March 28, 2006

SUBJECT: Award of Bid No. F0501-47 for the Rehabilitation of the Borregas Avenue Sanitary Sewer

REPORT IN BRIEF

Approval is requested for the award of a contract to Insituform Technologies, Inc., of Chesterfield, Missouri, for the rehabilitation of the Borregas Avenue sanitary sewer for the Department of Public Works Engineering Division (Public Works Project No. UY-05/05-06).

BACKGROUND

The Borregas Avenue Sanitary Sewer Project is part of a Capital Improvement Project to replace/rehabilitate the City’s sewer pipes using Community Development Block Grant (CDGB) funds.  The scope of services includes rehabilitating approximately 3,500 lineal feet of 27” vitrified clay pipe (VCP) at Borregas Avenue from Maude Avenue to Ahwanee Avenue using cured-in-place pipe (CIPP) liner.  The CIPP process inserts a resin-saturated felt tube directly into the existing main line.  This polyethelene-coated tube is then cured in place with hot water to create a tight-fitting, jointless and corrosion-resistant liner inside the existing VCP sewer main.  This process minimizes above-ground disruption by eliminating  open trenching and cutting and replacing sections of pipe as is required in conventional sewer line replacement.

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff.  The Notice Inviting Bids was published in The Sun on February 8, 2006.  The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the Onvia DemandStar public procurement network.  Nine contractors requested bid documents.

Sealed bids were publicly opened on March 8, 2006.  One responsive bid was received.

Staff has determined that Insituform Technologies is experienced and well qualified to perform the services and recommends accepting its bid.

The difference in cost between the engineer’s estimate and the bid received is due to changes in field conditions discovered and addressed during the bid process.  The engineer’s estimate is based on an assumed sewage flow of 10 million gallons per day (MGD).  Actual flow measurements taken during the week of February 27 – March 3 indicated 5 MGD; and bid prices were calculated based, on this lower flow rate.  This results in significantly lowered contractor costs for diversion of sewage during construction (i.e. rental of smaller pumps and piping) and is reflected in their bid price.  In addition, observed traffic flow in the construction zone indicated lower vehicular activity than assumed in the initial scope of work, allowing for less stringent traffic control and reduced contractor costs.

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

FISCAL IMPACT

Project costs include:

Funds are available in Capital Project No. 826080 - Borregas Avenue Sanitary Sewer Rehabilitation.

RECOMMENDATION

It is recommended that Council:

1. Award a contract, in substantially the same form as the attached draft and in the amount of $487,700, to Insituform Technologies, Inc., for the Borregas Avenue Sanitary Sewer Project; and

2.  Approve a project contingency in the amount of $73,155.