CITY COUNCIL STAFF REPORT
July 16, 2024 {{section.number}}m
AUTHORIZE THE CITY MANAGER TO AWARD CONTRACTS AND CHANGE ORDERS FOR THE CONSTRUCTION OF THE WASTEWATER MAIN REPLACEMENT FY 16/17 PROJECT AND ASSOCIATED SUPPORT SERVICES IN THE AMOUNT OF $4,461,278, AND ADDITIONAL APPROPRIATION IN THE AMOUNT OF $3,230,591 FROM THE WASTEWATER FUND
RECOMMENDATION:
Authorize the City Manager to award contracts to Palm Engineering Construction Company, Inc. for an amount of $3,694,078 for the construction of the Wastewater Main Replacement FY 16/17 (Contract No. 24-CO-ES-788) and Harris & Associates in an amount not-to-exceed $367,800 for construction management support services; approve a project contingency of $369,400; amend the FY 2024/25 Budget and appropriate an additional $3,230,591 from the Wastewater Fund (61071000-97880-17020); and, authorize the City Manager to execute change orders within the project budget.
BACKGROUND:
The sewer main replacement program corrects deficiencies in the City’s sewer system by inspecting, assessing, and replacing undersized and deteriorated pipelines and manholes. The Wastewater Main Replacement FY 16/17 project will replace over 5,000 linear feet of sewer mains along First and Second Streets (including associated manholes), approximately 285 linear feet of the Cays sewer force main immediately upstream of the Glorietta Pump Station and complete a 2” asphalt overlay on Second Street from Alameda Boulevard to D Street. Plans and specifications are available for review in the Public Services and Engineering and Department.
ANALYSIS:
The project was originally advertised on February 20, 2024, with bids due on March 20, 2024.
Unfortunately, no bids were received. Attempts to direct negotiate with a prospective bidder in accordance with Public Contracts Code requirements were unsuccessful. The project was readvertised on May 22, 2024; bids were publicly received and opened on-line through Planet Bids on June 19, 2024, with the following results:
BIDDER BID AMOUNT
Palm Engineering Construction Co. Inc. $3,694,077.50
Creative Home Corporation $3,986,240.00
Filanc $8,325,556.50
Staff reviewed the bid package, insurance, and bonding for Palm Engineering Construction Company, Inc. In accordance with the Standard Specifications for Public Works Construction, Palm Engineering Construction Company, Inc. is the lowest responsible and responsive bidder. Public contracting laws require the City to award the contract to the lowest responsible and responsive bidder, in this case, Palm Engineering Construction Company, Inc.
Due to the complexity of the project and limitations on staff availability it is recommended that a work order be issued to Harris & Associates, one of the City’s on-call construction management consultants, to provide day-to-day construction management and inspection services for the duration of the project. A work order for geotechnical investigation (Ninyo and Moore) is also anticipated to be executed for the project as is typical for this type of project to allow for geotechnical inspection of construction activities and material testing, and response to any geotechnical technical questions from the contractor regarding the project design. This work order and amount is within the City Manager’s authority.
FISCAL IMPACT:
The Capital Improvement Program (CIP) from FY 16/17 appropriated $1,200,00 for design and construction of the project from the Wastewater Fund (61071000-97880-17020). Subsequently, the project was changed to include an asphalt overlay that had been envisioned for the FY 21/22 Street Curb and Gutter project, and the budgets of the two were combined accordingly; this includes $1,050,000 of TransNet funds (21030000-98982-22002). In summary, a total of $2,250,000 has been allocated to the project.
To date, approximately $399,313 has been spent or encumbered for sewer main CCTV inspection, design, construction support from engineer of record, and miscellaneous expenses, leaving $1,850,687 available for construction.
TransNet funds can only be used for transportation related activities which limits the usage of said funds on this project to the asphalt overlay component of the project. Based on bid line items of the apparent low bidder, staff has estimated that the overlay portion of work is approximately $430,300 dollars. Of the original budgeted $1,050,000 of TransNet funds, none has been spent to date. With an anticipated maximum amount of $460,000 eligible to be paid for using TransNet funds, the remaining TransNet budget allocation of $619,700 will likely be returned to the City’s TransNet fund balance at the end of the project and its budget impact offset through an additional appropriation of Wastewater (or other) funds.
Considering all of the above, an additional appropriation of $3,230,591 will be required to complete the Wastewater Main Replacement FY 16/17 project.
It is recommended that the project be funded as follows:
Original Project Budget
Capital Improvement Program Project Budget $2,250,000
(Less) Sewer Main Inspections (CCTV) (174,437)
(Less) Civil Design & Cons. Support Fees (224,731)
(Less) Additional Expenses (145)
Total Remaining Project Budget $1,850,687
Construction
Construction Contract Award $3,694,078
Construction Management/Inspection Services $367,800
Geotechnical Inspection $30,000
Project Contingency (~10%) $369,400
Total Construction Cost Estimate $4,461,278
Additional Appropriation by Funding Source
Total Construction Cost Estimate $4,461,278
(Less) Total Remaining Wastewater Funds (800,687)
(Less) Total Eligible TransNet Funds (460,000)
Additional Wastewater Appropriation
Required $3,200,591
ALTERNATIVE:
The City Council may elect to reject all bids. The City Council may also elect to appropriate additional funds to the project from an alternative funding source.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Categorically Exempt per California Environmental Quality Act (CEQA) Guideline; Class 1, Existing Facilities.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Palm Engineering Construction Company Inc. Contract
2. Harris & Associates Work Order
Submitted By: Public Services and Engineering Department / Jessie Powell