HomeMy WebLinkAboutAgenda Bill 2.G 03/03/200311AR 0 3 200
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CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title Resolution re- authorizing the City Manager to
Meeting Date: March 3, 2003
execute a reimbursement agreement with G &W/ Great Petaluma
Mill, LLC for the replacement of the sanitary sewer main along the
wharf between Western Avenue and B Street.
Department
Director
Contact Person
Phone Number
Water Resources &
Michael Ban
Michael Ban
(707) 778 -4487
Conservation
Fleming Nguyen
(707) 778 -4312
Cost of Proposal $398,564.
Account'Number
602 -400- 9869 -7112
Amount Budgeted $450;000
Name of Fund: Sewer Funds
Attachments to Agenda Packet Item
• Resolution
• Exhibit A- Location Map
• Exhibit B- Reimbursement Agreement
• Exhibit C- Cost Estimate (Table 1')
• Exhibit D — Copy of the previously approved resolution No. 2002 -177 authorizing the City Manager
to execute the cost reimbursement agreement with G/W Great Petaluma Mill.
Summary Statement On November 18, .2002, the City Council passed a resolution authorizing the City
Manager to execute a cost reimbursement agreement with G/W Great Petaluma Mill, LLC for the
replacement of the sanitary sewer main along the wharf between Western Avenue and B Street. As
required by the agreement, the Owner received three bids for the work for $224,369, $386,438 and
$402,000. The low bid is about $.100,000 higher than the Owner's previous estimate. A re- authorization
by the City Council is needed to increase the previously authorized expenditure to cover the bid increase
and contingency.
Council Priority THIS AGENDA ITEM Is CONSIDERED TO BE PART OF, OR NECESSARY TO, ONE OR
MORE OF THE 1999 -2000 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000.
Priority(s): N/A
Recommended City Council Action /Suggested Motion
City Management recommends the City Council approve the resolution re- authorizing the City Manager
to execute the reimbursement agreement with G &W/ Great Petaluma Mill, LLC for the replacement of
the sanitary sewer main along the wharf between Western Avenue and B Street.
Reviewed by Finance Dire_ ctor:
Reviewed by City Attorney
Date:
Approved by City Manager
Date:
Date:
Today's Date 2/11/0
Revision # and Date Revised:
Pile Code: SAC.I.P. Folder \WASTEWATER
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Folder \9869 SSM along Wharftity council\march 3-
2003\agenda cover.doc
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CITY OF PETALUMA, CALIFORNIA
MARCH 3, 2003
AGENDA REPORT
FOR
RESOLUTION RE- AUTHORIZING CITY MANAGER TO EXECUTE A
REIMBURSEMENT AGREEMENT WITH G&W/ GREAT :PETALUMA MILL,
LLC FOR THE REPLACEMENT OF THE SANITARY SEWER MAIN ALONG
THE WHARF BETWEEN WESTERN AVENUE AND B STREET"
EXECUTIVE SUMMARY
On November 18, 20,02, the City Council passed a resolution authorizing the City
Manager to execute a.cost reimbursement agreement with GYW 'Great Petaluma Mill,
LLC for the replacement of the sanitary sewer main along the wharf between Western
Avenue and B, Street. As required by the agreement, the .Owner received three bids for
the work on January 13, 2003 for $224,369, $386,438 and $402,200. The low bid is about
$100,000 higher than. the Owner's previous estimate. A re- authorization by the City
Council is needed to increase the previously authorized expenditure to cover the bid
increase and contingency.
2. BACKGROUND
In 1938, the City of Petaluma installed a 12 -inch sewer pipeline from the end of Water
Street to the intersection of and Second Street. This pipeline travels beneath the
wooden decking of the Great Petaluma Mill and was originally installed under an
easement granted by the owner of the Mill. The pipe is attached to the retaining wall
located beneath the wooden decking.
