Agenda Item No. 9A May 24, 2011 TO: Honorable Mayor and City Council Attention: Laura C. Kuhn, City Manager FROM: Rod Moresco, Director of Public Works/City Engineer SUBJECT: RESOLUTION TO AWARD THE CONSTRUCTION CONTRACT FOR THE

EASTERLY WASTEWATER TREATMENT PLANT (EWWTP) TERTIARY PROJECT - DENITRIFICATION IMPROVEMENTS

DISCUSSION: Eight (8) bids were received on March 17, 2011, for the subject project. The apparent low bidder was C. Overaa and Company of Richmond, California, with a bid of $22,630,000, 24.6% below the Engineer’s Estimate of $30,000,000. The following bids were received:

ENGINEER’S ESTIMATE: $30,000,000 BID

ORDER CONTRACTOR TOTAL BID AMOUNT

1 C. Overaa and Co. $22,630,0002 SJ Amoroso Construction Company, Inc. $22,847,0003 Gateway Pacific Contractors, Inc. $23,411,1214 GSE Construction Company, Inc. $23,523,0005 KG Walters Construction Company, Inc. $23,529,0006 W. M. Lyles Company $23,890,0007 Auburn Constructors, Inc. $24,215,3008 Alder Engineering and Construction Company $26,334,500

Subsequent to the opening of bids, the City received two bid protests. One from the Northern California Electrical Construction Industry (NCECI), and one from Farley Associates (Farley), a firm that provides contract compliance services to the United Association of Journeyman and Apprentices for the Plumbing Industry and Pipe Fitting Industry, Plumbers & Steamfitters Local Union No. 343. In general, the former raised concern over the responsibility of C. Overaa and Co. and their electrical subcontractor HGH Electric. The protest letter from NCECI and staff’s response is attached as Exhibit 1A and 1B, respectively. In general, the latter raised concern about using the proper classification of labor to perform the plumbing work required for this project, and paying the appropriate prevailing wage rates for the same. The protest letters from Farley and staff’s responses are attached as Exhibits 2A, 2B, 2C and 2D. Staff reviewed the protest letters, investigated the alleged issues, and determined that there was no basis upon which to reject C. Overaa and Co.’s bid, and responded to both complainants stating that despite the allegations in each protest, the City finds C. Overaa and Co. to be a responsible contractor, and their bid to be responsive. The EWWTP Tertiary Project - Denitrification Improvements is the first of four planned construction projects that are needed to meet the requirements of the City’s current National Pollutant Discharge Elimination System (NPDES) permit. The project includes facilities that are needed to meet the denitrification regulatory requirement by May 2013, as well as facility upgrades to improve operations at the plant.

The City hired HDR Engineering, Inc., to design the denitrification improvements and prepare plans and contract documents for construction of the project. The project includes the modification of the existing headworks and grit handling equipment; expansion and modification of the existing aeration basins; construction of a new flow equalization basin; modification to the existing biosolids storage lagoon; addition of a second 2MW standby generator; and installation of perimeter landscaping encompassing the plant property. The work period allowed for the completion of this project is 582 calendar days. Work is anticipated to begin late June 2011, and should be completed in Spring 2013. An Environmental Impact Report was prepared for the project pursuant to the provisions of California Environmental Quality Act and certified as adequate by the Planning Commission on April 20, 2010. Applicable mitigation measures have been included in the contract documents and/or will be carried out during the construction process. FISCAL IMPACT: Long-term funding for the project will be provided through a State Revolving Fund (SRF) funding agreement secured from the State of California Department of Water Resources (DWR). The funding agreement is to be repaid using funds from the Sewer Operations and Maintenance, and Sewer Capital Development Impact Fee funds. With the SRF loan, there is sufficient funding in the project budget. There is no impact to the General Fund as a result of this action. RECOMMENDATION: By simple motion, that the City Council of the City of Vacaville adopt a resolution to approve the project plans, project manual, and working details for the project; award the construction contract for the EWWTP Tertiary Project – Denitrification Improvements to the lowest responsive, responsible bidder C. Overaa and Co. of Richmond, California; and authorize the Director of Public Works to execute said contract in the amount of $22,630,000. Attachments

RESOLUTION NO.

RESOLUTION TO AWARD THE CONSTRUCTION CONTRACT FOR THE EASTERLY WASTEWATER TREATMENT PLANT (EWWTP) TERTIARY PROJECT –

DENITRIFICATION IMPROVEMENTS WHEREAS, the EWWTP Tertiary Project – Denitrification Improvements (PROJECT) is the first of four planned construction projects that are needed to meet the requirements of the City’s current National Pollutant Discharge Elimination System (NPDES) permit; and WHEREAS, eight (8) bids were received on March 17, 2011, for the construction of the PROJECT; and WHEREAS, C. Overaa and Co. of Richmond, California, was the apparent low bidder with a bid of $22,630,000; and

WHEREAS, the City received two bid protests questioning the responsiveness of the bid and the responsibility of C. Overaa and Co.; and

WHEREAS, the City investigated the two bid protests fully and completely and found C.

Overaa and Co. to be responsible and their bid to be responsive; and

WHEREAS, immediate funding will be provided through a State Revolving Fund (SRF) loan administered by the State of California Department of Water Resources, which will be repaid using funds from the Sewer Operations and Maintenance, and Sewer Capital Development Impact Fee funds; and

WHEREAS, the Contractor has 582 calendar days in which to complete the work; and

WHEREAS, an Environmental Impact Report was prepared for the project pursuant to the provisions of California Environmental Quality Act and certified as adequate by the Planning Commission on April 20, 2010. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby approve the project plans, project manual, and working details for the project; award the construction contract for the EWWTP Tertiary Project – Denitrification Improvements to the lowest responsive, responsible bidder, C. Overaa and Co. of Richmond, California; and authorize the Director of Public Works to execute said contract in the amount of $22,630,000. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 24th day of May 2011, by the following vote: AYES: NOES: ABSENT: ATTEST Michelle A. Thornbrugh, City Clerk

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EXHIBIT 1B

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EXHIBIT 2C