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CC 2016-08-23_09h Award Contract AG Creek Sewer Rehab MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO INSITUFORM TECHNOLOGIES, LLC FOR THE ARROYO GRANDE CREEK SEWER REHABILITATION PROJECT, PW 2016-05 DATE: AUGUST 23, 2016 RECOMMENDATION: It is recommended the City Council: 1. Award a contract for the Arroyo Grande Creek Sewer Rehabilitation project to Insituform Technologies, LLC in the amount of $145,331; 2. Authorize the Acting City Manager to approve change orders for 10% of the contract amount, $14,533 for unanticipated costs during the construction phase of the project (total construction costs = $145,331 + $14,533 = $159,864); 3. Direct the City Clerk to file a Notice of Exemption. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: An allocation of $246,900 is available in the adopted FY 2015-16/FY 2016-17 Capital Improvement Program budget for the project. The total cost of the project including design, construction inspection and contingencies is estimated at $184,602. BACKGROUND: The project scope of work involves the rehabilitation of approximately 2,435 linear feet of sewer pipe along Arroyo Grande creek east of Clarence Avenue to Paulding Circle, and for a section of pipe between North Mason Street and Crown Terrace, north of East Branch Street. The pipe will be rehabilitated using a cured in place pipe (CIPP) method. CIPP is a trenchless (or no-dig) process where a flexible tube is inserted and pulled through the existing pipe from manholes and is then cured using either hot water under hydrostatic pressure or steam pressure, to expand the tube to tightly bond with the interior of the existing pipe. This trenchless method allows the pipe to be rehabilitated in place without having to perform excavation and pipe replacement. Item 9.h. - Page 1Item 9.h. - Page 1 CONSIDERATION OF AN AWARD OF CONTRACT TO INSITUFORM TECHNOLOGIES, LLC FOR THE ARROYO GRANDE CREEK SEWER REHABILITATION PROJECT, PW 2016-05 AUGUST 23, 2016 PAGE 2 ANALYSIS OF ISSUES: On August 9, 2016, four bids were opened for the Arroyo Grande Creek Sewer Rehabilitation project. The lowest bid, from Insituform Technologies, LLC, was in the amount of $145,331. The bid has been determined to be responsive and Insituform Technologies, LLC to be a responsible bidder. It is recommended to award a construction contract to Insituform Technologies, LLC. Insituform Technologies completed the City’s last lining project on time and under budget. The contract time is 45 working days. Work is expected to be accomplished between September and November 2016. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Award a construction contract to Insituform Technologies, LLC for the Arroyo Grande Creek Sewer Rehabilitation project; 2. Do not award a construction contract for the project; or 3. Provide direction to staff. ADVANTAGES: The technology allows rehabilitation of sewer mains in place without having the need for more costly excavation. DISADVANTAGES: There will be intermittent sewer service disruption for customers during the project. These will be minimized as much as possible and the project specifications require the contractor to notify affected residents in advance. ENVIRONMENTAL REVIEW: The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guideline Section 15301(b) for existing sewer facilities. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in accordance with Government Code Section 54954.2. Attachment: 1. Bid Opening Log Sheet 2. Notice of Exemption Item 9.h. - Page 2Item 9.h. - Page 2 Attachhment Noo. 1 Item 9.h. - Page 3Item 9.h. - Page 3 Attachhment Noo. 2 Item 9.h. - Page 4Item 9.h. - Page 4