Agenda Report
Fullerton City Council
MEETING DATE: september 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Meg mcwade, public works director
PREPARED BY: david grantham, principal civil engineer
gar huang, ASSOCIATE engineer
SUBJECT: mark iii area water main replacement CONTRACT AWARD
SUMMARY
Award $1,084,955 construction contract to All Cities Engineering, Inc. for the Mark III Area Water Main Replacement Project.
RECOMMENDATION
Approve plans and specifications for the Mark III Area Water Main Replacement Project.
Approve $1,435,000 budget transfer and appropriation of Water Funds from Project 53250 Water Main System Replacement to Project 53027 Mark III Area Water Main Replacement Project (Fund 44).
Award a $1,084,955 construction contract for the Mark III Area Water Main Replacement Project (Project 53027) to All Cities Engineering, Inc. and authorize City Manager, or designee, to execute the contract, in a form approved by the City Attorney.
Authorize Public Works Director, or designee, to approve any future change orders for construction and professional engineering construction support services within the approved project budget.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Water Fund (Fund 44) in the FY 2022-23 CIP Budget has funding available for this project. Staff will make a $1,435,000 budget transfer and appropriation from Water Fund Project 53250 Water Main System Replacement to Project 53027 Mark III Area Water Main Replacement Project (Fund 44). Staff has attached a Budget Data Sheet / Summary of Bids and the contractor’s Bid Schedule for reference (Attachments 1 and 2, respectively).
DISCUSSION
This project will replace 0.65 miles of water pipe on Vista Grande, Calle Grande, Via Seville, Via Segovia, Via Hacienda and Via Portola, all within the Mark III Homeowners Association (HOA) as shown in Attachment 3. The City replaced the water pipe in Via Colina in 1999 and did not include that street in this project. The water pipes in this area have a significant history of water main breaks and need replacement. This project will also assist the City in meeting the Water Rate Study water main replacement goals.
The majority of this project area is located on private streets within the Mark III Homeowners Association (HOA). The HOA owns and maintains these private streets with the City retaining utility easements within the streets to provide access to our facilities. The City will only repair the pipeline trench to match existing street grade as the HOA paves its private streets. Staff has regular contact with the HOA and made them aware of the scope of this project. The work on City streets is limited to water main connections within Bastanchury Road.
The City received eight bids on July 27, 2022 for the Mark III Area Water Main Replacement Project (Project 53027). All Cities Engineering, Inc. of Jurupa Valley, CA submitted the lowest bid in the amount of $1,084,955. The lowest bid, as submitted, is approximately 13% below the engineer’s $1,253,000 estimate. Staff has evaluated the bid documents and found them acceptable. Staff recommends award of the project to All Cities Engineering, Inc.
While the winning bid came in lower than the engineer’s estimate, staff previously adjusted the engineer’s estimate from the original budget to account for recent significant increases in material and construction costs. Due to these unanticipated cost increases, staff has also reprioritized and deferred many planned Water Capital Improvement Projects to meet the mileage goals as set by the 2019 Water Rate Study.
Contingencies for this project have increased from the typical 20% of construction costs to 25% due to the unforeseen nature of construction in an HOA, such as unknown privately-owned utility lines.
Upon approval, staff will execute the contract (Attachment 4) with construction anticipated to begin in February 2023 and anticipated project completion in June 2023.
Staff has prepared an environmental assessment in accordance with the California Environmental Quality Act guidelines and determined that the project is categorically exempt.
Attachments:
Attachment 1 – Budget Data / Summary of Bids
Attachment 2 – Bid Schedule
Attachment 3 – Project Location Map
Attachment 4 – Standard Contract / Agreement
cc: City Manager Eric J. Levitt
Mark III Area Water Main Replacement
September 20, 2022 - Page 2