HomeMy WebLinkAboutStaff Report 13569
City of Palo Alto (ID # 13569)
City Council Staff Report
Meeting Date: 3/21/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of a Construction Contract With Casey Construction, Inc. for
Sewer Lateral Installation, Repair and Replacement and Wastewater
Collection System Rehabilitation in a Total Not-to-Exceed Amount of
$2,998,266 for a Three-Year Term Through June 2025
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends the City Council approve and authorize the City Manager or their designee to
execute the attached contract with Casey Construction, Inc. C23183408 (Linked Document) for
a three (3) year term with a total not-to-exceed amount of $2,998,266 for Sewer Lateral
Replacement and Rehabilitation (WC-99013) Capital Improvement project.
Background
The City’s Utility Department is responsible for the maintenance, repair, and replacement of
lower sewer laterals that extend between the main and City cleanout near the customer’s
property line. As part of the Sanitary Sewer Maintenance Program (SSMP), the City’s goal is to
inspect and clean 3,300 sewer laterals annually out of the approximate 18,000 City owned
sewer laterals. During the inspection process sewer lateral defects are graded on a standardized
scale. The City also maintains data on sewer overflows from laterals. This information is used to
determine the location of frequent overflows. The data from the inspections and the sewer
overflows is used to create a prioritized list of laterals that need to be replaced.
Currently there are approximately 188 sewer laterals on the priority 1 list to be replaced to
minimize sanitary sewer overflows and reduce annual inspections. Priority 1 laterals are
structurally damaged and require replacement or there routinely inspected and serviced.
Depending on the severity of the conditions, these laterals are inspected and cleared every 1-3
months to prevent sewer overflows. Under the contract (Linked Document), the contractor will
replace approximately 70-80 laterals per year. This volume of work is more than can be
accomplished by City crews and is typically performed by contractors.
In addition to the lateral work, the contractor can do other types of sewer infrastructure repairs
under this contract, if directed by the City.
City of Palo Alto Page 2
Discussion
Project Description
The work to be performed under the contract involves the installation, repair, and replacement
of sewer laterals and rehabilitation of various components of the City of Palo Alto's wastewater
collection system.
The City used a formal solicitation process to establish unit cost pricing for the lateral
replacements along with the other infrastructure work that may be needed. The quantity of
each bid item was estimated and for bidding purpose only. The total contract amount is based
on available budget in the current fiscal year 2022 budget and the projected budgets for future
years. Therefore, the total bid price does not represent the total contract amount.
The lowest bidder was selected based on the lowest aggregated cost of the estimated quantity
for each bid item. The work assigned to the contractor will be limited to the budgeted amount
in each contractual period. The final contract amount of $2,475,000 includes $800,000 for the
1st year, $825,000 for the 2nd year, and $850,000 for the 3rd year.
The sewer lateral replacement work needs to be performed by the contractor because the
project resource requirements are beyond the City’s personnel and equipment capacity. It is
critical to replace sewer laterals that are identified with major defects to minimize sanitary
sewer overflows and to comply with regulatory requirements.
Description of Bid Process and Results
On 12/6/2021, the City posted a notice inviting formal bids (IFB) for the Sewer System
Replacement, Repair and Install Project on the City’s electronic procurement system,
PlanetBids. The bidding period was 36 calendar days. Two (2) contractors submitted bids on
January 10, 2022, as listed on the Bid Summary (Attachment A).
Bid Summary
BID NAME/NUMBER
SEWER SYSTEM REPLACEMENT,
REPAIR AND INSTALL -IFB183408
Proposed Length of Project 3-years
Number of notifications sent through PlanetBids 841
Number of Bid Packages Downloaded by Builder’s Exchanges 4
Number of Bid Packages Downloaded by Contractors 23
Total Days to Respond to Bid 36 calendar days
Pre-Bid Meeting? Yes (Non-mandatory)
Number of Company Attendees at Pre-Bid Meeting 1
Number of Bids Received: 2
Bid Price Range $2,998,266 to $3,024,720
Staff has reviewed the submitted bids and recommends that the bid submitted by Casey
Construction, Inc. to be accepted and declared the lowest responsible and responsive bidder.
