September 28, 2004

SUBJECT: Award of Bid No. F0306-90 for Chemical System Improvements at the Water Pollution Control Plant

Approval is requested for the award of a contract to D. W. Nicholson Corporation of Hayward for improvements to the Water Pollution Control Plant chemical feed system for the Department of Public Works Engineering Division Project Administration (Project Nos. UY-00/02-01 and UY-02/02-03).

This project, known as the Chemical System Improvement Project, provides for the construction of two scheduled projects: the Chlorinating/Dechlorinating Equipment Replacement Project and the Auto Sodium Bisulfite Project. These projects were combined to provide a more attractive package to prospective bidders and to improve coordination of the two projects during construction within the confines of the Plant. Both involve chemical feed systems that are part of the wastewater treatment process.

The chlorinating/dechlorinating project will replace existing equipment used to inject chlorine as part of the disinfection process. The auto sodium bisulfite project will replace existing equipment used to inject chemicals in the effluent to remove residual chlorine following the disinfection process, thereby allowing the effluent to be used as recycled water. Both projects will provide process automation for enhanced system efficiency. The replacement of this obsolete and worn equipment is particularly important due to safety issues associated with the use of these caustic and dangerous chemicals.

Bid specifications were prepared by Public Works and Purchasing staff. To minimize disruption to Water Plant operations, specifications required the construction and use of temporary systems while replacements are made to existing equipment and controls.

The Notice Inviting Bids was published in The Sun on June 30, 2004. The bid package was distributed to the Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network. Eighteen contractors requested bid documents.

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

Bidders	Total Bid
Engineer's Estimate	$749,000
D. W. Nicholson Corporation of Hayward	$760,000
O. C. McDonald Co., Inc., of San Jose	$861,972
Pacific Infrastructure of Pleasanton	$901,000

Staff recommends acceptance of the bid from D. W. Nicholson Corporation, 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.

Project costs include:

Construction	$760,000
Contingency (15% of construction costs)	$114,000
Total cost	$874,000

Funds for this project are available in Wastewater Project No. 820821 - Chlorinating and Dechlorinating Equipment Replacement. In a separate Report to Council also being presented on September 28, 2004, Staff is recommending the adoption of Budget Modification No. 6. Budget Modification 6 first authorizes the carryover of the FY 2003/2004 Project Budgets for Project No 822620 (Auto Sodium Bisulfite System for Recycled Water Delivery) and for Project No. 820821. The Modification then re-appropriates funds between projects to fully fund this work under Project No. 820821 (Chlorinating and Dechlorinating Equipment Replacement).

It is recommended that Council:

1. Award a contract, in substantially the same form as the attached draft and in the amount of $760,000, to D. W. Nichloson Corporation for construction of the Chemical System Improvements Project; and

2. Approve a project contingency in the amount of $114,000.

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)