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HomeMy WebLinkAboutStaff Report 4.E 08/01/2016Agenda Item #14.E DATE: August 1, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan, St J6 ASCE — Director, Public Works and Utilities Larry Zimmer, P.E. — Deputy Director, Public Works and Utilities SUBJECT: Resolution Authorizing Award of Contract for the Paula Lane Reservoir No. l Improvement Project RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Authorizing the Award of Contract for the Paula Lane Reservoir No.1 Improvement Project. BACKGROUND The Paula Lane Reservoir is located at the west end of Lavender Hill Lane off Paula Lane as shown on the attached location map. The existing reservoir was built in 1963 and provides the City of Petaluma with approximately one million gallons of water storage for emergencies, fire flow demand, and daily operational purposes. The reservoir's existing coating system has exceeded its useful life, and shows signs of corrosion and deterioration. In addition, the reservoir does not meet current seismic standards for structural design. The subject project was initiated in 2004, at which time it was believed that a second tank was required on the site. In August 2004, the City began design of a second reservoir at the Paula Lane reservoir site and in September 2005, a Mitigated Negative' Declaration was approved to satisfy the California Environmental Quality Act's (CEQA) requirements. The proposed project generated public input due to the concerns about a second tank. In April of 2010, it was determined that funding for the project was not available and the second reservoir was delayed to allow analysis of more favorable alternatives such as rehabilitating the existing steel reservoir. In June 2014, the City solicited a request for proposal to evaluate the condition of the existing reservoir's coating system and structural capacity to determine the requirements for retrofitting the reservoir. Brelje & Race Inc. were selected to perform a condition assessment and determine the feasibility of rehabilitating the reservoir. The results of the condition assessment determined that the reservoir's coating was beyond its useful life, but the overall condition of the steel is good, the structure is stout, and the reservoir is a strong candidate for rehabilitation. It was determined that rehabilitation of the existing reservoir is more cost effective than constructing a new reservoir, and much less impactful to the neighborhood. In addition, the storage needs of the City's water system were re- evaluated and it was determined that the existing one - million gallon volume is sufficient to meet the City needs for emergency, fire flow, and operational storage within that section of the City system. Paula Lane is one of two tanks with a total of three million gallons of storage that support the pressure zone along the western side of town. In total, the City has approximately 11 million gallons of storage, which is considered sufficient. This does not take into consideration massive storage tanks in the Sonoma County Water Agency system to the north in Cotati and south at Kastania Road that in an emergency could be relied upon to meet City needs. Staff also challenged the previous assumption that the existing Paula Tank would be required to remain in operation and therefore could not be rehabilitated without either first building a second tank or installing a costly and cumbersome temporary tank farm. Engineering and operational staff devised a work around to allow Paula Lane to be taken out of service without affecting the operation of the pressure zone. A two -week trial was conducted successfully in 2015, which also allowed a thorough internal inspection of the coating system and structure. The change from installing a second tank to rehabilitating the existing tank alleviated the previous public concerns with the impact a second tank would have in the neighborhood. A public meeting was held to inform the rehabilitation of the existing tank and to address any further concerns they had with the project. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits." DISCUSSION The Paula Lane Reservoir No. 1 Improvement project includes removal and replacement of the interior and exterior coatings, seismic and structural upgrades, replacement of perimeter venting and portions of deteriorated tank shell below the perimeter vent, upgrades to the valve vault, replacement of overflow piping and center vent, and installation of a second manway to meet OSHA requirements. The project will not change the existing storage capacity of the reservoir. Staff prepared the project design documents and issued a Notice Inviting Bids on June 16, 2016. On July 11, 2016, four bids were received as follows: Name of Bidder Bid Total Advanced Marine Preservation $ 735,077 Resource Development Company $ 873,785 Lowest Responsible Bidder Paso Robles Tank $ 964,000 TNT Industrial Contractors $ 1,196,126 Engineer's Estimate $ 1,300,000 The apparent lowest bidder was Advanced Marine Preservation LLC. Upon review of their bid documents; it was found they did not include a signed and sealed Bid Proposal Certificate as required by the Instruction to Bidders, and they failed to meet a minimum requirement of the Statement of Qualifications, by not having "Five years experience as a continuously operating entity engaged in the performance of similar work ". City staff prepared a letter to AMP 2 informing them of unresponsiveness of their bid, shown in Attachment 3. A response letter provided by AMP stated that an equivalent document for the Bid Proposal Certificate was included in their bid package. The City does not accept equivalent documents and the bid instructions clearly state that the signed and sealed certificate is required. City Staff reviewed AMP's bid package and response letter and is recommending that their bid be found unresponsive. The lowest responsible bidder was found to be Resource Development Company, who has performed similar projects for the Marin County Water District, City of Santa Cruz, City of Cloverdale, Soquel Creels Water District, and the Town of Windsor. Staff verified that the Contractor possesses a valid Class A California Contractor's License, license number 893537, which expires on March 31, 2017, that qualifies the Contractor to perform the work. The project must occur after the peak summer water demand to allow the tank to be safely taken offline. Temperatures and humidity must be in an acceptable range for preparation and placement of the coating systems. The tank will be completely enclosed by scaffolding and fabric to