City of Palo Alto Page 3
The total base bids were approximately 14% to 16% higher than the Engineer’s Estimate. The
pricing is due to a lack of competition in the marketplace caused by a booming construction
market in the Bay Area. The work quantities specified in the Invitation for Bids (IFB) for this
service contract were for bidding purposes only, and can be changed by the City, as stated in
the bid documents. The IFB also states that the total work awarded is limited by the available
budget, and that the budget amount is an upper limit on spending, not a commitment to spend
a certain amount. Thus, staff recommends Council approve the attached contract for the
amount of $2,998,266 over a three-year term. The term of the Agreement will be from the date
of its full execution until June 30, 2025 (fiscal years 2022 through 2025).
Staff confirmed with the Contractor’s State License Board that Casey Construction, Inc. has an
active license on file. Staff checked referenced provided by Casey Construction, Inc. for previous
work performed and received positive feedback from other agencies. Casey Construction, Inc.
is registered and in good standing with the Department of Industrial Relations (DIR). In
addition, Casey Construction, Inc. has contracted with the City in the past on Utilities
Department project and has demonstrated the knowledge and ability needed to perform this
work.
Resource Impact
Funds for FY 2022 work on the first year of this contract are available in the FY 2022
Wastewater Collection Capital Budget under WC-99013, Sewer Lateral/Manhole Rehabilitation
and Replacement. Funding for subsequent fiscal years is subject to annual budget approval by
Council and contractor’s satisfactory performance.
This contract is on the City’s construction contract template, which permits the City to
terminate without cause/for convenience by providing written notice to the contractor. In the
event the City finds itself facing a challenging budget situation, and it is determined that City
resources need to be refocused elsewhere, the City can terminate for convenience. Other
options include termination due to non-appropriation of funds or amending the contract to
reduce the cost, for example, by reducing the scope of work. The contract may also be
temporarily suspended by written notice of the City Manager.
Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the
City Council wish to defer this project in light of the current pandemic and other priorities
related to community and economic recovery, this item may be removed from the Consent
Calendar. Staff will then return to Council with this and other projects for reconsideration.
Policy Implications
The approval of this professional services agreement is consistent with existing City goals,
policies and plans including:
Utilities Strategic Plan
Priority 1: Workforce
City of Palo Alto Page 4
Strategy 3: Evaluate and consider alternative workforce solutions to achieve organizational
business objectives:
Action 2: Determine the potential for projects and/or functions to be effectively
outsourced while continuing to meet organizational needs and objectives.
