HomeMy WebLinkAboutStaff Report 4.A 04/17/2017Agenda Item #4.A
DATE: April 17, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan t. VPE. — Director, Public Works and Utilities
Larry Zi , eputy Director, Public Works and Utilities
SUBJECT: Resolution Authorizing Award of Contract for the Recycled Water System
Extension Sonoma Mountain Alignment Project, and Approve a Revised Project
Budget.
RECOMMENDATION
It is recommended that the City Council Adopt the Resolution Authorizing Award of Contract
for the Recycled Water System Extension— Sonoma Mountain Alignment Project, and Approve
a Revised Project Budget.
BACKGROUND
The City of Petaluma delivers tertiary treated recycled water produced by the Ellis Creek Water
Recycling Facility ( ECWRF) to urban users within the City limits to irrigate parks, open spaces,
golf courses, and schools, and outside the City limits to agricultural customers. The opening of
the ECWRF in 2009 allowed the City to produce tertiary recycled water, which is suitable for
non - potable uses such as urban irrigation. On November 16, 2015, a Recycled Water System
Update was presented to Council, highlighting the master plan for the expansion of the City's
Urban and Agricultural recycled water systems. The Urban and Agricultural Recycled Water
Master Plan identified specific project alignments and phasing to expand the City's recycled
water system. The Sonoma Mountain Alignment pipeline was one of two near term pipeline
projects included in the recycled water system expansion, the other being the Oakmead Business
Park— Phase 1 pipeline project, which was completed last year.
The Program Environmental Impact Report (PEIR) for the expansion of recycled water for urban
and agricultural uses was prepared in 2008 and tiered off the EIR for the 2025 General Plan. The
Water Recycling Expansion Program (WREP) is an essential component of the water resources
element of the General Plan because water recycling provides potable water offset. The City
Council certified the PEIR for the WREP in 2008 (Resolution 2008 -206). Council certified
Addendum No. 1 to the PEIR for the WREP and adopted an update to the PEIR's Mitigation
Monitoring and Reporting Program (MMRP) in Resolution 2015 -187 N.C.S. on December 7,
2015. Addendum No. 1 addressed an expansion of the service area to include several agricultural
properties to the southeast of the ECWRF but did not specifically identify the Sonoma Mountain
Alignment pipeline project. On July 11, 2016, City Council determined that the Sonoma
Mountain Alignment project was within the scope of the PEIR for the WREP, approved the
project, and adopted a Mitigation Monitoring and Reporting Program for the project (Resolution
No. 2016 -109 N.C.S.). This Council action satisfied the requirements of the California
Environmental Quality Act (CEQA) for the project.
In the fall of 2015, the City began the application process to seek Proposition 1 funding from the
State Water Resources Control Board (State Board). On September 14, 2015, Council authorized
the submittal of a financial assistance application for a funding agreement with the State Board
(Resolution No. 2015 -138 N.C.S.) and authorized the City Manager to execute a financial
assistance agreement should it be offered. The application included both the Sonoma Mountain
Alignment, and the now completed Oakmead Business Park — Phase 1 recycled water system
expansion projects.
DISCUSSION
The Sonoma Mountain Alignment pipeline project is included in the "Prop IA" phase of the
Urban Recycled Water Master Plan presented to City Council on November 16, 2015. The
Sonoma Mountain Alignment Project will extend a 16 -inch recycled water main 8,000 feet
within the urban separator from the Rooster Run Golf Course to the Corona Creek Elementary
School. The project will also extend an 8 -inch recycled water main approximately 2,000 feet to
serve Eagle Park and adjacent Landscape Assessment Districts (LADS). The project is expected
to offset potable water use by approximately 21.7 million gallons per year. The project will make
recycled water available for irrigation to local schools, parks, and LADS, including Corona Creek
Elementary School, Kenilworth Junior High School, Sonoma Mountain Elementary School,
Santa Rosa Junior College, and Eagle Park.
The City submitted an application for Proposition 1 funding from the State Board for this project.
Prop 1 proved to be a very popular funding source and the allocation for recycled water projects
was used up quickly. Upon hearing the news that Prop 1 funds were quickly being committed
elsewhere, an effort was made to meet with State representatives to answer questions and
encourage the State Board staff to approve the City's application. It was through these efforts, as
a result of the outreach, that the project's application was approved, and funds were allocated for
the project.
The project construction plans were designed and prepared by City engineering staff and a
Notice Inviting Bids was issued on February 23, 2017. On March 16, 2017, seven bids were
received as follows:
Name of Bidder
Bid Total
Bid Alt 1
Terracon Constructors
$ 1,847,936
$364,274
Lowest Responsible Bidder
Team Ghilotti
$ 1,999,575
$266,500
Argonaut Constructors
$ 2,012,450
$334,000
W.R. Forde & Associates
$ 2,184,340
$326,500
Michael Paul Company
$ 2,322,800
$334,000
Ghilotti Construction
$ 2,348,950
$432,800
Cratus, Inc.
$ 2,746,650
$349,500
Engineer's Estimate
$ 2,200,000
$315,000
2
The low bidder for this contract was determined by the Base Bid only, while the City reserves
the right to award the Bid Alternate 1 if it chooses. Upon reviewing the cost of the Bid Alt 1, it is
recommended to award the Base Bid only, while maintaining a construction contract
contingency of $450,000 with the intention of completing portions of the Bid AM work through
a contract change order if a better price can be negotiated.
The lowest responsible bidder, Terracon Constructors Inc. has performed similar projects for the
City of Santa Rosa, Sonoma Valley County Sanitation District, City of Cloverdale, City of
Sonoma, City of Rohnert Park, and the City of Pittsburg. The Contractor possesses a valid Class
A California Contractor's License, license # 562511, which expires on November 30, 2017, that
is appropriate to perform the work. Construction is scheduled to begin in May or June 2017 and
to be completed by October 2017. Construction management and inspection will be conducted
by City engineering staff.
