TITLE
Recommendation to adopt Plans and Specifications No. R-7000 for construction of the Appian Way Low Flow Diversion project; award the contract to Pyramid Building & Engineering, Inc., of Hesperia, CA, in the amount of $488,125, and authorize a 20 percent contingency in the amount of $97,625, for a total contract amount not to exceed $585,750; and authorize City Manager or designee to execute all documents necessary to enter into the contract, including any necessary amendments thereto. (District 3)
DISCUSSION
City Council approval is requested to enter into a contract with Pyramid Building & Engineering, Inc. for construction of the Appian Way Low Flow Diversion Project (Project). The Project consists of installing a 30 gallon per minute low flow diversion (LFD) system at the Los Angeles County Flood Control District's Appian Way pump station, located at 5871 Appian Way beneath the East 2nd Street Bridge. The purpose of the LFD system is to improve water quality in the Alamitos Bay by diverting untreated dry season runoff to the Los Angeles County Sanitation District (LACSD) sewer for treatment. The LFD system consists of the following components: pumping system and controls; effluent monitoring and sampling system; rain gauge; gravity sewer; and manhole as required by the LACSD discharge permit. The control panel and electric meter will be installed on the exterior of the west wall of the pump station and protected with a metal enclosure. As required by Los Angeles County, a new City electric service will be installed to provide power for the system.
The recommended contract award includes the Base Bid, plus Additive Bid A. Additive Bid A includes construction of a Supervisory Control and Data Acquisition (SCADA) system that will connect the LFD to the current citywide system and allow for remote monitoring of the system's flow that will inform City staff of any alarms or operating issues.
The bid was advertised in the Press-Telegram on August 20, 2014, and 3,177 potential bidders specializing in construction were notified of the bid opportunity. Of those bidders, 66 sets of bid documents were purchased or downloaded via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also sent to several trade publications and plan rooms catering to these groups within the construction industry. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority and women-
owned business groups. Eight bids were received on September 16, 2014. Of those eight bidders, none were Minority-owned Business Enterprises (MBEs), two were Women-owned Business Enterprises (WBEs), none were Disadvantaged Business Enterprises (DBEs), five were certified Small Business Enterprises (SBEs), and none were Long Beach businesses (Local). Pyramid Building & Engineering Inc., of Hesperia, CA (an SBE), was the lowest responsible bidder.
Local Business Outreach
In an effort to align with our outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division assists businesses with registering on the Bids Online database to download the bid specifications. Through outreach, 311 Long Beach vendors were notified to submit bids, of which three downloaded and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Linda Vu on October 29, 2014 and by Budget Operations Officer Grace Yoon on November 13, 2014.
SUSTAINABILITY
The LFD system is designed to divert dry weather runoff into the sanitary sewer system to improve water quality by reducing contaminants (bacteria, heavy metals and hazardous materials) from entering our beach waters in Alamitos Bay.
TIMING CONSIDERATIONS
City Council action to adopt Plans and Specifications No. R-7000 and award a contract concurrently is requested on December 2, 2014 to authorize commencement of this capital improvement project.
FISCAL IMPACT
The estimated cost for this project is $800,000 and includes the construction contract award of $585,750 plus the costs for design, technical studies, permitting, design support during construction and inspections. Construction contract costs will not exceed $585,750, including the recommended 20 percent contingency of $97,625. An initial funding set-aside of $600,000 was appropriated for this project by the City Council in the Tidelands Operations Fund (TF 401) as part of the FY 2013 budget and $200,000 for FY 2014 budget, for a total of $800,000 in the Capital Improvement Program Budgets.
Although funds are currently available for this project, due to potential revenue issues, that may not be true for all the Tidelands projects that are in the approved budget or the Tidelands
5-year Capital Plan. Due to the potential for an oil revenue shortfall and the potential for
budget adjustments for subsequent Tidelands projects, there is significant risk that funding will not be available for all the Tidelands projects that may be ready for construction as shown in
the Capital Plan. Adjustments may need to be made to the budget and/or the Tidelands 5-year Capital Plan in the future. This comment will also apply to any other Tidelands project presented for City Council approval until the capital funding situation improves or becomes more predictable.
The State Lands Commission approved Project and the City's cost estimate of $700,000 on December 5, 2012 and June 19, 2014. As required, on November 17, 2014 the City issued a letter to notify the State Lands Commission of the increased cost estimate for the project. All State Lands Commission requirements have been met and the City is ready to proceed with construction. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PATRICK H. WEST
CITY MANAGER
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
ARA MALOYAN, P.E
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER