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ADOPT A RESOLUTION TO AWARD A CONSTRUCTION CONTRACT TO HOWK SYSTEMS, INC. FOR ELECTRICAL UPGRADES AT SOUTH STOCKTON SYSTEM GROUNDWATER WELLS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the filing of Notice of Exemption under the California Environmental Quality Act (CEQA) for the Electrical Upgrades of Groundwater Wells Project No. UH22004.
2. Approve the plans and specifications for the Electrical Upgrades of South Stockton System (SSS) Groundwater Wells No. SSS3 and SSS9, Project No. UH22004.
3. Award a Construction Contract in the amount of $754,717 to Howk Systems, Inc. of Modesto, CA, for Electrical Upgrades of Groundwater Wells SSS3 and SSS9, Project No. UH22004 (Exhibit 1 to Resolution).
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) South Stockton System (SSS) groundwater wells SSS3 and SSS9 currently operate using electric motor driven pumps. To improve reliability and maintain the continued operation during power outages or other emergencies, it is necessary to install backup power systems at both well sites.
If approved, this action will award a construction contract to Howk Systems, Inc., in the amount of $754,717, to install two (2) emergency standby engine generators and complete other improvements.
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.
Wells SSS3 and SSS9 were installed in 1996 and 2002, respectively. To improve reliability and maintain the continued operation of these groundwater wells during power outages or other emergencies, it is necessary to install standby engine generators.
On January 20, 2023, the City hired HCS Engineering, Inc. to complete the design and prepare plans and specifications for the installation of two (2) emergency standby engine generators at the well sites. Plans include other improvements like new security fencing, gates, a concrete driveway, and sidewalk.
Present Situation
On April 18, 2024, MUD advertised the project in the Stockton Record and posted it to the City’s Bid Flash webpage. Additionally, a notice with a brief project description was sent to over 150 contractors holding a Class “A” or C-10 license.
A non-mandatory pre-bid meeting was held on May 2, 2024, with six (6) prospective bidders in attendance. On Thursday, May 23, 2023, six (6) sealed bids were officially received and publicly opened by the City Clerk with the following results:
|
Company |
Location |
Total Bid Amount |
|
Lords Electric Inc. |
Sacramento, CA |
$1,335,000.00 |
|
CWS Construction Group, Inc. |
Novato, CA |
$1,285,000.00 |
|
Saboo Inc. |
Brentwood, CA |
$1,183,000.00 |
|
Aria Electric & Construction |
Orangevale, CA |
$890,000.00 |
|
Days Generator Service, Inc. |
Brentwood, CA |
$824,000.00 |
|
Howk Systems, Inc. |
Modesto, CA |
$754,717.00 |
|
Engineer’s Estimate |
|
$401,583.60 |
The bid submitted by Howk Systems, Inc. is the lowest responsive bid and regular in all aspects. In addition, Howk Systems, Inc. has the proper licenses to perform the work.
Staff recommend that the City Council award a construction contract to Howk Systems, Inc. in the amount of $754,717.
Local Employment Ordinance
The contract amount is over $100,000 and subject to the Local Employment Ordinance in accordance with Stockton Municipal Code (SMC) section 3.68.095, which requires that “all City contracts for public works or improvements of 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.”
The Local Preference Ordinance, SMC 3.68.095, which states that “preference shall be given to the purchase of supplies, materials, equipment, and contractual services from local merchants, quality and price being equal,” does not apply to the project because all bidders are located outside of San Joaquin County.
Community Workforce and Training Agreement
The project is under $1,000,000 and not subject to the Community Workforce and Training Agreement.
Environmental Clearance
This project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) as specified under Article 19, Section 15302, Class 2 (c) of the CEQA guidelines as it involves the replacement or reconstruction of an existing public facility where the new structure will be located on the same site and will have substantially the same purpose and capacity as the structure replaced.
In addition, the proposed project is consistent with Government Code Section 65402 and the 2040 Stockton General Plan (Land Use Policy 6.3), because it improves existing utility services to ensure that all neighborhoods have access to well-maintained public facilities and utilities that meet community service needs.
FINANCIAL SUMMARY
There are sufficient funds available in the Water Capital Improvements Account to award a Construction Contract in the amount of $754,717 to Howk Systems, Inc. of Modesto, CA, for the Electrical Upgrades of Water Wells No. SSS3 and SSS9, Project No. UH22004.
There is no impact to the City’s General Fund or any other unrestricted fund from this action.