HomeMy WebLinkAboutStaff Report 4.A 07/18/2016Agenda Item #4.A
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DATE: July 18, 2016
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Qanofin, RASCE — Director, Public Works and Utilities
Larry Zimmer, P.E. — Deputy Director, Public Works and Utilities
SUBJECT: Resolution Authorizing Award of Contract for the Denman Reach Phase 3
Improvements Project and Revising the Project Budget
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Authorizing Award of
Contract for the Denman Reach Phase 3 Improvements Project and Revising the Project Budget.
BACKGROUND
Placing flood terracing within the Petaluma Watershed in concert with the development of a river
and creek trail system was envisioned in the 1996 River Access and Enhancement Plan and was
adopted as a policy in the General Plan 2025 in 2008. Once completed, the three phases of
Denman Reach will meet this policy and provide an opportunity to develop a stewardship
program with area businesses and residents. Flood plain modeling has concluded that the
completed project will lower the flood elevation for a one - hundred year storm by up to 1 foot in
some areas. Phases 1 and 2 were completed in 2005 and Phase 3, the final phase, will complete
the project through the Denman Reach of the Petaluma River between the Corona Road and
Twin Bridges.
In the fall of 2008, the City submitted a two -part grant application to the State of California for
land acquisition and continuation of the flood terrace, riparian habitat enhancement, and trail
improvements within the Denman Reach. The first grant application was to the California
Natural Resources Agency's (NRA) River Parkways Program for land acquisition in the amount
of $1,150,000, which was initially partially funded at $850,000 but later augmented with an
additional $165,262 bringing the land acquisition grant to $1,015,262. The second application
was to the Department of Water Resources' (DWR) Urban Streams Restoration Program for
$993,375, which was fully funded for design and construction. In addition to the state funding
grants, the Sonoma County Water Agency (SCWA) Zone 2A committed matching funds of
approximately $512,500 as authorized by City Council Resolution No. 2015 -007 N.C.S.
There are five properties affected by the construction of Denman Reach Phase 3, three of which
are the vacant parcels located on the west side of Industrial Avenue directly across from the
intersection of Benson Way and Industrial Avenue. Through acquisition of two parcels in fee
simple and the other three parcels by temporary construction and permanent trail easements, the
project can complete the flood plain terracing and add approximately 2,100 feet of trail between
Corona Road and the intersection of Industrial Avenue and Petaluma Boulevard North.
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits ".
DISCUSSION
On December 2, 2013, the City Council authorized the execution of a Professional Services
Agreement with Questa Engineering Corporation to provide design and environmental services
for the project. Staff met with adjacent parcel owners during planning and design of the project
and has provided quarterly reports to the SCWA Zone 2A Committee and Department of Water
Resources. Most recently, the project was presented to the Tree Advisory Committee on June 15.
City staff prepared the contract documents and issued a Notice Inviting Bids on May 26, 2016.
On June 22, 2016, three bids were received as follows:
Name of Bidder
Base Bid Total
Bid Alt A
Bid Alt B
Bid Alt C
Team Ghilotti, Inc. of Petaluma
$1,234,007
$31,200
$132,272
$152,800
Argonaut Constructors of Santa
$1,216,273
$80,000
$231,760
$99,750
Rosa
Ghilotti Construction Company of
$1,337,807
$48,000
$183,950
$92,250
Santa Rosa
Engineer's Estimate
$1,000,000
$40,000
$91,000
$41,000
The lowest responsible bidder, Team Ghilotti, Inc., has performed similar flood terracing and
wetland enhancement projects for the City of Santa Rosa, County of Napa, and Vallejo
Sanitation and Flood Control District. Staff verified that Team Ghilotti, Inc. possesses the
required Class A California Contractor's License, number 895384, which expires on April 30,
2017, which is appropriate for the work.
