HomeMy WebLinkAboutStaff Report 5.D 09/10/2018L
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DATE: September 10, 2018
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities
Jeff Stutsman, P.E. — Senior Civil Engineer
SUBJECT: Resolution Authorizing Award of Contract for the FY 18/19 Water Services
Project and Wilson -Webster Street Water Main Replacement Project, to Team
Ghilotti Inc.
RECOMMENDATION
It is recommended that the City Council approve the Resolution Authorizing the Award of
Contract for the FY 18/19 Water Services Project and Wilson -Webster Street Water Main
Replacement Project, to Team Ghilotti Inc.
BACKGROUND
The proposed action allows two CIP projects to be combined into a single construction contract
to achieve economies of scale. The FY 18/19 Water Services project (067501713) will replace
defective water services that result in frequent pipe breaks and water leaks. Many of the water
services installed during the 1970's and early 80's included polybutylene "blue -tube" piping to
connect the water main to the customer's water meter. Polybutylene (PB) is plastic resin used to
manufacture pipes and fittings that becomes brittle causing micro -fractures and pipe failure. The
industry has since moved away from its use, and many cities,- including Petaluma, are left with
thousands of PB water services. Maintenance crews routinely replace these old services as they
fail. The subject project will upgrade the deteriorated water services and water main service
saddles to current City standards.
Approximately 2,000 services have been upgraded to date, and the City has approximately 4,000
polybutylene services remaining. This project will replace 240 polybutylene service lines with
high-density polyethylene (HDPE) pipe leaving 3,760 to be upgraded in the future. The water
service replacements will be phased over multiple years due to the cost and size of the project.
The projects are prioritized based on failure rates.
The Wilson -Webster Street Water Main Replacement Project (C67502012) was incorporated
into the construction contract to create a larger scope to attract more favorable pricing. This
project will upgrade old and deteriorated water mains at various locations. The existing 970
linear feet 4 -inch cast iron pipe on Wilson St. between E. Washington to Madison is corroded
and has reached its service life and will be replaced with an 8 -inch pipe. This project will replace
pipes and fittings to meet current standards. It will also remove and replace a 2 -inch steel main
pipe with an 8 -inch pipe on Hayes Lane and some services on Webster between Hayes Ln. and B
St.
ISCUSSION
The construction plans, and specifications were prepared by engineering staff and a Notice
Inviting Bids was advertised on June 21, 2018. Five (5) bids were received as follows:
Name of Bidder Base Bid
Team Ghilotti Inc. $ 1,515,540.45
Michael Paul Co. $ 1,844,855.00
Argonaut Constructors $ 2,047,662.00
Terracon Construction $ 2,412,700.00
WR Forde $ 2,697,915.00
Engineers Estimate $ 1,533,040.00
The lowest responsible and responsive bidder, Team Ghilotti Inc., has performed similar projects
throughout the Bay Area and possesses a valid Class A California Contractor's License,
#895384, which allows Team Ghilotti Inc. to perform the work. It is recommended that Council
adopt the resolution awarding the contract to Team Ghilotti Inc., in the amount of $1,515,540.45.
To take advantage of favorable bid prices, it is anticipated that additional water services will be
added to the project scope. The project budget includes a construction contingency amount to
cover potential costs from unknown conditions and to allow for an increase in scope.
Construction is scheduled to begin in October 2018 and to be completed by December 2018.
Residents and businesses affected by the project will be noticed in advance. Construction
management and inspection services will be conducted by City staff with assistance by an
outside consultant for material testing services.
FINANCIAL IMPACTS
The Water Services project is approved in the 18/19 CIP, project C67501713, with an approved
budget of $1,170,000. The Wilson -Webster Street Water Main Replacement Project (C6740916)
is approved in the FY 18/19 CIP with a budget of $890,000. The overall project budget is
$2,060,000. The funding source is the Water Enterprise Fluid.
