DATE: March 18, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Approving Addendums No. 1, No. 2, No. 3 and No. 4, and Authorizing the City Manager to 1) Award a Construction Contract to Rodan Builders, Inc., for a Not-to-Exceed Amount of $43,967,000, 2) Amend the Existing Professional Service Agreements with Carollo Engineers and Brown, and Caldwell for the Water Resource Recovery Facility’s (WRRF) New Administration Building and Laboratory Project, Project No. 07786 and WRRF Phase II Improvement Project No. 07760
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RECOMMENDATION
Recommendation
That City Council adopts the attached resolution (Attachment II):
1. Approving Addendums No. 1, No. 2, No. 3, and No. 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions for the Water Resource Recovery Facility’s (WRRF) New Administration Building and Laboratory Project, Project No. 07786;
2. Authorizing the City Manager to Award a Construction Contract to Rodan Builders, Inc., (Rodan Builders) for the WRRF New Administration Building and Laboratory Project No. 07786, in an Amount Not-to-Exceed $43,967,000;
3. Authorizing the City Manager to Amend the Professional Services Agreement (PSA) with Brown and Caldwell, California Corporation (Brown and Caldwell), to include engineering services during construction for the WRRF New Administration Building and Laboratory Project, as well as bid period services for the WRRF Improvements - Phase II, increasing the contract amount by $1,422,748 to a not-to-exceed limit of $18,095,575; and
4. Authorizing the City Manager to Amend the PSA with Carollo Engineers, Inc. (Carollo), to include construction management services for the WRRF New Administration Building and Laboratory Project increasing the contract amount by $3,428,409 to a not to exceed limit of $4,378,034.
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SUMMARY
The WRRF treats an annual average flow of approximately eleven million gallons per day (MGD) and meets current requirements to discharge treated effluent to the deep waters of the San Francisco Bay. The existing Administration Building and Laboratory at the WRRF was originally constructed in 1970 and has been modified twice to accommodate staff needs. With the increase in staff due to higher regulatory requirement demands, the building is obsolete and is no longer adequate to house all of the WRRF staff. In June of 2020, the Phase II Facilities Plan recommended replacement of the existing administration building and laboratory. The deficiencies of the existing building are expected to be further exacerbated by the Regional Water Quality Control Board’s issuance in July 2024 of the Regional Watershed Permit, which is projected to eventually trigger further increases in staffing needs at the WRRF.
The WRRF New Administration Building and Laboratory Project includes the construction of a two-story operations and laboratory building with a solar carport parking lot in the footprint of the old administration building and parking lot. On December 3, 2024 , City Council approved the plans and specifications for the WRRF New Administration Building and Laboratory Project, Project No. 07786, and called for construction bids to be received.
On February 11, 2025, six (6) bids were received ranging from $39,970,000 to $48,787,000 for the Project. The low bid was $39,970,000, which was $3,370,000, or 9.2% above the Engineer’s Estimate of $36,600,000. It should be noted that of the 6 bids, 5 of the bids were within $2 million dollars, or 4.5% of each other, indicating a competitive bidding environment and that the low bid reflects the a reasonable cost of the improvements.
Staff is requesting City Council approval of Addendums No. 1, No. 2, No. 3, and No. 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions. Staff recommend awarding the construction contract to the lowest responsive and responsible bidder, Rodan Builders, Inc., of Hayward, CA, with the amount of $39,970,000, and approving an Administrative Construction Contingency (change orders) Budget of $3,997,000 for a total of $43,967,000.
Brown and Caldwell has performed design, pre-construction, and bidding services for the WRRF New Administration Building and Laboratory Project. Staff is requesting City Council approval to amend the PSA with Brown and Caldwell (B&C) to include engineering services during construction. In addition, the WRRF Improvements - Phase II is at the 90% design stage and is expected to release bid documents in Fall 2025. Staff is requesting City Council approval to amend the PSA with B&C to include bid period services for the WRRF Improvements - Phase II, Project No. 07760. Brown and Caldwell’s engineering and bid period services for the two WRRF projects would increase the contract amount by $1,422,748 to a not-to-exceed limit of $18,095,575.
Furthermore, Staff is requesting City Council approval to amend the PSA with Carollo to include construction management services for the Administration Building and Laboratory Project, increasing the contract amount by $3,428,409 to a not to exceed limit of $4,378,834.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution