Resolution No. 7486 Award Water Main Replacement Project March 21, 2023
DA
TE: March 21, 2023
T
O: Honorable Mayor and City Council
F
ROM: Paul Cranmer, Public Works Services Director
By: Tiffany Lee, P.E. Senior Civil Engineer
SUBJ
ECT: RESOLUTION NO. 7486 AMENDING THE FISCAL YE AR 2 022-23
CAPITAL IMPROVEMENT PROGRAM BUDG ET, AUTHORIZING A
SUPPLEMENTAL BUDGET APPROPRIATION FOR THE WATER MA IN
REPLACEMENT PR OJECT IN THE AMOUNT O F $79,497.70, OFFSET BY A REDUCTION IN AMERICAN RESCUE PLAN ACT (“ARPA”) FUNDS, AND APPROVE A CONTRACT WITH 316 ENGINEERING &
CONSTRUCTION, INC. FOR THE WATER MAIN
REPLACEMENT PROJECT IN THE AMOUNT OF $435,9 07,
INCLUDING A 10% CONTINGENCY
CEQA: Exempt
Recommendation: Adopt and Approve
SUMMARY
The C
ity of Arcadia’s Water Main Replacement Program is designed to replace aged and deteriorating water mains throughout the City’s water distribution system. The water main replacement project identified as part of the F iscal Year 2022-23 Capital Improvement Program (“CIP”) includes the replacement of the 4-inch water main along the Alley south of La Porte Street between First Avenue and Saint Joseph Street. To ensure the City is receiving the most competitive prices and quality service for this work, a formal bidding process was conducted; 316 Engineering & Construction, Inc. submitted the lowest responsive bid.
I
t is recommended that the City Council adopt Resolution No. 7486 amending the Fiscal Year 2022-23 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the Water Main Replacement Project in the amount of $79,497.70, offset by a reduction in American Rescue Plan Act ( “ARPA”) Funds, and approving a contract with 316 Engineering & Construction, Inc. for the Water Main Replacement Project in the amount of $435,907, including a 10% contingency.
Resolution No. 7486 Award Water Main Replacement Project March 21, 2023
BACKGROUND
The 4-inch steel water main along the Alley south of La Porte Street between First Avenue and Saint Joseph Street was installed in 1916. A copy of the Project Location Map is shown on Exhibit “A”. In recent years, Public Works Services maintenance crews have made several emergency repairs to this water main, primarily due to its age. The proposed project will replace the existing 4-inch steel water main with an 8-inch ductile iron water main. Ductile iron is the industry standard for water pipe and has corrosion resistance and strength. Ductile iron can also tolerate movement or deflection without breaking. This will result in improving the overall reliability of the City’s water distribution system.
DISCUSSION
A Notice Inviting Bids was published in the City’s adjudicated news paper and bid packages were provided to contractors that perform this type of work . On February 28, 2023, the City Clerk received eight sealed bids with the following results:
Company Location Bid Amount
316 Engineering & Construction,
Inc. Rosemead $ 435,907.00
G&A Nelos Construction, Inc. Lake Elsinore $ 498,851.28 Palp, Inc. dba Excel Paving Long Beach $ 523,737.00
GCI Construction, Inc. San Clemente $ 540,644.00
Cedro Construction, Inc. Santa Paula $ 546,515.00
Dominguez General Engineering
Inc. Pomona $ 616,140.00
Colich & Sons L.P. Gardena $ 763,030.00
Bonadiman Water Inc. Riverside $ 899,850.00
Bid documents were reviewed for content and the contractor’s background was also investigated. Based on the review, it has been determined that 316 Engineering & Construction, Inc. is the lowest responsive bidder for this work . 316 Engineering & Construction, Inc. has successfully completed other projects for the City of Arcadia, and has also completed similar projects for LA County Public Works, and the cities of Adelanto, El Monte, and Lynwood.
Resolution No. 7486 Award Water Main Replacement Project March 21, 2023
Funds in the amount of $400,000 are budgeted in the Fiscal Year 2022-23 Capital Improvement Program Budget for the Water Main Replacement Project. The total cost for this project is $435,907. Furthermore, a 10% contingency is being requested for this project to ensure sufficient budget, in the event of unforeseen additional work that may be necessary. Inflation has contributed to an increase in material costs and labor rates , consequently, the amount budgeted is less than the actual cost of this project. Therefore, a budget appropriation is being requested in the amount of $79,497.70 to supplement the existing Water Main Replacement Project Budget and cover the entire project cost.
ENVIRONMENTAL ANALYSIS
This project involves the replacement and minor alteration of an existing utility system with no expansion of the system , and therefore, qualifies as a Class 2 categorical exemption per Section 15302(2) of the California Environmental Quality Act (“CEQA”).
FISCAL IMPACT
Funds in the amount of $400,000 have been budgeted in the Fiscal Year 2022-23 Capital Improvement Program for the Water Main Replacement Project. The total cost for this Project is $435,907 and with the addition of a 10% contingency, the project cost would be $479,497.70. A budget appropriation in the amount of $ 79,497.70, offset by a reduction in ARPA funds, will supplement the existing Water Main Replacement Project Budget to cover the entire potential project cost. This project is an eligible use of ARPA funds and the City currently has ample ARPA funds available to cover the requested amount. In the event the contingency is not needed, unused funds will be returned to the ARPA reserve.
RECOMMENDATION
It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7486 amending the Fiscal Year 2022- 23 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the Water Main Replacement Project in the amount of $79,497.70, offset by a reduction in American Rescue Plan Act (“ARPA”) funds, and approve a contract with 316 Engineering & Construction, Inc. for the Water Main Replacement Project in the amount of $435,907, including a 10% contingency.
Resolution No. 7486 Award Water Main Replacement Project March 21, 2023
Attachments: Exhibit “A” - Project Location Map
Proposed Contract
Resolution No. 7486
CITY OF ARCADIA
WATER MAIN REPLACEMENT PROJECT
PROJECT NO.: 65720523
BETWEEN
CITY OF ARCADIA
AND
316 ENGINEERING & CONSTRUCTION, INC.
CONTRACT
Contract - 1
CONTRACT FOR THE
CITY OF ARCADIA
This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arcadia, sometimes hereinafter called “City,” and 316 Engineering & Construction, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:
A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:
Water Main Replacement Project / Project No.: 65720523
The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within Forty-Five (45) CALENDAR DAYS calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of FOUR HUNDRED THIRTY- FIVE THOUSAND, NINE HUNDRED SEVEN DOLLARS AND NO CENTS ($435,907.00) .
Payment shall be made as set forth in the General Conditions.
D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions , Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:
Notice Inviting Bids
Instructions to Bidders
Bid Form
Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Contract - 2
Performance Bond
Payment (Labor and Materials) Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.
G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions.
H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job
site.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
Contract - 3
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
CITY OF ARCADIA
By:
Dominic Lazzaretto
City Manager
316 ENGINEERING & CONSTRUCTION,
INC.
By:
Signature
Print Name and Title
Attest:
By:
City Clerk
By:
Signature
Print Name and Title
Approved as to Form:
Michael J. Maurer
City Attorney