The following are tables of the approved project budgets. The current cost estimate for the two
CIP projects totals $2,018,395, which if delivered as planned will result in a small saving from
the projects.
2
Uses
CIP Approved Budget
Water Services
C67501713
Project Budget Water'
Services_ C67501713
Planning and Environmental
$ 5,000
$ 500
Design (City Staff)
$ 60,000
$ 45,000
Legal Services
$ 2,000
$ 1,000
Administration
$ 5,000
$ 2,000
Construction Contract (low bid)
$ 850,000
$ 890,645
Construction Management &
Inspection
$ 90,000
$ 55,400
Contract Contingency
$ 130,000
$ 158,955
CIP Overheads
$ 28,000
$ 16,500
Total Costs
$ 1,170,000
$ 1,170,000
Uses
CIP Approved Budget
Wilson- Webster
(C6740916)
Project Budget
Wilson- Webster
(C6740916
Planning and Environmental
$ 5,000
$ 500
Design (City Staff)
$ 60,000
$ 15,000
Legal Services
$ 0
$ 1,000
Administration
$ 30,000
$ 2,000
Construction Contract (low bid)
$ 600,000
$ 624,895
Construction Management &
Inspection
$ 90,000
$ 100,000
Contract Contingency
$ 100,000
$ 141,605
CIP Overheads
$ 5,000
$ 5,000
Total Costs
$ 890,000
$ 890,000
ATTACHMENTS
Resolution
Location Map
Attachment 1
RESOLUTION AUTHORIZING THE AWARD OF CONTRACT FOR
THE WATER SERVICE 18/19 PROJECT AND WILSON-WEBSTER WATER MAIN
REPLACEMENT PROJECT TO TEAM GHILOTTI INC.
WHEREAS, City staff has prepared construction bid documents and advertised for the
Water Service 18/19 Project C67501713 to upgrade water services at various locations and
Wilson -Webster Water Main Replacement Project C6740916 to upgrade water mains at various
locations ("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 prepared
construction bid documents and solicited bids for the Project; and
WHEREAS, the project was bid on June 21, 2018, and five (5) bids were received and
opened on July 12, 2018 in accordance with applicable law; and
WHEREAS, the lowest responsible bid for the Project was submitted by Team Ghilotti
Inc. from Petaluma, CA for $1,515,540.45; and
WHEREAS, it has been determined that Team Ghilotti Inc., bid satisfies the bidding
requirements for the Project; and
WHEREAS, Team Ghilotti Inc., possesses a valid California Contractor's License, Class
A, #895384that allows Team Ghilotti Inc. to perform the work for the Project; 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 15301, because the project consists of repair and maintenance to an existing public
street.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby:
hi 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 Team Ghilotti Inc. for the Water Services 18/19 Project and
Wilson -Webster Street Water Main Replacement Project, finds the bid of $1,515,540.45
to be the lowest, responsive bid and further finds that Team Ghilotti Inc., is the lowest
responsible bidder.
2. Awards the contract for the Water Services 18/19 Project and Wilson -Webster Street
Water Main Replacement Project to Team Ghilotti Inc., in the amount of $1,515,540.45,
4
the amount of the lowest responsive bid, conditioned on Team Ghilotti 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. Directs staff to issue a notice of award Team Ghilotti Inc.
4. Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by Team Ghilotti Inc., of the signed project
contract and all other required document, including but not limited to, executed bonds,
certificates of insurance, and endorsements, in accordance with the project bid
documents.
5. Approves a construction contract contingency of $158,955 for the Water Services 18/19
Project C67501713 and $125,000 for the Wilson -Webster Water Main Replacement
Project C6740916
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Attachment 2
WATER SERVICE 17-18 PROJECT
AND
WILSON-WEBSTER WATER MAIN REPLACEMENT PROJECT
(VARIOUS LOCATIONS)
LOCATION MAP
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Date : SEPTEMBER 10, 2018
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