CITY COUNCIL STAFF REPORT
MEETING DATE: March 2, 2016
PREPARED BY: David Gittleson, Associate Engineer-Public Works/Engineering
APPROVED BY: City Manager
Title
AWARD OF OAK CANYON BOOSTER STATION REHABILITATION PROJECT
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving the following actions:
1. Approve project plans and specifications;
2. Award contract to Monterey Peninsula Engineering for the Oak Canyon Booster Station Rehabilitation Project in the amount of $1,592,000;
3. Authorize expenditure of construction contingency funds not to exceed $159,200; and
4. Authorize the City Manager to sign the Contract.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Enhancing public safety
Maintaining fiscal responsibility
2016 Focus Areas
Enhancing our Services
Planning our Community
REPORT NARRATIVE:
The FY 2015/16 Capital Improvements Program (CIP) includes the rehabilitation of the Oak Canyon Booster Station Rehabilitation project. This booster station is located in the Jackson Oaks neighborhood off of Oak Canyon Drive. The station serves approximately 100 residents with potable water and fire protection. There is also a 350,000 gallon reservoir on site. When this project is completed, a separate project will recoat the reservoir. This project helps support the City Council goal of providing a safe and reliable water delivery system for the residents of Morgan Hill.
The station was originally constructed with the Jackson Oaks residential development in 1969. The station equipment is nearing the end of its service life expectancy. The booster station equipment is located outside and exposed to the elements, thus increasing maintenance costs and making repairs more difficult in bad weather. In addition, the fire pump is an old diesel fuel powered unit that requires special maintenance. The old fire pump was capable of producing approximately 1,000 gpm for fire flow. The current fire flow requirement is 1,500 gpm.
The scope of work for rehabilitating the station includes; new high efficiency pumps, new electronic motor control system, and new smaller hydropneumatic tank - all enclosed in a new secured building. A new emergency generator will also be installed. The new emergency generator will meet the current requirements of the Bay Area Air Quality Management District with less emissions and lower sound levels, and will also improve system reliability. The new booster station will be designed to accommodate both low flow and high flow demands (fire flow regulations). Three new variable frequency drive vertical turbine pumps and one high flow horizontal pump will be installed for system redundancy and increased efficiency. This will replace the existing two horizontal can pumps and one fire flow diesel powered pump. The new pump system is designed to deliver the required 1,500 gpm for fire protection.
The plans and specifications are available for review on the City's web page under the Government tab and Community Projects site found here: http://www.morgan-hill.ca.gov/1436/Project-Plans-and-Specifications
The bid opening was held on February 17, 2016 and five bids were received as listed below.
Monterey Peninsula Engineering $1,592,000
Spiess Construction $1,598,000
Integra Construction Services $1,626,000
Myers & Sons Construction $1,627,500
Pacific Infrastructure $1,826,800
The low bidder, Monterey Peninsula Engineering, has been in business for 35 years and has built numerous projects for the City of Morgan Hill. Monterey Peninsula Engineering’s construction bid was 22% greater than the engineer’s estimate of $1,300,000. Staff attributes the higher than expected bids to a robust construction climate and the unique structure foundation being costlier than anticipated. This booster station is utilizing a new open trench floor system which allows access to the pipes via removable grates that would be otherwise under the foundation of a traditional station. This allows for quick and less costly leak repairs. In the traditional slab on grade station, repairs would require removing a portion of the concrete floor and excavating to expose the leak and then restoration - all within the confines of the building.
This project is funded with water revenue bonds issued in 2014 to construct a variety of water projects. Staff recommends award of the contract to Monterey Peninsula Engineering in order to expedite the project and meet the water bond expenditure deadline. This project is scheduled to begin construction in April 2016 and be completed by November 2016.
COMMUNITY ENGAGEMENT: Inform
Staff met with the Jackson Oaks and Holiday Lake Estates neighborhood residents in August of 2015 to inform them of multiple water improvement projects, including the Oak Canyon Booster Station project. A progress update for those residents will occur in the next two months. Staff will inform residents in close proximity to the Oak Canyon Booster Station within two weeks of commencement of construction activities. Staff will also send out a notification through Nextdoor and provide updated information on the City's website throughout the construction.
ALTERNATIVE ACTIONS:
City Council could opt to reject all bids, direct staff to value engineer the scope and re-bid the project with the intention of receiving a lower price. However, this would delay the project and may not result in a lower price.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The Oak Canyon Booster Station Rehabilitation Project was included in the adopted FY 2015/16 Capital Improvement Program budget for a total of $1,394,000.
On February 4, 2015, City Council approved a service agreement for design professionals with HydroScience Engineers, Inc. for $115,302 to develop plans and specifications to rehabilitate the Oak Canyon Booster Station.
FISCAL AND RESOURCE IMPACT:
If approved, the total authorization for this project would be $1,751,200, which includes a 10% contingency of $159,200.
The FY 15/16 CIP #607000 for Booster Pump Rehabilitation appropriated a total of $1,394,000. $812,268 of unspent funds were carried over from the previous FY 14/15 year. Thus far, only $203,607 has been spent, leaving an appropriation balance of $2,002,661 for this project. Thus, there are sufficient funds to complete this project. The project is included in the list of bond-funded projects under the 2014 water revenue bond issuance.
CEQA (California Environmental Quality Act):
Categorical Exemption
The activities described in this Staff Report are categorically exempt under CEQA, specifically pursuant to Section 15301 of the CEQA Guidelines (Existing Facilities), as the subject work involves the repair, maintenance or minor alteration of existing City facilities involving negligible or no expansion of use of those facilities.
LINKS/ATTACHMENTS:
Resolution
Exhibit A-Construction Contract
Project Location Map