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AWARD A CONSTRUCTION CONTRACT WITH GOES AND NOCETI CONSTRUCTION, INC., DBA G & N CONSTRUCTION FOR THE ON-CALL UTILITIES REPAIR SERVICES PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve the plans and specifications for the On-Call Utilities Repair Services Project, Project No. PUR 17-028.
2. Award a Construction Contract in the amount of $1,929,750 to Goes and Noceti Construction, Inc., dba G & N Construction of Stockton, California for the On-Call Utilities Repair Services Project, Project No. PUR 17-028.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On October 28, 2017, the Municipal Utilities Department (MUD) advertised a request for bids, in accordance with Stockton Municipal Code Section 3.68.100, to solicit for on-call and emergency repair services for various utility repair projects throughout the City of Stockton. As a result, on November 30, 2017, and in accordance with Stockton Municipal Code Section 3.68.160, the City received one bid for the On-Call Utilities Repair Services, Project No. PUR17-028 from Goes and Noceti Construction, Inc. of Stockton, California.
If approved, this action will authorize the award of a construction contract in the annual amount of $1,929,750 to Goes and Noceti Construction, Inc., dba G & N Construction of Stockton, California (Attachment A) for a term of three years with a one year option to extend.
DISCUSSION
Background
In 2009, the City was sued by California Sport-Fishing Protection Alliance (CSPA) due to excessive sanitary sewer overflows (SSO’s). Detailed in the Consent Decree Agreement, the City was required to significantly reduce the number of SSO’s by inspecting the conditions of the entire gravity sewer pipes with closed-circuit television (CCTV). Based on the results of the CCTV inspections, the Consent Decree also required the City to quickly repair (within 90 days) any structural defects that deemed immediate failures on both lower laterals and mains. The CCTV inspections also generated construction work orders to repair other types of structural defects. The City successfully exited the consent decree in 2016.
It is anticipated the on-call services will supplement the capacity of MUD construction crews during the term of the contract to eliminate work order backlogs as a result of the CCTV inspections, as well as providing emergency repair services.
Present Situation
On October 28, 2017, MUD advertised a request for bids for the On-Call Utility Repair Services, Project No. PUR17-028, to qualified general contractors. The request for services shall provide for work as needed through an on-call process based on the estimated quantities in the bid documents. The City will contact the contractor and request services related to the individual, or multiple projects, and the contractor will then prepare a detailed scope of work and cost estimate for each task based on unit prices shown on the bid schedule. The scope of work shall be agreed upon between the City and contractor before the start of work.
On November 30, 2017, one bid was received with the following results:
|
FIRM NAME |
BID AMOUNT |
|
Goes and Noceti Construction, Inc. (Stockton, CA) |
$1,929,750 |
The engineering cost estimate for this project was $1.7 million. The one bid price from Goes and Noceti Construction was $1,929,750 or $222,356 (11.52%) more than the cost estimate. An analysis of the cost differences was completed, and the cost difference in unit pricing was comparable to other recent public work bids and evaluated as reasonable.
Furthermore, staff reached out to other qualified contractors to survey why other bids were not submitted. The responses were either a timing issue on the contractor’s part, they were too busy with other projects, or could not commit to this project.
This project is subject to the Local Employment Ordinance of the Stockton Municipal Code Section 3.68.095, Ordinance No. 011-09 adopted September 1, 2009, effective October 1, 2009, which requires contractors and subcontractors to make a good faith effort to employ at least 50 percent of the workforce on this project from local residents, as measured by total labor work hours. The Contractor shall be required to comply with those requirements.
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 was more than $1 million.
The bid received by Goes and Noceti Construction, the lowest responsive bidder, is regular in all aspects. Goes and Noceti Construction has the proper license to perform the work. Staff recommends awarding a construction contract to Goes and Noceti Construction, Inc. dba G & N Construction of Stockton, California (Attachment A).
FINANCIAL SUMMARY
The cost of the contract is $1,929,750 annually. The FY 2017-18 Annual Budget includes sufficient appropriation in the Wastewater Operating Expense Account 431-4332-571 to award this contract to Goes and Noceti Construction, Inc.
Future funds for further repairs will be allocated and approved by Council through the annual budget approval process. There is no impact to the General Fund, or any other unrestricted fund, from this action.
Attachment A - Construction Contract - Goes and Noceti Construction, Inc., dba G & N Construction