SUBJECT:  REPORT ON BIDS – SAN JOSE/SANTA CLARA WATER POLLUTION CONTROL PLANT, FY 2000/2001 CAPITAL IMPROVEMENT PROGRAM, CHEMICAL SYSTEMS: (1) AMMONIA STATION RELOCATION (2) BACKUP CHLORINATION AND DECHLORINATION SYSTEM IMPROVEMENTS

 

RECOMMENDATION

 

Report on bids and approval of award of contract for the construction project entitled “San Jose/Santa Clara Water Pollution Control Plant, FY 2000/2001 Capital Improvement Program, Chemical Systems: (1) Ammonia Station Relocation (2) Backup Chlorination and Dechlorination System Improvements ” to the low bidder, Pacific Mechanical Corporation, in the amount of $1,193,000, and approval of a contingency in the amount of $119,000.  CEQA:  Exempt.

 

BACKGROUND

 

This project provides for the relocation of the ammonia station to a more strategic location to optimize ammonia dosing for process treatment and to provide additional injection mechanisms and control systems.  The new station would better enhance chlorine usage reduction and metal reduction.  The backup chlorination and dechlorination system improvements project will include new pumping and control systems to provide reliability and enhance safety for operations and maintenance personnel.

 

ANALYSIS

 

Bids were opened on May 17, 2001 for the project.  The results of the bids are as follows:

 

 

 

 

Variance Over / (Under)

Engineer’s Estimate

 

Contractor

City

Bid Amount

Amount

Percent

 

 

 

 

 

Pacific Mechanical Corporation

Concord

$1,193,000

$243,000

(16.9%)

 

 

 

 

 

Monterey Mechanical

Oakland

$1,354,000

$  82,000

  (5.7%)

 

 

 

 

 

Engineer’s Estimate

 

$1,436,000

 

 

 

Award to the low bidder, Pacific Mechanical Corporation, in an amount of $1,193,000 is recommended.  This bid is 16.9 percent below the Engineer's Estimate.  The possible reason for the low bid may have resulted from reduced overhead and mobilization costs for the contractor, when two independent projects were combined into one bid package.  The bid documents have been evaluated and found to be in order.  Pacific Mechanical Corporation received good references from their previous clients.  To save costs, this project includes a fair amount of removal, relocation, and reuse of existing equipment which could be suitable for reuse after thorough cleaning and inspection during construction.  A contingency in the amount of $119,000 is requested for any unforeseen conditions that may arise during construction.

 

PUBLIC OUTREACH

 

This construction project was advertised in the San Jose Mercury News and San Jose Post Record.  Bid packages for all Environmental Services Department construction projects are routinely provided to a standard list of contractor organizations, builder’s exchanges, and disadvantaged business organizations, including United Minority Business Entrepreneurs.

 

COORDINATION

 

The project has been coordinated with the Office of the City Attorney, Office of Equality Assurance, and Risk Management, and was scheduled to be heard at the June 14, 2001, Treatment Plant Advisory Committee meeting.

 

COST IMPLICATIONS

 

Existing funds are available for this purpose.   No appropriation action is required.

 

BUDGET REFERENCE

 

            Fund:                                        Treatment Plant Capital Fund – (512)

            Amount:                                   $1,312,000

            Budget Document:                    2000-2001 Adopted Capital Budget

                                                            Page 787

 

NONDISCRIMINATION

 

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

 

CEQA

 

CEQA:  Exempt.

 

 

CARL W. MOSHER

Director, Environmental Services Department