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HomeMy WebLinkAboutStaff Report 5.A 04/06/2009W April 6, 2009 CITY OF PETALUMA, CALIFORNIA PETALUMA COMMUNITY DEVELOPMENT COMMISSION Agenda Title: PCDC Resolution Approving the Project Budget and Meeting Date: Authorizing Award of Contract for the Washington Street and Sixth Street April 6, 2009 Pavement Rehabilitation Project No. C00500207. Meeting Time: ❑ 3:00 PM ® 7:00 PM Category: ❑ Presentation ® Consent Calendar ❑ Public Hearing ❑ Unfinished Business ❑ New Business i Denartment: Director: Contact Person: Phone Number: Public Works Vine engo Larry Zimmer 776-3674 Cost of Proposal: $1,943,175 Name of Fund: FHWA grant: $957,000 Amount Budgeted: $3,064,000 (Total Project) PCDC: $986,175 $2,439,000 (Construction) Account Number: C00500207-30600-54151 Recommendation: It is recommended that the Commission take the following action: Adopt resolution approving the project budget and authorizing award of contract. Summary Statement: This City project will rehabilitate Washington Street, from the Petaluma River to Howard Street, and Sixth Street, from D Street to 7 Street. Attachments to Agenda Packet Item: 1. PCDC resolution approving the project budget and authorizing award of contract 2. Location map 3. PCDC Resolution 2007-20B adopting findings for expenditure of tax increment funds for the project R4eagU"A evieweeddbv Admin. Svcs. Dir: /q d Rev. # I Date Lfist-Revised: Reviewed by City Attornev: ADDroved by CRY Manager: Date: Date: S --3d File: S:\CIP Division\Projects\Washington & 6°1 Street Rehabilitation C00500207\Design\330\PCDC-City Council\award of contract CITY OF PETALUMA, CALIFORNIA APRIL 6, 2009 AGENDA REPORT FOR PCDC RESOLUTION APPROVING THE PROJECT BUDGET AND AUTHORIZING AWARD OF CONTRACT FOR THE WASHINGTON STREET AND SIXTH STREET PAVEMENT REHABILITATION PROJECT NO. 000500207 1. RECOMMENDATION: Adopt the resolution authorizing award of contract and approving the project budget. 2. BACKGROUND: The City received a Federal Highway Administration (FHWA) grant for the pavement rehabilitation of Washington Street, from Petaluma River to Howard Street, and Sixth Street, from D Street to J Street. Through a design consultant, Department of Public Works staff prepared the plans and specifications for the project. The Notice Inviting bids was issued on December 30, 2008, and bids were received on February 4, 2009 as follows: NAME OF BID North Bay Construction Ghilotti Construction Argonaut Constructors Team Ghilotti Ghilotti Brothers NICK Services FEDCO G.D. Nielson Construction Maggiora & Ghilotti The engineer's estimate for construction is $2,078,000. BID AMOUNT $1,126,425.00 $1,159,155.25 $1,194,113.85 $1,249,361.58 $1,386,767.51 $1,388,629.45 $1,519,314.00 $1,664,328.00 $1,727,957.00 With a bid of $1,126,425, the apparent low bidder is North Bay Construction, who have satisfactorily performed many similar projects for the City of Petaluma. Staff verified that North Bay possesses a valid class A contractor's license No. 357560, which qualifies them to perform the work. 2 S:\CIP Dieisian`d'rgiects\4V.uhington & 6th Street Rehab C500207`Design`330 IV[)C-CiIN. CounciI\ ward of con nact.doc 3 4. DISCUSSION: Staff recommends authorizing City Manager to enter into contract with the low bidder, North Bay Construction, to allow pavement rehabilitation of Washington Street and Sixth Street. If not awarded at this time, the City may not meet the grant requirement to award the contract by May 2009, thus losing the funds. FINANCIAL IMPACTS: The following is a breakdown of the prior approved budget and of the estimated project costs: Description Approved CIP Recommended Budget 08109 Budget Design $14,000 $244,000 Planning/Environmental $40,000 $30,000 Construction Contract $2,439,000 $1,126,425 Construction Management (10%) $130,000 $112,650 Administration $145,000 $56,500 CIP Overhead (5%) $100,000 $92,600 Contingency (Total Project) $196,000 $281,000 TOTAL $3,064,000 $1,943,175 Funding Sources Traffic Mitigation Impact Fees $93,000 Gas Tax $14,000 PCDC Fund 5530 $2,000,000 $986,175 Federal Grant $957,000 $957,000 TOTAL $3,064,000 $1,943,175 The estimated total cost, including planning, design, construction, administration, inspection, testing, and contingency is $1,943,175. The current economic environment, in which material costs have decreased significantly and contractors are extremely competitive, accounts for the significantly lower bid than that which was estimated. The FHWA grant will reimburse eligible costs for design and construction up to $957,000, and the remaining funding will come from PCDC funds in the approximate amount of $986,175. Due to the inability to determine the extent of repair needed for underlying concrete pavement until the surface asphalt pavement layer is removed, nor future asphalt price fluctuation, a large project contingency (25% of the construction contract amount) is being requested in the recommended project budget to cover unforeseen differing site conditions. 