HomeMy WebLinkAboutStaff Report 13953
City of Palo Alto (ID # 13953)
City Council Staff Report
Meeting Date: 3/21/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Task Order Construction Contract C22183580 With MP
Nexlevel of California, Inc. in the Amount not to exceed $8,815,809 for
Trenching and Substructure Installation and Materials; Authorization for the
City Manager to Negotiate and Execute Related but Unforeseen Change
Orders Not-to-Exceed $881,581, for a Total Not-to-Exceed Amount of
$9,697,390 Over Three Years
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends the Council:
1. Approve and authorize the City Manager or their designee to execute a task order
construction contract with MP Nexlevel of California, Inc. (Linked Document) in the
amount not to exceed $8,215,809 to provide utility trenching and substructure
installation, labor and equipment for a period of 3 years.
2. Approve and authorize the City Manager or their designee to purchase materials in the
amount of $600,000 related to the utility trenching and substructure installation to be
performed by MP Nexlevel of California, Inc.
3. Approve and authorize the City Manager or their designee to negotiate and execute
change orders to the contract with MP Nexlevel of California, Inc. for related, but
unforeseen work which may develop during the contract term, the total value of which
shall not exceed $881,581 or 10% of total contract.
The total not-to-exceed amount of the contract is $9,697,390, which includes contract
amount of $8,215,809, materials of $600,000, and a 10% contingency of $881,581 over
3 years.
Background
Electric substructure installation and trenching services are contracted out and the volume of
substructure and trenching services varies year over year based on the level of construction and
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development activities in the City. Staff establishes a multi-year contract with a general
contractor to provide trenching and excavation services, and to install electric utility
substructures such as conduits, boxes, and vaults on an as needed basis. The trenching and
substructures are for a variety of customer service installations, replacement of existing
underground electric system equipment, and for fiber optic, streetlight, and communication
services.
Staff creates a scope of work each time the contractor’s services are needed, and the
contractor provides a ‘not to exceed’ quote. Staff must authorize the work prior to the start of
construction. Payment is made upon completion of the work, and acceptance by the City, and
is only for the contractor’s actual costs. For customer-related work, trenching and substructure
costs are reimbursed by the customers through the customer connection charges. These costs
do not contribute to general electric ratepayer expenses. Project completion retention is not
held for these projects as they have a limited scope of work and construction duration and
tracking, and billing would pose an administrative challenge. The existing three-year trenching
and substructure contract with MP Nexlevel is scheduled to end in March 2022.
Discussion
The City does not possess the staffing resources to provide electric substructure installation and
trenching services. Electric substructure and trenching services have been contracted out by
the City for over 28 years. Award of the contract is necessary to complete electric and fiber
optic capital improvement projects in a timely and cost-effective manner. These services are
also occasionally used for maintenance work included in the Operating Budget.
Summary of Bid Process
Bid Name/Number
2022-2025 Utility Trench & Substructure
Installation/IFB 183580
Proposed Length of Project 3 years
Number of Bids Emailed to Contractors 26
Number of Bids Emailed to Builder’s Exchanges 402
Total Days to Respond to Bid 19
Pre-Bid Meeting? Yes
Number of Company Attendees at Pre-Bid Meeting 4
Number of Bids Received: 3
Bid Price Range $8,215,809 to $10,717,695
*Bid summary provided in Attachment A.
Staff has reviewed all bids submitted and recommends that the bid of $8,215,809 submitted by
MP Nexlevel of California, Inc. (MP Nexlevel) be accepted and that MP Nexlevel be declared the
lowest responsible bidder. The bid is 3% below the staff engineer's estimate of $8,500,000.
Staff’s estimate was based on the previous contract for this work adjusted for added quantities
and estimated labor escalation. For example, staff changed the scope of the contract to reflect
actual construction activities performed under the most recent contract such as increasing or
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decreasing number of hours for a skilled worker (i.e. foreman, equipment operator, truck
driver) and types of equipment (i.e. dump truck, directional boring rig). Though the cost of
equipment provided by MP Nexlevel was less than the previous bid, labor costs increased by
18% due to high demand for construction workers and increasing market wages, thus resulting
in the 3% difference between the staff estimate and bid.