The bid broke out three additive alternate bid schedules to allow the City to maximize additional
improvements if funding permitted and to provide a contingency for landscape maintenance
services. The base bid schedule covers the core elements of the flood terracing projects,
including a 2, 100 linear foot trail segment, wetland enhancement and creation, irrigation, and
hydroseeding. Acceptance of bid alternate A would add 1,000 feet of quarry fine trail looping
around the new and existing wetlands. Bid alternate B is for 833 feet of trail connecting to
Petaluma Boulevard near the Industrial Avenue / Stony Point Road intersection. Bid alternate C
includes post and cable fence, landscaping, and a year of landscape maintenance. The trail
envisioned in bid alternate B would require three additional easements that have not been
acquired. Although communications with these property owners have been favorable, permanent
easements were not pursued because earlier engineering estimates indicated that the project
would exceed the available budget.
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Bid alternate C was added as a contingency in case the City's DWR grant partner, Conservation
Corps North Bay (CCNB), could not be contracted to do the work. At this time, it appears that
the City's partner can perform the requisite work.
CCNB is a listed partner to the City on the DWR grant and has provided an estimate of $90,000
to complete the landscape installation portion of work in bid schedule C that in comparison to the
low bid is a cost savings to the project. Upon completion of the landscape work, the City will
install two interpretative displays along the terracing portion of the site and procure a one -year
landscape maintenance contract for the project. In addition, the City will draft an amendment
with Questa Engineering in the amount of $55,000 to provide additional construction and
environmental services due to unforeseen changes and additional requirements of the regulatory
permitting agencies. The landscape contract and contract amendment will come back to City
Council for authorization at a future meeting. The additional funds have been included in the
revised project budget.
The project was approved concurrently with the adoption of a Mitigated Negative Declaration,
through Resolution #2012 -138 N.C.S. adopted by the City Council on September 10, 2012.
Construction is scheduled to begin in late August and will continue for 80 working days, weather
conditions permitting. Construction management will be conducted by City staff with assistance
from Questa for construction and environmental services and a consulting material testing firm.
It is recommended that the City Council authorize the City Manager to execute a contract for the
Denman Reach Phase 3 Improvements Project base bid and bid alternative A with the apparent
low bidder, Team Ghilotti, Inc. Since the needed easements are not in place, bid alternate B is
not recommended but may be added by change order if easements are acquired in time and
sufficient project contingency budget remains available. Bid alternate C is not needed because a
separate landscape contract with CCNB is proposed and will be scheduled for Council action at a
later date.
FINANCIAL IMPACTS
The approved FY 16/17 CIP budget for the subject project is $2,940,000, which included past
land acquisitions and right of way work. Project funding is comprised primarily of Department
of Water Resources Grant with Sonoma County Water Agency Zone 2A, Sonoma County
Agricultural Preservation and Open Space District, and City storm drainage impact fees for local
grant match as summarized in the table that follows. However, during design, it was discovered
that 40 -year old City water and sewer lines traverse the project to provide service to customers
along Petaluma Boulevard North. Therefore, it is proposed that the City Waste Water and Water
Capital funds be utilized to replace and relocate the old sewer and water main that bisect the
project in the amount of $84,000 per fund, which represents the cost of upgrading and replacing
each pipeline. Those funds, which are currently available, would be transferred as a result of the
proposed action. With this revision, the amended budget would be $3,108,000 as is also
summarized in the following table.
The revised budget would cover the base bid and alternate bid A of $1,234,007 and allow a
project contingency of $240,681 to complete the project including bid alternate B if easements
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are acquired in time. The current project estimate includes an anticipated amendment to the
Questa Engineering contract in the amount of $55,000 as addressed previously and the proposed
landscape agreement with CCNB for $90,000.
The following is a breakdown of the proposed FY 16/17 CIP budget and the proposed current
project budget:
Uses
CIP Budget
FY16/17
Current
Estimates
Design
$
186,000
$
236,681
Legal
$
4,000
$
4,000
Land Acquisition
$
1,045,000
$
1,045,000
Construction Contracts
$
1,373,000
$
1,234,007
Landscaping/Kiosks
$
136,000
Regulatory Permits
$
37,312
Construction Management
$
150,000
$
130,000
CIP Overhead
$
44,000
$
44,000
Administration
$
1,000
$
1,000
Project Contingency
$
137,000
$
240,000
TOTAL
$
2,940,000
$
3,108,000
Funding Sources
Waste Water Capital
$
84,000
Water Capital
$
84,000
Storm Impact Fees
$
370,000
$
370,000
State Grants
$
1,015,000
$
1,015,000
SCWA Zone 2A Assessments
$
512,000
$
512,000
Dept of Water Resources Grant
$
993,000
$
993,000
Sonoma Open Space Grant
$
50,000
$
50,000
TOTAL
$
2,940,000
$
3,108,000
Note: City staff salary and benefits costs are included in appropriate project
phases for the project.
