CC 2024-03-26_09d Award Contract Sewer Lining ProjectItem 9.d.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director
BY: Shannon Sweeney, City Engineer
SUBJECT: Consideration of an Award of Contract to Sancon Technologies, Inc.
(Sancon) for Construction of the Highway 101, Linda Drive, and Arroyo
Grande Cemetery Easement Sewer Lining Project
DATE: March 26, 2024
SUMMARY OF ACTION:
Award a construction contract for the Highway 101, Linda Drive, and Arroyo Grande
Cemetery Easement Sewer Lining Project (Project) to Sancon in the amount of $158,380.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2023-24 budget includes $282,000 of American Rescue Plan Act (ARPA) funds
for the Highway 101, Linda Drive, and Arroyo Grande Cemetery Easement Sewer Lining
Project. The total project cost following bid is estimated to be $158,380 with a
recommended 10% contingency of $15,838. $173,218 are the construction costs
requested to be approved by Council.
Previous expenses on this project include on-call engineering design cost of $36,520. All
costs associated with this project total $210,738, are within the budgeted funds.
Staff time will be necessary during the construction for project administration and
management.
RECOMMENDATION:
1) Award a contract for the Highway 101, Linda Drive, and Arroyo Grande Cemetery
Easement Sewer Lining Project in the amount of $158,380 approved by the City Manager
in consultation with the City Attorney;
2) Authorize the City Manager to approve change orders of up to 10% of the contract
amount, $15,838, for unanticipated costs during the construction phase of the Project;
3) Determine that the Project is catego rically exempt from the California Environmental
Quality Act (CEQA) under the Class 1 exemption, which applies to the operation, repair,
maintenance, permitting, leasing, licensing, or minor alteration of existing structures,
Page 66 of 124
Item 9.d.
City Council
Consideration of an Award of Contract to Sancon Technologies, Inc. (Sancon) for
Construction of the Highway 101, Linda Drive, and Arroyo Grande Cemetery
Easement Sewer Lining Project
March 26, 2024
Page 2
facilities, mechanical equipment, or topographical features where the project involves
negligible or no expansion of existing or former use. (State CEQA Guidelines, § 15301).
BACKGROUND:
The five-year Capital Improvement Program includes funding for the trenchless sewer
repair of various vulnerable sewer mains throughout the city. Trenchless sewer repair is
a phased program, with sections completed each year. This year’s project, the Highway
101, Linda Drive, and Arroyo Grande Cemetery Easement Sewer Lining Project involves
the rehabilitation of sewer pipes that run under Highway 101, from the front to back yard
of an existing home on Linda Drive and through the cemetery easement, using a cured in
place pipe (CIPP) method.
CIPP is a trenchless, no-dig process where a flexible tube is inserted and pulled through
the existing pipes from manholes or clean outs. The flexible tube 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 pipes. This trenchless method allows the pipes to be
rehabilitated in place without having to perform excavation , which would be extremely
disruptive and expensive due to the locations under the highway and through existing
yards.
MKN was hired as the design engineer to develop the technical specifications that formed
the basis of a Notice Inviting Bids that was issued on February 14, 2024. The Notice
Inviting Bids was posted on the City’s website and distributed to plan rooms . In addition,
staff sent an email to three potential bidders to inform them of the project.
One bid was received by the bid opening date and time of March 8, 2024, 2:00 PM. The
bid was for $158,380 (Attachment 1).
ANALYSIS OF ISSUES:
The lowest, and only, responsible bidder for construction of the project was Sancon with
a bid of $158,380. This amount, plus contingency and all other associated anticipated
costs, are within the amount budgeted for this project in FY 2023 -24, though significantly
higher than the engineer’s estimate of $92,500.
Trenchless sewer repair is a specialized technology with a relatively small number of
potential bidders. Despite the low number of potential bidders, staff was concerned about
receiving only one bid. Staff requested that the design engineer reach out to other
potential bidders to see why they did not bid. The response from other potential bidders
is that recent storms have increased their workload and that the City’s project is not large
enough to warrant mobilization.
Page 67 of 124
Item 9.d.
City Council
Consideration of an Award of Contract to Sancon Technologies, Inc. (Sancon) for
Construction of the Highway 101, Linda Drive, and Arroyo Grande Cemetery
Easement Sewer Lining Project
March 26, 2024
Page 3
Staff reviewed Sancon’s bid to verify conformance with the minimum specifications. The
bid was found to be responsible and responsive. Staff contacted the three municipalities
listed as references. The one reference reached provided favorable responses to
questions regarding both the product being installed and the contractor itself.
Staff weighed the value of the project against the cost-effectiveness of proceeding with
the single bid. Given the high cost and disruption that would be associated with replacing
sewer main under the highway, staff believes that proceeding with the bid received is
warranted. In addition, due to the bidding climate in this specialized industry, staff does
not believe that rebidding the project will result in more bids being submitted.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve the recommended actions as proposed;
2. Do not approve staff’s recommendations and request further information;
3. Modify staff’s recommendation and approve; or
4. Provide other direction to staff.
ADVANTAGES:
The CIPP technology allows rehabilitation of sewer mains in place without the need for
more costly disruption and excavation. Moving forward with the project at this time will
allow for the timely expenditure of ARPA funds budgeted to this project.
The section of sewer main under Highway 101 would be very expensive and disruptive
to replace if damaged or if failures in the existing piping material occur. Trenchless sewer
repair is a cost-effective way to protect this important segment of the City sewer system.
DISADVANTAGES:
There will be intermittent water and sewer service disruption for customers during the
project. These disruptions will be minimized as much as possible, and the project
specifications require the contractor to notify affected residents in advance.
Mobilization of the equipment needed to perform the trenchless sewer repair under the
highway will involve vehicles in the street, which will impact traffic. T his work is anticipated
to be performed over one night to minimize disruption to the traveling public.
ENVIRONMENTAL REVIEW:
This project is categorically exempt from the California Environmental Quality Act (CEQA)
under the Class 1 exemption, which applies to the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing structures, facilities,
mechanical equipment, or topographical features where the project involves negligible or
no expansion of existing or former use. (State CEQA Guidelines, § 15301)
Page 68 of 124
Item 9.d.
City Council
Consideration of an Award of Contract to Sancon Technologies, Inc. (Sancon) for
Construction of the Highway 101, Linda Drive, and Arroyo Grande Cemetery
Easement Sewer Lining Project
March 26, 2024
Page 4
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Bid Opening Log Sheet
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ATTACHMENT 1
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