The Bids were for labor and equipment costs only. Materials were not included as a bid item
since they will be supplied by either the City or the Contractor, depending on the type of
material required. The estimated cost of contractor supplied materials is $600,000. The full
contract amount requested is $8,215,809, which is MP Nexlevel’s bid price for labor and
equipment, plus $600,000 for materials.
Staff confirmed with the Contractor's State License Board that the contractor has an active
license on file. Staff checked references supplied by the contractor for previous work
performed and found no significant complaints. The work by the contractor will be continually
monitored and evaluated. Continued work under this contract for subsequent fiscal years
FY2023 and FY2024 will be subject to satisfactory performance by the contractor and
appropriation of required funds in the respective fiscal years.
Stakeholder Engagement
This was completed as a public request for proposals and coordinated with internal
stakeholders including the procurement division and legal reviews.
Resource Impact
Funding for FY 2022 activities within contract year one is available in the FY 2022 Adopted
Capital Budgets of the Electric and Fiber Funds via the following projects: Electric Customer
Connections (EL-89028); Electric System Improvement (EL-98003,); Foothills Rebuild (EL-21001);
Fiber Optic Customer Connections (FO-10000) and Fiber Optic System Improvement (FO-
10001). The cost allocation will be based on actual CIP construction work for the Electric and
Fiber fund over the next three years. Staff is requesting approval of the full 10% contingency
amount of $881,581 in the first year of the contract to cover any unforeseen conditions and
prevent delays of CIP work. Funding for FY 2023 and FY 2024 is subject to City Council approval
of the annual appropriation of funds through the annual budget process.
This contract is on the City’s task order 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.
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Staff is advancing this recommendation as reflected in the City’s adopted budget. Should the
City Council wish to defer this project considering other priorities, this item may be removed
from the Consent Calendar. Staff will then return to Council with this and other projects for
reconsideration.
Contract Distribution by Fiscal Year
Description
Year 1
March 2022 –
Feb 2023
FY22 - FY23
Year 2
March 2023 –
Feb 2024
FY23 - FY24
Year 3
March 2024 –
Feb 2025
FY24 – FY25 Total
Labor and Equipment $2,631,923 $2,737,199 $2,846,687 $8,215,809
Materials $200,000 $200,000 $200,000 $600,000
Contingency $881,581 $881,581
Total $3,713,503 $2,937,199 $3,046,687 $9,697,390
Policy Implications
The approval of this contract is consistent with existing City policies including the Council-
approved Utilities Strategic Plan-Strategic Objectives: Priority 4 to manage finances optimally &
use resources efficiently, and specifically Strategy 4, Action 2 to balance customer rates and
service with infrastructure improvements and maintenance.
Environmental Review
This project is categorically exempt from the California Environment Quality Act (CEQA) under
California Code of Regulations sections 15301 (Existing Facilities) and 15302 (Replacement or
Reconstruction), since the contracted services affect existing utility systems and/or facilities
involving negligible or no expansion of capacity.
