SUBJECT:     REPORT ON BIDS AND AWARD OF CONTRACT FOR THE SAN JOSE/SANTA CLARA WATER POLLUTION CONTROL PLANT, FY 2002/2003 CAPITAL IMPROVEMENT PROGRAM, EAST PRIMARY TANKS EFFLUENT CHANNELS REPAIR PROJECT

 

 

RECOMMENDATION

 

Report on bids and award of contract for the construction project entitled, "San Jose/Santa Clara Water Pollution Control Plant (Plant), FY 2002/2003 Capital Improvement Program; East Primary Tanks Effluent Channel Repair Project," to the low bidder, Anderson Pacific Engineering Construction, Inc., in the amount of  $613,600; and approval of a contingency in the amount of $92,000 for a total not to exceed amount of $705,600. 

BACKGROUND

 

The East Primary Tanks Effluent Channels are the large, reinforced concrete structures that provide for the early stage of wastewater treatment by allowing for sedimentation.  As with any concrete structure, occasional rehabilitation is required and more so for this structure, given the corrosive environment it has been operating in during the past thirty-five years.  The current surface of the structure is beginning to show signs of deterioration and this project would rehabilitate the effluent channel portion of the structure by removing and resurfacing all of the concrete in this area.  The successful completion of this project would ensure a prolonged service life of the structure.

 

In May of 2002, this project was initially submitted for bids.  Only two bids were received and the low bid was 37.8% over the Engineer’s Estimate.  The bids were rejected by the City due to the lack of competitive bids.  In this second attempt, a pre-bid meeting designed to provide contractors better understanding of the project scope was made mandatory.  Over a dozen contractors attended the pre-bid meeting.

ANALYSIS

 

Bids were opened on February 13, 2003 with the following results:

 

Contractor

City

Bid Amount

Variance

Amount

Over/(Under) Percent

Anderson Pacific

San Jose

$613,600

$13,600

2.3%

Monitor Construction

Pleasanton

$640,000

$40,000

6.7%

Johnson Western Gunite

San Leandro

$690,000

$90,000

15.0%

Bugler Construction

Fremont

$819,000

$219,000

36.5%

 

 

 

 

 

Engineer's Estimate

 

$600,000

 

 

 

The four bids received reflects a clear understanding of the project scope and close correlation of the Engineer’s Estimate; and staff is of the opinion that these bids are sufficiently qualified. 

Anderson Pacific Engineering Construction, Inc. with a total bid amount of $613,600 is the lowest bidder.  This bid is 2.3% higher than the engineer's estimate and reflects a strong competitive climate within the industry.  The bid documents have been evaluated and found to be in order.

 

Anderson Pacific has successfully completed numerous contracts with the Plant during the past ten years. They are familiar with the Plant and have demonstrated quality workmanship.

 

PUBLIC OUTREACH

 

The notice for the Request for Proposals (RFP) for this project was published by the City Clerk’s Office in both the San José Mercury News and the San José Post.  The bid packages for all of the Environmental Services Department's construction projects are routinely provided to a standard list of contractor organizations, builder's exchanges, and disadvantaged business organizations, including the California Small Business Alliance.

COORDINATION

 

The project has been coordinated with the Offices of the City Attorney, City Manager, Equality Assurance, and Risk Management and was scheduled to be heard at the April 10, 2003 Treatment Plant Advisory Committee meeting.

COST IMPLICATIONS

 

1.   Amount of Recommendation:                                           $705,600

 

2.      Cost of  Project:

 

            Construction                                                              $613,600

            Project Contingency                                                      92,000

            Total                                                                         $705,600

 

3.   Source of Funding: 512 – San Jose-Santa Clara Treatment Plant Capital Fund

 

In accordance with the Mayor’s prescribed budget strategy, this proposal meets the expressed principles by focusing on the protection of a vital city service, emphasizing expenditures that reduce costs, and accelerating a capital improvement project that provides positive externalities.

 

The Plant represents an asset of approximately one billion dollars.  Regular capital maintenance, such as this project is a necessary expenditure to protect such a vital asset.  Moreover, the implied capital improvement project would stimulate additional economic activity along with the associated benefits.

 

The contract amount for this project is $613,600 and the recommended contingency for additional work related to unforeseen conditions is $92,000.  A 15% contingency is recommended as the tanks to be rehabilitated are generally covered by corrosive wastewater.  The level of corrosion of underwater concrete and steel may be more extensive than surface inspection revealed.  Existing funds are available for the contract and contingency.  No additional appropriation action is required.

 

 

BUDGET REFERENCE

 

            Fund:                                        San Jose/Santa Clara Treatment Plant Capital Fund - 512

            Appn:                                       5690 – Plant Infrastructure Improvement

            Amount:                                   $3,652,000

            Budget Document:                    2002-2003 Adopted Capital Budget, Page 903, amended on October 15, 2002, Ordinance Number 26755

 

 

NONDISCRIMINATION

 

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

 

CEQA

 

Exempt, PP01-03-052.

 

 

CARL W. MOSHER

Director, Environmental Services Department