors, which included the missing information. The City Attorney’s Office reviewed the letters and determined that SAK made a technical bid error and that allowing a revision after the bidding was closed would give SAK an unfair advantage. The bid from the low bidder, SAK, was deemed non-responsive.
The bid from Insituform, the second lowest bidder, is regular in all respects. Insituform has the proper license to perform the work. Staff recommends approving the plans and specifications for the project and awarding the Construction Contract to Insituform of Chesterfield, Missouri, in the amount of $1,702,029. Construction is anticipated to be completed by spring 2018.
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 Article 19, Section 15301, Class 1, 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. CE017-17 under CEQA.
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. The CWTA was applied to this project because the engineer’s estimate was over $1 million.
FINANCIAL SUMMARY
There are sufficient funds available in Account No. 437-7787-670 (CIP - Wastewater/Sanitary Sewer Deficiency Improvements) to award a Construction Contract to Insituform in the amount of $1,702,029. There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map