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APPROVE RESOLUTION TO AUTHORIZE THE 2016 SANITARY SEWER REHABILITATION PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. CE045-17 under the California Environmental Quality Act for the 2016 Sanitary Sewer Rehabilitation, Project No. M16006.
2. Approve the plans and specifications for the 2016 Sanitary Sewer Rehabilitation, Project No. M16006.
3. Award a Construction Contract in the amount of $421,311 to McFadden Construction, Inc. of Stockton, CA, for the 2016 Sanitary Sewer Rehabilitation, Project No. M16006.
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 2016 Sanitary Sewer Rehabilitation, Project No. M16006 is part of an annual program to rehabilitate existing sewer lines to address concerns regarding pipe condition, inadequate sizing, and the potential for failure. The 2016 Sanitary Sewer Rehabilitation project was included in the Fiscal Year (FY) 2016-21 Capital Improvement Plan (CIP).
On March 22, 2018, the City received three bids for this project. Staff recommends award of the Construction Contract to the lowest bidder, McFadden Construction, Inc., in the amount of $421,311. Staff also recommends that Council adopt a resolution approving the Notice of Exemption No. CE045-17 under the California Environmental Quality Act (CEQA), and approving the plans and specifications for the project. Construction is anticipated to begin in summer 2018 and be completed by winter 2018.
DISCUSSION
Background
The City has an annual capital program to rehabilitate deteriorated and/or under-sized sanitary sewer lines. On December 1, 2015, the City entered into a Professional Services Contract with Siegfried Engineering, Inc., in the amount of $48,994, to prepare design plans, specifications, and estimates for the 2016 Sanitary Sewer Rehabilitation, Project No. M16006.
The 2016 Sanitary Sewer Rehabilitation project includes the rehabilitation/replacement of approximately 1,787 feet of existing sewer lines throughout Stockton. The work will take place on Commerce Street between Fourth Street and Third Street, Third Street between Lincoln Street and Commerce Street, Worth Street between American Street and Stanislaus Street, and Grant Street between Fremont Street and Lindsay Street (Attachment A - Vicinity Map). The 2016 Sanitary Sewer Rehabilitation project was included in the FY 2016-21 CIP.
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 not applied to this project, as the estimated construction cost is less than $1 million.
Present Situation
On February 21, 2018, the 2016 Sanitary Sewer Rehabilitation project was advertised for bids. On March 22, 2018, three bids were received with the following results:
COMPANY NAME BID AMOUNT
McFadden Construction, Inc. (Stockton, CA) $421,311.00
RTC Construction Management, Inc. (Merced, CA) $599,701.00
Soracco, Inc. (Lodi, CA) $711,170.58
Engineer’s Estimate $820,957.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference Ordinance, 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 McFadden Construction, Inc., the apparent low bidder, is regular in all respects. McFadden Construction, Inc. has the proper license to perform the work. McFadden Construction, Inc.’s bid is 49 percent less than the Engineer’s Estimate. Staff recommends Council approve the plans and specifications for the project, and award a Construction Contract to McFadden Construction, Inc., in the amount of $421,311.
The project 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 discretionary City project do not have a significant effect on the environment. The resolution will approve the Notice of Exemption No. CE045-17 under CEQA. Construction is anticipated to begin in summer 2018 and be completed by winter 2018.
FINANCIAL SUMMARY
There is an unencumbered balance of $1,217,722 in the Wastewater/Sanitary System Repair project (M16006 - 437-770-670). This amount is sufficient to award a Construction Contract in the amount of $421,311 with McFadden Construction, Inc.
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