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APPROVE RESOLUTION TO AUTHORIZE THE HVAC AND ROOF REPLACEMENT PROJECT AT THE REGIONAL WASTEWATER CONTROL FACILITY
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the Notice of Exemption No. CE025-17 under the California Environmental Quality Act for the MUD Cogeneration, Maintenance, Belt Press, and Old Digester Buildings HVAC and Roof Replacement, Project Nos. M15006, M15007, M15008, and M15013.
2. Approve the plans and specifications for the MUD Cogeneration, Maintenance, Belt Press, and Old Digester Buildings HVAC and Roof Replacement, Project Nos. M15006, M15007, M15008, and M15013.
3. Appropriate funds in the amount of $235,000 from the Wastewater Utility Fund fund balance (431-0000-287.00-00) to the Wastewater Capital Maintenance (431-4331-606) for the MUD Cogeneration, Maintenance, Belt Press, and Old Digester Buildings HVAC and Roof Replacement, Project Nos. M15006, M15007, M15008, and M15013.
4. Award a Construction Contract in the amount of $1,523,339 to Comfort Air, Inc. of Stockton, CA, for the MUD Cogeneration, Maintenance, Belt Press, and Old Digester Buildings HVAC and Roof Replacement, Project Nos. M15006, M15007, M15008, and M15013.
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 Regional Wastewater Control Facility (RWCF), located at 2500 Navy Drive, collects and treats wastewater from the City and several unincorporated areas. The RWCF contains buildings used for storage, equipment, offices, or other uses. Several buildings have roofs and heating, ventilation, and air conditioning (HVAC) equipment that are inoperative and in need of replacement.
This project will re-roof and upgrade antiquated HVAC systems at the Cogeneration, Maintenance, Belt Press, and Old Digester Buildings. Project design was completed by Turley and Associates Mechanical Group, Inc. in February 2017 and advertised for bids.
On March 30, 2017, the City received three bids for this project. On June 6, 2017, by Motion No. 2017-06-06-1111, Council rejected all bids due to non-responsive or higher than expected bid results. The project was re-bid with a restructured bid schedule that included a base bid and two additive alternate bids. The additive alternate bids are optional improvements that can be added to the project if the costs are within the project budget.
On June 29, 2017, the City received two bids for the project. Comfort Air, Inc. submitted the apparent low base bid of $1,245,500 (Cogeneration Building Roof and HVAC, Project No. M15006, and Belt Press Roof and HVAC, Project No. M15008), and bids of $106,999 for Additive Alternate No. 1 (Maintenance Building, Project No. M15007) and $170,840 for Additive Alternate No. 2 (Old Digester Building, Project No. M15013). The total bid amount of the base bid plus both alternates is $1,523,339.
Staff recommends award of the Construction Contract to the lowest responsive bidder, Comfort Air, Inc., in the amount of $1,523,339. To fully fund the project, staff recommends Council appropriate additional funds in the amount of $235,000 from the Wastewater Utility Fund balance (431-0000-287.00-00) to the Wastewater Capital Maintenance (431-4331-606). Staff also recommends that Council adopt a resolution authorizing the filing of Notice of Exemption No. CE025-17 under the California Environmental Quality Act (CEQA). Construction is anticipated to begin in fall 2017 and be completed by winter 2018.
DISCUSSION
Background
The RWCF located at 2500 Navy Drive collects and treats wastewater from the City and several unincorporated areas, and is comprised of nine separate buildings and structures. Many of the roofs and/or HVAC equipment on buildings located within the RWCF are original to the construction of the facility, and have either passed their useful life or are inoperative. Fumes, odors, and heat are generated in some of the buildings and functional HVAC equipment is required to provide adequate ventilation and temperature conditioning for the workers. Several of the buildings require frequent temporary repairs to address roof leaks and HVAC failures. A full evaluation of the buildings to determine the scope of permanent repairs was completed and the conclusion is that roofs and/or HVAC equipment at the following RWCF buildings need replacement:
1. Cogeneration Building: This building is where gas by-products are received and utilized to produce power for the RWCF. The HVAC system removes fumes and stabilizes heat in the building. The existing roof is passed its useful life, and the HVAC system is inoperable. Both require replacement.
