Agenda Report
Fullerton City Council
MEETING DATE: January 17, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Meg mcwade, public works director
PREPARED BY: STEPHEN BISE, CITY ENGINEER / ASSISTANT PUBLIC WORKS DIRECTOR yvette hanna, principal civil engineer - water
gar huang, ASSOCIATE engineer
SUBJECT: HERMOSA AREA WATER MAIN REPLACEMENT
SUMMARY
Award $2,381,200 construction contract to Big Ben, Inc. for the Hermosa Area Water Main Replacement Project.
RECOMMENDATION
Approve plans and specifications for Hermosa Area Water Main Replacement Project 53028.
Approve $2,960,000 budget transfer and appropriation from Project 53250 Water Main System Replacement to Project 53028 Hermosa Area Water Main Replacement (Fund 44).
Award $2,381,200 construction contract to Big Ben, Inc. for the Hermosa Area Water Main Replacement Project (Fund 44) and authorize City Manager, or designee, to execute and administer 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
The City Manager recommends approval of award of a $2,381,200 contract.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2022-23 Adopted CIP Budget includes funding for the Hermosa Area Water Main Replacement Project. Staff recommends a $2,960,000 budget transfer within the Water Fund from Project 53250 Water Main System Replacement to Project 53028 Hermosa Area Water Main Replacement (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 would replace 1.54 miles of water pipe on Hermosa Drive, Twilight Drive, Teton Drive, Paseo Place, Pueblo Place, Rosehedge Drive and Greenmeadow Drive as shown below and on Attachment 3.
The existing water pipes in this area have a significant history of water main breaks and need replacement. This project will also help the City meet the 2019 Water Rate Study water main replacement goals.
The City formally bid this project on November 8, 2022 and received twelve bids on December 7, 2022 for the Hermosa Area Water Main Replacement Project. Big Ben, Inc. of Irvine, CA submitted the lowest bid in the amount of $2,381,200. The low bid is approximately 20% below the engineer’s $2,973,500 estimate. Staff has evaluated the bid documents and found them acceptable. Staff recommends award of the project to Big Ben, Inc. Staff will perform outreach with affected residents and businesses to notify them of upcoming project construction and potential impacts.
Staff attributes the difference between the engineer’s estimate and low bid due to staff increasing the engineer’s estimate to account for post-pandemic market trend uncertainty which triggered significant increases in material and labor costs in recent months.
Staff anticipates construction for the Hermosa Area Water Main Replacement Project to begin in April 2023 and anticipates project completion in October 2023. Typically, the City performs road rehabilitation along with water main replacements. The City has a future water main replacement project planned for the adjacent area. Staff decided to recommend this entire area for paving following completion of both water main replacement projects since an active construction project could damage newly paved streets. The City will include the full paving project in future road prioritization discussions for potential funding.
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
Hermosa Area Water Main Replacement
January 17, 2023 - Page 2