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ADOPT RESOLUTION TO AUTHORIZE THE NAVY DRIVE AT I-5 SEWER TRUNK LINE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. NOE05-21 under the California Environmental Quality Act for the Navy Drive at I-5 Sewer Trunk Line, Project No. UW17026.
2. Approve the plans and specifications for the Navy Drive at I-5 Sewer Trunk Line, Project No. UW17026.
3. Award a Construction Contract in the amount of $2,481,456 to SAK Construction, LLC, of O’Fallon, MO, for the Navy Drive at I-5 Sewer Trunk Line, Project No. UW17026.
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) follows a Condition Assessment Program for the City’s sewer infrastructure. This program generates a prioritized list of replacement and/or rehabilitation projects for inclusion in the City’s Capital Improvement Plan (CIP). The Navy Drive sanitary sewer line segment crossing under I-5 and continuing to Anderson Street (Navy Drive at I-5 Sewer Trunk Line - Attachment A - Vicinity Map) was identified for rehabilitation and included in the 2016-21 Five-Year CIP.
On June 17, 2021, the City received three bids for this project. Staff recommends award of the Construction Contract to the lowest responsive bidder, SAK Construction, LLC, in the amount of $2,481,456. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE05-21 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to be completed by summer 2022.
DISCUSSION
Background
The MUD follows a Condition Assessment Program for the City’s sewer infrastructure comprised of Closed-Circuit Televised Video 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 Navy Drive sanitary sewer line segment crossing under I-5 and continuing to Anderson Street (Navy Drive at I-5 Sewer Trunk Line - Attachment A - Vicinity Map) was identified for rehabilitation and included in the 2016-21 Five-Year 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. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA applies to this project as the construction cost is more than $1 million.
Present Situation
On May 6, 2021, the Navy Drive at I-5 Sewer Trunk Line, Project No. UW17026, was advertised for bids. On June 17, 2021, three bids were received with the following results:
COMPANY NAME BID AMOUNT
SAK Construction, LLC $2,481,456
(O’Fallon, MO)
Michels Corporation $2,968,722
dba Michels Pipeline Construction
(Salem, OR)
Azul Works, Inc. $3,761,960
(San Francisco, CA)
Engineer’s Estimate $3,049,580
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Application of the Local Business Preference has no effect on the bid order, as no local firms bid on this project. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
The bid from SAK Construction, LLC, the lowest responsive bidder, is regular in all respects. SAK Construction, LLC has the proper license to perform the work. The bid is approximately 19 percent lower than the engineer’s estimate. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to SAK Construction, LLC, O’Fallon, MO, in the amount of $2,481,456.
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 Section 15301(b) of the 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. NOE05-21 under CEQA. Construction is anticipated to be completed by summer 2022.
FINANCIAL SUMMARY
There are sufficient funds available in Account No. 6518-000-800007-610-612-00-65-000-000 (CIP - Wastewater/Sanitary Deficiency Improvements) to award a Construction Contract to SAK Construction, LLC in the amount of $2,481,456.
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