2. Maintenance Building: This building houses machine, welding, and repair shop areas as well as offices and locker rooms. The existing evaporative cooling system is antiquated and needs replacement with a new HVAC system.
3. Belt Press Building: This building is where wastewater treatment sludge is processed. The strong odors created in the building require continuous ventilation. The existing roof is passed its useful life, and the HVAC system is inoperable. Both require replacement.
4. Old Digester Building: This building houses heat exchangers, pumps, and other equipment needed to operate the digester tanks. The existing roof has passed its useful life and require replacement.
In 2011, a Capital Improvement and Energy Management Plan (CIEMP) was completed for the RWCF. The CIEMP identified and prioritized necessary improvements needed at the RWCF through 2035. The primary focus of the CIEMP was the wastewater treatment process, and potential energy efficiency and renewable energy improvements. Re-roofing and upgrading HVAC systems on the buildings noted above are outside of the CIEMP scope of work, and these projects will not be affected by implementation of the CIEMP. Funding for the work is from the general wastewater capital account. Each building location is assigned its own project number for budget funding and tracking purposes.
On August 18, 2015, by Resolution No. 2015-08-18-1206, Council approved a Professional Services Contract with Turley and Associates Mechanical Group, Inc. to prepare the plans and specifications for the construction of the project. The project design was completed in February 2017 and advertised for bids.
On March 30, 2017, the City received three bids for this project. The low bidder was determined to be non-responsive, and the second and third low bidders submitted bids that were significantly higher than the Engineer’s Estimate. On June 6, 2017, by Motion No. 2017-06-06-11, Council rejected all bids.
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, as the estimated construction cost is more than $1 million.
Present Situation
On June 1, 2017, the project was re-advertised with a restructured bid schedule that included a base bid and two additive alternate bids. The additive alternate bids are optional improvements that can be added to the project if the costs are within the project budget. On June 29, 2017, two bids were received with the following results:
|
COMPANY NAME |
BASE BID AMOUNT |
ADDITIVE ALTERNATE BID 1 AMOUNT |
ADDITIVE ALTERNATE BID 2 AMOUNT |
|
Comfort Air, Inc. (Stockton, CA) |
$1,245,500 |
$106,999 |
$170,840 |
|
Arts Construction Company, Inc. (Fresno, CA) |
$1,700,000 |
$630,000 |
$750,000 |
|
Engineer’s Estimate |
$1,091,580 |
$101,845 |
$137,760 |
The basis of award for the project is the lowest bid received for the base bid. The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference Ordinance, apply to this project. Comfort Air, Inc. is located within the City and is entitled to a five percent bid preference. 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 Comfort Air, Inc., the lowest bidder, is regular in all respects. Comfort Air, Inc. has the proper license to perform the work, but did not include a signed copy of Letter of Clarification (LOC) No. 1 with their bid. The bid instructions specify that this “may” be cause for rejection of a bid. The City Attorney’s Office determined that the contractor could submit a signed copy of LOC No. 1 after the bid opening date, provided the bid remained unchanged. Comfort Air, Inc. has provided the signed LOC No. 1 with no change to their bid.
The award amount is approximately 14 percent over the Engineer’s Estimate. Staff reviewed the bids and determined that there are minimal opportunities to reduce costs, and lower bids are not likely if the project is re-advertised. Staff recommends Council approve the plans and specifications for the project, and award a Construction Contract to Comfort Air, Inc. in the amount of $1,523,339. To fully fund the project, $235,000 will be transferred from the Wastewater Utility Fund balance (431-0000-287.00-00) to the Wastewater Capital Maintenance (431-4331-606). Construction is anticipated to begin in fall 2017 and be completed by winter 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 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. CE025-17 under CEQA.
FINANCIAL SUMMARY
Staff recommends the appropriation of additional funding in the amount of $235,000 from the Wastewater Utility Fund balance (431-0000-287) to the Wastewater Capital Maintenance (431-4331-606). With this additional funding, there is sufficient funding to award a Construction Contract in the amount of $1,523,339 with Comfort Air, Inc. The funding will be split between the Wastewater Capital Maintenance account in the amount of $1,335,000 (431-4331-606) and the Wastewater Capital Improvement Fund account in the amount of $188,339 (437-7709-670).
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map