BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT:
Title
Receive Report of Bids, Ratify Addenda, Approve the Contingency Fund, and Award the Construction Contract to Con-Quest Contractors Inc., for the Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2, as Part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002, Contract No. C0697 in the sum of $8,484,651 (Morgan Hill, Gilroy, Unincorporated San Benito County, and Unincorporated Santa Clara County, District 1).
(Continued from June 27, 2023)
End
RECOMMENDATION:
Recommendation
A. Ratify Addenda Nos. 1 and 2 to the Contract Documents for the Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2;
B. Award the Construction Contract to Con-Quest Contractors, Inc. located in San Francisco, CA, in the sum of $8,484,651.00; and
C. Approve a contingency of 10% in the amount of $848,465.00 and authorize the Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
The objective of the Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2 (Project) is to increase the reliability and useful life of the pipeline.
The Project scope of work includes completely draining and removing all water from the Santa Clara Conduit in the section between Sectionalizing Valve 1 and Coyote Pumping Plant, performing repairs on pipeline appurtenances, replacing line valves, providing support for a manned internal pipeline inspection, installing an Acoustic Fiber Optic (AFO) monitoring system, installing supervisory control and data acquisition (SCADA) system components, installing corrosion protection systems, and performing internal pipeline repair work as identified during the inspections.
Project Background
The Santa Clara Conduit is included in Santa Clara Valley Water District’s (Valley Water) Pipeline Maintenance Program (PMP) and is an identified capital effort under the 10-Year Pipeline Inspection and Rehabilitation Project. The PMP defines the activities associated with maintenance and repair of water supply conveyance systems throughout Valley Water’s jurisdiction.
The purpose of the 10-Year Pipeline Inspection and Rehabilitation Project is to maintain the integrity of the approximately 150 miles of large diameter raw and treated water transmission pipelines, extend their useful life, and address infrastructure reliability concerns. Other projects completed as part of the 10-year Inspection and Rehabilitation Project include: Almaden Valley Pipeline, Pacheco Conduit, Cross Valley and Calero Pipelines, and Central and Parallel East Pipelines.
Santa Clara Conduit
The Santa Clara Conduit (SCC) consists of approximately of 22 linear miles of primarily 96-inch prestressed concrete cylinder pipe (PCCP). It conveys raw water from the Bifurcation structure near Casa De Fruta Parkway and Pacheco Pass Highway to the Coyote Pumping Plant in Morgan Hill. The SCC was constructed in 1988 and is owned by the U.S. Bureau of Reclamation (USBR). SCC is part of the USBR San Felipe System and is operated and maintained by Valley Water. It begins at the Bifurcation structure, runs along the Santa Clara Tunnel, continues along the cities of Gilroy, San Martin, and Morgan Hill in Santa Clara County and northern portion of San Benito County, and ends at the Coyote Pumping Plant.
The Santa Clara Conduit will be inspected and rehabilitated in two phases. The first phase is currently in construction under the “Santa Clara Conduit Rehabilitation and Pacheco Conduit Sectionalizing Vault Replacement Project,” Contract No. C0673, and covers the Santa Clara Conduit from the end of the Santa Clara Tunnel to Sectionalizing Valve 1, located in unincorporated Santa Clara and San Benito Counties, City of Gilroy, and City of Morgan Hill. The construction for Phase 1 of the Project is expected to be completed in July 2023 and will transition to Phase 2 in the winter of 2024.
Addenda Ratification
Two (2) addenda were issued during the bid advertisement period to clarify the Project Contract Documents and answer bidder’s questions. To formally incorporate the Addenda into the Project Contract Documents, staff recommends the Board ratify the Addenda.
Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2 Plans and Specifications were provided by separate communication to the Board for their review prior to taking the recommended action to adopt the Plans and Specifications for bid advertisement. The Addenda were also provided by separate communication to Valley Water’s Board of Directors for their review prior to taking the recommended action to ratify. To protect sensitive information related to the project, all parties interested in accessing the Plans and Specifications, and Addenda were registered as a vendor at the Valley Water Vendor Portal and submitted a completed Non-Disclosure Agreement (NDA) to access the Contract Documents.
Contract Award
A report of bids received at the bid opening for the Project on May 31, 2023 is summarized in Table 1.
Staff reviewed the bid proposal and recommends that the construction contract for the Project be awarded to Con-Quest Contractors, Inc. for the following reasons:
1. All bid entries and requirements in the proposal submitted by Con-Quest Contractors, Inc. are in order;
2. Con-Quest Contractors, Inc.'s license is current, active, and in good standing;
3. Con-Quest Contractors, Inc. is in compliance with the requirements of the California Labor Code §1771.1 because Con-Quest Contractors Inc. and their subcontractors are registered with the California Department of Industrial Relations and qualified to perform public works pursuant to Section 1725.5 of the Labor Code.
|
TABLE 1 Bid Summary |
|
Contractor, Location |
Bid Price |
Award Amount |
|
Con-Quest Contractors, Inc., San Francisco |
$8,484,651.00 |
$8,484,651.00 |
|
Mountain Cascade, Inc., Livermore |
$11,389,000.00 |
|
|
Anvil Builders, Inc., Emeryville |
$11,425,100.00 |
|
|
Engineer’s Estimate: $9,133,500.00 |
Staff recommends the Board award the construction contract to Con-Quest Contractors, Inc. as the responsible bidder, submitting the lowest responsive bid.
