Title
Recommendation to Award a Contract in the Amount of $2,809,650, Including Contingency, to Ranger Pipeline, Inc. for Construction of Cyclic 14 Easement Sewer Rehabilitation Project, No. P.W. 10-17-44. (Public Works 602)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Award a Contract in the Amount of $2,809,650, Including Contingency, to Ranger Pipeline, Inc. for Construction of Cyclic 14 Easement Sewer Rehabilitation Project, No. P.W. 10-17-44.
BACKGROUND
The City of Alameda has separate sanitary sewer and storm water drainage systems. Infiltration and inflow is storm water that should enter the storm drainage system but instead enters the sewer system through cracks and other defects in the sewer pipes. Storm water in the sewer system can cause excessive flows during wet weather events that exceed both local conveyance and regional treatment capacity.
Replacement of old, deteriorating sewer main 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 a subset of Project Year 2 and 3 of the 20-Year Rehabilitation Program, where pipe segments are located in easements. As this work is unique from replacing sewer mains in the street, the City separately designed and bid this easement work to ensure a contractor with suitable skills and appropriate equipment completed the work. This work is also consistent with and furthers the objectives of the City’s 2014 Sewer System Management Plan and adopted Capital Improvement Program.
DISCUSSION
In accordance with requirements of the Consent Decree, the Public Works Department is rehabilitating old sewer pipe located in easements to minimize risk of failure and to reduce infiltration and inflow into the system. As this project entails work on private property, City staff has and will continue to conduct extensive outreach to impacted property owners and residents.
To solicit the maximum number of bids and most competitive price for this project, plans and specifications were provided to builders exchanges throughout the Bay Area and posted to the BPexpress online plan room. A notice was placed on the City's web page and published in the Alameda Journal on Thursday, December 7, 2017. After a bidding period of 34 days, five contractor’s submitted bids, and the bids were opened on January 10, 2018. The bid results are as follows:
|
Bidder |
Location |
Base Bid Amount |
|
Ranger Pipelines, Inc. |
San Francisco, CA |
$2,443,174 |
|
Pacific Trenchless, Inc. |
Oakland, CA |
$2,775,376 |
|
Darcy & Harty, Inc. |
San Francisco, CA |
$2,843,841 |
|
Cratus, Inc. |
San Francisco, CA |
$2,977,620 |
|
KJ Woods, Inc. |
San Francisco, CA |
$3,188,000 |
After reviewing the bids and contacting several references provided by the contractor, staff recommends awarding the contract to Ranger Pipeline, Inc. for the bid amount plus a 15% contingency for a total amount of $2,809,650. The contractor is not guaranteed any of the contingency and its use will be at the sole discretion of the Public Works Director for work not originally anticipated in the specification. The specification also informed the successful bidder that they shall pay not 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 expected to be complete by the end of 2018. A copy of the contract is attached as Exhibit 1.
FINANCIAL IMPACT
The project is budgeted in the Capital Improvement Program (99502) Sewer Rehabilitation, with monies allocated from the Sewer Enterprise Fund (Fund 602). 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
Award a contract in the amount of $2,809,650, including contingency, to Ranger Pipeline, Inc. for construction of cyclic 14 easement sewer rehabilitation project, No. P.W. 10-17-44.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Erin Smith, Deputy Public Works Director
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibit:
1. Contract