REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for Construction of the Storm Water Compliance Project, Contract No. 2429, to Galeb Paving, Inc. and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On November 9, 2022, Silicon Valley Power (SVP) opened bids for the Storm Water Compliance Project, Contract No. 2429 (Project). The primary objective of the Project is to implement best management practices to provide stormwater treatment for treated wooden utility poles in storage at the Utility’s Corporation Yard.
The scope of the Project is to construct three concrete foundation pads - one for an outdoor storage rack and two for use as wooden utility pole storage. The two wooden utility pole storage locations will include the installation of curbs and a storm drain system which will intercept the existing system to include filter inserts for stormwater protection.
DISCUSSION
Pursuant to Santa Clara City Code Section 1310 (Contracts on public works), the City conducted a competitive Request for Bids (RFB) for this procurement requiring award to the lowest responsible bidder.
On October 12, 2022, the City released the RFB for construction of the Project using the City’s bid notification system. Bids were opened on November 9, 2022, with the following results:
|
Engineer’s Estimate: |
$ 997,383 |
|
Contractor |
Total Bid ($) |
Percentage above/below Engineer’s Estimate |
|
Galeb Paving, Inc. |
$580,685 |
-41.8% |
|
Golden Bay Construction Inc. |
$757,876 |
-24.0% |
|
McGuire and Hester |
$805,609 |
-19.2% |
SVP staff, the City’s design consultant, and the City Attorney’s Office reviewed Galeb Paving’s bid for compliance with the bid documents and determined that Galeb Paving submitted the lowest responsive and responsible bid. Therefore, staff recommends award of the construction contract to Galeb Paving.
Award of contract will enable construction of the Project to begin in the Spring of 2023, with substantial completion anticipated by Fall of 2023. These dates are subject to change based on weather or if any unforeseen conditions are discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the Project is exempt from the California Environmental Quality Act (“CEQA”) the Project section 15301 (c) of Title 14 of the California Code of Regulations, as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The approximate cost of the contract is $580,685, plus a 15 percent contingency of $87,103, to address any potential change orders, for a total not-to-exceed contract amount of $667,788. An increase of $500,000 to the existing Storm Water Compliance Project in the Electric Utility Capital Fund is proposed to fund this Project as detailed in the budget amendment below.
|
Budget Amendment |
|
FY 2022/23 |
|
|
|
|
|
|
Electric Utility Capital Fund |
Current |
Increase/ (Decrease) |
Revised |
|
Expenditure |
|
|
|
|
Unrestricted Fund Balance |
$25,415,040 |
($500,000) |
$24,915,040 |
|
Storm Water Compliance (591-2429) |
$230,970 |
$500,000 |
$730,970 |
City Charter Section 1305 requires an affirmative vote of at least five members of the City Council to transfer unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine the proposed Project is exempt from CEQA pursuant to Section 15301(c) of Title 14 of the California Code of Regulations;
2. Award the Contract for Construction of the Storm Water Compliance Project (Contract No. 2429) to Galeb Paving, Inc., in the amount of $580,685 and authorize the City Manager to execute any and all documents necessary for the award, completion and acceptance of the Project;
3. Authorize the City Manager to execute change orders up to 15% of the original contract amount, or $87,103, for a total not-to-exceed amount of $667,788 for Contract No. 2429; and
4. Approve a FY 2022/2023 budget amendment in the Electric Utility Capital Fund to increase the Storm Water Compliance Capital Improvement Program Project budget by $500,000 and decrease the Unrestricted Fund Balance by $500,000 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Rajeev Batra, City Manager