3 S:\CII' & 6th Street Rehab 000207\Desigt1`3 30 PCDC-City Counciftmvard of conlrael.doc ATTACHMENT 1 PETALUMA COMMUNITY DEVELOPMENT COMMISSION RESOLUTION APROVING THE PROJECT BUDGET AND AUTHORIZING AWARD OF CONTRACT FOR THE WASHINGTON STREET AND SIXTH STREET PAVEMENT REHABILITATION PROJECT NO. C00500207 WHEREAS, City staff has prepared construction bid documents and advertised for construction of this 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 4, 2009, and nine (9) bids were received and opened in accordance with applicable law; and WHEREAS, the lowest bid for the Project was from North Bay Construction, for $1,126,425; and WHEREAS, the CIP budget, which included a total budget for Project No. C00500207 of $3,064,000, was approved; and WHEREAS, staff has determined that North Bay's bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that North Bay possesses a valid California Contractor's License, Class A, number 357560, that qualifies North Bay to perform the Project; and WHEREAS, the Project has a Categorical Exemption pursuant to the California Environmental Quality Act ("CEQA") pursuant to Article 19, Section 15301, of Title 14 of the California Code of Regulations ("CEQA Guidelines"). NOW, THE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Approves the project budget in the amount of $1,943,175. 2. In accordance with the City of Petaluma Chartered Municipal Code, California Public Contact Code Section 20162 and other applicable law, waives any and all non-conformance in the bid of North Bay Construction, Inc. for the Washington Street and Sixth Street Pavement Rehabilitation Project, finds the bid of $1,126,425 to be the lowest responsive bid, and further finds that North Bay Construction, Inc. is the lowest responsible bidder. 3. Awards the contract for the Washington Street and Sixth Street Pavement Rehabilitation Project to North Bay Construction, Inc., in the amount of $1,126,425, the amount of the lowest responsive bid, conditioned on Caltrans' concurrence of the award and North Bay Construction 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. 4. Directs staff to issue a notice of award to North Bay Construction. 5. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by North Bay Construction 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 SACIP & 6th Street Rehab C500207'\Deaign\330 PCDC-City Councikaward of contract.doc IAlmV<Csi:ItTildY 5 S:ICIP Dix ision\Projects\Washington & 6111 Street Rehab C50020Td)esipi'330 ITDC-City CuunciI\mNard of nnnraet.doe Fnfiyeav:nd-� V -� 3 f iav xenlrd Pa.A y. Antl �'`' t`r ff Fae�¢tound ze l Rarx •�~-f tCl :. 'rs+ q ni=l - __ -.._. ` `_takrvillc SG _le ',r ;,?etaluma n PROJECT t.,'s LOCATION Lr Jf�N 6 i Z qui < WL k_1 _, -, n 2 kl+t GEST VICINITY MAP NOT TO SCALE 5 S:ICIP Dix ision\Projects\Washington & 6111 Street Rehab C50020Td)esipi'330 ITDC-City CuunciI\mNard of nnnraet.doe ATTACHMENT 3 PETALUMA COMMUNITY DEVELOPMENT COMMISSION RESOLUTION NO. 2007-20B RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING USE OF $7.885 MILLION OF PETALUMA COMMUNITY DEVELOPMENT COMMISSION TAX INCREMENT FUNDS FOR PUBLIC IMPROVEMENTS WITHIN THE CENTRAL BUSINESS DISTRICT AND PETALUMA COMMUNITY DEVELOPMENT REDEVELOPMENT PROJECT AREAS AND MAKING FINDINGS REQUIRED BY CALIFORNIA HEALTH & SAFETY CODE SECTION 33445 WHEREAS, the City Council of the City of Petaluma (the "City Council") adopted the Redevelopment Plan for the Central Business District Project Area (the "CBD") in 1976 and the Redevelopment Plan for the Petaluma Community Development Project Area the "PCD") in 1988 (the "Redevelopment Plans") and fiscally merged the Redevelopment Plans in 2006; and, WHEREAS, the Redevelopment Plans set forth plans for redevelopment of the CBD and PCD Project Areas (the "Project Areas"): and. WHEREAS, the Petaluma Community Development Commission (the "PCDC") is responsible for administering the Redevelopment Plans to cause the redevelopment of the Project Areas, including installation of public improvements consistent with the Redevelopment Plans; and. WHEREAS, it would be beneficial to the alleviation of blight in the Project Areas to make the following public improvements the "Public Improvements"): • Washington Street - Howard Street to Petaluma River and 61h Street - D Street to J Street Pavement Rehabilitation (CBD), • Caulfield Extension - Lakeville to Hopper Street (PCD), • Petaluma Boulevard -Bike Lanes (CBD/PCD), • Petaluma Railroad Depot Renovation FCBD), • Keller