City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Fernando Ulloa, City Engineer
MEETING DATE: October 4, 2022
ITEM NO: 5.5
SUBJECT: Accept all bids for the City of Patterson Citywide Water Metering System Replacement Project, award construction to Flowline Contractors, Inc., authorize Staff to execute the Contract and approve all other documents.
RECOMMENDATION
Motion to Accept all bids for the City of Patterson Citywide Water Metering System Replacement Project, award construction to Flowline Contractors, Inc., authorize Staff to execute the Contract and approve all other documents.
BACKGROUND
To comply with the provisions of the State’s Urban Water Management Plan Act, Climate Change and related provisions of the California Water Code, the City is pursuing Drinking Water State Revolving Fund (DWSRF) construction funding for its Metering System Replacement Project. This project is a step toward a more modernized water metering system that will assist the city and its residents to better manage the City’s groundwater resources. The upgrades will include exchanging the current water meters for new meters with Advanced Metering Infrastructure (AMI). AMI uses a low-powered communication device that is added to the new water meter to transmit hourly water usage information over a secure network approximately four times per day.
This project was approved by the City Council in December 2019 (Resolutions No. 2019-63 and 2019-64. City Council approved the Installment Sale Agreement between the City and the State Water Board (Resolution No. 2021-59).
ANALYSIS
DWSRF loans are the lowest financing means available and City has an Installment Sale Agreement executed for $4,000,000 for which repayment will begin one year after construction is complete and will occur over a 20-year period through revenues derived from the City’s water enterprise fund. Staff has placed the orders for water meters and its appurtenances and selected contractor will install them. The first batch of meters has already been delivered to the City’s corporation yard.
City of Patterson Citywide Water Metering System Replacement Project was advertised for construction on June 29, 2022. This project was advertised on CIP List, the City’s website, and the Patterson Irrigator Newspaper. Bid opening was held on August 2, 2022 at 2:00 pm. The City received two (2) bids for this project. The two bids received are listed below from lowest to highest:
Base Bid
Flowline Contractors, Inc. $1,486,332.00
DA Woods Construction Inc. $2,678,358.00
After reviewing the bid documents, Flowline Contractors, Inc., was deemed the lowest responsible bidder. Bid Item number 21, 22 and 23 were optional items and optional items 22 and 23 will be added to the award.
Base Bid Including Optional Bid Items 22 and 23
Flowline Contractors, Inc. $1,486,332.00 + $202,984.00 = $1,689,316.00
FISCAL IMPACT
This project has been budgeted in the Water CIP fund (611-790-7623) and will be funded through a Drinking Water State Revolving Fund (DWSRF) loan. Construction costs for this project is as follows:
$ 1,689,316.00 Construction Costs
$ 168,931.60 Contingency @ 10%
$ 1,858,247.60 Total Construction Costs