Action 3: Consider developing a hybrid workforce of full-time employees and non-
benefitted staff.
Stakeholder Engagement
The work under this contract will be performed at various locations of the City. The Contractor
will provide two written notifications of the work to all abutting property occupants, one at
least 15 days prior to the commencement of work at their specific locations, and a second 24
hours prior to mobilization.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guideline Sections 15301 (b) repair and maintenance of existing public utility
facilities and 15302 (c) replacement or reconstruction of existing utility facilities involving no
expansion of capacity.
Attachments:
• Attachment A: Bid Summary
Vendor:Vendor:
Bid Item Description TOTAL Bid Item Description TOTAL
A01 11 $ 9,300.00 102,300.00$ A01 11 $ 12,000.00 132,000.00$
A02 38 $ 9,050.00 343,900.00$ A02 38 $ 8,500.00 323,000.00$
A03 3 $ 9,650.00 28,950.00$ A03 3 $ 13,000.00 39,000.00$
A04 3 $ 9,400.00 28,200.00$ A04 3 $ 10,000.00 30,000.00$
A05 3 $ 9,800.00 29,400.00$ A05 3 $ 14,000.00 42,000.00$
A06 3 $ 9,550.00 28,650.00$ A06 3 $ 12,000.00 36,000.00$
A07 2 $ 10,150.00 20,300.00$ A07 2 $ 15,000.00 30,000.00$
A8 1 $ 9,900.00 9,900.00$ A8 1 $ 13,000.00 13,000.00$
A9 3 $ 8,750.00 26,250.00$ A9 3 $ 3,000.00 9,000.00$
A10 3 $ 8,750.00 26,250.00$ A10 3 $ 3,000.00 9,000.00$
A11 3 $ 9,000.00 27,000.00$ A11 3 $ 3,000.00 9,000.00$
A12 3 $ 9,000.00 27,000.00$ A12 3 $ 3,000.00 9,000.00$
A13 3 $ 150.00 450.00$ A13 3 $ 1,000.00 3,000.00$
698,550.00$ 684,000.00$
B01 11 $ 9,579.00 105,369.00$ B01 11 $ 12,000.00 132,000.00$
B02 38 $ 9,321.50 354,217.00$ B02 38 $ 8,500.00 323,000.00$
B03 3 $ 9,939.50 29,818.50$ B03 3 $ 13,000.00 39,000.00$
B04 3 $ 9,682.00 29,046.00$ B04 3 $ 10,000.00 30,000.00$
B05 3 $ 10,094.00 30,282.00$ B05 3 $ 14,000.00 42,000.00$
B06 3 $ 9,836.50 29,509.50$ B06 3 $ 12,000.00 36,000.00$
B07 2 $ 10,454.50 20,909.00$ B07 2 $ 15,000.00 30,000.00$
B08 1 $ 10,197.00 10,197.00$ B08 1 $ 13,000.00 13,000.00$
B09 3 $ 9,012.50 27,037.50$ B09 3 $ 3,000.00 9,000.00$
B10 3 $ 9,012.50 27,037.50$ B10 3 $ 3,000.00 9,000.00$
B11 3 $ 9,270.00 27,810.00$ B11 3 $ 3,000.00 9,000.00$
B12 3 $ 9,270.00 27,810.00$ B12 3 $ 3,000.00 9,000.00$
B13 3 $ 154.50 463.50$ B13 3 $ 1,000.00 3,000.00$
719,506.50$ 684,000.00$
C01 11 $ 9,866.37 108,530.07$ C01 11 $ 12,000.00 132,000.00$
C02 38 $ 9,601.15 364,843.70$ C02 38 $ 8,500.00 323,000.00$
C03 3 $ 10,237.69 30,713.07$ C03 3 $ 13,000.00 39,000.00$
C04 3 $ 9,972.46 29,917.38$ C04 3 $ 10,000.00 30,000.00$
C05 3 $ 10,396.82 31,190.46$ C05 3 $ 14,000.00 42,000.00$
C06 3 $ 10,131.60 30,394.80$ C06 3 $ 12,000.00 36,000.00$
Casey Construction, Inc.Devaney.
Attachment A
Vendor:Vendor:
Bid Item Description TOTAL Bid Item Description TOTAL
Casey Construction, Inc.Devaney.
C07 2 $ 10,768.14 21,536.28$ C07 2 $ 15,000.00 30,000.00$
C08 1 $ 10,502.91 10,502.91$ C08 1 $ 13,000.00 13,000.00$
C09 3 $ 9,282.88 27,848.64$ C09 3 $ 3,000.00 9,000.00$
C10 3 $ 9,282.88 27,848.64$ C10 3 $ 3,000.00 9,000.00$
C11 3 $ 9,548.10 28,644.30$ C11 3 $ 3,000.00 9,000.00$
C12 3 $ 9,548.10 28,644.30$ C12 3 $ 3,000.00 9,000.00$
C13 3 $ 159.14 477.42$ C13 3 $ 1,000.00 3,000.00$
741,091.97$ 684,000.00$
