Title
Staff Report for Resolution Rejecting All Bids for the Water Pollution Control Plant (WPCP) Asphalt Replacement, Project No. 2015.0260
Staffreport
SUMMARY AND RECOMMENDATIONS
The contract provided for repaving areas at the City’s Water Pollution Control Plant (WPCP) site, which were not repaved as part of the WPCP Replacement Project and for installation of water and compressed air underground service piping for routine maintenance operations at various locations within the plant.
Staff recommends rejecting all bids from the August 10, 2017 bid opening for the subject project and rebidding the project during winter 2017.
BACKGROUND
The Water Pollution Control Plant (WPCP) is a 30 acre facility at the western end of Davis Street that treats sewage from approximately half the City so that it may be discharged to San Francisco Bay without risk to people or the environment. The recently completed WPCP Replacement project made improvements to many of the structures on site and included replacement of approximately one third of the onsite pavement. This new project will address the remaining deteriorated pavement surfaces in the facility.
Originally, the scope of this project was to repair or replace 2.6 acres of asphalt pavement. During the design of the project, staff identified an additional 0.3 acres for repair or replacement. WPCP staff also requested installation of approximately 1,300 linear feet of joint utility trench to provide compressed air and water to sixteen locations.
This project is intended to improve the pavement and drainage conditions throughout the facility and also improve staff efficiency by providing easier access to compressed air and water used for maintaining and operating the onsite equipment.
Analysis
Bids for this project were opened on August 10, 2017 and one bid in the amount of $2,559,000 was received from DeSilva Gates Construction. This bid exceeded the pre-bid engineer’s estimate of $1,050,705 by $1,500,000. Staff believes that this bid amount is excessive and recommends that the bid be rejected. Staff also believes that rebidding the project in the future will produce a more favorable construction cost for this project.
Post-bid discussions with the low bidder and the other pre-bid meeting attendees (DeSilva Gates Construction, O.C. Jones and Sons, and Golden Bay Construction) attributed the high bid amount of this project to the following factors:
• A highly accelerated working schedule needed to complete the project in the required number of working days before the onset of winter weather; and
• Above ground soil cement mixing (rather than in-situ) takes much longer and is much more costly to complete; and
• Current heavy workload for contractors: One potential bidder could not bid because he did not receive a quote for undergrounding work even though he contacted 20 firms.
Staff anticipates that rebidding this project will result in bids closer to the engineer’s estimate. Staff plans to modify the construction documents to reduce costs by providing more working days, a more favorable construction schedule with a spring start to avoid winter weather, and simplifying the cement treatment mixing process. Staff will also call for a new bid this winter, in a more favorable bid environment. Results will be presented to the City Council in early 2018.
The sole bidder does not have an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance, nor did they meet the Local Business Participation Goal of 25% by subcontracting with San Leandro businesses for 25% of the contract value. The bidder had one local subcontractor, Columbia Electric, whose subcontract for $144,000 represents 0.06% of the total contract value. However, the lowest bidder provided documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal. This project is subject to the provisions of the Community Workforce Agreement (CWA) and the bidder signed the Community Workforce Agreement commitment form.
Current Agency Policies
Maintain and enhance the City’s infrastructure
Previous Actions
On June 3, 2013, by Resolution No. 2013-072, the City Council approved funding for the project.
Summary of Public Outreach Efforts
This project was posted on the City’s website and was advertised in the Daily Review on July 27, 2017. Notification of this bid opportunity was also sent to local Builder’s Exchanges as well as contractors who registered with the City to be informed of bidding opportunities.
Applicable General Plan Policies
• Policy CSF 6.4 Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
• Policy CSF 6.8 Maintenance. Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, street lights, traffic signals, landscaping, street trees, storm drains, public buildings and other infrastructure.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on March 24, 2017.
Fiscal Impacts
The total project cost is estimated at $1,515,000 as follows:
Design and Bid: $ 25,000 Consulting Services (Survey, Geotechnical, Environmental): $ 120,000
Construction Contract: $1,052,000
Construction Management and Inspection: $ 55,000
Construction Contingency: $ 263,000
TOTAL: $1,515,000
Budget Authority
The project design is funded as follows:
Account No. Reso, Appropriate Dates & Source Amount
593-52-258 Reso. 2013-072, 2014-15 Adopted Budget $860,000
WPCP Enterprise Fund
Additional funding for this project, if needed, will be requested at the time of award of a construction contract.
PREPARED BY: Mark Goralka, Associate Engineer, Engineering and Transportation