Agenda Item Wording:
title
Airport Sewer Lift Station Rehabilitation Project Award & Appropriation of Funds - Authorize the City Manager to award the construction contract to GSE Construction for the Airport Sewer Lift Station Rehabilitation Project in the amount of $713,650 and authorize the additional appropriation of funds in the amount of $272,000 from the Wastewater Fund (431).
body
Prepared by:
Cody McLaughlin, Associate Engineer, Cody.Mclaughlin@visalia.city, 713-4595
Rebecca Keenan, Senior Civil Engineer, Rebecca.Keenan@visalia.city, 713-4541
Chris Crawford, City Engineer, Chris.crawford@visalia.city, 713-4331
Jason Huckleberry, Eng. & Bldg. Director, Jason.huckleberry@visalia.city, 713-4495
Department Recommendation:
Staff recommends that the City Council:
1. Authorize the City Manager to award a contract with GSE Construction for the Airport Sewer Lift Station Rehabilitation Project in the amount of $713,650; and
2. Authorize an additional appropriation of $272,000 from the Wastewater Fund (431).
Summary:
The airport sewer lift station rehabilitation project will prepare and maintain a temporary sewer by-pass, install a new sewer wastehole, sandblast and coat the existing concrete sewer lift station vault and existing concrete sewer discharge vault, and replace and install new ductile iron piping and lift station pumps. Staff is requesting authorization for the City Manager to award the construction contract to GSE Construction for the Airport Sewer Lift Station Rehabilitation Project in the amount of $713,650 and authorize the additional appropriation of funds in the amount of $272,000 from the Wastewater fund (431).
Background Discussion:
The airport sewer lift station is an existing and currently operating sewer trunkline lift station that services a 42-inch sewer main. The existing lift station is in need of rehabilitation and improvements with current deficiencies including but not limited to deteriorated ductile iron piping and valves, deteriorated concrete lift station vault and concrete discharge vault, and outdated and failing lift station pumps. The existing lift station is a critical section of the sewer trunkline that services an estimated 3.9 million gallons per day. This lift station has a recent history of frequent emergency repairs in order to stay in operation. The completion of this project will refurbish the existing sewer trunkline lift station that serves the northwest industrial district of the city and re-establish it to satisfactory operating condition.
The project improvements include the preparation and maintenance of a temporary sewer by-pass, installation of a new sewer manhole, sandblasting and coating of existing concrete sewer lift station vault and existing concrete sewer discharge vault, replacement of new ductile iron piping and lift station pump.
The City of Visalia previously requested bid proposals for the Airport Sewer Lift Station Rehabilitation Project from a list of pre-qualified contractors that was established through a request for qualified contractors (RFQ) in 2024. The RFQ scope of work included maintenance and repairs to existing sanitary sewer lines, manholes, and lift stations. The pre-qualified list of contractors from this RFQ included four (4) contractors: SW Construction, GSE Construction, RT Nelson Inc., and West Valley Construction. City staff received three (3) bid proposals from the following contractors:
No. Contractor Location Base Bid
1. SW Construction Bakersfield, CA $588,272.94
2. GSE Construction Livermore, CA $713,650.00
3. West Valley Construction San Jose, CA $1,167,980.00
The project was awarded to SW Construction as the apparent low bidder at the Council meeting held on October 7, 2024. After the contract was awarded and prior to the start of construction, additional change order work not included within the scope was identified by the contractor. City staff and the contractor entered negotiations for the cost of the additional change order work but were unable to come to agreeable terms and mutually agreed to terminate the contract.
City staff contacted the second low bidder GSE Construction regarding their bid for the RFB scope of work and the second low bidder confirmed they were still able to perform the work for the project. Due to the length of time that has passed since the initial bids were received, the cost of materials has increased due to continuing inflation and recent tariffs on materials. Contingent on council approval to award the contract to GSE Construction, city staff will prepare a change order for change order committee review and approval in the amount of $86,950.00 to account for the increased amount in material costs.
Fiscal Impact:
As a result of the contract award to the second low bidder there is a $125,377 increase from the original low bidder proposal, as well as an anticipated $86,950 change order for an increase in material costs due to continuing inflation and recent tariffs on materials. City staff has prepared a more conservative construction contingency for this project due to the age and existing state of the sewer lift station and the possibility of unknown discoveries. As a result of the increase in the overall construction cost for the project, the project budget is in a deficiency, refer to the Project Budget Summary below.
|
Airport Sewer Lift Station Rehab (CP0578) |
|
Construction Soft Costs |
|
Construction Surveying |
$8,000 |
|
Staff Time |
$34,000 |
|
Inspections |
$11,250 |
|
Materials Testing |
$9,750 |
|
Subtotal |
$63,000 |
|
|
|
Construction Contract Cost: |
$713,650 |
|
Anticipated Cost Increase Change Order: |
$86,950 |
|
Contingency |
$113,050 |
|
Subtotal |
$913,650 |
|
|
|
|
Project Total Cost: |
$976,650 |
|
Remaining Budget for Construction: |
$705,300 |
|
Project Funds Deficit: |
($271,350) |
|
Appropriation Request |
$272,000 |
Due to the above-identified budget deficit, staff recommends the appropriation of a total of $272,000 for the completion of this project from the Wastewater Fund (431).
Prior Council Action: 10/07/2024: Authorized the City Manager to award a contract with SW Construction for the airport sewer lift station rehabilitation project in the amount of $588,272.94.; and Authorized the appropriation of an additional $468,000 from the Wastewater fund (431).
Other: NA
Alternatives: None Recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award a contract with GSE Construction for the Airport Sewer Lift Station Rehabilitation Project in the amount of $713,650 and authorize an appropriation of an additional $272,000 from the Wastewater Fund (431).
Environmental Assessment Status: Categorical Exemption
CEQA Review: Categorical Exemption
Deadline for Action: 8/18/2025
Attachments:1) Project Location Map; 2) Ownership Disclosure Form; 3) Draft Contract