Contingency Funds
The proposed Contract award sum for the Project is $8,484,651. To allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project, staff recommends the Board approve encumbering a contingency amount of $848,465.00 which amounts to 10% of the contract amount.
The above-contingency amount was estimated due to known and unknown risks, such as:
1. Unforeseen conditions and field conditions that may be different from the baseline and as-built information used in preparation of the Project Contract Documents;
2. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
3. Differing site conditions;
4. Coordination issues and risks associated with weather conditions;
5. Coordination issues with operations and maintenance activities; and
6. Unforeseen internal pipeline condition.
Approval of individual change orders for the Project will be subject to approval at the following designated amounts:
Engineering Unit Manager: $100,000
Deputy Operating Officer: $250,000
CEO: Up to the Total Amount of the Contingency
Relevant Prior Board Actions
On November 13, 2007, the Board certified the Pipeline Maintenance Program Environmental Impact Report (PMP EIR) and adopted the Mitigation Monitoring Plan.
On March 9, 2010, the Board adopted Resolution 10-24 specifying intent to consider undertaking the Project and setting the time and date for a public hearing on the Engineer’s Report for the subject Project.
On April 13, 2010, the Board held a public hearing and adopted Resolution 10-29 approving the PMP Engineer’s Report and approving the PMP.
On January 8, 2019, the Board approved a sole source purchase of equipment and services from Pure Technologies U.S., Inc. to provide electromagnetic inspection, acoustic fiber optic (AFO) monitoring system, and AFO system services for the 10-Year Pipeline Inspection and Rehabilitation Program.
On April 11, 2023, the Board adopted the Project plans and specifications and authorized advertisement for bids for construction.
Permits
The County of Santa Clara granted a conditional encroachment permit for the Project. The final encroachment permit is expected to be granted after the construction contract is awarded. All other permits have been secured.
Right of Way
Valley Water has an agreement with the Bureau of Reclamation that permits operation and maintenance of the pipelines and tunnels, including Santa Clara Conduit. The existing access rights for the vaults pursuant to the agreement are sufficient for Project construction.
Public Outreach
During construction, appropriate measures will be taken to minimize impacts associated with the Project, such as traffic, noise, and dust. Residents and businesses in the Project area will be informed of construction impacts through multiple outreach strategies including social media such as Nextdoor and Facebook, mailers, and signs. The construction Contract Documents include requirements and mitigations to minimize impacts to the public during construction.
Outreach to Bidders
The Notice to Bidders was sent to certified Contractors that have the appropriate license. Chambers of Commerce, plan rooms (Builder Exchanges), and Valley Water’s own website were used to solicit interest in the Project work from prospective Contractors. Contractors were contacted using Valley Water’s own Vendor Contractor Database through PlanetBids Vendor Portal.
Next Steps
If the Board approves the recommendations, staff will proceed with administering construction of the Project, which is anticipated to begin in July 2023 and be completed by August 2024.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
The Santa Clara Conduit Inspection and Rehabilitation Project - Phase 2 is part of the 10-Year Pipeline Inspection and Rehabilitation Project, Project No. 95084002. It is included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2023-27 Five-Year Plan, the Board approved FY 2022-23 Adjusted Budget, and the recent Board approved FY 2023-24 Adopted Budget and CIP Final FY 2024-28 Five-Year Plan. The total cost for the recommended construction contract, including the change order contingency sum of $848,465.00 is $9,333,116.00 which does not change the overall Total Project Cost reflected in the CIP Final FY 2024-28 Five-Year Plan.
There are adequate funds in the Project’s FY 2023-24 Adopted budget to encumber approximately $8.5 million to initiate construction activities to be incurred during the Fiscal Year 2023-24. Funds to cover any additional funding needs will be recommended by staff during the biennial budget process or through budget adjustment(s).
The Project is funded through the Water Enterprise Fund (Fund 61) with 96.3% of the costs allocated to Zone W-2 (North County), 2.9% to South County Zone W-5, 0.8% to South County Zone W-7 and 0.1% to South County Zone W-8.
CEQA:
On November 13, 2007, the Board certified an Environmental Impact Report for the Pipeline Maintenance Program (PMP EIR) [Resolution 07-71].
The Pipeline Maintenance Program (PMP) provides for the routine inspection, rehabilitation, and maintenance of Valley Water’s raw and treated water pipelines, and the PMP EIR evaluates the environmental impacts of the PMP activities. All proposed activities for the Project have been evaluated in the PMP EIR, and during Project construction, Valley Water and its contractor will comply with all applicable BMPs and mitigation measures from the PMP EIR and permit conditions.
ATTACHMENTS:
Attachment 1: Project Delivery Process Chart
Attachment 2: Site Map
UNCLASSIFIED MANAGER:
Manager
Emmanuel Aryee, 408-630-3074