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HomeMy WebLinkAboutStaff Report 2.G 07/20/2009CITY OF PETALUMA, CALIFORNIA 2.G AGENDA BILL July 20, 2009 Agenda Title: Discussion and Possible Adoption of Resolution Approving Meeting Date: July 20, 2009 the Project Budget and Authorizing Award of Contract for the American Recovery and Reinvestment Act (ARRA) of 2009 Project -Petaluma Various Meeting Time: 7:00 PM Street Rehabilitation. Category: ❑ Presentation ❑ Appointments ® Consent ❑ Public Hearing ❑ Unfinished Business ❑ New Business Department: Director: Contact Person: Phone Number: Public Works :Vmce Marengo Larry Zimmer 776-3674 4 Total Cost of Proposal or iee : $665,188.45 Name of Fund: Amount Budgeted: $1,109,000 (Federal ARRA Grant) Account Number: C16100903-30600-54151 Current Fund Balance: $1,109,000 (Fed Grant) Recommendation: It is recommended that the City Council take the following action: Adopt a resolution approving the project budget and authorizing award of contract for the American Recovery and Reinvestment Act (ARRA) of 2009 Project -Petaluma Various Street Rehabilitation. 1. ❑ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ❑ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment _ 3. ❑ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The City plans to resurface Ely Road, from Sonoma Mountain Parkway to Corona Road; and Sunnyslope Avenue, from D Street to I Street, to preserve those streets. With a bid of $496,188.45, the apparent low bidder is Ghilotti Construction Company. Attachments to Agenda Packet Item: 1. Resolution approving the project budget and authorizing award of contract. 2. Location Map Reviewed by Finance Director: Reviewed by City Attornev: AnDrov,#d-,1 V'g#VManaaer: Date: Date: Rev. # Date Last Revised: File: S:\CIP Division\Projects\ARRA Petaluma Various Street Rehabilitation Project C16100903\Design\330 PCDC-City Councihaward of contract CITY OF PETALUMA, CALIFORNIA JULY 20, 2009 AGENDA REPORT FOR DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION APPROVING THE PROJECT BUDGET AND AUTHORIZING AWARD OF CONTRACT FOR THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) OF 2009-PETALUMA VARIOUS STREET REHABILITATION PROJECT 1. RECOMMENDATION: Adopt a resolution approving the project budget and authorizing award of contract for the American Recovery and Reinvestment Act (ARRA) of 2009 Project -Petaluma Various Street Rehabilitation. 2. BACKGROUND: In February 2009, Congress passed economic stimulus legislation known as the American Recovery and Reinvestment Act of 2009 (ARRA), providing funding for "ready -to -go" roadway and highway rehabilitation projects. According to the Bay Area Metropolitan Transportation Commission (MTC) calculations, the City is eligible to receive Federal funding up to $1,109,000 for construction of the Petaluma Various Street Rehabilitation Project. This project involves pavement rehabilitation of Ely Road, from Sonoma Mountain Parkway to Corona Road, and Sunnyslope Avenue, from D Street to I Street. On March 2, 2009, the City Council authorized the filing of an application for Federal ARRA funding for this project. The Department of Public Works staff prepared the plans and specifications for the project. On April 22, 2009, the City received Federal authorization to advertise. A Notice Inviting Bids was issued on May 26, 2009, and bids were received and opened on June 24, 2009 as follows: NAME OF BIDDE BID AMOUNT Ghilotti Construction Company $496,188.45 Ghilotti Brothers, Inc. $525,104.00 Argonaut Constructors $532,844.50 North Bay Construction, Inc. $538,844.50 Team Ghilotti $607,412.45 Vintage Paving Company, Inc. $631,307.00 Michael Paul Company, Inc. $770,025.77 The engineer's estimate for construction is $851,672. With a bid of $496,188.45, the apparent low bidder is Ghilotti Construction Company. This contractor has satisfactorily performed similar projects for other municipal agencies. Staff SP.CP Division\I'rujects'Narious Street Rehab Project ARR-1 09 cI6100903\Dcsign'J30 PCDC-City Council\Pinal.a\Nmd ol'contract doc� verified that Ghilotti Construction possesses a valid Class A California contractor's license No. 644515, which qualifies them to perform the work. 3. DISCUSSION: Staff recommends authorizing City Manager to enter into contract with the low bidder, Ghilotti Construction, to allow pavement rehabilitation of Ely Road and Sunnyslope Avenue. If the Council decides not to award the contract at this time, the City may risk losing the ARRA grant, since the State deadline for award of all Tier I ARRA contracts is September 30, 2009. 3. FINANCIAL IMPACTS: The following is a breakdown of the estimated constriction costs: Construction Contract (low bid) $496,188.45 Construction Management 60,000.00 Geotechnical Testing 35,000.00 Construction Contingency 74,000.00 Estimated Total Construction Cost $665,188.45 At this date, estimated total construction cost is $665,188.45. 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 originally estimated. The Federal ARRA 2009 grant will fully reimburse all eligible construction costs (i.e. construction contract, construction management & inspection, testing, etc.). Construction is tentatively scheduled to begin in late August and expected to be completed by November, weather permitting. 3 S;,CIP Dig-isiun\Projects\V;trious Stt'ect Rehab Project ARRA 09 c 16100903�Design1330 PCDC-Cin COLnlORFinahward of -contract doc ATTACHMENT 1 RESOLUTION APROVING THE PROJECT BUDGET AND AUTHORIZING AWARD OF CONTRACT FOR THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) OF 2009-PETALUMA VARIOUS STREET REHABILITATION PROJECT NO. C16100903 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 June 24, 2009, and seven (7) bids were received and opened in accordance with applicable law; and WHEREAS, the lowest bid for the Project was from Ghilotti Construction Company for $496,188.45; and WHEREAS, the Federal American Recovery and Reinvestment Act (ARRA) of 2009 will provide full funding for the construction of Project No. C16101002; and WHEREAS, staff has determined that Ghilotti Construction Company's bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that Ghilotti Construction Company possesses a valid California Contractor's License, Class A, number 644515, that qualifies them 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, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Approves the project budget in the amount of $665,188.45. 2. In accordance with the City of Petaluma Charter and Municipal Code, California Public Contact Code Section 20162 and other applicable law, waives any and all non-conformance in the bid of Ghilotti Construction Company for the ARRA of 2009 -Petaluma Various Street Rehabilitation Project, finds the bid of $496,188.45 to be the lowest responsive bid, and further finds that Ghilotti Construction Company is the lowest responsible bidder. 3. Awards the contract for the ARRA of 2009 -Petaluma Various Street Rehabilitation Project to Ghilotti Construction Company, in the amount of $496,188.45, the amount of the lowest responsive bid, conditioned on Ghilotti 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 Ghilotti Construction Company. 5. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by Ghilotti Construction 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. 4 SX1P Division\Prujects.Vuriuus Strect Rehab Project ARRA 09 e16U1090=,De:ign`3311 PCDC-Cit} Cuuncihl'inal. maid of contract.doc 5 S:,CII' Dh ision\Pioiccis\VariOUS Street Rehab Project ARRA 09 c I 6100903J)c,,ign\330 PCDC-Cily CouncilTmal.a\t,md of'contrandoc