Title
Body
MEMORANDUM
TO: Board of Directors- Lake County Sanitation District
FROM: Jan Coppinger, Special Districts Administrator
DATE: November 7, 2017
SUBJECT: (Sitting as the Lake County Sanitation District, Board of Directors) - Consideration of Contract in the amount of $6,948,000 with K.J. Woods Construction, Inc. for the Construction of the Sewer Collection System in Anderson Springs and authorize Board Chair to sign the contract and authorize the Special Districts Administrator to issue the Notice of Award now and issue the Notice to Proceed after the Final Budget Approval and Agreement is received from the State Water Resources Control Board.
EXECUTIVE SUMMARY:
Through the joint efforts of multiple agencies, elected officials and County staff, $10,580,895 has been secured to install a sewer system in the Anderson Springs community. Without the sewer system, most of the 193 homes that burned in the Valley Fire could not be rebuilt. Funding for the sewer system is as follows:
Ø Housing and Community Development (CDBG) - $1,994,263.00 for the onsite installation of wet wells and grinder pumps.
Ø United States Department of Agriculture (USDA) - $1,123,132.00 for Construction Management and Inspection and Capacity Expansion fees to Middletown Sewer Treatment Plant.
Ø State Water Resources Control Board (SWRCB) - $7,401,000 for the engineering, design and environmental as well as the installation of the sewage collection system, force main piping and surface restoration. (Planning and Construction)
The Construction Funding Agreement with SWRCB was for $6,837,000 with a funding approval amount of $7,436,000. This allowed for any overages that might occur with such a complicated project.
The construction will take place in two phases with the first phase installing the main collection system with force main piping and a lateral assembly at each parcel to allow for future connections to be made without disruption or compromise to the entire system. The first phase is to be funded by SWRCB and was budgeted at $6,539,591 including contingencies.
This project was advertised for bid on August 28, 2017and bids were opened on September 28, 2017. Four contractors bid on the project.
Bids received were as follows:
K.J. Woods Construction, Inc. $6,948,000
TerraCon Constructors, Inc. $7,056,671
Argonaut Constructors $7,155,864
Sierra Mountain Construction, Inc. $9,229,883
The lowest bid of $6,948,000 is $408,409 over the budget. SWRCB has been informed that the bids are over the projected budget and directed Special Districts to select the contractor, as the amount is still less than the approved funding amount of $7,436,000. After the contract has been awarded, we will receive a new funding agreement that indicates the amount needed. The contract needs to be awarded for the final agreement as the contract and award date will be referenced in the agreement. SWRCB also wants to be sure the contract is awarded in case the lowest bidder is deemed unqualified or is not selected. SWRCB sent the Approved Credit Review Checklist which indicates that we have been authorized for $7,436,000 to give your Board sufficient confidence in the grant amount to award the contract.
Staff has reviewed the bids and determined that K.J. Woods Construction, Inc. met all requirements of the bid.
Entire contract documents are referenced in the bid package and can be viewed at Special Districts office, 230 N. Main Street, Lakeport, CA from 8:00 AM until 4:30 PM Monday through Friday.
FISCAL IMPACT: _X_ None __Budgeted __Non-Budgeted
Estimated Cost:
Amount Budgeted:
Additional Requested:
Annual Cost (if planned for future years):
FISCAL IMPACT (Narrative): Contract is grant funded.
STAFFING IMPACT (if applicable):
Recommended Action
RECOMMENDED ACTION:
(Sitting as the Lake County Sanitation District, Board of Directors) - Approve Contract in the amount of $6,948,000 with K.J. Woods Construction, Inc. for the Construction of the Sewer Collection System in Anderson Springs and authorize Board Chair to sign the contract and authorize the Special Districts Administrator to issue the Notice of Award now and issue the Notice to Proceed after the Final Budget Approval and Agreement is received by the State Water Resources Control Board.