Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Ranger Pipeline, Inc. for Cyclic Sewer Replacement Project, Phase 16, No. PW 05-19-26 in an Amount, Including Contingency, Not to Exceed $28,924,389.83. (Public Works 602)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Public Works publicly bid the construction of a project that includes five years of the 20-Year Rehabilitation Program contained in the Sewer Master Plan. The project entails the replacement of 2.9 miles of sewer main in locations prioritized based on condition assessment and possible consequence of pipe failure. Ranger Pipeline, Inc. is the low cost bid of four total bids submitted. Staff recommends awarding the contract to Ranger Pipeline, Inc. for a total five-year amount of $28,924,389.83.
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. This work is also consistent with and furthers the objectives of the City’s 2017 Sewer System Management Plan and adopted Capital Improvement Program (CIP).
DISCUSSION
The Cyclic Sewer Replacement Project includes the replacement of 2.9 miles of sewer main in locations that were prioritized based on a condition assessment via closed circuit television inspection and possible consequences of a pipe segment’s failure. The locations are as follows:
• Marina Village Parkway, between Mariner Square Drive and Mariner Square Loop;
• Pacific Avenue, between Webster Street and Constitution Way;
• Ninth Street, between Buena Vista Avenue and Pacific Avenue;
• Lincoln Avenue, between Eighth Street and St. Charles Street;
• Bay Street, between Eagle Avenue and Pacific Avenue;
• Bay Street Easement, Bay Street to 140 linear feet west of Bay Street;
• Grand Street, between Fortmann Way and the end of Grand Street;
• Clement Avenue, between Lafayette Street and Union Street;
• Santa Clara Avenue, between Benton Street and Morton Street;
• Santa Clara Avenue, between Lafayette Street and Paru Street;
• Centennial Avenue, end to end;
• Eighth Street, at Robert W. Crown Memorial State Park;
• Taylor Avenue, at Eighth St;
• Post Street, between Otis Drive and San Jose Avenue;
• Toyon Terrace, between Post Street and the end;
• Adams Street, between Post Street and Peach Street; and
• Oyster Pond Road, between Robert Davey, Jr. Drive and Basinside Way.
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to builders’ exchanges throughout the Bay Area and published in the Alameda Sun on August 1, 2019. After the bidding period of 21 days, four contractors’ submitted bids, and the bids were opened on August 26, 2019. The bid results are as follows:
|
Bidder |
Location |
Base Bid Amount |
|
Ranger Pipelines, Inc. |
San Francisco, CA |
$4,737,427 |
|
Cratus, Inc. |
San Francisco, CA |
$5,685,732 |
|
McGuire and Hester |
Oakland, CA |
$6,355,993 |
|
Darcy & Harty, Inc. |
San Francisco, CA |
$6,460,858 |
After reviewing the bids and contacting several references provided by the contractor, staff recommends awarding the contract to Ranger Pipeline, Inc. for a total five-year expenditure not to exceed $28,924,389.83. 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 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 November 10, 2019, and is expected to be complete by the end of August 2020. A copy of the contract is attached as Exhibit 1.
ALTERNATIVES
Approve this contract with Ranger Pipelines, Inc.
Approve the contract for less than the five year proposed contract.
•
If the City does not approve this action to perform this work, the City will be out of compliance with the consent decree and subject to enforcement by the Environmental Protection Agency.
FINANCIAL IMPACT
The project is budgeted in the CIP (Project No. 96003602) as part of the Sewer Capital Improvements Enterprise Fund (Fund 602.3). There is no impact to the General Fund.
|
Contract |
(CPI) |
CPI Total Each Year |
TOTAL |
Contingency |
TOTAL |
|
FY19-20 |
0% |
$ 0.00 |
$ 4,737,427.00 |
$710,614.05 |
$5,448,041.05 |
|
FY20-21 |
3% |
$ 142,122.81 |
$ 4,879,549.81 |
$731,932.47 |
$5,611,482.28 |
|
FY21-22 |
3% |
$ 146,386.49 |
$ 5,025,936.30 |
$753,890.45 |
$5,779,826.75 |
|
FY22-23 |
3% |
$ 150,778.09 |
$ 5,176,714.39 |
$776,507.16 |
$5,953,221.55 |
|
FY23-24 |
3% |
$ 155,301.43 |
$ 5,332,015.83 |
$799,802.37 |
$6,131,818.20 |
|
TOTAL |
12% |
$ 594,588.83 |
$25,151,643.33 |
$3,772,746.50 |
$28,924,389.83 |
The yearly amount encumbered for this contract will be based on the table above. Monies encumbered for Fiscal Year 2019-20 will not exceed, including a 15% contingency, $5,448,041.05. Contract amounts for Fiscal Years 2021-24 are subject to future City Council appropriation of funds. If funds are unable to be appropriated in future years, the City has the right to terminate the contract with 7 days of written notice to the contractor.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines Section 15301(c), Existing Facilities.
CLIMATE IMPACTS
Climate change and predicted sea level rise will result in increased rainfall and higher groundwater levels. This sewer rehabilitation work builds resiliency on both fronts. Rising groundwater can result in a more corrosive environment for buried infrastructure. As such, the City is rehabilitating sewer pipe with non-corrosive materials. Increased rainfall can result in excessive flows into the sanitary sewer system through breaks and cracks in the sewer infrastructure, which can lead to discharges of partially treated or untreated sewage into the Bay. By rehabilitating the sewer, increased rainfall is not expected to result in further capacity issues in the sewer system.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with Ranger Pipeline, Inc. for cyclic sewer replacement project, phase 16, No. PW 05-19-26 in an amount, including contingency, not to exceed $28,924,389.83 over 5 years.3.if maintained throughout the 5 years.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the contract with Ranger Pipeline, Inc. The sewer replacement program is intended to replace older sewer lines and remain in compliance with the Consent Decree agreement with the EPA.
The contract is for $5,448,041.05 (with contingency) in the first year. There is a potential for 5 years for a total of $28,924,389.83 with a cancellation clause.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Contract
cc: Eric Levitt, City Manager