September 21, 2004

SUBJECT: Award of Bid No. F0306-88 for Roof Replacement at the Water Pollution Control Plant Laboratory Building and Approval of Budget Modification No. 5

Approval is requested for the award of a contract to Acker & Guerrero Roof Company, Inc., of Oakland to replace the roof on the Water Pollution Control Plant laboratory building for the Department of Public Works Engineering Division Project Administration (Project #UY-04/01-05). Approval is also requested for Budget Modification No. 5 for additional funding for this project.

The Water Pollution Control Plant laboratory building was built in 1978 as part of the tertiary plant expansion project. The roof on this building is of flat, tar and gravel construction, 6,152 ft² in size. Temporary repairs were made last winter when the roof began to leak.

A city-wide survey of roofs completed in FY 1999/2000 indicated that this roof had a remaining life of approximately three years. Based on this analysis, it was decided to monitor the roof condition and rehabilitate the roof rather than do a full replacement project. Consequently, staff did not include replacement of this roof in the FY 03-04/04-05 Capital Improvement Program (CIP) budget. When the roof developed leaks last winter, it was anticipated that it could be rehabilitated using operating funds in the maintenance budget. However, the extent of the necessary remedial work was significantly greater than originally anticipated. Not only did the roof need to be completely replaced, asbestos was discovered which must be removed as part of any roofing work. For these reasons the projected costs are significantly higher than expected, and the cost and scope of work have expanded beyond what can be considered a maintenance project. The replacement option, which will definitively address the leaks, is therefore considered to be the most cost effective solution to the City overall.

The Environmental Division is in the process of conducting a condition assessment of plant infrastructure. This study will provide the information to determine remaining useful life of infrastructure and to develop a long-term CIP program to ensure timely repair or replacement of the various components.

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on June 30, 2004; and the bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network. Twelve contractors requested bid documents.

Sealed bids were publicly opened on July 28, 2004. Four responsive bids were received.

The engineer’s estimate is significantly less than the low bid because asbestos abatement costs were not included in the estimate. Staff recommends acceptance of the bid from Acker & Guerrero Roof Company, Inc., the lowest responsive and responsible bidder.

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects.

Funds for this project are available in the Resource Allocation Plan reserves of the Wastewater Management Fund. The use of current reserve funds will not negatively impact the Wastewater Management Fund or wastewater rates as the fund has reserves set aside for infrastructure replacement in future years. Staff recommends the approval of Budget Modification No. 5 to allocate funds from the reserves of Fund 455-300 Wastewater Management Fund to a new project, WPCP Laboratory Roof Replacement, in the amount of $152,605 (contract amount of $132,700 plus a contingency in the amount of $19,905).

                                                        Budget Modification No. 5
                                                                    FY 2004/2005

It is recommended that Council:

1. Award a contract, in substantially the same form as the attached draft and in the amount of $132,700, to Acker & Guerrero Roof Company, Inc., for the replacement of the Water Pollution Control Plant laboratory building roof; and

2. Approve a contingency in the amount of $19,905 (15% of construction costs); and

3. Approve Budget Modification No. 5 as described in this report.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Amy Chan
City Manager

A. Draft General Construction Contract (.pdf format)