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
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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:
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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.
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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.
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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.
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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
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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
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