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Home My WebLink AboutStaff Report 4.C 12/03/2018DATE: December 3, 2018 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan SA;�,'-.A�E —Director, Public Works & Utilities Jeff Stutsman, P.E. — Senior Civil Engineer SUBJECT: Resolution Amending Resolution No. 2018-144 N.C.S. 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 adopt a Resolution Amending Resolution No. 2018-144 N.C.S. 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 is a correction to the past action that approved Resolution No. 2018-144 on September 10, 2018 and corrects the total bid amount for Team Ghilotti from $1,515,540.45 to $1,524,933.00. 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 (C67501713) 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 (C67401916) 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. DISCUSSION 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. $ 1,524,933.00 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 $1,524,933.00. 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 began in October 2018 and is to be completed by the end of January 2019 and Team Ghilotti, Inc. is working as volunteer until this contract is amended. 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 (C67401916) 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 Fund. The following are tables of the approved project budgets. The current cost estimate for the two CIP projects totals $2,060,000, which if delivered as planned will result in a small saving from the projects. N 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 C67401916 Project Budget Wilson- Webster 067401916 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 1. Resolution 2. Location Map Attachment 1 RESOLUTION AMENDING RESOLUTION NO. 2018-144 N.C.S. 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 prepared constiuction bid documents and advertised for the Water Service 18/19 Project C67501713 to upgrade water services at various locations and for the Wilson -Webster Water Main Replacement Project C67401916 to upgrade water mains at various locations ("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 $1,524,933; 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, #895384 that 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; and WHEREAS, the total bid amount for Team Ghilotti in Resolution No. 2018-144 N.C.S. approved on September 10, 2018 was inaccurate and has been corrected from $1,515,540.45 to $1,524,933.00. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. In 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 $954,441.00 to be the lowest, responsive bid and further finds that Team Ghilotti Inc., is the lowest responsible bidder. El 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 $570,492.00, 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 to 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 documents, 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 C67401916. 6. This action repeals and replaces Resolution No. 2018-144 N.C.S. approved on September 10, 2018. Attachment 2 WATER SERVICE 17-18 PROJECT AND WILSON-WEBSTER WATER MAIN REPLACEMENT PROJECT (VARIOUS LOCATIONS) 5 k= Date: SEPTEMBER 10, 2018 t�LU N City of Petalumas PROJECT SITEw E �I Public Works and Utilities S Department I