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RTC#01-139

May 1, 2001

SUBJECT:

Award of Bid No. F0003-67 for the Replacement of Sanitary Pipe on Arques Avenue and Budget Modification No. 36

REPORT IN BRIEF

Approval is requested for the award of a contract to D’Arcy & Harty Construction, Inc., of San Francisco for the replacement of existing sanitary sewer lines with larger capacity pipe on two sections of Arques Avenue for the Department of Public Works Project Administration Division (Project #UY-01/01-01). Approval is also requested for Budget Modification No. 36 for additional funding for these projects.

BACKGROUND

On June 15, 1999, Council approved Use Permit No. 1998-1196 relating to the Specific Plan for development of the Applied Materials Arques Campus. One of the mitigation requirements was for Applied Materials to contribute toward the improvement of the existing sanitary sewer on Arques Avenue. Subsequently, during discussions with the City, Applied Materials proposed to replace the existing sewer (from 974 Arques Avenue to Lawrence Expressway) by the pipe bursting method to minimize construction time and the disruption of traffic on Arques Avenue. The City advised Applied Materials that any construction work on the existing sewer would have to be treated as a City public works project. Applied Materials contracted with Brian-Kangas-Foulk to prepare the construction documents.

Around the same time, it was found that a segment of the sanitary sewer line on Arques between Roosevelt and Murphy Avenues was cracked and out-of-round. To minimize City design costs by taking advantage of the pipe bursting design already in progress for Applied Materials, the City contracted with Brian-Kangas-Foulk to prepare detailed construction documents for the City’s portion of the Arques Avenue project.

DISCUSSION

This public works project includes two separate construction zones on Arques Avenue. Section A, 974 Arques Avenue to Lawrence Expressway, involves replacement of 2,515 linear feet of 10" vitrified clay sewer pipe with 14" high density polyethylene (HDPE) pipe to provide the additional capacity needed to handle Applied Materials’ increased discharge. Section B, Roosevelt Avenue to Murphy Avenue, involves replacement of 1,700 linear feet of cracked 21" vitrified clay sewer pipe with 24" HDPE.

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on April 4, 2001; and the bid package was distributed to Bay Area Builders Exchanges. In addition, direct notice was given to eight local pipeline contractors.

Sealed bids were received and publicly opened on April 18, 2001. Four responsive bids were received.

Bidder

Section A

(974 E. Arques Ave. to Lawrence)

Section B

(Roosevelt Ave. to Murphy)

Total Bid

Engineer’s Estimate

    

$765,000

D’Arcy & Harty Construction, Inc., of San Francisco, CA

$251,320

$407,844

$659,164

K. J. Woods Construction, Inc., of San Francisco, CA

$369,500

$374,500

$744,000

Mocon Corporation of Portland, OR

$387,000

$360,000

$747,000

ARB, Inc., of Lake Forest, CA

$755,000

$776,000

$1,531,000


Staff recommends acceptance of the bid from D’Arcy & Harty, the lowest responsive and responsible bidder.

The project is categorically exempt from CEQA environmental reviews as it involves installation/repair of an existing pipeline less than one mile in length within public right-of-way.

FISCAL IMPACT


Section A will be fully funded by a contribution from Applied Materials, as follows:

Section A – 974 East Arques Avenue to Lawrence Expressway:

  

D’Arcy & Harty Construction, Inc. (Base Bid)

$ 251,320

Construction Contingency (10% of Bid)

25,100

Consultant Costs

17,600

Direct Expenditures

1,900

Total Project Costs Section A

$ 295,920

It will be necessary to recognize the Applied Materials contribution as revenue and the related project expenditures in the FY 2000/2001 Adopted Budget.
   

Section B will be funded by the Sewer Revenue Fund. The FY 2000/2001 Adopted Budget currently has $38,000 budgeted in the Sewer Pipes, Manholes, and Laterals Replacement project, of which approximately $29,596 is available to fund Section B. This project funds miscellaneous small sanitary sewer projects that may arise during the fiscal year. However, an additional $439,144 is needed to fully fund these projects. These monies are available in the Sewer Revenue Fund.

 

Section B – Roosevelt Avenue to Murphy Avenue:

  

D’Arcy & Harty Construction, Inc. (Base Bid)

$ 407,844

Construction Contingency (10% of Bid)

40,800

Consultant Costs

16,996

Direct Expenses

3,100

Total Project Costs Section A

$ 468,740

Funds Available in the Sewer Pipes, Manholes, and Laterals Replacement project

(29,596)

Total Funds Needed

$ 439,144

BUDGET MODIFICATION NO. 36

FY 2000/2001
 

Current

  

Increase/
(Decrease)

  

Revised

Capital Projects Fund – Sewer Assets
             

Expenditures:

            

Sewer Pipe Replacement - East Arques Avenue to Lawrence Expressway

  

$ 0

  

$ 295,920

  

$ 295,920
             

Sewer Pipe Replacement – Roosevelt Avenue to Murphy Avenue

  

$ 0

  

$ 468,740

  

$ 468,740
             

Sewer Pipes, Manholes & Laterals*

  

$ 38,000

  

$ (29,596)

  

$ 8,404
             

Revenues:

            

Applied Materials Contribution

  

$ 0

  

$ 295,920

  

$ 295,920
             

Transfer In from Sewer Revenue Fund

  

$ 600,750

  

$ 439,144

  

$1,039,894
             

Sewer Revenue Fund

Reserves:

            

Rate Stabilization

  

$ 7,231,359

  

$ (439,144)

  

$6,792,215
 

  • The Sewer Pipes, Manholes & Laterals project is in the Infrastructure Renovation and Replacement Fund – Sewer Assets. This budget modification will re-appropriate $29,596 to the Sewer Pipe Replacement – Roosevelt Avenue to Murphy Avenue project by transferring $29,596 to the Capital Projects Fund – Sewer Assets.

RECOMMENDATION

It is recommended that Council award a contract to D’Arcy & Harty Construction, Inc. in an amount not to exceed $725,064 ($659,164 bid amount plus a contingency of $65,900) and approve Budget Modification No. 36 as described in this report.

Prepared by:
Elaine Wesely,
Purchasing Officer

Reviewed by:
Mary J. Bradley,
Director of Finance

Reviewed by:
Marvin Rose,
Director of Public Works

Approved by:
Robert S. LaSala,
City Manager

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