Street - Western Avenue to B Street and Liberty Street - Washington Street to Western Avenue Reconstruction (CBD). • Traffic Signals Upgrades (CBD/PCD). • Downtown Improvements Phase 11 (CBD): and. WHEREAS, The expenditure of tax increment funds will benefit the CBD and PCD Project Areas and help to eliminate blight as outlined in the Five Year Implementation Plan adopted by the PCDC in June 2007 and as documented in the Report to Council on the Plan Amendment and Fiscal Merger, accepted by the PCDC in 2006 ("the 2006 Report") because the Public Improvements will improve traffic circulation: and, WHEREAS, the infrastructure upgrades and circulation improvements will address roadway, streetscape and transportation related deficiencies; and. WHEREAS, improvements to deficient and inadequate roadway and transportation infrastructure in the Project Areas will alleviate blighting conditions, including impediments to circulation and access that defer revitalization in certain areas within the Project Areas; and, PCDC Resolution 2007-20B Page I S:\C111 Division\PrgjeC S\N.uhington & 61h Street Rehah C500207\Design1330 PCDC-City Cuuncil',award of contracl.JoC WHEREAS, landlocked parcels that lack direct access to the public right-of-way will become accessible through the construction of pedestrian and vehicular roadways: and. WHEREAS, the Public Improvements not only eliminate physical blighting conditions but also promote economic development opportunities and facilitate private investment in the CBD and PCD Project Areas and are expected to encourage other private investment in the area which will lead to further blight alleviation; and, WHEREAS, public improvements in the CBD and PCD Project Areas will cost a total of $25,261.000, of which $8,608,000 will be spent in Fiscal Year 2007/08, and the PCDC will pay for $7,885,000 through tax increment funds; and, WHEREAS, the PCDC and City explored potential funding sources other than redevelopment for each project as outlined in Chapter IV of the 2006 Report; and. WHEREAS, anticipated funding sources include $93,000 in Traffic Mitigation Fees for the Washington/&h Rehabilitation and a $630,000 grant from the Bicycle Transportation Account for Petaluma Blvd - Bike Lanes in FY 2007/08; and, WHEREAS, use of tax increment funding for the Public Improvements is consistent with the PCDC Five Year Implementation Plan adopted earlier this year ,which specifically includes the allocation of tax increment funds for these particular Public Improvements during the FY2007/08 - FY201 1 / 12 period: and, WHEREAS, the PCDC desires to spend funds for the Public Improvements; and WHEREAS, installation of the Public Improvements conforms with the General Plan of the City; and, WHEREAS, the PCDC expenditures for the Public Improvements will assist in the redevelopment of the Project Areas and the Public Improvements are necessary to effectuate the purpose of the Redevelopment Plans; and, WHEREAS, pursuant to Health and Safety Code Section 33445, the PCDC may, with the consent of the City Council, pay part or all of the cost of the Public Improvements upon the adoption of specified findings: NOW, THEREFORE, BE IT RESOLVED by the Petaluma Community Development Commission as follows; 1. The findings stated herein are true and correct and are adopted as the findings of the PCDC. 2. Based upon the foregoing, the PCDC hereby finds that (i) the expenditure of tax increment funds 10 undertake the public improvements and the project as set forth in this Resolution and the Implementation Plan will be of benefit to the CBD and PCD Project Areas; (ii) no other reasonable means of financing the public improvements and the project is reasonably available: 115) completion of the public improvements and the project will assist in the elimination of blighting conditions in the Project Areas; and (iv) completion of the public improvements and the project is PCDC Resolution 2007-208 Page 2 S:',,CII' Diviainn'�Ptoject tU'a�hin@ton & lith Street Itehah (7500207,1Design1330 PCDC-City Cuuncil',atsard of conunet.doc consistent with the Implementation Plan adopted for the CBD and PCD Project Areas. 3. The PCDC hereby authorizes the contribution of $7.885M in PCDC tax increment funds for the Public Improvements described herein. ADOPTED this 5th day of November, 2007, by the following vote: Commissioner Aye No Absent Abstain Barrett X Freitas X j Harris X Vice Chair Nau X I O'Brien X Rabbitt X Chair Torllatt X I I /J I / Paru%la Torliaft, it ATTEST: APPROVED AS TO FORM: QA - Claire Cooper, Recording Se lary Eric Donly, General Counsel PCDC Resolution 2007-20B Page 3 8 S:\C'IP Di% ision`'Prgjects\W'.Lshinghxi & 6th Street Rehab 0500207\I)esi1pn`330 PCDC-City C'ounciklward of contraci.duc