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HomeMy WebLinkAboutResolution 2015-036 N.C.S. 04/06/2015Resolution No. 2015-036 N.C.S. of the City of Petaluma, California 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 Redevelopment Agency (1980) 104 Cal.App.3d 631, 636); and Resolution No, 2015036 N.C.S. Page I 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 Resolution No, 2015036 N.C.S. Page 2 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; 1. Incorporates the foregoing recitals herein as findings. 2. 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. 3. Authorizes the transfer of $492,000.00 from the Water Capital Fund to the Well Construction and Repair CIP (C67401201). 4. 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. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a Regular meeting on the 6`h day of April, 2015, fo m: by the following vote: R City Attorney AYES: Albertson, Barrett, Mayor Glass, Healy, Kearney, and King NOES: None ABSENT: Vice Mayor Miller ABSTAIN: None e ATTEST: Acting City Clef% r ayor Resolution No. 2015036 N.C.S. Page 3