Subject:     FOURTH MAJOR INTERCEPTOR PHASE V/VA PROJECT

 

COUNCIL DISTRICT:  4

 

 

RECOMMENDATION

 

Report on bids and award of contract for the Fourth Major Interceptor Phase V/VA Project to the low bidder, Mountain Cascade, Inc., in the amount of $21,687,958, and approval of a contingency in the amount of $ 2,169,000.  CEQA:  Resolution No. 60197.

 

BACKGROUND

 

The City’s sanitary sewer interceptor system on Zanker Road receives flow from the City of San José, West Valley Sanitary District, the City of Santa Clara, and County Sanitation District No. 2-3.  The interceptor system extends from the Water Pollution Control Plant (WPCP) south along Zanker Road to Highway 101.  South of Highway 101, the interceptor system splits into two separate systems.  The easterly portion of the system extends along 5th and 7th Streets and terminates at 7th and Empire Streets.  The westerly portion of the system extends along 4th Street and terminates at 4th and Burton Streets.

 

A design study of the City’s sanitary sewer interceptor system was completed by James M. Montgomery, Consulting Engineers, in 1986 in response to odor complaints and hydrogen sulfide corrosion in the interceptor system and junction structures.  The study provided recommendations for the rehabilitation or replacement of three existing interceptors and the construction of a Fourth Major Interceptor parallel to the existing pipelines in Zanker Road from the WPCP to 7th and Empire Streets.  The Fourth Major Interceptor is intended to accommodate additional flows from the ultimate build out of the urban service areas which discharge to the interceptors.  It also will provide a means of flow diversion when one of the other interceptors is taken out of service for maintenance or rehabilitation.  The Fourth Major Interceptor Project has been planned to be constructed in seven phases.  The first four phases have been completed on Zanker Road from the water pollution control plant to Trimble Road.

 

In June 1999, Council approved an agreement with Brown and Caldwell, an engineering consultant, for the design and construction monitoring of the Fourth Major Interceptor Phase V/VA project.  The Phase V/VA project of this multi-phased project is located along Zanker Road between Trimble Road and Highway 101.  The project proposes to (1) remove and replace the 60-inch brick sewer with a 66-inch diameter sewer, (2) construct a new 66-inch diameter Fourth Major Interceptor, and (3) replace two sanitary sewer junction structures due to the severe corrosion.

 

The Phase V/VA Project will be completed in ten stages.  The traffic control plans require the contractor to set-up two way traffic (one lane each direction) in the southbound lanes of Zanker Road to accommodate traffic around each stage of construction.  The plans require removing and/or modifying the median islands to construct detours for traffic control and to provide access to adjacent driveways.  Staff coordinated the restoration of the median islands with the Redevelopment Agency.

 

In order to minimize the impacts to traffic, construction activities within the intersections of Zanker Road and Trimble Road, Charcot Avenue, and Brokaw Road will be completed during weekdays from 8:00 p.m. to 5:00 a.m. and during weekends from 8:00 p.m. Fridays to 5:00 a.m. Mondays.  Working hours for the general construction for the interceptors, storm drains, and structures have been established as weekdays from 7:00 a.m. to 4:30 p.m., with no material deliveries to the site until after 8:30 am.  This will maximize productivity and minimize cost on this project.  General construction activities will be isolated from the traffic flow; therefore, will not further impact traffic during the peak commute periods.

 

ANALYSIS

 

Bids for this project were received on May 17, 2001.  The bid results are as follows:

 

 

 

Variance

Over/(Under)

Contractor

Bid Amount

Amount

Percent

 

 

 

 

Ranger Pipeline

  (San Francisco,  CA)

  $30,765,239

$11,947,427

63%

Colich Construction

  (Torrance,  CA)

   24,856,450

  6,038,638

35%

Brundidge Construction

  (Clackmas,  OR)

   23,675,505

  4,857,693

26%

Mountain Cascade

  (Livermore,  CA)

   21,687,958

2,870,146

15%

Engineer’s Estimate

   18,817,812

 

 

 

The low bid submitted by Mountain Cascade, Inc is 15% above the Engineer’s Estimate.  The difference was reflected in the item for the 66-inch diameter sanitary sewer.  The Contractor’s price for the item is approximately $3.3 million higher than the estimated cost.  The higher price is attributed to higher costs to 1) purchase aggregate materials for trench backfill and concrete materials for the new sewer pipe, 2) transport import and excavated trench materials to and from the site, and 3) dispose excavated materials.  Rising fuel prices have been a significant factor for the higher cost to transport materials and for the higher costs to manufacture backfill and concrete materials.  Based on staff’s evaluation of the bid proposals, Mountain Cascade’s bid is a reasonable price for the proposed project.

 

Due to the complex nature of this project, the possibility of utility conflicts, the potential for encountering hazardous materials and changes to the traffic control plans, a $2,169,000 contingency is requested for unforeseen conditions that may arise during construction.

 

PUBLIC OUTREACH

 

This proposed project was listed on the City’s Internet Bid Line and advertised in the San José Mercury News and San José Post Record.  Bid packages for all public works construction projects are routinely provided to a standard list of various business organizations, including Unity Minority Business Enterprises and the San José Minority Business Development Center.  An information packet will be distributed to the impacted businesses within the project area prior to construction.

 

COORDINATION

 

This project is being coordinated with the Departments of Planning, Building and Code Enforcement and Transportation, and the Offices of the City Attorney, Risk Manager, and Equality Assurance.

 

COST IMPLICATION

 

1.      COST OF RECOMMENDATION:  $21,687,958

 

2.      COST OF PROJECT:

 

 

Prior

Fiscal Year

 

Current

Fiscal Year

 

FY

2001-02

 

 

 

 

 

 

         Project Development

$    107,000

 

 

 

 

         Construction

 

 

$ 21,687,958

 

 

         Design & Construction Management

        22,000

 

       141,000

 

$     870,000

         Consultant Services

   1,300,000

 

 

 

 

         Contingency

 

 

 

 

   2,169,000

 

 

 

 

 

 

                                                      TOTAL

$1,429,000

 

$21,828,958

 

$3,039,000

 

3.      SOURCE OF FUNDING:    540 – Sanitary Sewer Connection Fee Fund

                                                   545 – Sewer Service & Use Charge Capital Improvement Fund

 

4.      ESTIMATED START DATE OF CONSTRUCTION:  September, 2001

 

5.      ESTIMATED COMPLETION DATE OF CONSTRUCTION:  May, 2003

 

BUDGET REFERENCE

 

Fund:                             540                                                                 545

Appn:                            4267                                                               4267

R.C.:                              064383                                                           064383

Amount:                         $14,400,000*                                                 $3,821,000

Budget Document:          2000 – 2001 Adopted CIP                             2000 – 2001 Adopted CIP

                                      Item No. 8, Page 573                                     Item No. 8, Page 573

 

*An appropriation adjustment in the amount of $3,625,000 has been recommended to City Council as part of the June 19th Appropriation Ordinance amending the Capital Improvement Program.

 

NONDISCRIMINATION

 

The City of San José Nondiscrimination Requirements are included in this project as required by Chapter 4.08 of the San José Municipal Code.

 

CEQA

 

Resolution No. 60197.

 

 

RAJEEV BATRA

Acting Director, Public Works Department