Title
Recommendation to Amend the Contract with Ranger Pipeline Inc. to Increase the Contract Amount by $4,048,544.03, which Includes a 10% Contingency, for Cyclic Sewer Rehabilitation Project, Phase 14, No. P.W. 05-17-27, for a Total Authorized Amount of $17,375,030, for Cyclic Sewer Rehabilitation Project, Phases 11, 12, 13 and 14. (Public Works 602)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Amend the Contract with Ranger Pipeline Inc. to Increase the Contract Amount by $4,048,544.03, which Includes a 10% Contingency, for Cyclic Sewer Rehabilitation Project, Phase 14, No. P.W. 05-17-27, for a Total Authorized Amount of $17,375,030, for Cyclic Sewer Rehabilitation Project, Phases 11, 12, 13 and 14
BACKGROUND
On May 20, 2014, the City Council adopted plans and specifications and authorized a call for bids for cyclic sewer rehabilitation project, phase 11, No. P.W. 06-13-16. On September 2, 2014, the City Council awarded the construction contract to Ranger Pipelines, Inc. with an annual extension option for up to four additional years, with each extension coming before City Council for approval. On September 15, 2015, the City Council approved the first amendment to the contract in the amount of $4,237,790.29 for cyclic sewer rehabilitation project, phase 12. On September 6, 2016 the City Council approved the second amendment to the contract in the amount of $4,504,758 for cyclic sewer rehabilitation project, phase 13.
Completion of this work is required for compliance under the Final Consent Decree for Consolidated Case Nos. C 09-00186-RS and C 09-05684-RS, which 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. In 2015, the City developed a Sewer Master Plan, which 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. The work in this contract serves as Project Year 3 of the 20-Year Rehabilitation Program, minus pipe segments located in easements, which will be bid under a separate contract this fall. This work is also consistent with and furthers the objectives of the City’s 2014 Sewer System Management Plan and adopted Capital Improvement Program.
The City bid the entire project at one time in order to secure a qualified contractor at a competitive price, given other parties to the Consent Decree were competing for similar contractors at the same time. Annual extensions are based on mutual agreement and satisfactory performance of all aspects of the contract. Contract prices are adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area; other contract terms remain the same.
DISCUSSION
The City continues to be satisfied with the services provided by Ranger Pipelines, Inc. A third amendment to the contract is needed for cyclic sewer rehabilitation project, phase 14, P.W. 05-17-27 in the amount of $4,048,544.03, which includes a 10% contingency. Approximately two miles of sewer main, associated manholes, and lower laterals will be replaced as part of this project. The locations were prioritized for replacement based on condition and possible consequences of a pipe segment’s failure. The locations are as follows:
• Taylor Avenue, between Sixth Street and Webster Street and Ninth Street and
Caroline Street;
• Jay Street, between Buena Vista Avenue and Pacific Avenue;
• Stanton Avenue, between Buena Vista Avenue and Pacific Avenue;
• Paru Street, between Buena Vista Avenue and Santa Clara Avenue;
• Eagle Avenue, between Grand Street and Schiller Street and Oak Street and
Tilden Way;
• Pacific Avenue, between Grand Street and Chestnut Street;
• Schiller Street, between Buena Vista Avenue and Santa Clara Avenue;
• Buena Vista Avenue, between Mulberry Street and Oak Street;
• Cambridge Avenue, between Marina Drive and Windsor Drive;
• High Street, between Otis Drive and Fillmore Street; and
• Spot repairs, as needed
It is expected that the work will commence on or about September 15, 2017 and will be completed by July 30, 2018.
FINANCIAL IMPACT
The project is budgeted in the Capital Improvement Program (Project No. 99502602), funded with monies from the Sewer Enterprise Fund (Fund 602). The City Council previously approved the original contract, First Amendment, and the Second Amendment with Ranger Pipelines Inc. as presented below:
|
Contract Phase |
Authorized Amount |
Expended to Date |
|
Original Contract (Phase 11) |
$4,583,938 |
$3,958,311 |
|
First Amendment (Phase 12) |
$4,237,790 |
$3,621,496 |
|
Second Amendment (Phase 13) |
$4,504,758 |
$2,347,917 |
|
Third Amendment (Phase 14) (as proposed) |
$4,048,544 |
$0 |
|
Total |
$17,375,030 |
$9,927,724 |
There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under CEQA Guidelines Section 15301(b), Existing Facilities.
RECOMMENDATION
Amend the contract with Ranger Pipeline Inc. to increase the contract amount by $4,048,544.03, which includes a 10% contingency, for cyclic sewer rehabilitation project, phase 14, No. P.W. 05-17-27, for a total of $17,375,030, for cyclic sewer rehabilitation project, phases 11, 12, 13 and 14.
Respectfully submitted,
Liam Garland, Acting Public Works Director
By,
Erin Smith, Acting Deputy Director of Public Works
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Original Contract
2. First Amendment
3. Second Amendment
4. Third Amendment