D01 192 $ 200.00 38,400.00$ D01 192 $ 300.00 57,600.00$
D02 192 $ 210.00 40,320.00$ D02 192 $ 325.00 62,400.00$
D03 64 $ 225.00 14,400.00$ D03 64 $ 350.00 22,400.00$
D04 64 $ 240.00 15,360.00$ D04 64 $ 375.00 24,000.00$
D05 64 $ 275.00 17,600.00$ D05 64 $ 450.00 28,800.00$
D06 192 $ 150.00 28,800.00$ D06 192 $ 50.00 9,600.00$
D07 1 $ 10,000.00 10,000.00$ D07 1 $ 9,000.00 9,000.00$
D08 1 $ 15,000.00 15,000.00$ D08 1 $ 13,000.00 13,000.00$
D09 1 $ 15,000.00 15,000.00$ D09 1 $ 12,000.00 12,000.00$
D10 1 $ 17,000.00 17,000.00$ D10 1 $ 15,000.00 15,000.00$
D11 1 $ 9,000.00 9,000.00$ D11 1 $ 12,000.00 12,000.00$
D12 1 $ 11,000.00 11,000.00$ D12 1 $ 15,000.00 15,000.00$
D13 1 $ 10,000.00 10,000.00$ D13 1 $ 12,000.00 12,000.00$
D14 1 $ 12,000.00 12,000.00$ D14 1 $ 15,000.00 15,000.00$
D15 1 $ 3,200.00 3,200.00$ D15 1 $ 3,000.00 3,000.00$
D16 192 $ 15.00 2,880.00$ D16 192 $ 20.00 3,840.00$
D17 192 $ 25.00 4,800.00$ D17 192 $ 20.00 3,840.00$
D18 192 $ 35.00 6,720.00$ D18 192 $ 30.00 5,760.00$
271,480.00$ 324,240.00$
E01 192 $ 206.00 39,552.00$ E01 192 $ 300.00 57,600.00$
E02 192 $ 216.30 41,529.60$ E02 192 $ 325.00 62,400.00$
E03 64 $ 231.75 14,832.00$ E03 64 $ 350.00 22,400.00$
E04 64 $ 247.20 15,820.80$ E04 64 $ 375.00 24,000.00$
E05 64 $ 283.25 18,128.00$ E05 64 $ 450.00 28,800.00$
E06 192 $ 154.50 29,664.00$ E06 192 $ 50.00 9,600.00$
E07 1 $ 10,300.00 10,300.00$ E07 1 $ 9,000.00 9,000.00$
E08 1 $ 15,450.00 15,450.00$ E08 1 $ 13,000.00 13,000.00$
E09 1 $ 15,450.00 15,450.00$ E09 1 $ 12,000.00 12,000.00$
E10 1 $ 17,510.00 17,510.00$ E10 1 $ 15,000.00 15,000.00$
Vendor:Vendor:
Bid Item Description TOTAL Bid Item Description TOTAL
Casey Construction, Inc.Devaney.
E11 1 $ 9,270.00 9,270.00$ E11 1 $ 12,000.00 12,000.00$
E12 1 $ 11,330.00 11,330.00$ E12 1 $ 15,000.00 15,000.00$
E13 1 $ 10,300.00 10,300.00$ E13 1 $ 12,000.00 12,000.00$
E14 1 $ 12,360.00 12,360.00$ E14 1 $ 15,000.00 15,000.00$
E15 1 $ 3,296.00 3,296.00$ E15 1 $ 3,000.00 3,000.00$
E16 192 $ 15.45 2,966.40$ E16 192 $ 20.00 3,840.00$
E17 192 $ 25.75 4,944.00$ E17 192 $ 20.00 3,840.00$
E18 192 $ 36.05 6,921.60$ E18 192 $ 30.00 5,760.00$
279,624.40$ 324,240.00$
F01 192 $ 212.18 40,738.56$ F01 192 $ 300.00 57,600.00$
F02 192 $ 222.79 42,775.68$ F02 192 $ 325.00 62,400.00$
F03 64 $ 238.70 15,276.80$ F03 64 $ 350.00 22,400.00$
F04 64 $ 254.62 16,295.68$ F04 64 $ 375.00 24,000.00$
F05 64 $ 291.75 18,672.00$ F05 64 $ 450.00 28,800.00$
F06 192 $ 159.14 30,554.88$ F06 192 $ 50.00 9,600.00$
F07 1 $ 10,609.00 10,609.00$ F07 1 $ 9,000.00 9,000.00$
F08 1 $ 15,913.50 15,913.50$ F08 1 $ 13,000.00 13,000.00$
F09 1 $ 15,913.50 15,913.50$ F09 1 $ 12,000.00 12,000.00$
F10 1 $ 18,035.30 18,035.30$ F10 1 $ 15,000.00 15,000.00$
F11 1 $ 9,548.10 9,548.10$ F11 1 $ 12,000.00 12,000.00$
F12 1 $ 11,669.90 11,669.90$ F12 1 $ 15,000.00 15,000.00$
F13 1 $ 10,609.00 10,609.00$ F13 1 $ 12,000.00 12,000.00$
F14 1 $ 12,730.80 12,730.80$ F14 1 $ 15,000.00 15,000.00$
F15 1 $ 3,394.88 3,394.88$ F15 1 $ 3,000.00 3,000.00$
F16 192 $ 15.91 3,054.72$ F16 192 $ 20.00 3,840.00$
F17 192 $ 26.52 5,091.84$ F17 192 $ 20.00 3,840.00$
F18 192 $ 37.13 7,128.96$ F18 192 $ 30.00 5,760.00$
288,013.10$ 324,240.00$
2,998,265.97$ 3,024,720.00$