Over the years, the bank beneath a portion of the deck (near the Apple Box) has been
slipping towards, the river, pulling the deck with it. Studies conducted by the owner of the
Great Petaluma Mill (Owner) have concluded that the existing concrete sea wall under
theL deck is in good condition,_ This conclusion is primarily based on &physical
condition of the wall. No drawings or records of its construction. exist. The problem
occurs where the existing retaining, wall ends (near the Apple Box). A wooden retaining
structure at this located has deteriorated to the point it can no longer hold back the
riverbank. Therefore, the Owner plans to replace the wooden, retaining wall with a new
concrete retaining wall that will extend from the existing concrete retaining wall, plus
repair of the deck and walkway. With repair of the wooden decking and construction of a
new retaining wall set to occur, this is an opportune time for the City to remove and
replace the 112 -inch sanitary sewer pipeline.
® Under the proposed. agreement, the City will contract with the Owner for removal of the
existing 12 -inch sanitary sewer pipeline, installation of a new 12 -inch sanitary sewer
pipeline, and 50% of the cost for construction of the new concrete retaining wall. The
location of the pipeline is shown on Exhibit A. The new 12 -inch sanitary sewer pipeline
will be mounted on the existing and new "retaining walls. The Owner will also grant an
easement to the City for routing the pipeline in the Owner's property and for operation
and maintenance of the pipeline. The proposed reimbursement agreement is provided
under Exhibit B.
Contracting with the Owner to perform the sewer main replacement in conjunction with
the Owner's planned improvements has a number of benefits:
1'Y Cost. Reduction. All the work will be performed by one contractor, which
should reduce costs:
2) Minimize Public Impacts. Replacing the.sewer pipeline with the Owner's
project eliminates the need for the City to. remove and replace the deck and
walkway, which the City would _have to do if it were to replace the sewer
pipeline in the future after the completion,of the Mill's improvements. This
approach minimizes`publicimpacts and reduces project costs.
During the. process, without: the availability of the complete construction plans,
the Owner obtained :a preliminary cost estimate from his contractor for the replacement of
the existing: sewer. line for $126 The reimbursement agreement presented to the City
Council on November 18, 2002'was based on the Owner's preliminary cost estimate.
After the final, construction plans and specifications for the sewer line were completed in
December 2002, the Owner received three bids for the work for $224,3:69, $386. . 438 and
$402,000. The bids were higher than the preliminary cost estimate because no detailed
plans and specifications were available , for the contractor to base his original cost
estimate on. During the bid process, the contractors examined the plans and specifications
closely, and realized that they had to perform more work than they originally thought.
ALTERNATIVES
Alternatives for this project include:
1: Reject the reimbursement agreement.and take no action at this time. Replace
ary
the sanit _ sewer main . at a fu ture, date.
2. Approve lhe, resolution re- authorizing the City Manager to execute the
reimbursement with G&W/ Great Petaluma Mill, LLC for the replacement of
the.sanitary sewer main along the wharf between Western Avenue and B
Street.
4. FINANCIAL IMPACTS
The revised estimated construction cost for the.sanitary sewer main replacement
including project contingency and. 50 of the. cost of the new retaining wall is $3.98;564.
The previous cost estimate in November 2002 was $301,000. The project will be funded
by°the Wastewater Enterprise Funds under Project 9869. A comparison of1he prior
authorization and.the new authorization is shown on Exhibit C. This project is
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programmed in the Department of Water Resources & Conservations FY 02 -03 budget.
The total FY 02 -03 budget is $450,000 (this includes design, construction, construction
management, and contingency), which is sufficient to cover the re- authorization amount
of $418,564.
5.. CONCLUSION
Following there- authorization, the City Manager will execute the reimbursement
agreement with G &W/ Great Petaluma Mill, LLC:
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY
SUCCESS OR COMPLETION:
Successful replacement of the sanitary sewer pipeline and construction of the new
retaining wall.
7. RECOMMENDATION
It is recommended that the City Council adopt the resolution re- authorizing the City
Manager to execute the reimbursement agreement with G &W/ Great Petaluma Mill,
LLC.