contain dust and dampen noise caused by construction. The old coating system will be collected, once sand blasted to a bright metal condition, and disposed of in an environmentally appropriate way. The project is categorically exempt pursuant to CEQA and Title 14, the California Code of Regulations, Section 15302, because the project consists of replacement and reconstruction of existing utility systems and or facilities involving negligible or no expansion of capacity. A Notice of Exemption has been issued for the project. Construction is scheduled to begin in September 2016 and to be completed by February 2016. Construction management and inspection will be conducted by City staff, with assistance from specialty welding and coating consulting. FINANCIAL IMPACTS The total approved project budget for the Paula Lane Reservoir No. l Improvement Project, project number C00500101 is $1,957,000 as shown in the breakdown below. The updated project budget is $1,550,000. The apparent low bid is within the overall project budget and therefore no unbudgeted financial impact will result from the recommended action. The project is funded through the water capital fund. Approved CIP Budget Current Estimated Actuals Construction Contract (low bid) $ 1,349,000 $ 873,785 Design $ 233,000 $ 259,215 Legal and Administration $ 14,000 $ 20,000 Construction Management $ 131,000 $ 150,000 CIP Overheads $ 30,000 $ 35,000 Contingency $ 200,000 $ 212,000 TOTAL $ 1,957,000 $ 1,550,000 ATTACHMENTS 1. Resolution 2. Location Map 3. Letter to AMP Industrial LLC. Attachment 1 RESOLUTION AUTHORIZING AWARD OF CONTRACT FOR THE PAULA LANE RESERVOIR NO.1 IMPROVEMENT PROJECT WHEREAS, City staff has prepared construction bid documents and advertised for construction of the Paula Lane Reservoir No. l Improvement Project, Project Number C00500101, ( "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 June 16, 2016, and four bids were received and opened on July 11, 2016 in accordance with applicable law; and WHEREAS, the apparent lowest bid for the Project, submitted by Advanced Marin Preservation LLC. from Torrance, CA for $735,077 was found to be a non - responsive bid; and WHEREAS, the lowest responsible bid for the Project was submitted by Research Development Company from Sparks, NV for $873,785; and WHEREAS, staff has determined that the Contractor's bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that Research Development Company possesses a valid California Contractor's License, Class A, number 893537 that qualifies Contractor to perform the Project; and WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act (CEQA) and Title 14, the California Code of Regulations ( "CEQA" Guidelines "), Section 15302, because the Project consists of replacement and reconstruction of existing utility systems and /or facilities involving negligible or no expansion of capacity; and WHEREAS, a Notice of Exemption has been issued for the project; and WHEREAS, the approved funds are available in the FY 16/17 CIP water enterprise budget. 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 - conformance in the bid of Contractor for the Paula Lane Reservoir No.1 Improvement Project, Project Number C00500101 and finds the bid of $873,785 to be the lowest, responsive bid and further finds that Research Development Company is the lowest responsible bidder. 2. Awards the contract for the Paula Lane Reservoir No. 1 Improvement Project, Project Number C00500101 to Research Development Company in the amount of $873,785, the amount of the lowest responsive bid, conditioned upon Research Development Company 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 Research Development Company. 4. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by Research Development Company 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. 0 Attachment 2 PAULA LANE RESERVOIR NO.1 IMPROVEMENT PROJECT i LOCATION MAP SITE R OLIA AVE C LU BODEG E Date :August 1, 2016 N City of Petaluma �, , PROJECT SITE w E Public Works and Utilities S Department 4� 18 r, 7 , POST OFFICE; BOX 61 PETALUMA, CA 94953 -0061 Attachment 3 David Glass July 11, 2016 Dfayor Chris Albertson Mr. Dale J. Kulcyzl{ Teresa BalTett Advanced Marine Preservation LLC Mite Healy Gabe Kearney 1450 W. 228t" St. Unit• #33 DaveIUng Torrance, CA 90501 Kathy Miller Counciluembers Re: Paula Lane Reservoir No.1 Improvement Project 000500101 NOTICE CONCERNING RESPONSIVENESS OF BID Pursuant to Section 10 in the Notice Inviting Bids and Section 10 of the Instructions to Bidders for this project, which provides in pertinent part that "the City reserves the right to reject any or all bids ", please be advised that City of Petaluma staff intend to recommend that the bid received from Advanced Marine Preservation LLC (AMP) for Public Works &Utilities this project be found non- responsive and rejected due to the failure to include signed City Engineer and sealed "Bid Proposal Certificate" as required in Section 6 of the Instruction to Petaluma, English v��s2 Bidders, and failure . to satisfy minimum requirement A.1 "Five years' experience as a Phone (707) 778 -4303 continuously operating entity engaged in the performance of similar work" in the Statement of Qualifications. Environmental services The of this letter is to afford AMP notice and opportunity to submit any Ellis Creek Water Recycling F acility purpose information AMP wishes concerning the responsiveness of its bid. 3890 Cypress Drive Pete (707 77 -3777 Phone (707) 776 -3777 The City uncil is scheduled to make a decision concerning ward of project at �' g p J Fax. (707) 776 -3746 its meeting on August 1st, 2016. Failure to provide information that establishes its responsiveness may result in rejection of the bid as non - responsive and award of the project to the next - lowest, responsive bidder. This notice and opportunity to . Parks & Facility submit materials is provided in accordance with the requirements of Ghiloiti Maintenance 840 Hopper St. Ext. Construction Co, v. Richmond (1996) 45 Ca1.App.4th 897. Petaluma, CA 94952 Phone (707) 778 -4303 Fax (70 7) 778 -4437 If you have any questions, please contact Dan Herrera at the Department of Public Works and Utilities at (707) 778 -4589. TranX bfcDowelrBlvd Sincerely, SSSN. �tcDotvell Blvd .- -- `_._.�__ -"�•�. Petahnua, CA 94954 Phone (707) 778 -4427 Fax (707) 776 -3799 Dan Herrera, P.E. Associate vi gineer Cc: Dan St. John, Director of Public Works & Utilities Utilities & Field operations 202K McDo,relliflvd Eric Danly, City Attorney Petaluma, CA 94954 Larry Zimmer, Deputy Director Phone (707) 778 -4546 Fax (707) 206 -6034 E -Mail. publictvomks@ cipetalunaca.us 8