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HomeMy WebLinkAboutStaff Report 3.D 04/06/2015DATE: April 6, 2015 Revised Agenda Item # 3.D. TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities Larry Zimmer, P.E., — Deputy Director, Public Works & Utilities SUBJECT: Resolution Amending the Project Budget and Authorizing Approval of a Contract Change Order to the Park Place Well Replacement Project to Construct a Second Replacement Well at the Willowbrook Well Site. RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Amending the Project Budget and Authorizing Approval of a Contract Change Order to the Park Place Well Replacement Project to Construct a Second Replacement Well at the Willowbrook Well Site. BACKGROUND The Restructured Agreement for Water Supply between the City and the Sonoma County Water Agency (SCWA) establishes a local production capacity goal for local agencies to maintain the ability to deliver up to 40% of the average day of the maximum month water demand in the event of system emergency, or water supply curtailment due to drought. In order to meet the SCWA's local production capacity goal, the City's current budget contains CIP project # C6740120 for well reconstruction and repair to improve and maintain the City's local water well supply system. The Park Place well was scheduled for replacement in the FY 14-15 CIP Budget, while the Willowbrook Well Replacement Project is proposed in FY 15-16. On October 6, 2014, the City Council awarded a construction contract to Weeks Drilling and Pump Co. (Weeks) in the amount of $448,818 to construct a replacement well at the Park Place well site with a depth of 500 feet and an anticipated 400 gallons per minute capacity. Weeks Drilling began construction on the Park Place replacement well in December 2014, and has an anticipated completion date of late April 2015. The Park Place replacement well is expected to supply approximately 5% of the summer average demand and the new Willowbrook replacement well should add approximately 5% more capacity towards the goal of supplying 40% of the summer average demand with local supply. The Willowbrook Replacement Well Project location is shown on Attachment 3. DISCUSSION The current drought has made achieving the SCWA's goal ol'supplying 40% of the City's maximum month water demand a priority. Weeks Drilling was the sole bidder for the Park Place Replacement Well Project, and their bid was approximately $78,000 above the consultant engineer's estimate. The current drought condition throughout California has created a market condition that is favorable for well drillers and is a contributing factor in the project receiving only one bid. When soliciting bids for the Park Place project, many well drillers indicated that they were booked for months in advance and could not meet the City's schedule. Other municipalities with well drilling projects in California have indicated that their projects were receiving a low number of bids and costing higher than the engineer's estimate. In anticipation of the Willowbrook Well Replacement Project, and in light of the unfavorable bidding climate, staff negotiated an acceptable cost and schedule to construct the Willowbrook Replacement well and is recommending accepting such through a change order on the current project. Staff has negotiated a cost of $475,500 for constructing the second replacement well at the Willowbrook well site. The cost for the Willowbrook replacement well is about $28,000 more than the Park Place well, and the Willowbrook well will be drilled to a depth of 800 feet, 300 feet deeper than the Pari: Place well. This equals a cost of $900 per foot for the Park Place well, compared to a cost of $600 per foot for the Willowbrook well. The negotiated cost is more favorable than the unit costs for drilling the initial Park Place well, and is believed to be better than what would be expected if the Willowbrook replacement well were bid as a separate project. In addition, the City will realize savings by reducing the engineering cost to prepare and bid a separate contract for Willowbrook and by reducing the cost for contractor mobilization. In addition, the City will increase local capacity sooner than if the project were bid. If the City Council approves this action, the work will begin immediately and the Willowbrook replacement well is anticipated to be completed by August 2015. FINANCIAL IMPACTS The total project budget for the Park Place and Willowbrook Well Construction and Repair Project (067401201) is $600,000 for FY 2014/2015 and is proposed in the FY 2015/2016 CIP to be $904,000. The