RE- AUTHORIZING THE CITY MANAGER.TO EXECUTE A
RETMBURSEMENT.AGREEMENT WITH .G &W /.GREAT PETALUMA MILL,
LLC FOR THE REPLACEMENT OF THE SANITARY SEWER MAIN ALONG
THE WHARF BETWEEN WESTERN AVENUE AND B STREET
WHEREAS, the existing sanitary sewer main is over 60 years olds and is in need of
replacement; and,
WHEREAS, G &W/ Great Petaluma Mill, LLC (hereinafter referred to as "Owner ") and
the City agree that the Owner will replace the City's sanitary sewer main along the wharf
between Western Avenue and B Street, in conjunction with the Owner's improvements,
WHEREAS, a cost reimbursement agreement is required so Owner can be reimbursed
for the cost of the installation of the sanitary sewer main and appurtenances; and,
BE IT FURTHER RESOLVED that the City Manager is hereby re- authorized to
execute a cost reimbursement agreement with the Owner, subject to the review and
approval of the City Attorney.
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COST.REIMBURSEMENT AGREEMENT
(Project Account Code No. 602 - 400- 9869 -7112)
This Agreement is made and, entered into this day of , 2003, by and
between the CITY OF PETALUMA, a:municipal corporation and 'a Charter City
(hereinafter referred to as "City ") and'G &W/ Great Petaluma Mill, LLC, 1318
Redwood Way, Suite 140, Petaluma, CA 94954 (hereinafter referred to as "Developer ")
1. Developer shall design and construct the replaced 12-inch sanitary sewer main, the
new piling, lagging wall and decking, in accordance with the current City Standards,
and the plans. and specifications entitled " City of Petaluma- Water Street Sanitary
Sewer Main Replacement", prepared by Developer's consulting, engineer, Brian
Kangas Foulk Consulting'Engineers, and approved by the City's Director of Water
Resources and Conservation Department.
2. Developer shall complete the replacement of the sanitary sewer main within. one
hundred twenty (120) calendar days from the start of work.
3. Developer shall solicit three bids from three Class "A" license contractors with at
least five years of experience of sanitary sewer 'pipeline construction and shall employ
the contractor who, submits theJowest bid for the replacement of the sanitary sewer
main. Developer shall provide of bid proposals to City for review and approval.
4. The City agrees to reimburse Developer the sum of $224,369 based on the bid price
for the construction cost of the new 12 -inch sanitary sewer main and the removal and
disposal of the existing 12 -inch sanitary sewer main; .50% of the design costs for the
new piling, lagging and decking not to exceed $9,000.00; 50 % of the project approval
costs which consist of consultants' expense and regulatory agencies fees not to exceed
$8,000.00; and 50% of the cost of the construction of the new piling, lagging wall,
and decking, not to exceed $84,475.00.The total cost reimbursement to the Developer
shall not exceed. Three Hundred Seventy Thousand Eight Hundred Forty Four
Dollars and No. Cents ($370,844.00) as shown on the attached Exhibit A. The
Contractor(s) shall be:required to pay the State of California prevailing rate of wages
for ail' work covered by this agreement.
5. Developer shall not authorize any work under contract change orders until.
Developer's consulting engineer and the City's Director of Water Resources and
Conservation - Depart rient-have reviewed and approved the work and prices.
6. During the construction Developer may submit request for progress payments for the
work described above. To 'be eligible for payment, an itemized progress payment
request form must be signed by a legal representative of Developer, Developer's
consulting engineer, the City's inspector and the City's Director of Water Resources
and Conservation Department. The progress payment requests shall be submitted to
the Engineering Manager of the Water Resources and Conservation Department for
review and processing. The City shall withhold 10% retention on each, payment due
Developer until thirty five (3 5) days after the City has.approved and accepted the
work as complete in accordance with the approved plans and ,specifications. The City
shall endeavor to make the payment to Developer within thirty, (30) days after the
approval of the progress payment request.
7. Developer agrees to pay its contractor(s) and all material suppliers. on time under the
terms of its contract with each of them,: Developer shall not permit a lien or stop
notice concerning the work .described: herein to rem_ ain in effect for more than
fourteen (14) days.
8. Developer shall require its contractor to post a 100% Faithful Performance Bond a
1 0 /o, Labor and Materials Bond, a 100% Maintenance Bond for the work
described herein.
9. To the `fullest . extent permitted. by law and regulations, the Developer and his
contractors shall ;indemnify, defend, and hold harmless the City, its consultants,, sub -
consultants officers, directors, employees, -and agents of each and any of them,
against and from all claims and liability arising under �by reason of, related, .or
incidental to this Cost Reimbursement Agreement, but not from the sole negligence or
willful misconduct of the City.