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits."
FINANCIAL IMPACTS
The FY 16/17 CIP budget for the Recycled Water System Extension — Sonoma Mountain
Alignment Project (C66401415) is $2,969,000 as summarized below. The revised project budget
was reduced and includes a contract contingency, in accordance with the City's change order
policy, which the City may use to construct portions of the Bid Alt 1 if a favorable price can be
negotiated.
Project Costs
Approved
CIP Budget
Revised Project
Budget
Construction Contract
$
2,164,000
$
1,847,936
Planning /Environmental
$
6,000
$
30,000
Contract Contingency
$
0
$
450,0000
Design
$
135,000
$
125,000
Administration
$
14,000
$
6,000
Construction Management
$
173,000
$
200,000
CIP Overheads
$
57,000
$
40,000
Remaining Contingency
$
420,000
$
78,094
TOTAL BUDGET
$
2,969,000
$
2,777,030
Prop 1 funding will reimburse the City for portions of the project. In addition to Prop 1 funding,
the project will be predominantly funded through the Water Enterprise with a minor contribution
from Wastewater. The funding source needs to be revised as follows:
Funding Sources
Approved
16/17 CIP Budget
Revised CIP
Budget
Wastewater Capital Fund
$ 44,000
$ 44,000
Water Capital Fund
$ 1,863,000
$ 15863,000
State Prop 1 Grant
$ 1,062,000
$ 870,030
Total
$ 2,969,000
$ 2,777,030
With these proposed budget changes, the recommended action will have no unanticipated
impacts to the City's water or wastewater enterprise funds. No General Fund sources are used for
this project.
ATTACHMENTS
1. Resolution
2. Location Map
0
Attachment 1
RESOLUTION AUTHORIZING AWARD OF CONTRACT FOR THE RECYCLED
WATER SYSTEM EXTENSION — SONOMA MOUNTAIN ALIGNMENT PROJECT,
AND APPROVE A REVISED PROJECT BUDGET
WHEREAS, the City of Petaluma General Plan 2025 recognizes the use of recycled
water as a potable water offset and to meet regulatory requirements for wastewater discharge;
and
WHEREAS, the City of Petaluma desires to expand its recycled water system to reduce
wastewater discharges and provide additional potable water offset; and
WHEREAS, on November 3, 2008, the Council, by Resolution 2008 -206, certified the
Program Environmental Impact Report for the Water Recycling Expansion Program; and
WHEREAS, on December 7, 2015, the Council, by Resolution 2015 -187 N.C.S.,
adopted the Resolution Certifying Addendum No. 1 to the Program Environmental Impact
Report for the Water Recycling Expansion Program Certified By Resolution No. 2008 -206; and
WHEREAS, on July 11, 2016, the Council, by Resolution 2016 -109 N.C.S., determined
that the Sonoma Mountain Alignment project is within the Scope of the Program Environmental
Impact Report for the Water Recycling Expansion Program, approved the Project, and adopted a
Mitigation Monitoring and Reporting Program in order to satisfy California Environmental
Quality Act and Title 14, the California Code of Regulations ( "CEQA" Guidelines ")
requirements; and
WHEREAS, oil September 14th, 2015,the Council, by Resolution 2015 -138 N.C.S.,
authorized the City Manager to execute all necessary application documents and to negotiate and
execute a financial assistance agreement with the State Water Resources Control Board; and
WHEREAS, construction bid documents were prepared and advertised for construction
of the Recycled Water System Extension — Sonoma Mountain Alignment Project, Project
Number C66401415, ( "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 February 23, 2017, and seven bids were received
and opened on March 16, 2017 in accordance with applicable law; and
WHEREAS, the lowest responsible bid for the Project was submitted by Terracon
Constructors, Inc. from Healdsburg, CA for Base Bid amount of $1,847,936.00; and
WHEREAS, it was determined that the Contractor's bid satisfies the bidding
requirements for the Project; and
WHEREAS, it was verified that Terracon Constructors, Inc. possesses a valid California
Contractor's License, Class A, #562511 that qualifies Contractor to perform the Project; and
WHEREAS, the City has an approved application for State Proposition 1 Grant funding
for the project, and has successfully negotiated a Construction Grant Agreement; and
WHEREAS, the necessary funds are budgeted in the 2016/2017 CIP Wastewater Capital
Funds as CIP project C66401415 with a budget of $2,969,000.00 .
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
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 Recycled Water System Extension —
Sonoma Mountain Alignment, Project Number C66401415 and finds the bid of
$1,847,936.00 to be the lowest, responsive bid and further finds that Terracon
Constructors, Inc. is the lowest responsible bidder.
2. Awards the contract for the Recycled Water System Extension — Sonoma Mountain
Alignment Project, Project Number C66401415 to Terracon Constructors, Inc. in the
amount of $1,847,936.00, the amount of the lowest responsive bid, conditioned on
Terracon Constructors, 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. Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by Terracon Constructors, 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.
4. Approves the revised project budget for the project to a new project budget of
$2,777,030, which includes a construction contract contingency of $450,000 and
includes a reduction in projected Prop 1 funding to $870,030.
31
Attachment 2
RECYCLED WATER SYSTEM
EXTENSION
SONOMA MOUNTAIN ALIGNMMENT
PROJECT NO. C66401415
LOCATION MAP
PROJ CT TE ,
4
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41 q \ y
2/0 /
Date : April 17, 2017
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PROJECT SITE w E City of Petaluma
Public Works and Utilities
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Department
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