Attachments:
• Attachment A: Bid Summary
Vendor:Vendor:Vendor:
Bid Item Hours Description Per Hour TOTAL Bid Item Hours Description Per Hour TOTAL Bid Item Hours Description Per Hour TOTAL
1 3000 Foreman $ 130.00 390,000.00$ 1 3000 Foreman $ 137.23 411,690.00$ 1 3000 Foreman $ 162.00 486,000.00$
2 8000 Laborer $ 100.00 800,000.00$ 2 8000 Laborer $ 86.40 691,200.00$ 2 8000 Laborer $ 118.50 948,000.00$
3 300 Equipment Operator $ 130.00 39,000.00$ 3 300 Equipment Operator $ 105.34 31,602.00$ 3 300 Equipment Operator $ 159.50 47,850.00$
4 300 Truck Driver Class A $ 110.00 33,000.00$ 4 300 Truck Driver Class A $ 124.63 37,389.00$ 4 300 Truck Driver Class A $ 106.00 31,800.00$
5 50 Qualified journeyman worker to
perform conduit intercepts in an
energized duct bank
$ 130.00 6,500.00$ 5 50 Qualified journeyman worker to perform conduit
intercepts in an energized duct bank
$ 235.00 11,750.00$ 5 50 Qualified journeyman worker to
perform conduit intercepts in an
energized duct bank
$ 150.00 7,500.00$
6 300 Concrete Finisher $ 100.00 30,000.00$ 6 300 Concrete Finisher $ 86.40 25,920.00$ 6 300 Concrete Finisher $ 113.00 33,900.00$
7 50 Core Driller with operator $ 150.00 7,500.00$ 7 50 Core Driller with operator $ 199.63 9,981.50$ 7 50 Core Driller with operator $ 111.50 5,575.00$
8 50 Concrete Saw with operator $ 250.00 12,500.00$ 8 50 Concrete Saw with operator $ 199.63 9,981.50$ 8 50 Concrete Saw with operator $ 102.00 5,100.00$
9 3000 Foreman’s Truck $ 25.00 75,000.00$ 9 3000 Foreman’s Truck $ 18.36 55,080.00$ 9 3000 Foreman’s Truck $ 16.40 49,200.00$
10 3000 Crew truck, with Hand Tools, and Gas‐
Powered Cutoff Saw
$ 40.00 120,000.00$ 10 3000 Crew truck, with Hand Tools, and Gas‐Powered
Cutoff Saw
$ 29.24 87,720.00$ 10 3000 Crew truck, with Hand Tools, and
Gas‐Powered Cutoff Saw
$ 24.60 73,800.00$
11 100 Compressor and Jackhammer $ 30.00 3,000.00$ 11 100 Compressor and Jackhammer $ 16.19 1,619.00$ 11 100 Compressor and Jackhammer $ 15.10 1,510.00$
12 500 Backhoe $ 80.00 40,000.00$ 12 500 Backhoe $ 46.78 23,390.00$ 12 500 Backhoe $ 27.70 13,850.00$
13 150 Ramhoe $ 120.00 18,000.00$ 13 150 Ramhoe $ 56.67 8,500.50$ 13 150 Ramhoe $ 37.80 5,670.00$
14 2000 Bobtail Truck $ 60.00 120,000.00$ 14 2000 Bobtail Truck $ 40.22 80,440.00$ 14 2000 Bobtail Truck $ 64.20 128,400.00$
15 2500 End‐Dump Truck $ 110.00 275,000.00$ 15 2500 End‐Dump Truck $ 49.72 124,300.00$ 15 2500 End‐Dump Truck $ 69.30 173,250.00$
16 800 10‐wheel Dump Truck $ 110.00 88,000.00$ 16 800 10‐wheel Dump Truck $ 42.22 33,776.00$ 16 800 10‐wheel Dump Truck $ 31.50 25,200.00$
17 50 Boom Truck with Flatbed $ 130.00 6,500.00$ 17 50 Boom Truck with Flatbed $ 79.80 3,990.00$ 17 50 Boom Truck with Flatbed $ 50.40 2,520.00$
