REPORT TO COUNCIL
SUBJECT
Title
Actions on Award of Contract for the Sanitary Sewer Condition Assessment Repairs - Package 1 Project (CE 20-21-03) to JMB Construction, Inc.; Adopt a Resolution Adopting a Mitigated Negative Declaration, for which an Initial Study was Prepared, and Mitigation Monitoring and Reporting Program; Adopt a CEQA Statutory Exemption; Adopt a Class 1 CEQA Categorical Exemption; and Related Budget Amendment.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Water and Sewer Utilities Department (Water & Sewer) manages the Sanitary Sewer Condition Assessment Program using the National Association of Sewer Service Companies (NASSCO) Pipeline Assessment Certification Program (PACP) guidelines. The PACP guidelines are used to inspect the sanitary sewer system, grade defects, and prioritize repairs for approximately 270 miles of pipeline in the City’s sewer infrastructure. The defects are graded on a scale of 1 to 5 based on the significance of the defect, with 1 being minor and 5 being the most significant. The City’s current concentration under the repair program is to address defects that are rated 5 with the greatest consequence of failure.
Water & Sewer Department staff perform sewer line spot repairs at locations that require less complex repair work. Repairs that are more complex due to factors such as pipe size, pipe depth, flow, location, traffic control or an alternative type of repair method are referred to the Department of Public Works (DPW) to design and develop construction bid documents for a public works contract.
Council previously approved a design professional services agreement with Mott MacDonald Group, Inc. to prepare the bid documents for the Sanitary Sewer Condition Assessment Repairs - Package 1 Project (Project) for proposed repairs to the sewer collection system along 41 pipeline segments at various locations citywide. A map of the Project’s repair locations is included as Attachment 5. The scope of work for the Project involves replacing or rehabilitating sanitary sewer mains using various methods, including cured-in-place pipe lining rehabilitation of 11,400 linear feet of pipe ranging in diameter size from 14-inches to 42-inches, pipe reaming replacement of 770 linear feet of pipe ranging in diameter from 14-inches to 16-inches, and open cut replacement of 1,200 linear feet of pipe ranging in diameter from 14-inches to 24-inches. Ancillary work includes infiltration grouting of pipe joints, replacement and installation of manholes, reinstating affected sanitary sewer laterals, traffic control, sanitary sewer flow bypassing, and other incidentals necessary to complete the Project.
DISCUSSION
In February 2023, 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 51 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. In addition, staff also reached out directly to distribute the RFB to contractors and vendors who have previously viewed similar projects in the past.
On March 22, 2023, the bid opening for the Project was held via video conference. One bid was received from JMB Construction, Inc. (JMB) in the total amount of $7,179,585, consisting of $5,178,003 for the Base Bid, $1,021,270 for Add Alternative A, and $980,312 for Add Alternative B. The Bid Summary is included as Attachment 6. The bids included a Base Bid to rehabilitate 29 pipeline segments, and two Add Alternate Bids to rehabilitate an additional 12 pipeline segments. The RFB included Add Alternates so that if bids received for the Project were higher than the available funding, then these alternate pipelines segments could be removed from the current project and deferred to a subsequent project. Based on the bid received and available funding amount, only the Base Bid is within the available funding amount and staff recommends awarding the Base Bid only.
The Base Bid submitted by JMB in the amount of $5,178,003 is within 0.06 percent of the Engineer’s Estimate for the Base Bid of $5,175,000. JMB’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 contract for the Base Bid to JMB Construction, Inc.
The award of contract will allow construction to commence in order to maintain and improve the reliability of the City’s sanitary sewer infrastructure. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
In 2021, as part of the design efforts for the Project, the environmental consulting firm Redtail Consulting performed an environmental screening process to identify the appropriate level of environmental review for each of the repairs to be completed. The environmental screening evaluated the nature of the repairs proposed for each segment (i.e., the construction/repair activities anticipated) as well as factors that can elevate the level of CEQA review required or necessitate permitting from outside agencies, such as proximity to jurisdictional habitat, sensitive biological resources, known archaeological resources, and sites with documented hazardous materials contamination. Each of the repairs was evaluated as a standalone project since each repair would address a separate, specific problem with a known extent, and each repair would be worth undertaking even if other nearby repairs could not be completed. The repairs were also evaluated as groups when performed as combined or aggregate projects.
In this construction contract, the environmental screening identified a total of five repair projects (Segments 100, 231, 232, 233, and 242) where CEQA review was warranted. The remaining repair projects in this construction contract are considered exempt from CEQA. The following repair segments are considered statutorily exempt pursuant to CEQA Guidelines Section 15282(k), “Other Statutory Exemptions,” as the activity consists of the maintenance and repair of existing pipelines within streets and other public rights-of-ways not exceeding one mile in length and limited to subsurface facilities: Segments 228, 202, 136, 122, 115, 91, 86, 85, 80, 77, 130, 112, 109, 101, 96, 95, 45, and 31. The following repair segments do not qualify for statutory exemption due to the involvement of surface facilities, but are considered categorically exempt pursuant to CEQA Guidelines Section 15301, “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 and no exceptions per CEQA Guidelines Section 15300.2 were triggered: Segments 120, 132, 134, 203, 204, 205, 208, 209, 210, 211, 223, 224, 225, 226, 234, 235, 240, and 241.
