HomeMy WebLinkAboutStaff Report 2212-07035.Approval of Contract Number C23186274 With Monterey Mechanical Co. in an Amount
Not-to-Exceed $1,500,000 to Provide On-Call Emergency and Critical Construction
Services at the Regional Water Quality Control Plant - Wastewater Treatment Fund
Capital Improvement Program Project WQ-19002; CEQA status—exempt under CEQA
Guidelines sections 15301(b)
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: March 6, 2023
Report #: 2212-0703
TITLE
Approval of Contract Number C23186274 With Monterey Mechanical Co. in an
Amount Not-to-Exceed $1,500,000 to Provide On-Call Emergency and Critical
Construction Services at the Regional Water Quality Control Plant - Wastewater
Treatment Fund Capital Improvement Program Project WQ-19002; CEQA status—
exempt under CEQA Guidelines sections 15301(b)
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Contract No. C23186274 with Monterey Mechanical Co. in an amount not to exceed
$1,500,000 to provide on-call emergency and critical construction services at the Regional Water
Quality Control Plant over a five-year term from March 6, 2023 to March 5, 2028.
BACKGROUND
The City of Palo Alto Regional Water Quality Control Plant (Plant) serves the residents and
businesses of Palo Alto and five neighboring communities (Mountain View, Los Altos, Los Altos
Hills, East Palo Alto Sanitary District, and Stanford University). The Plant operates 24/7 to provide
wastewater treatment, recycled water delivery, and related environmental services to protect
health and safety. From time to time, the Plant requires emergency repairs and construction
services to maintain operations. The City retains a contractor to perform this emergency work on
an on-call basis.
The current contract with Monterey Mechanical Co. (Monterey Mechanical), C201748261, with a
term of September 16, 2019 to March 15, 2023 has a not to exceed contract sum of $750,000,
with $364,649 expended to date and additional expenses pending based on work on the seventh
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2019/id-10526-contract-approval-for-on-call-emergency-and-critical-construction-services.pdf
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task order of the contract; the final work began in January 2023 on repair of an outfall line with
a not to exceed amount of $350,000.
Other work performed by Monterey Mechanical under the current includes a re-build of the Grit
Building roof; excavation and repair of a leak in the 72-inch diameter interceptor in Byxbee Park;
excavation and replacement of a corroded drain line from an odor control system; excavation
and repair of an underground broken process line; and excavation and repairs of leaking joints in
the Plant outfall line in Embarcadero Road. In previous on-call emergency construction service
contracts, repairs have included numerous pipe and structural wall leak repairs and
replacements; installation and removal of inflatable blow-up plugs by specialty underwater
commercial divers to allow for unit process isolation; repair of unsafe work conditions;
replacement of a damaged sewage sludge conveyor plastic liner; replacement of damaged power
distribution equipment; repair of a damaged secondary clarifier mechanism; repair of damaged
isolation stop logs; and excavation and repair of underground utility lines.
ANALYSIS
Staff recommends that Council approve the proposed contract with Monterey Mechanical2 to
provide emergency and critical construction services at the Plant on an on-call basis for a term of
five years.
On November 10, 2022, the City posted an Invitation for Bids for the On-Call Emergency and
Critical Construction Services Project on PlanetBids, the City’s eProcurement platform. The
Engineer’s estimate of $1.5 million is based on a rough approximation of costs, on an annual
basis, associated with typical work orders that have been completed under past On-Call
contracts. The bidding period was 33 days and the City received one bid, from Monterey
Mechanical.
Summary of Bid Process
Bid Name/Number On-Call Emergency and Critical Construction
Services (IFB-186274)
Proposed Length of Project 5-years after Contract Execution
Number of Bid Packages downloaded by
Contractors 21
Number of Bid Packages downloaded by
Builder’s Exchanges 6
Total Days to Respond to Bid 33
2 https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/c23186274-
monterey-mechanical-staff-report.pdf
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Pre-Bid Meeting Yes
Number of Company Attendees at Pre-Bid
Meeting 4
Number of Bids Received:1
Public Link to Solicitation https://pbsystem.planetbids.com/portal/255
69/bo/bo-detail/99723
Bid Price Range $1,500,000
Staff reviewed Monterey Mechanical’s bid and determined it responsive. The bid amount of
$282,950 is based on estimated contractor hours and equipment for some typical work orders
for purposes of comparison with other bids, had they been received; the bid is not an estimate
of what might happen in any given contract year. The hourly rates listed on the bid form are
reasonable.
Staff verified Monterey Mechanical’s license status with the Contractor’s State License Board.
Staff also checked references supplied by the contractor for previous work performed, including
work orders completed by Monterey Mechanical at the Plant over the years and found no
complaints.
The contract term is five years. Work under the contract will be performed through the issuance
of task or work orders which will specify the timeline for completion of each task and
compensation on a time and materials basis.
This recommendation does not represent any change to existing City policies.
FISCAL/RESOURCE IMPACT
Funding for this contract is included in the Fiscal Year 2023 Wastewater Treatment Fund Capital
Improvement Program project Plant Repair, Retrofit, and Equipment Replacement (WQ-19002).
Palo Alto’s cost share of this contract is approximately 35% and the other five agencies’ share is
approximately 65%; these percentages are based on the volume and strength of wastewater
flows from each agency, which varies slightly from year-to-year.
STAKEHOLDER ENGAGEMENT
This project is part of the Plant’s Capital Improvement Program funded by Palo Alto and its five
additional partner agencies. The five partner agencies are regularly updated about both the need
for and the progress on wastewater treatment capital work. Updates are provided each year at
an annual meeting and at other periodic meetings established to inform partner agency staff
about the major capital improvement program. With respect to Palo Alto itself, the open
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meetings on the budget process serve as the main vehicle for engaging the community on both
projects such as this and associated rate impacts.
ENVIRONMENTAL REVIEW
Council action on this item is exempt from review under the California Environmental Quality Act
pursuant to CEQA Guidelines Section 15301(b) because emergency repairs and construction are
maintenance of existing publicly owned wastewater facilities involving no or negligible
expansion.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer