HomeMy WebLinkAboutStaff Report 3.C 05/21/2018DATE: May 21, 2018
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dant. F. CE — Director, Public Works & Utilities
Sanja ishra, P.E. — Senior Engineer, Public Works & Utilities
SUBJECT: Resolution Rejecting All Bids for the Aviation Gas and Fuel Filter Upgrades
Project — C61501912
RECOMMENDATION
It is recommended that the City Council approve the Resolution Rejecting All Bids for the
Aviation Gas and Fuel Filter Upgrades Project — C61501912.
BACKGROUND
The City currently operates two fuel storage tank facilities on the tarmac at the Petaluma
Municipal Airport consisting of two (2) twelve thousand (12,000) gallon double wall
aboveground tanks with piping, monitoring, and electrical controls. The first is a bottom -loading
tank for Jet A fuel, used in conjunction with a Jet A refueling truck. The second tank dispenses
Avgas to small planes from the fueling island. Both systems need upgrades to enhance safety and
operational reliability of aviation fuels pipelines per guidelines issued by fuel suppliers.
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits."
DISCUSSION
The project would result in the replacement and upgrade of existing gas and fueling systems
located within the taxiway area of the Petaluma Municipal Airport. The Airport Commission
recommended that staff complete a design for the upgrades and Regal Pacific Aviation
Equipment was awarded a Professional Services Agreement to prepare final construction
drawings for the aviation gas and fuel filter upgrades.
Improvements to the jet fuel system will include replacement of fill and discharge pipes;
installation of new hose and fittings and a relaxation chamber to eliminate static electricity; a
reclaim tank with hand pump; and associated activities including electrical upgrades and
replacement. Improvements to the Aviation Gas System include removal of dispenser cabinets;
installation of a new Wayne Dispenser with valves, lines and hoses, new gauges, reclaim tank
with hand pump; and connection to the existing fuel management system. Mechanisms for
purging and flushing lines and a filter system will also be installed. Construction activities will
occur in hardscape areas that have been previously disturbed and for the purpose of CEQA are
exempt under maintenance provisions.
A Notice Inviting Bids was advertised on March 15 and 22, 2018 and the bid opening was on
April 5, 2018. Only one (1) bid was received as follows:
Name of Bidder Base Bid
Gems Environmental Management Services, Inc. $441,448.49
Engineer's Estimate $110,000.00
The bid for the work is significantly higher than similar projects and the Engineer's estimate, and
exceeds the project budget. Therefore, it is recommended that the bid be rejected and the City
pursue other options for completing the necessary work. Because this project is small and the
work is very specialized, it is anticipated that the City will be more successful by purchasing the
specialized equipment outright, and procuring professional services for its installation.
FINANCIAL IMPACTS
The total proposed CIP project budget for FY 18/19 for the Aviation Gas and Fuel Filter
Upgrades Project C61501912 is $162,000. With only a minimal amount spent to date, it is
expected that the budget is sufficient to complete the project. The following is a breakdown of
the budget:
Uses
Total Project
Budget
Planning/Environmental
Design
$
4,000
Legal Services
Administration
$
2,000
Construction Contracts
$
140,000
Construction Management
$
5,000
CIP Overhead
$
1,000
Project Contingency
$
10,000
TOTAL
$
162,000
Funding Sources
Airport Operating
$
162,000
TOTAL
$
162,000
ATTACHMENTS
1. Resolution
2. Location Map
1)
Attachment 1
RESOLUTION REJECTING ALL BIDS FOR THE AVIATION GAS AND FUEL
FILTER UPGRADES PROJECT —C 61501912
WHEREAS, the City of Petaluma initiated this project with the intent to upgrade the
Aviation Gas and Fuel Filter systems at the Petaluma Municipal Airport and bring it to current
standards; 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 or reconstruction of existing utility
systems and/or facilities involving negligible expansion of capacity; 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 prepared
construction bid documents and solicited bids for the Project; and
WHEREAS, the project was advertised on March 15th and 22nd, 2018, and one bid was
received and opened on April 5, 2018 in accordance with applicable law; and
WHEREAS, the bid received for the project exceeded the budgeted amounts and the
Engineer's estimate and is not representative of actual cost.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby rejects all bids for the Aviation Gas and Filter Fuel Upgrades Project
C61501912.
Attachment 2
AVIATION GAS AND FUEL FILTER UPGRADES
PROJECT
PROJECT NO. C61501912
LOCATION MAP
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PROJECT SITE
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Date : MAY 21, 2018
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