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AWARD A PROGRESSIVE DESIGN-BUILD CONTRACT FOR THE REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 AND AMEND FISCAL YEAR 2021-22 ANNUAL BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Award a Progressive Design-Build Contract in the amount of $485,591.00 between the City and PCL Construction, Inc., of Tempe, AZ for the design and development of a lump sum price proposal for the rehabilitation of South Stockton System Groundwater Well SSS8 (Project No. UH22008).
2. Authorize the City Manager to execute the Progressive Design-Build Contract.
3. Approve findings pursuant to Stockton Municipal Code section 3.68.070 which support and justify an exception to the competitive bidding process.
4. Reappropriate funds in the amount of $5,650,000 from existing capital projects UH21002 ($2,400,000), UH17002 ($1,750,000), UH21005 ($750,000), and UH14014 ($750,000) to the South Stockton System Groundwater Well SSS8 (Project No. UH22008).
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
If approved by Council, this action will retain the Design-Build team of PCL Construction, Inc./Hazen (PCL/Hazen) for the design and development of a lump sum price proposal to construct wellhead treatment improvements to rehabilitate South Stockton System Groundwater Well No. 8 (SSS8) located next to Ernie Shropshire Park in South Stockton. Wellhead treatment for removal of water quality constituents and contaminants is a standard industry practice and will be used to meet new State Water Resources Control Board (SWRCB) Drinking Water Standards and State law detailed in Assembly Bill 756.
On September 25, 2021, the City of Stockton Municipal Utilities Department (MUD) advertised a Request for Proposals (RFP) for the design and development of a lump sum price for the Rehabilitation of South Stockton System Groundwater Well SSS8 Project. Two firms submitted proposals for this project. A selection committee evaluated the proposals and found PCL/Hazen to be the Design-Build team most qualified to provide the requested services.
At the Water Advisory Group and Council Water Committee meetings held on January 5 and January 13, 2022, respectively, the MUD staff presented the results of the selection committee’s review and recommendation that the project team of PCL/Hazen be awarded the Progressive Design-Build contract.
If approved, this action will award a Progressive Design-Build Contract in the amount of $485,591.00 to PCL Construction, Inc. It is anticipated that the facility design will be completed by June 2022. Once the project design is advanced and construction lump sum price is negotiated, staff will return to Council to award the construction contract.
DISCUSSION
Background
As listed in the most recent MUD Water Utility Master Plan and Urban Water Management Plan, there are two drinking water supply sources for the South Stockton System (SSS) including potable water purchased from Stockton East Water District and groundwater wells. Currently, there are a total of five groundwater wells in the South Stockton System, and two wells are in active status. The remaining wells were placed into inactive status and require rehabilitation prior to bringing them back into service.
The Water Utility Master Plan recommended the development of a well rehabilitation program to complete groundwater well improvements as an economic, cost-effective approach to reactivate inactive wells in lieu of the cost of constructing new wells. Groundwater well rehabilitation in the South Stockton System will ensure continued water supply, quality, reliability, and drought resiliency for the community.
Groundwater Well SSS8 is located next to Ernie Shropshire Park in South Stockton and will be the first water well from the South Stockton System to be rehabilitated. Wellhead treatment for removal of water quality constituents and contaminants is a standard industry practice and will be used to meet new SWRCB Drinking Water Standards and the requirements of Assembly Bill 756.
Present Situation
On September 25 and 26, 2021, the MUD advertised the project in the Stockton Record and posted to the City’s Bid Flash webpage. A notice with a brief project description was emailed to four engineering consulting firms with similar project experience. In addition, 3,273 notifications were sent through Ask Stockton.
The RFP defined a two-phase engineering and construction effort to meet the required project objectives. The goal of Phase 1 is to advance facility design to a point where the firm would bid construction packages leading to a Phase 2 lump sum construction cost, similar to the procurement process conducted for the Delta Water Supply Project and the RWCF Modifications Project. Built into the RFP was the concept of an “off-ramp,” whereby if the City and the firm were unable to reach an agreed upon construction cost and schedule, the City would have the option to direct the firm to complete the design and prepare bid documents for the City to competitively bid the project.
A non-mandatory pre-proposal meeting and job walk was held on October 7, 2021, with four (4) prospective design-build teams in attendance including Overaa/Hydroscience, W.M. Lyles Co./Provost & Pritchard, PCL Construction, Inc./Hazen, and GEI Consultants. On October 28, 2021, two (2) sealed proposals were received and publicly opened by the City Clerk including Overaa/Hydroscience and PCL Construction, Inc./Hazen (PCL/Hazen).
A selection committee evaluated the proposals based on the design/builder and key personnel experience/capabilities, organization, management, safety, project approach, schedule, and cost. Based on this criteria, PCL/Hazen received the highest ranking and was determined to be the most qualified firm for this project.
The proposed Design-Build contract consists of Phase 1 engineering design services and environmental review needed to advance facility design to the 60 percent completion level and bidding of design packages to establish a fixed lump-sum price for construction. If pursued, Phase 2 services would consist of completing design, permitting, and construction of the facilities.
If PCL/Hazen and the City agree on the price and schedule for Phase 2, staff will return to Council to request award of the construction contract. If PCL Construction, Inc. and the City cannot agree on the Phase 2 price and schedule, the City could opt to take an “off-ramp” where Hazen would complete the design and prepare bid documents for the City’s use.
At the Water Advisory Group and Council Water Committee meetings held on January 5 and January 13, 2022, respectively, the MUD staff presented the results of the selection committee’s review and recommendation that the project team of PCL/Hazen be awarded the Progressive Design-Build contract.
Staff has negotiated a proposed fee in the amount of $485,591.00 and recommends that Council approve a resolution to award a Progressive Design-Build Contract to PCL Construction, Inc. for the Rehabilitation of South Stockton System Groundwater Well SSS8 Project. It is anticipated that the Phase 1 facility design will be completed by June 2022.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support and justify an exception to the competitive bidding process.
The following findings support and justify an exception:
1. The scope of design services requires an engineering firm experienced in wellhead and water treatment design.
2. Use of the RFP process is appropriate for this Progressive Design-Build Contract because it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of the criteria helps ensure selection of a vendor that will provide the highest quality professional service, which is in the public interest.
3. The City negotiated a contract following solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
LOCAL BUSINESS PREFERENCE
This contract is for engineering design services and as such, not subject to Local Employment requirements or CEQA requirements. CEQA documentation will be completed prior to the award of the Phase 2 construction contract.
FINANCIAL SUMMARY
Funds will be reappropriated in the current fiscal year from existing capital projects below to the Rehabilitation of South Stockton System Groundwater Well SSS8 Project UH22008, Account No. 6518-000-800007-600-602-00-65-000-000.
|
PROJECT |
Amount Available to Transfer |
|
UH21002 - DWTP Intake Pump Station Discharge Pipe Support Study and Improvements |
$2,400,000 |
|
UH17002 - Water Well SSS #10 |
$1,750,000 |
|
UH21005 - DWTP Recharge Basins |
$750,000 |
|
UH14014 - DWTP Campus Improvements |
$750,000 |
|
TOTAL |
$5,650,000 |
Appropriation of new funding to these existing capital projects will be evaluated and added during the annual CIP budget development process for FY 2022-23.
There is no impact to the City’s General Fund or any other unrestricted fund because of taking the recommended action.