Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Ranger Pipelines, Inc. for Cyclic Sewer Replacement Project, Phase 21, No. P.W. 05-24-15 in an Amount Not-to-Exceed $43,885,838.52, including Contingency.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Public Works 0602)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Public Works publicly bid the construction Cyclic Sewer Replacement Project, Phase 21, which is project year ten of the 20-Year Rehabilitation Program in the Sewer Master Plan. The project entails the replacement of 3.0 miles of sewer main for Fiscal Year (FY) 2024-25 in locations prioritized based on condition assessment and possible consequences of pipe failure. Ranger Pipelines, Inc. (Ranger) is the low-cost bid of eight total bids submitted. Staff recommends awarding the contract to Ranger for a total five-year amount of $43,885,838.52.
BACKGROUND
The City of Alameda’s (City) Sewer Master Plan utilized information collected through maintenance, inspection, and monitoring activities to assess system condition and capacity. The results were used to identify and prioritize sewer system capital improvement needs in a 20-Year Rehabilitation Program structured to maintain compliance with the Consent Decree and be consistent with the City’s sewer rate structure. Compliance under the Final Consent Decree for Consolidated Case Nos. C 09-00186-RS and C 09-05684-RS requires the City to rehabilitate no less than 2.6 miles of sewer main and associated lower laterals and manholes per year, based on a cumulative total. A total of 23.7 miles of sewer main have been rehabilitated in the previous nine years. This work is also consistent with and furthers the objectives of the City’s 2017 Sewer System Management Plan and adopted Capital Improvement Program.
DISCUSSION
Sewer replacements for FY 2024-25 were prioritized based on condition assessment via closed circuit television inspection and possible consequences of a pipe segment’s failure. The locations are as follows:
• Dayton Avenue, Between Mid-block Manhole to Paru Street;
• Washington Avenue, Between Court Street and Fountain Street;
• Caroline Street, Between Mid-block Manhole and Southern end of road;
• Mastic Court, Between Lincoln Avenue and End of road;
• Lincoln Avenue, Between St. Charles Street and Bay Street;
• Island Drive, Between Clubhouse Memorial Road and Catalina Avenue;
• Macartney Road, Between Island Drive and County Road;
• Cedar Street, Between Clinton Avenue and Southern end of road;
• Santa Clara Avenue, Between Chestnut Street and Willow Street;
• Versailles Avenue, Between Buena Vista Avenue and Lincoln Avenue;
• Fillmore Street, Between Peach Street and Fernside Avenue;
• Cornell Avenue, Between Fernside Boulevard and Mid-block Cornell Avenue;
• Liberty Avenue, Between High Street and Fernside Boulevard;
• Court Street, Between Johnson Avenue and Adam Street;
• Chestnut Street, Between Lincoln Avenue and San Antonio Avenue; and
• Garden Road, between Island Drive and Macartney Road.
A similar prioritization and selection process for sewer replacement will be established for years two through five of the five-year contract.
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to builder’s exchanges throughout the Bay Area and published in the Alameda Journal on September 6, 2024. After the bidding period of 21 days, eight contractors’ submitted bids, and the bids were opened on October 2, 2024. The bid results are as follows:
|
Bidder |
Location |
Base Bid Amount |
|
Ranger Pipelines, Inc |
San Francisco, CA |
$6,679,750 |
|
Cratus,Inc |
San Francisco, CA |
$7,213,575 |
|
Sub Tera Construction, Inc |
San Francisco, CA |
$7,532,410 |
|
Devaney Engineering Inc |
San Francisco, CA |
$7,540,645 |
|
Precision Engineering Inc, |
San Francisco, CA |
$7,812,125 |
|
K.J. Woods Construction, Inc |
San Francisco, CA |
$8,418,000 |
|
Glosage Engineering, Inc |
Richmond, CA |
$9,273,422 |
|
Mitchell Engineering |
San Francisco, CA |
$12,431,145 |
After reviewing the bids and contacting references provided by the contractor, staff recommend awarding the contract to Ranger for a total five-year expenditure not to exceed $43,885,838.52. The not-to-exceed amount includes a 15% contingency, however the contractor is not guaranteed any contingency and its use will be at the sole discretion of the Public Works Director for work not originally anticipated in the specification. Furthermore, the contractor is not guaranteed any work beyond FY 2024-25; the additional scope of work shall be subject to mutual approval by the contractor and the Public Works Director. Contract unit rates will be increased annually by the San Francisco Bay Area Construction Cost Index (CCI) as published by Engineering News Records. The contract assumes a five percent (5%) annual increase in the CCI to establish the five-year not-to-exceed amount of $43,885,838.52.
The specification also informed the successful bidder that they shall not pay less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations and required the contractor to enter into the City Project Stabilization Agreement. Construction of this project is anticipated to commence on or about December 2, 2024, and is expected to be complete by the end of September 2025. A copy of the contract is attached as Exhibit 1.
ALTERNATIVES
• Award the contract, as proposed.
• City Council may reject all bids and direct staff to rebid the project. This delay will risk noncompliance with the annual rehabilitation requirements in the consent decree.
FINANCIAL IMPACT
The project is budgeted in the Capital Improvement Program (Project No. C21000) as part of the Sewer Capital Improvements Enterprise Fund (Fund 602.3). There is no impact to the General Fund.
|
Fiscal Year |
(CCI) |
CPI Total Each Year |
Base Contract |
Contingency |
TOTAL |
|
FY24-25 |
0% |
$ 0.00 |
$ 6,679,750.00 |
$1,001,962.50 |
$7,681,712.50 |
|
FY25-26 |
5% |
$ 333,987.50 |
$ 7,013,737.50 |
$1,052,060.63 |
$8,399,785.63 |
|
FY26-27 |
5% |
$ 350,686.88 |
$ 7,364,424.38 |
$1,104,663.66 |
$8,819,774.91 |
|
FY27-28 |
5% |
$ 368,221.22 |
$ 7,732,645.59 |
$1,159,896.84 |
$9,260,763.65 |
|
FY28-29 |
5% |
$ 386,632.28 |
$ 8,119,277.87 |
$1,217,891.68 |
$9,723,801.83 |
|
TOTAL |
|
$ 1,439,527.87 |
$36,909,835.34 |
$5,536,475.30 |
$43,885,838.52 |
The yearly amount encumbered for this contract will be based on the table above. Monies encumbered for FY 2024-25 will not exceed $7,681,712.50 which includes a 15% contingency. Encumbrances for future fiscal years would be dependent upon future Capital Budget appropriations approved by City Council.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code. Project TIE21 in the City’s Strategic Plan is to, “Rehabilitate 8 miles of sewer pipes.”
This action is subject to the Levine Act.
CLIMATE IMPACT
This agreement poses no discernable, adverse impacts to the climate. Improvements to the sewer system will limit inflow and infiltration and mitigate wet weather overflows of sewage to the San Francisco Bay. New sewer infrastructure will reduce sewer backups and overflows, further protecting public health and the local environment.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with Ranger Pipelines, Inc. for Cyclic Sewer Replacement Project, Phase 21, No. P.W. 05-24-15 in an amount, including contingency, total five-year compensation not-to-exceed $43,885,838.52. (Public Works 0602)
Respectfully submitted,
Erin Smith, Public Works Director
By,
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Contract