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10. The Developer agrees to: grant the City of Petaluma a sanitary,sewer.easement for the
purpose of installing, constructing, maintaining inspecting; testing and replacing the
new 12 -inch sanitary sewer main. The: main is going to be attached to the Developer's
retaining wall.
IL Insurance See "Insurance Requirements for Developer" in Exhibit "B" attached
hereto and 'incorporated herein by.reference.
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IN WITNESS WH- 'EREOF., the parties hereto have executed this document the day,
month and year first ° above written.
CITY OF PETALUMA
DEVELOPER
G &W/ GREAT PETALUMA MILL, LLC
City Manager By:
ATTEST:
City Clerk
APPROVED AS TO FORM-
City Attorney
COMPLETED & APPROVED:
Department Head
Date:
911
Date:
3
(Name and Title)
APPROVED:
Risk Manager
APPROVED:
Finance Director
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EXHIBIT A
Estimated Project Costs
S /staff folders /dr /fn /exhibit A projected costs 2 -18 -03
Total Costs
Mill
City
1) Design costs for new piling, lagging and decking
$ 18,000
$ 9,000
$ 9,000
2) Approval costs for the' entire project (including
consultants' expense)
16
8,000
8,000
3) Demolition and disposal of the existing wooden
deck
14,616
14,616
0
4) Removal and disposal of the existing sewer lines
Incl. in 6
0
Incl. in 6)
5) Construction of new piling, lagging wall, and
above the new wall
168,950
84,475
84,475
- decking
6) Supply and installation of the new sewer line
224,369
0
224,369
7) Contingency (to be used by the Mill or the City for
their respective costs)
70,000
25,000
45,000
Total
$ 511,935
$ 141 091
$ 370,844
S /staff folders /dr /fn /exhibit A projected costs 2 -18 -03
TABLE. l
COST ESTIMATE
Previous
Design
$9,000
Permits &approval process
8,000
Removal of the existing sewer line
20,000
Construction of new piling, lagging & decking
84,475
Installation of the new sewer line
126,000
Contingency
25,000
Construction Admin / Inspection
27,720
TOTAL: $300,195
New
$9,000
8,000
0
84,475
224,369
45,000
27,720
$398,564
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- sofu�Ore �1o. % % N.C.S.
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o? r : nL C�z 0- p -- ta Ira, C O rrua
A JTHORIZLNG THE CITY NL4NAGER
TO EXECUTE A REIlVOURSEMENT AGREEMENT WITH
G &W/ GREAT PETALUMA MILL, LLC
FOR THE REPLACEMENT OF THE SANIT_- RY'SEWER NLALN
ALONG THE WHARF BETWEEN WESTERN AVENUE AND B STREET
WHEREAS, the existing sanitary sewer main is over 60 years olds and is in need
of replacement; and,
WHEREAS, G &W /Great Petaluma Mill, LLC (hereinafter referred to as
"Owner ") and the City agree that the Owner will replace the City's sanitary sewer main
along the wharf between Western Avenue and B Street, in conjunction with the Owner's
improvements; and,
—"
WHEREAS,
S, a cost reimbursement agreement is required so Owner can be
reimbursed for the cost of the installation of the sanitary sewer main and appurtenances.
NOW, THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized
to execute a cost reimbursement agreement with the Owner, subject to the review and
approval of the City Attorney.
u„uer [ne power and authority conferred upon this, Council:.by the Charter of said City.
REFERENCE: T hereby certify the foregoing
Resolution was introduced and adopted by the Approved as to
Council of the City of P ) J 5 etaluma at a (Regular) ( Adjourned) ecial) meeting
day of _ ......
on the .. ....T..th
..•..... N v /
_ ....... ., ..........................( . by the � .' �``• ---
following vote:
.... ................ .
AYES: Cader - Thompson. Vice Mayor Healy. Maguire. Moynihan, O'Brien, 1layor Thompson, Toriiat CIry �ttornev
NOES: None
&SENT: None
ATTEST: : . . . . ... ..........................
.,f...... .:.ct.::. f
.......... ....... ..........
- ' 1'Iavor
Council File ........................ >. .. .....
'Res. No, " "'
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