Agenda Report
Fullerton City Council
MEETING DATE: march 5, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e. public works director PREPARED BY: david grantham, P.E. city engineer
gar huang, associate engineer
SUBJECT: AGREEMENT WITH BONADIMAN WATER, INC. FOR HOLLYDALE AREA WATER MAIN REPLACEMENT
SUMMARY
Award $1,728,100 construction contract to Bonadiman Water, Inc. for Project 53031 Hollydale Area Water Main Replacement Project.
PROPOSED MOTION
Approve plans and specifications for Project 53031 Hollydale Area Water Main Replacement Project.
Approve $2,281,900 Water Funds (Fund 44) budget transfer and appropriation from Project 53250 Water Main System Replacement to Project 53031 Hollydale Area Water Main Replacement Project.
Award $1,728,100 construction contract to Bonadiman Water, Inc. for Project 53031 Hollydale Area Water Main Replacement Project and authorize City Manager, or designee, to execute and administer contract, in a form approved by the City Attorney.
Authorize Administrative Services Director, or designee, to approve future change orders for construction and professional engineering construction support services within the approved project budget.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject all bids
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2023-24 Capital Improvements Program (CIP) Budget has sufficient funding for the Hollydale Area Water Main Replacement Project from Water Funds (Fund 44). Staff recommends a $2,281,900 Water Funds budget transfer from Project 53250 Water Main System Replacement to Project 53031 Hollydale Area Water Main Replacement.
Staff attached the Budget Data Sheet / Summary of Bids and Contractor’s Bid Schedule for reference (Attachments 1 and 2).
BACKGROUND AND DISCUSSION
This project would replace 0.86 miles of water pipe within Hollydale Drive, Melody Lane, Norman Place, Miramar Drive, and Anita Place, as shown on Attachment 3.
The water pipes in this area have a significant history of water main breaks and need replacement. This project would also help the City meet the 2019 Water Rate Study water main replacement goals. Staff has reprioritized and deferred many planned Water Capital Improvement Projects to meet the replacement goals due to escalating construction costs.
The City bid this project on January 17, 2024, and received seven bids on February 13, 2024. Bonadiman Water, Inc. of Perris, CA, submitted the lowest bid totaling $1,728,100. The low bid is approximately 36% below the $2,690,168 engineer estimate. Staff increased the engineer estimate to account for post-pandemic material and labor cost increases, attributing for the difference between the engineer estimate and low bid. Staff evaluated bid documents, found them acceptable, and recommends awarding the project to Bonadiman Water, Inc. Staff would notify impacted residents and businesses of upcoming project construction and potential impacts.
Construction would tentatively start May 2024, with anticipated project completion in September 2024.
Staff prepared an environmental assessment in accordance with California Environmental Quality Act guidelines and determined the project categorically exempt.
Attachments:
Attachment 1 – Budget Data / Summary of Bids
Attachment 2 – Bid Schedule
Attachment 3 – Project Location Map
Attachment 4 – Draft Agreement
cc: City Manager Eric J. Levitt
Hollydale Area Water Main Replacement
March 5, 2024 - Page 2