18 100 Directional Boring Rig $ 600.00 60,000.00$ 18 100 Directional Boring Rig $ 900.00 90,000.00$ 18 100 Directional Boring Rig $ 70.50 7,050.00$
19 50 Arrow Board $ 30.00 1,500.00$ 19 50 Arrow Board $ 18.18 909.00$ 19 50 Arrow Board $ 5.05 252.50$
20 800 Vac Trailer – 800 Gallons $ 120.00 96,000.00$ 20 800 Vac Trailer – 800 Gallons $ 39.18 31,344.00$ 20 800 Vac Trailer – 800 Gallons $ 25.20 20,160.00$
21 2500 Mini Excavator $ 80.00 200,000.00$ 21 2500 Mini Excavator $ 46.78 116,950.00$ 21 2500 Mini Excavator $ 17.60 44,000.00$
22 100 Bobcat Skid‐Steer $ 70.00 7,000.00$ 22 100 Bobcat Skid‐Steer $ 38.26 3,826.00$ 22 100 Bobcat Skid‐Steer $ 20.20 2,020.00$
23 3000 Equipment Trailer $ 30.00 90,000.00$ 23 3000 Equipment Trailer $ 14.40 43,200.00$ 23 3000 Equipment Trailer $ 3.80 11,400.00$
24 100 A/C Roller $ 30.00 3,000.00$ 24 100 A/C Roller $ 32.09 3,209.00$ 24 100 A/C Roller $ 16.40 1,640.00$
25 100 Estimator $ 150.00 15,000.00$ 25 100 Estimator $ 111.82 11,182.00$ 25 100 Estimator $ 107.00 10,700.00$
26 100 3‐5 Yard Dump Truck $ 60.00 6,000.00$ 26 100 3‐5 Yard Dump Truck $ 40.22 4,022.00$ 26 100 3‐5 Yard Dump Truck $ 27.70 2,770.00$
27 0 NON‐BID‐ITEM Traffic Control Plan $ ‐ ‐$ 27 0 NON‐BID‐ITEM Traffic Control Plan (Cost +) $ ‐ ‐$ 27 0 NON‐BID‐ITEM Traffic Control Plan $ ‐ ‐$
28 0 Traffic Control Per Day (Sub‐ $ ‐ ‐$ 28 0 Traffic Control Per Day (Sub‐Contracted Cost +) $ ‐ ‐$ 28 0 Traffic Control Per Day (Sub‐ $ ‐ ‐$
29 100 Box Shoring $ 50.00 5,000.00$ 29 100 Box Shoring $ 1,150.00 115,000.00$ 29 100 Box Shoring $ 31.50 3,150.00$
30 100 Message Board $ 50.00 5,000.00$ 30 100 Message Board $ 24.25 2,425.00$ 30 100 Message Board $ 25.80 2,580.00$
31 10 Pipe Fusing (100') $ 250.00 2,500.00$ 31 10 Pipe Fusing (100') $ 4,200.00 42,000.00$ 31 10 Pipe Fusing (100') $ 1,020.00 10,200.00$
32 50 Pipe Grouting $ 850.00 42,500.00$ 32 50 Pipe Grouting $ 200.00 10,000.00$ 32 50 Pipe Grouting $ 1,590.00 79,500.00$
33 750 2200 Gallon Vacuum Truck $ 160.00 120,000.00$ 33 750 2200 Gallon Vacuum Truck $ 265.78 199,335.00$ 33 750 2200 Gallon Vacuum Truck $ 378.50 283,875.00$
34 1000 Large Bore Rig $ 750.00 750,000.00$ 34 1000 Large Bore Rig $ 900.00 900,000.00$ 34 1000 Large Bore Rig $ 113.50 113,500.00$
3,467,500.00$ 3,221,731.50$ 2,631,922.50$
Section C
3,467,500.00$ 3,221,731.50$ 2,631,922.50$
3,571,525.00$ 3,318,382.93$ 2,737,199.40$
3,678,670.75$ 3,417,934.42$ 2,846,687.38$
10,717,695.75$ 9,958,048.85$ 8,215,809.28$
TOTAL YEAR ONE
TOTAL YEAR TWO
TOTAL YEAR THREE
GRAND TOTAL FOR YEAR 1,2 AND 3
TOTAL YEAR ONE
TOTAL YEAR TWO
TOTAL YEAR THREE
GRAND TOTAL FOR YEAR 1,2 AND 3
TOTAL YEAR ONE
TOTAL YEAR TWO
TOTAL YEAR THREE
GRAND TOTAL FOR YEAR 1,2 AND 3
TOTAL GRAND TOTAL GRAND TOTAL
Casey Construction, Inc.Hot Line Construction, Inc.MP Nexlevel