COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

June 13, 2003

BOARD MEETING DATE:

June 24, 2003

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Colma Creek Channel Improvements in the City of South San Francisco - Spruce Avenue to San Mateo Avenue – Colma Creek Flood Control Zone

Recommendation

Acting as the Governing Board of the San Mateo County Flood Control District, adopt a resolution awarding and authorizing execution of a contract for the Colma Creek Channel Improvements Project, Spruce Avenue to San Mateo Avenue.

Previous Board Action

Authorized the use of bond financing to accelerate the construction of flood control improvements in the Colma Creek Flood Control Zone.

Adopted Resolution No. 65898 on March 25, 2003, adopting plans and specifications, determining prevailing wage scales, and calling for sealed proposals for the Colma Creek Improvements Project between Spruce Avenue and San Mateo Avenue.

Key Facts

This project will provide protection for the 50-year flood event (a 2% probability of occurring in any one year), in the area where businesses were flooded in November of 2002, due in part to the overtopping of the existing channel.

The Flood Control District will need to issue additional bonds in order to finance this project.

Discussion

Low Bidder

On June 10, 2003, bids were accepted for this project and subsequently referred to this office for checking and recommendation. The bids have been checked and the bid of:

Northwest Construction Company

533 Airport Boulevard, Suite 400

Burlingame, CA 94010

at $10,991,327 was the lowest bid received. The Engineer's estimate was $16,280,000. A summary of the bids received is as follows:

1.

Northwest Construction

$10,991,327

2.

RGW Construction

$12,330,300

3.

ProVen Management

$12,378,598

*

4.

Mitchell Engineers

$12,752,381

5.

R. L. Grusmer

$12,840,327

6.

Granite Rock

$13,480,555

7.

William P. Young

$13,682,875

8.

Shimmick Construction

$13,959,365

9.

Ranger Pipeline

$14,526,548

10.

McGuire & Hester

$15,542,468

11.

Diablo Constructors

$15,644,030

*

The total bid was adjusted due to extension errors (i.e., unit price bid x estimated quantity)

The bid prices are very competitive and substantially lower than the Engineer’s estimate. We discussed the Engineer’s estimate with our consultant and they agreed that their estimate was conservative given the current economy in the Bay Area.

We have reviewed the contract documents and have determined the Affirmative Action Program and the Equal Benefits Compliance Declaration Form submitted by Northwest Construction are in accordance with the current Affirmative Action Guidelines and the County Equal Benefits Ordinance.

Additional Bonding

Bonds in the amount of $15,780,000 were previously sold to finance the accelerated construction of flood control improvements in the Colma Creek Flood Control Zone. A majority of the work in the Zone has been completed or is under construction, except for the Spruce Avenue to San Mateo Avenue Project as discussed above; and improvements from Utah Avenue to Navigable Slough, which is currently being designed.

The Zone currently does not have sufficient cash to finance all of its obligations and the two outstanding projects, as construction costs on some of the projects were higher than originally estimated when the bonds were sold. The Zone does have sufficient revenue to meet its current commitments, make the payment on the bonds that were issued, provide for the maintenance of the facilities that have been or will be constructed, and finance another bond of approximately $6 Million to finish the work as proposed and approved by the Colma Creek Advisory Committee.

The Assistant County Manager has confirmed that the sale of bonds can be completed within four (4) months. The proposed project is estimated to take two construction seasons and the Zone has sufficient cash to begin this project. Therefore we are recommending that the project be awarded now in order that we can begin constructing flood control improvements this construction season in order to complete improvements at the earliest possible date.

Work for the City of South San Francisco

We have also incorporated sewer and road work into the project at the request of the City of South San Francisco. We are currently finalizing an agreement for this work and will bring the agreement to your Board for execution once the agreement has been executed by the City of South San Francisco.

Vision Alignment

We believe our recommendation is consistent with the Shared Commitment to “ensure basic health and safety for all” and Goal Number 7, “maintain and enhance public safety of all residents and visitors”, as the proposed project improves flood protection in the project area for the benefit of both the adjacent property owners as well as the general public.

Fiscal Impact

The total estimated cost of this project including construction and contingencies is $12,091,000, which includes a ten percent (10%) contingency ($1,099,673). The contingency will be used to pay the contractor for work as measured, as the project is bid on a unit price basis (i.e., channel excavation, cubic yard of concrete, structural backfill, etc.); or for extra work such as the removal of unknown subsurface facilities or contaminated soil. We believe we have minimized the possibility of having to do extra work associated with unknown subsurface structures or contaminated soil by researching the records and by doing soil sampling in the area. However, the project is located in an older developed area of South San Francisco that was previously used for industrial purposes, and the possibility of encountering unknown subsurface facilities and contaminated pockets of soil is still possible. Extra work will be authorized by contract change order and we will not pay for work that is not authorized.

The project will be financed by funds by the Colma Creek Flood Control Zone ($12,015,000), with the work for the City of South San Francisco financed by the City ($76,000).

There is no impact to the General Fund.

A form of resolution has been approved by County Counsel.