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APPROVE RESOLUTION TO AUTHORIZE THE ALEXANDRIA PLACE SEWER TRUNK LINE REHABILITATION PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. CE02-18 under the California Environmental Quality Act for the Alexandria Place Sewer Trunk Line Rehabilitation, Project No. M15001.
2. Approve the plans and specifications for the Alexandria Place Sewer Trunk Line Rehabilitation, Project No. M15001.
3. Appropriate funds in the amount of $930,000 from the Wastewater Utility fund balance (431-0000-287) to the Wastewater/Sanitary Sewer Deficiency Improvements (437-7787-670) for the Alexandria Place Sewer Trunk Line Rehabilitation, Project No. M15001.
4. Award a Construction Contract in the amount of $4,745,110 to SAK Construction, LLC of O’Fallon, MO, for the Alexandria Place Sewer Trunk Line Rehabilitation, Project No. M15001.
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 Alexandria Place between Swain Road and the North Pump Station (Attachment A - Vicinity Map) was identified for replacement by the Condition Assessment Program and included in the Fiscal Year (FY) 2015-20 Capital Improvement Program (CIP).
On May 17, 2018, the City received two bids for this project. Staff recommends award of the Construction Contract to the lowest responsive bidder, SAK Construction, LLC, in the amount of $4,745,110. Staff also recommends that Council adopt a resolution approving the Notice of Exemption No. CE02-18 under the California Environmental Quality Act (CEQA), and approving the plans and specifications for the project. Construction is anticipated to be completed by summer 2019.
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 Condition Assessment Program identified 4,511 linear feet of 48-inch and 1,547 linear feet of 54-inch sewer trunk line along Alexandria Place between Swain Road and the North Pump Station. The project was included in the FY 2015-20 CIP. The City retained West Yost Associates to design the project, and plans were completed in January 2017. The estimated cost of construction exceeded the available funds, and the project was put on hold until funds were available.
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.
Present Situation
On April 18, 2018, following a determination that additional funding was available as detailed in the Financial Summary, the Alexandria Place Sewer Trunk Line Rehabilitation project was advertised for bids. On May 17, 2018, two bids were received with the following results:
• SAK Construction, LLC
(O’Fallon, MO) $4,745,110
• Michels Corporation dba Michels Pipeline Construction
(Salem, OR) $8,148,880
Engineer’s Estimate $4,854,480
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 SAK Construction, LLC, the apparent low bidder, is regular in all respects. SAK Construction, LLC has the proper license to perform the work. Staff recommends Council approve the plans and specifications for the project, and award a Construction Contract to SAK Construction, LLC in the amount of $4,745,110.
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 discretionary City project do not have a significant effect on the environment. The resolution will approve the Notice of Exemption No. CE02-18 under CEQA. Construction is anticipated to be completed by summer 2019.
FINANCIAL SUMMARY
Staff recommends the appropriation of additional funding in the amount of $930,000 from the Wastewater Utility fund balance (431-0000-287) to the Wastewater/Sanitary Sewer Deficiency Improvements (437-7787-670). With this additional funding, there is sufficient funding to award a Construction Contract to SAK Construction, LLC in the amount of $4,745,110 and fund project contingency and staff expenses.
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