Subject: REDMOND AVENUE SANITARY SEWER I&I REDUCTION PROJECT

COUNCIL DISTRICT:  10

RECOMMENDATION

Report on bids and award of contract for the Redmond Avenue Sanitary Sewer I&I Reduction Project to the low bidder, Insituform Technologies Inc., in the amount of $685,515, and approval of a contingency in the amount of $69,000.  CEQA:  Exempt, PP01-08-137.

BACKGROUND

An engineering consultant investigation was undertaken in August 2000 to identify sources of groundwater infiltration in the sanitary sewer system. This project was  one of the areas identified in the study. 

Water currently enters the sanitary system through pipe cracks and joints in two parallel sanitary sewers located along Redmond Avenue between Camden Avenue and Cloverhill Drive.  The added groundwater increases flows to the Water Pollution Control Plant (WPCP) and impacts the WPCP’s ability to meet its Bay discharge flow cap. 

This project will install a pipe liner inside the sanitary sewers to block the infiltration of groundwater.  The rehabilitation method selected for this project does not require excavation except when replacing the sanitary sewer laterals thus minimizing the construction impact to the neighborhood.

This project is eligible for reimbursement under the Water Pollution Control Plant’s Infiltration and Inflow (I&I) Reduction Program.  Staff will pursue reimbursement upon completion of the project construction.  The project is scheduled to begin in August  with completion in March 2003.

ANALYSIS

Bids were received on March 7, 2002 with the following results:

The low bid submitted by Insituform Technologies, Inc. is 70 percent below the Engineer’s Estimate.  The Engineer’s Estimate was based on historic bid prices from the previous year. 

The considerable difference between the Engineer’s Estimate and the low bid is attributed to the pipe liner and sewage flow diversion costs.  In the past, pipe liners were manufactured and shipped from other states. These products are now available locally which significantly reduces the shipping and stock charges.  The contractor’s bid to perform the sewage flow diversion was unexpectedly low.  Despite the unexpectedly low bid, the contractor is obligated to perform the diversion in the manner set forth in project specification.  The above referenced factors, the competitive market that now exists among rehabilitation contractors and the downturn in the economy significantly affected the bid price.

The bid documents have been reviewed and found to be in order. A ten percent contingency is requested for this project because the replacement of sanitary sewer laterals and sewer diversion work will require excavations in challenging ground conditions. The project budget is sufficient to accommodate the increased contingency.

PUBLIC OUTREACH

To solicit contractors, this proposed project was listed on the City’s Internet Bid Line and advertised in the San Jose Mercury News and San Jose Post Record.  Bid packages for all Department of Public Works construction projects are routinely provided to a standard list of various contractor organizations, builder’s exchanges, and disadvantaged business organizations.

COORDINATION

This project and memo has been coordinated with the Departments of Environmental Services, Planning, Building and Code Enforcement and Transportation, and the Offices of the City Attorney, Risk Manager and Equality Assurance.

COST IMPLICATIONS

1.      COST OF RECOMMENDATION:  $685,515

2.             COST OF PROJECT:

                                                   Total                        $1,014,515

3.      SOURCE OF FUNDING:  540 – Sanitary Sewer Connection Fee Fund

4.      ESTIMATED START DATE OF CONSTRUCTION:  August, 2002

5.      ESTIMATED COMPLETION DATE OF CONSTRUCTION:  March, 2003

BUDGET REFERENCE

Fund:                                  540

Appn:                                 6444

R.C.:                                  116273

Amount:                             $2,660,000

Budget Document:              2001-2002 Appropriation Ordinance Section 4.01, Item 1(h)

CEQA

Exempt, PP01-08-137.

KATY ALLEN

Director, Public Works Department