two-year CIP budget total for well replacement is $1,504,000. The proposed contract change order will move a portion of the Willowbrook well project from FYI 5/16 to FY 14-15. The proposed change order will reduce the overall budget for the combined FY 14-15 and FY 15-16 work from $1,504,000 to $1,364,500, a reduction of $139,500. In order to begin construction of the Willowbrook Replacement well during FY 14/15 and finish construction during FY 15-I6, an additional $492,000 will need to be moved from FY 15-16 to the FY 14-15 budget to fund the change order for drilling the Willowbrook replacement well, with a commensurate reduction to the proposed CIP project budget for FY 15/16. The funding source will remain the Water Capital fund. The following is a breakdown of the approved FY 2014/2015, and projected FY 2015/2016 CIP budget and revised FY 2014/2015 and proposed FY 2015/2016 budgets: ATTACHMENTS 1. Resolution 2. Contract Change Order #1 3. Location Map FY 14/15 Budget Proposed Change Approved FY 14/15 Projected FY 15/16 Revised FY 14/15 Proposed FY 15/16 Construction Contract $ 448,818 $ 665,000 $ 798,818 $ 125,500 Design and Planning $ 28,182 $ 18,000 $ 46,182 $ - Administration $ 3,000 $ 4,000 $ 5,000 $ 2,000 Construction Management & Inspection $ 34,000 $ 60,000 $ 69,000 $ 25,000 C1P Overheads $ 6,000g$22,gO. 18,000 $ 10,000 Contingency $ 80,0005,155,000 $ 60,000 PG&E $ - $ 50,000 Total $ 600,0004, 1,092,000 $ 272,500 ATTACHMENTS 1. Resolution 2. Contract Change Order #1 3. Location Map RESOLUTION AMENDING THE PROJECT BUDGET AND AUTHORIZING APPROVAL OF A CONTRACT CHANGE ORDER TO THE PARK PLACE WELL REPLACEMENT PROJECT TO CONSTRUCT A SECOND REPLACEMENT WELL AT THE WILLOWBROOK WELL SITE WHEREAS, the City and the Sonoma County Water Agency entered into the Restructured Agreement for better water supply which establishes a goal for the City to be capable of supplying 40 percent of its summer demand from local supply such as groundwater; and WHEREAS, Weeks Drilling and Pump Co. is actively constructing the Park Place Replacement Well Project based on a single bid received by the City for the project after inviting bids; and WHEREAS, the City of Petaluma desires to add a second replacement municipal water well at the Willowbrook well site; and WHEREAS, Section 68 of the Charter of the City of Petaluma requires public works projects that exceed a cost of $25,000 to be competitively bid; and WHEREAS, the purpose behind competitive bid requirements is to obtain the best economic result for the public and to protect against favoritism, corruption, waste of public funds (see e.g., Cal. Pub. Cont. Code, § 100); and WHEREAS, there is a well-established rule that competitive bidding will be excused where competitive bids "work an incongruity and are unavailing as affecting the final result' or "do not produce any advantage" (Graydon v. Pasadena Redevelopmew Agency (1980) 104 Cal.App.3d 631, 636); and WHEREAS, the current drought condition throughout California has created a market condition that is favorable for well drillers and is a contributing factor for the initial project receiving only one bid for the Park Place Well Project; and WHEREAS, when soliciting bids for the Park Place project, many well drillers indicated that they were booked for months in advance and could not meet our schedules; and WHEREAS, other municipalities with well drilling project in California have indicated that their projects were receiving a low number of bids and costing higher than the engineer's estimate; and WHEREAS, City staff negotiated an acceptable cost and schedule to construct the Willowbrook Replacement well in lieu of bidding the project during the current unfavorable bid climate to the existing construction contract to take advantage of a favorable negotiated price and avoid bidding during the recent drought where most well drillers are fully scheduled with other work; and WHEREAS, the City has negotiated a Contract Change Order to construct the second replacement well at Willowbrook for a cost of $475,500 which represents a decrease in the unit price per foot of drilling from $900 per foot to $600 per foot compared to the Park Place well; and WHEREAS, competitive bidding for the project at Willowbrook well site would frustrate the purpose behind competitive bidding by yielding a higher cost for the project based on current market conditions and delay an important public project; and WHEREAS, the project budget for the two fiscal years, FY 14/15 and FY 15/16 will decrease by $139,500, however the FY 14/15 budget will increase by $492,000 to a total of $1,092,000 in order to complete much of the work earlier than anticipated; and WHEREAS, $492,000 of Water Capital funds are available for this purpose and the projected budget for FY 15/16 will decrease by $631,500 from that projected in the FY 14/15 Budget. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: Incorporates the foregoing recitals herein as findings. Approves the revised project budget for FY 14/15 of $1,092,000 for the subject CIP # C6740120 and direct that the FY 15/16 proposed budget be set at $272,500. Authorizes the transfer of $492,000.00 from the Water Capital Fund to the Well Construction and Repair CIP (067401201). Authorizes the City Manager to execute all necessary documents for the approval of a contract change order for $475,500 to construct a second replacement well at the Willowbrook site to the project. CONTRACT NO. C67401201 CONTRACT CHANGE ORDER NO. 1 PROJECT NAME: Park Place Well Replacement Project To: Weeks Drilling and Pump Co. P.O. Box 176 Sebastopol, CA 95473 Attachment 2 CITY OF PETALUMA PUBLIC WORKS AND UTILITIES DEPARTMENT Sheet [1] of [1] You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not included in the plans and specifications on this contract. Upon execution by representatives authorized to bind the parties, this Change Order will become a part of the contract. The consideration specified in this Change Order (whether an adjustment of the contract price, an adjustment of time, and/or other consideration) is the full and sole compensation owed to the contractor as a result of the changes and issues described in this Change Order. Such consideration includes, but is not limited to, any and all direct and indirect costs incurred by the contractor as a result of the changes and issues described in this Change Order for any labor, equipment, materials, overhead (additional, extended, field and home office), profit, or time adjustments. By signing this Change Order the contractor waives and releases the owner from any and all claims for additional compensation concerning any of the changes and issues specified in this Change Order. NOTE: This Change Order is not effective until approved by the Director. To follow is the description of work to be performed, estimate of quantities and prices to be paid, segregated between additional work at contract price, agreed price and force account. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for idle time. Change requested by City of Petaluma. SCOPE OF WORK: This change order approves the addition of the Willowbrook Well to the existing contract. The addition of the Willowbrook well will not impact the work being done at the Park Place Replacment well site in any way. There will be no financial implications on the Park Place well work for the additon of the Willowbrook Well work. It is mutually agreed that the contract prices per bid item are reflected in the attached bid schedule for the Willowbrook Well. The Contractor shall complete each item in accordance with the specifications for the Park Place Well Replacement project, the project plans, and as directed by the Engineer. The prices shall include all labor, material, equipment, tools, incidentals for the changes; including traffic control, staking, overheah and mark up, and no additional compensation will be made. It is agreed that the city will perform site work prior to work commencing at the Willowbrook well site, which shall include grading, laying gravel for an access road and site stability, and tree removal. The number of working days will be adjusted as shown below, in order to complete the work on Willowbrook well. All other terms and conditions of the Contract remains same. METHOD OF PAYMENT: Options: ❑ Lump Sum, ❑ Extra Work at Force Account, ❑ Increase Unit Price, ❑ Decrease Unit Price, ® Agreed Unit Price Estimated Cost: Decrease $ or Increase $ 475,500.00 By reason of this order, the time of completion will be adjusted as follows: 75 days We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment the prices shown above. By: Title: Date: Contractor Prepared by: Project Manager; Date: Approval Recommended by: Division Manager; Date: [PW, Parks, other] Funding Authorized by: [Other Funding Dept] Date: Approved by (up to $20,000): Dept. Director; Date: A Originals: Contractor, City Clerk cc: City Manager S:ICIPIProjectslWells C674012011Park PlacelConstruction105 Contract CO's Attachment 3 PARK PLACE WELL REPLACEMENT PROJECT WILLOWBROOK WELL LOCATION PROJECT NO. C67401201 LOCATION MAP o° ti \�ooLU� L Z, F Date :April 6, 2015 N SAL City of Petaluma a'<" PROJECT SITE w_* Public Works and Utilities 5 Department lss¢