REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Citywide Emergency Generator Replacement Phase 2 Project to Redwood Engineering Construction, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works manages 35 generators at various facilities city-wide. The average age of the emergency generators is increasing, resulting in higher maintenance costs and decreased reliability. Staff performed an initial evaluation of the generators based on maintenance and repair costs, current locations, service logs, and service vendor’s input. Since City facilities are considered critical operations, generator evaluation and replacement has been prioritized through a multi-phase project in compliance with regulatory agency requirements.
On August 18, 2020, City Council approved award of construction contract for the Citywide Emergency Generator Replacement Phase 1 Project. The Phase 1 project consisted of removal and replacement of emergency stand-by generators at nine City facilities.
On February 9, 2021, City Council approved a design professional services agreement with Lee+Ro, Inc. for the Citywide Emergency Generator Replacement Phase 2 Project (Project). At the request of Water & Sewer Utilities Department, the Project includes generator replacement at water well sites that they oversee. Based on available funding and the condition of existing generators, four facilities were prioritized for the Project, including the Fairway Glen and Freedom Circle Storm Drain Pump Stations and Water Wells 15 and 28. The Project scope of work includes installation of new generators, automatic transfer switches, fuel tanks, associated raceways and cables, foundations, and other related necessary work.
DISCUSSION
In November 2022, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, Periscope S2G (formerly BidSync). The RFB was viewed by over 70 vendors on Periscope S2G, which included contractors, suppliers, plan rooms, builder exchanges, and more. Beyond the contractors and suppliers who viewed the RFB through Periscope S2G, additional vendors were also able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to distribute the RFB to contractors and vendors who have previously viewed similar past projects.
On December 22, 2022, bids for the Project were opened via video conference. Three bids were received ranging from $2,739,000 to $5,439,642. The Bid Summary is included as Attachment 1. The lowest bid, submitted by Redwood Engineering Construction (“Redwood”) in the amount of $2,739,000, is 24 percent below the Engineer’s Estimate (EE) of $3,582,000.
Redwood’s bid was reviewed by DPW staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be the lowest responsive and responsible bid. Staff recommends awarding the construction contract to Redwood Engineering Construction, Inc.
Award of contract will enable construction of the Project to begin in summer 2023, with substantial completion anticipated by summer 2025. These dates are subject to change based on the latest issues related to the COVID-19 pandemic and if any unforeseen conditions are discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “Existing Facilities,” 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 $2,739,000, plus a 15 percent contingency of $410,850 for any potential change orders, for a total not-to-exceed contract amount of $3,149,850. Staff recommends including 15 percent contingency to cover any potential unforeseen issues that may arise when working with existing buildings and infrastructures. To fully fund the construction work and other miscellaneous project delivery costs for the two storm drain pump stations, additional funding of $80,000 is required. Funding of $1,191,000 was set aside in the FY 2023/24 budget for Phase 3 as part of the FY 2022/23 and FY 2023/24 Adopted Capital Improvement Program (CIP) Budget. Of that funding, $80,000 is recommended to be advanced to help fund Phase 2 construction. An adjustment of scope and/or funding for Phase 3 will likely be necessary for future consideration.
Staff also recommends transferring $1,263,050 from the Water Utility Capital Fund to the Standby Stationary Generators Project in the Public Buildings Capital Fund for the portion of the Project cost associated with the Water Utility sites. This includes the cost associated with the construction contract ($1,056,850) and project delivery costs, which include inspection and construction management ($206,200).
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Capital Fund |
|
|
|
|
Transfers To Public Buildings Capital Fund - Standby Stationary Generators |
$0 |
$1,263,050 |
$1,263,050 |
|
Ending Fund Balance |
|
|
|
|
Unrestricted Fund Balance |
$15,268,620 |
($1,263,050) |
$14,005,570 |
|
General Fund |
|
|
|
|
Transfers To Public Buildings Capital Fund |
$1,189,532 |
$80,000 |
$1,269,532 |
|
Ending Fund Balance |
|
|
|
|
Reserve for Programmed Capital Project |
$5,364,314 |
($80,000) |
$5,284,314 |
|
Public Buildings Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Water Utility Capital Fund |
$0 |
$1,263,050 |
$1,263,050 |
|
General Fund (Reserve for Programmed Capital Projects) |
$1,189,532 |
$80,000 |
$1,269,532 |
|
Expenditure |
|
|
|
|
Standby Stationary Generators |
$2,087,911 |
$1,343,050 |
$3,430,961 |
COORDINATION
This report has been coordinated with the Water & Sewer Utilities Department, 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt a Class 1 Categorical Exemption under CEQA Guidelines Section 15301;
2. Award the Public Works Contract for the Citywide Emergency Generator Replacement Phase 2 Project to the lowest responsive and responsible bidder, Redwood Engineering Construction, in the amount of $2,739,000 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;
3. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $410,850, for a total not to exceed amount of $3,149,850; and
4. Approve the following FY 2022/23 Budget Amendments:
A. In the Water Utility Capital Fund, establish a Transfer to the Public Buildings Capital Fund and decrease the Unrestricted Ending Fund Balance in the amount of $1,263,050 (five affirmative Council votes required for the use of unused balances);
B. In the General Fund, establish a Transfer to the Public Buildings Capital Fund and decrease the Reserve for Programmed Capital Projects in the amount of $80,000 (five affirmative Council votes required for the use of unused balances); and
C. In the Public Buildings Capital Fund, establish a Transfer from the Water Utility Capital Fund in the amount of $1,263,050 and a Transfer from the General Fund - Reserve for Programmed Capital Projects in the amount of $80,000 and increase the Standby Stationary Generators project in the amount of $1,343,050 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager
ATTACHMENTS
1. Bid Summary