ORDINANCE appropriating $7,702,102.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to PEPPER-LAWSON WATERWORKS, LLC for East Water Purification Plant Clearwell Condition Assessment and Replacement of Select Valves and Actuators; setting a deadline for the bidder’s execution of the contract and delivery of all bonds, insurance, and other required contract documents to the City; holding the bidder in default if it fails to meet the deadlines; providing funding for engineering testing, CIP Cost Recovery, design services during construction, construction management and contingencies relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund - DISTRICT E - MARTIN

SUBJECT:  Contract Award for East Water Purification Plant (EWPP) Clearwell Condition Assessment and Replacement of Select Valves and Actuators, WBS Number S-000056-0070-3 and S-000056-0070-4.

RECOMMENDATION:  (Summary)  Accept low bid, award Construction Contract and appropriate funds.

PROJECT NOTICE/JUSTIFICATION: This project is part of the City’s Capital Improvement Program and is required to increase the safety, reliability, and efficiency of operations at the East Water Purification Plant.

DESCRIPTION/SCOPE: This project consist of construction of a passive overflow system at plants 1 and 2 to accomplish diversion of plant flows from treatment process units to designated on-site detention area during power outage-induced overflow events and the construction of sodium bisulfite system to accomplish chloramine control of overflow discharges. The project also includes the expansion of existing on-site storm water detention area, the structural reinforcement of the clearwell,  clearwell cleaning (to remove buildup of scale and lost media) and automating control of existing plant 2 filter effluent discharge valve actuators (to accomplish programmed shut-off via on-site generator connection, during power outage due to overflow events)

The contract duration for this project is 615 calendar days. This project was designed by Carollo Engineers, Inc.

LOCATION:  This project is located at 2300 Federal Road in key map grids 496 U and Y.

BIDS:  This project was advertised for bidding on March 18, 2016.  Bids were received on April 28, 2016. The three (3) bids are as follow:

            Bidder                                                                           Bid Amount

1.         Pepper Lawson Waterworks, LLC                            $6,455,660.00

2.         Industrial TX Corporation                                         $6,507,060.00

3.         LEM Construction Company, Inc.                             $6,588,360.00

AWARD:  It is recommended that this construction contract be awarded to Pepper Lawson Waterworks, LLC               with a low bid of $6,455,660.00 and that Addendum Number 1 be made a part of this contract

PROJECT COST:  The total cost of this project is $7,702,120.00 to be appropriated as follows:

• Bid Amount                                                $6,455,660.00

• Contingencies                                            $322,783.00     

• Engineering and Testing Services             $80,000.00

• CIP Cost Recovery                                    $193,677.00

• Design Services During Construction        $50,000.00    

•  Construction Management                        $600,000.00

Engineering and Testing Services will be provided by Gorrondona & Associates, Inc. under a previously approved contract.

Construction Management Services will be provided by CB&I Environmental & Infrastructure, Inc. under a previously approved contract.

Design Services during Construction will be provided by Carollo Engineers, Inc. under a previously approved contract.

HIRE HOUSTON FIRST:  The proposed contract requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston business and supports job creation.  In this case, Pepper Lawson Waterworks, LLC is a designated HHF company, but they were the successful awardee without application of the HHF preference.

PAY OR PLAY PROGRAM:  The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides health benefits to eligible employees in compliance with City policy.

M/WSBE PARTICIPATION: The low bidder has submitted the following proposed program to satisfy the 13% MBE goal and 7% WBE goal for this project:

ESTIMATED FISCAL OPERATING IMPACT: 

No significant Fiscal Operating impact is anticipated as a result of this project.

All known rights-of-way, easements and/or right-of-entry required for the project have been acquired. 

$7,702,120.00 Total Cost

Ravi Kaleyatodi, P.E., CPM

Phone:  (832) 395-2326