For the five repairs that warranted review under CEQA (Segments 100, 231, 232, 233, and 242), an Initial Study and Proposed Mitigated Negative Declaration (“IS/MND”) was prepared by Redtail Consulting in late Fall 2022 (Attachment 1). Upon analysis in the Initial Study, it was determined that the projects would not have a significant effect on the environment if the projects followed the avoidance and minimization measures “built into” all projects, and additional mitigation measures identified through the environmental review process, both of which were incorporated into a Mitigation Monitoring and Reporting Program (MMRP) (Attachment 3). The IS/MND was made available for public review and comment for a 30-day review period from December 14, 2022 to January 13, 2023, pursuant to Section 15073 of the CEQA Guidelines. The IS/MND was also submitted to the State Clearinghouse for review and comment by state agencies, distributed to local government agencies and interested parties, provided to City Council members on December 14, 2022, and made available on the City’s website at www.santaclaraca.gov/ceqa <https://www.santaclaraca.gov/our-city/departments-a-f/community-development/planning-division/environmental-review-ceqa>. The notice of availability was published in the Santa Clara Weekly on December 14, 2022.
DPW received agency comments on the IS/MND from Valley Water. These were the only comments received during or after the comment period, as detailed in the Consideration of Comments memorandum (Attachment 2) which includes responses. None of the comments identified new or undisclosed significant impacts, nor did they raise any issues warranting additional analysis or mitigation.
The MND examined potential environmental impacts associated with the projects and identified air quality, biological, cultural resources, geology and soils, and hazards and hazardous materials impacts, that with incorporation of mitigation measures into the Project, would be reduced to less than significant levels. A detailed discussion of the potential impacts and mitigation measures to be applied to the project is provided in the MND. Mitigation will be implemented through the MMRP.
Staff recommends approving the identified CEQA exemptions and adopting the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the non-exempt projects.
FISCAL IMPACT
The cost of the contract for the Base Bid is $5,178,003, plus approximately 15 percent contingency, or $776,700, for any potential change orders for a total not-to-exceed contract amount of $5,954,703. Staff recognizes the potential unknowns and challenges of working with the existing underground infrastructure and hence recommends a 15 percent construction contingency for this Project.
Partial funding of approximately $1.77 million for the construction contract is available in the Sanitary Sewer System Improvements project in the Sewer Utility Capital Fund. The balance necessary to fully fund the remainder of the construction contract and other miscellaneous project delivery costs is $4.25 million. The FY 2022/23 and FY 2023/24 Adopted Capital Improvement Program (CIP) Budget includes $2.0 million for this project in FY 2023/24. It is recommended that this funding be advanced to the current year. With this funding advancement, staff recommends transferring $4.25 million from the Sewer Utility Fund unrestricted balance to the Sanitary Sewer System Improvements project. The FY 2023/24 advancement of funding will be reflected as a CIP amendment in the FY 2023/24 and FY 2024/25 Proposed Operating Budget.
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Sewer Utility Fund |
|
|
|
|
Transfer To |
|
|
|
|
Sewer Utility Capital Fund |
$35,844,913 |
$4,245,609 |
$40,090,522 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Fund Balance |
$8,274,089 |
($4,245,609) |
$4,028,480 |
|
|
|
|
|
|
Sewer Utility Capital Fund |
|
|
|
|
Transfer From |
|
|
|
|
Sewer Utility Fund |
$35,844,913 |
$4,245,609 |
$40,090,522 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Sanitary Sewer System Improvements Project |
$1,766,716 |
$4,245,609 |
$6,012,325 |
COORDINATION
This report has been coordinated with the Water & Sewer Utilities Department, the Finance Department, and the 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. Adopt a resolution Adopting the Mitigated Negative Declaration, for which an Initial Study was Prepared and Mitigation, Monitoring and Reporting Program or the Sanitary Sewer Condition Assessment Repairs - Package 1 Project for repair segments 100, 231, 232, 233, and 242;
2. Adopt a Statutory Exemption under CEQA Guidelines Section 15282 for repair segments 228, 202, 136, 122, 115, 91, 86, 85, 80, 77, 130, 112, 109, 101, 96, 95, 45, and 31;
3. Adopt a Class 1 Categorical Exemption under CEQA Guidelines Section 15301 for repair segments 120, 132, 134, 203, 204, 205, 208, 209, 210, 211, 223, 224, 225, 226, 234, 235, 240, and 241;
4. Authorize the Director of Public Works or designee, to file a Notice of Determination and a Notice of Exemption with the County Clerk-Recorder and the State Clearinghouse;
5. Award the Public Works Contract for the Sanitary Sewer Condition Assessment Repairs - Package 1 Project (CE 20-21-03) for the Base Bid, to the lowest responsive and responsible bidder, JMB Construction, Inc., in the amount of $5,178,003 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project on forms approved by the City Attorney;
6. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $776,700, for a total project budget not to exceed amount of $5,954,703; and
7. Approve the following FY 2022/23 budget amendments:
A. In the Sewer Utility Fund, increase the transfer to the Sewer Utility Capital Fund by $4,245,609 and reduce the unrestricted fund balance by $4,245,609 (five affirmative Council votes required for the use of unused balances); and
B. In the Sewer Utility Capital Fund, increase the transfer from the Sewer Utility Fund by $4,245,609 and increase the Sanitary Sewer System Improvements project by $4,245,609 (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. Mitigated Negative Declaration (MND)
2. Consideration of Comments received on the Mitigated Negative Declaration
3. Mitigation Monitoring and Reporting Program (MMRP)
4. Resolution Recommending Council Adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program
5. Project Location Map
6. Bid Summary