It is anticipated that grant funds will be fully expended for this project and any unused local
funds will be returned to the appropriate accounts for use on future projects. Budget adjustments
of $84,000 to each of the Water and Wastewater Capital Funds will be brought forward during
the first quarter budget adjustments in order to be reflected in the revised FY 16/17 budget
ordinances.
ATTACHMENTS
1: Resolution
2. Location Map
Attachment 1
RESOLUTION AUTHORIZING AWARD OF CONTRACT
FOR THE DENMAN REACH PHASE 3 IMPROVEMENTS PROJECT AND
AMENDING THE PROJECT BUDGET
WHEREAS, City staff has prepared construction bid documents and advertised for construction
of the Denman Reach Phase 3 Improvements Project, Project Number 000500208, ( "the
Project "); and
WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code, California
Public Contract Code Section 20162 and other applicable law, City staff solicited bids for the
Project; and
WHEREAS, the Project was bid on May 26, 2016, and three bids were received and opened on
June 22, 2016 in accordance with applicable law; and
WHEREAS, the lowest responsible bid for the base bid and bid alternative A was submitted by
Team Ghilotti, Inc. from Petaluma, CA for $1,234,007; and
WHEREAS, staff recommends the construction contract be awarded for the base bid and bid
alternate A for a total contract amount of $1,234,007; and
WHEREAS, staff has determined that the Contractor's bid is responsive and satisfies the
bidding requirements for the Project; and
WHEREAS, staff has verified that Team Ghilotti, Inc. possesses a valid California Contractor's
License, Class A, number 895384 that is acceptable for the Project; and
WHEREAS, the project was approved concurrently with the adoption of a Mitigated Negative
Declaration through Resolution #2012 -138 N.C.S. adopted by the City Council on September 10,
2012; and
WHEREAS, water and sewer line improvements are included in the project with a value of
$84,000 each; and
WHEREAS, the estimated project cost exceeds the approved project budget; and
WHEREAS, the approved funds are available are in the 2016/1017 budget and in the reserves of
the Water and Wastewater Capital Funds for the value of the water and sewer line improvements
included in the project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby:
1. In accordance with the City of Petaluma Charter and Municipal Code, California Public
Contract Code Section 20162 and other applicable law, waives any and all non-
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conformance in the bid of Contractor for the Denman Reach Phase 3 Improvements
Project, Project Number C00500208 and finds the bid of $1,202,807 to be the lowest,
responsive bid and further finds that Team Ghilotti, Inc. is the lowest responsible bidder.
2. Awards the contract for the Denman Reach Phase 3 Improvements Project, Project
Number C00500208 to Team Ghilotti, Inc. in the amount of $1,234,007, the amount of
the lowest responsive base bid and bid alternate A, conditioned on Team Ghilotti, Inc.
timely executing the project contract and submitting all required documents, including
but not limited to, executed bonds, certificates of insurance, and endorsements, in
accordance with the project bid documents.
3. Directs staff to issue a notice of award to Team Ghilotti, Inc.
4. Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by Team Ghilotti, Inc. of the signed project
contract and all other required documents, including but not limited to, executed bonds,
certificates of insurance, and endorsements, in accordance with the project bid documents.
5. Approves the revised project budget of $3,108,000.
6. Directs the City Manager to include the proposed project budget augmentation in the City's
first quarter budget adjustments in the amount of $168,000, one -half being funded by each
of the Water and Wastewater Capital Funds.
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Attachment 2
DENMAN REACH PHASE 3 PROJECT
PROJECT NO. C00500208
LOCATION MAP
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Date :JULY 18, 2016
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