To:   HONORABLE MAYOR AND                         From:   Katy Allen

                        CITY COUNCIL

 

   Subject:   MONTEREY-RIVERSIDE SANITARY        Date:   11-17-03

                        SEWER REHABILITATION

                        PHASE III PROJECT (REBID)

 

Council District:  2

 

 

RECOMMENDATION

 

Report on bids and award of contract for the Monterey-Riverside Sanitary Sewer Rehabilitation Phase III Project (Rebid) to the low bidder, Gelco Services, Inc. in the amount of $1,289,329, and approval of a contingency in the amount of $128,900. 

CEQA:  Exempt, PP01-08-138.

 

 

BACKGROUND

 

The Monterey-Riverside Sanitary Sewer Rehabilitation Phase III Project is located in a residential area along Lean and Bangor Avenues (map attached).  Internal video inspection of the sewer shows that the existing 30-inch diameter reinforced concrete pipe (RCP) suffers from moderate to severe corrosion throughout its entire length.  In addition, internal video inspection and maintenance records revealed constrictive flow at two locations.

 

In order to maintain the structural integrity of the sewer, this project will rehabilitate approximately 5,400 feet of 30-inch diameter sanitary sewer along Lean and Bangor Avenues with a Cured-in-Place Pipe (CIPP) Liner.  This trenchless rehabilitation method will minimize the reduction in diameter and maintain adequate capacity in the sewer.  In order to eliminate constrictive bends in the horizontal alignment at the intersection of Lean and Hayes Avenues, the project will realign approximately 200 linear feet of sanitary sewer pipe with an open trench method.

 

This project was originally awarded to Westco on June 11, 2002.  Due to the contractor’s failure to fulfill its contractual obligations on this and two other projects, the contract was terminated prior to construction as part of a settlement agreement between the City and contractor.  The terms of that settlement agreement, which were approved by Council, included Westco not bidding on sewer rehabilitation projects for three years.

 

Construction is scheduled to begin in February 2004 with completion in May 2004.

 

 

ANALYSIS

 

Bids were opened on November 6, 2003, with the following results:

 

 

Contractor

 

Bid Amount

Variance

Amount

Over/(Under)

Percent

Insituform Technologies

  (Chesterfield, MO)

 $1,335,961

    $204,461

18

Spiniello Co

  (Fairfield, NJ)

   1,294,300

      162,800

14

Gelco Services

  (Salem, OR)

   1,289,329

      157,829

14

Engineer’s Estimate

    1,131,500

      ---

---

 

 

 

 

 

The low bid submitted by Gelco Services, Inc. is 14 percent above the Engineer’s Estimate.  Staff considers this reasonable for the work involved.

 

Council Policy provides for a standard contingency of ten percent on public works projects involving utilities.  The standard contingency is appropriate for this project.

 

 

PUBLIC OUTREACH

 

This project was listed on the City’s Internet Bid Line and advertised in the San José Post Record.  Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builder’s exchanges.

 

 

COORDINATION

 

This project and memo were coordinated with the Departments of Finance, Planning, Building and Code Enforcement, the City Attorney’s Office and the City Manager’s Budget Office.

 

 

COST IMPLICATIONS

 

1.      AMOUNT OF RECOMMENDATION:  $1,289,329

 

2.      COST OF PROJECT:

         Project Delivery

$   350,000

*

         Construction

1,289,329

 

         Contingency

128,900

 

                         Total

$1,768,229

 

 

*$190,492 of the Project Delivery costs were expended in prior fiscal years.

 

3.            SOURCE OF FUNDING: 545 – Sewer Service and Use Charge Capital Improvement Fund

 

4.            FISCAL IMPACT:  This project is consistent with the Council-approved Budget Strategy Economic Recovery section in that it provides private sector jobs, thereby supporting our local economy.  The proposed operating and maintenance costs of this project have been reviewed and it has been determined that the project will have no significant adverse impact on the General Fund operating budget.  Removal of the constrictive bends in the existing sewer alignment will help reduce operating and maintenance costs.

 

 

BUDGET REFERENCE

 

Fund #

Appn #

Appn. Name

RC #

Total Appn.

Amt. for Contract

2003-2004 Adopted  Capital Budget Page

Last Budget Action

(Date, Ord. No.)

545

4401

Monterey-Riverside Sewer

110195

2,094,000

1,289,329

149

10/14/03, Ord. No. 26997

 

 

CEQA

 

Exempt, PP01-08-138.

 

 

KATY ALLEN

Director, Public Works Department