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Home My WebLink About2025-01-28; Municipal Water District; 01; Accept bids and award a contract to Palm Engineering Construction Company, Inc. for construction of the Ponto Water Main Replacement ProjectCA Review GH Meeting Date: Jan. 28, 2025 To: President and Board Members From: Geoff Patnoe, Executive Manager Staff Contacts: Dave Padilla, Assistant General Manager/District Engineer dave.padilla@carlsbadca.gov, 442-339-2356 Markus Mohrle, Utilities Associate Engineer markus.mohrle@carlsbadca.gov, 442-339-2322 Subject: Accept bids and award a contract to Palm Engineering Construction Company, Inc. for construction of the Ponto Water Main Replacement Project District: 4 Recommended Action Adopt a resolution accepting bids and awarding a contract to Palm Engineering Construction Company, Inc. for construction of the Ponto Water Main Replacement Project in an amount not to exceed $278,375.00. Executive Summary The Carlsbad Municipal Water District’s potable water distribution system contains 14 pipeline crossings of the North County Transit District’s railway corridor. The oldest crossing is in the Ponto area and serves existing residential and commercial developments on Ponto Drive and Escallonia Court, as shown on Exhibit 2. The water main is at the end of its service life and requires replacement. The Ponto Water Main Replacement Project, Capital Improvement Program Project No. 5035-5, will replace the pipeline located under the railroad tracks with trenchless technologies to avoid impacts to railway operations. Staff recommend that the CMWD Board of Directors accept the bids for the Ponto Water Main Replacement Project and award a construction contract to Palm Engineering Construction Company, Inc., or Palm Engineering, in an amount not to exceed $278,375.00. The CMWD Board’s approval is required for all formally bid contracts when the value exceeds $220,0001 under Carlsbad Municipal Code Sections 3.28.080(C), 3.28080(E) and 3.28.080(I)(6). Explanation & Analysis The project will replace 250 feet of existing 8-inch asbestos cement pipe water main with new 10-inch diameter polyvinyl chloride, or PVC, pipe located under the railroad tracks in the vicinity 1 As of January 1, 2025, this amount increased from $200,000 to $220,000. (See CMC § 3.28.080(C).) Jan. 28, 2025 Item #1 Page 1 of 6 of Ponto Drive. The water main was installed in the 1950s and is the oldest of the CMWD’s 14 potable water pipelines that cross the railway corridor. The water main is located inside an existing 16-inch steel host pipe casing that will remain and enables the water main to be replaced with trenchless technologies, thereby avoiding impacts to railway operations. • The CMWD Board approved the plans, specifications and contract documents on Oct. 8, 2024, authorizing the Secretary to the Board to advertise for bids (CMWD Resolution No. 1747) • Five bids were received in response to the advertisement on Dec. 3, 2024, with the lowest bid submitted by Palm Engineering in an amount not to exceed $278,375.00. • Staff determined the bid submitted by Palm Engineering to be responsive and that Palm Engineering is a responsible bidder. The bid includes several subcontractors specialized in trenchless technologies. Fiscal Analysis The project is a component of the Limited Access Pipeline Relocation Program, Capital Improvement Program Project No. 5035, and is funded by the water replacement and connection funds. Sufficient funds are available to complete the project. Available funding and estimated construction costs to complete the project are shown in the table below: Limited Access Pipeline Relocation Program Capital Improvement Program Project No. 5035 Total appropriation to date $5,251,000.00 Total expenditures and encumbrances to date -$1,352,967.00 Total available balance $3,898,033.00 Ponto Water Main Replacement Project Capital Improvement Program Project No. 5035-5 Construction contract – Palm Engineering -$278,375.00 Construction contingency (20%) -$55,675.00 Construction management, inspection, testing and public outreach services (estimated) -$70,000.00 Staff time and engineering support services during construction (estimated) -$20,000.00 Total estimated construction costs -$424,050.00 Remaining balance $3,473,983.00 Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $55,675.00. Jan. 28, 2025 Item #1 Page 2 of 6 Next Steps Upon CMWD Board acceptance of bids and contract award to Palm Engineering, staff will issue a purchase order, schedule a pre-construction meeting with the contractor and issue a notice to proceed for construction of the project. The duration of the construction contract is approximately 75 working days, not including rain days and delays from change orders that may extend the contract duration. Construction is expected to start in spring 2025 and be completed by summer 2025. Once the project is completed, a notice of completion will be recorded to release bonds issued for the project. Environmental Evaluation The City Planner, through the process outlined in Carlsbad Municipal Code Section 19.04.060, has determined this project is exempt from the California Environmental Quality Act under CEQA Guidelines Section 15302(c), which applies to the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. None of the exceptions described in CEQA Section 15300.2 are applicable to this project. Exhibits 1. Carlsbad Municipal Water District Board resolution 2. Location map Jan. 28, 2025 Item #1 Page 3 of 6 RESOLUTION NO. 1757 A RESOLUTION OF THE BOARD OF DIR ECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. FOR CONSTRUCTION OF THE PONTO WATER MAIN REPLACEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $278,375.00 WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors has determined it necessary, desirable and in the public interest to replace the existing water main crossing under the railroad tracks in the vicinity of Ponto Drive as detailed by Capital Improvement Program, or CIP, Project No. 5035-5, or Project; and WHEREAS, on Oct. 8, 2024, the CMWD Board of Directors adopted CMWD Board Resolution No. 1747, approving plans, specifications and contract documents and authorizing the Secretary to the Board to advertise to receive bids for construction of the Project; and WHEREAS, on Dec. 3, 2024, staff received five bids in response to the bid advertisement; and WHEREAS, Palm Engineering Construction Company, Inc., a California corporation, submitted the lowest responsive bid in an amount not to exceed $278,375.00; and WHEREAS, Carlsbad Municipal Code, or CMC, Sections 3.28.040(C)(5) and 3.28.090(8) authorize the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which is $55,675.00; and WHEREAS, the City Planner, through the process outlined in CMC Section 19.04.060, has determined this project is exempt from the California Environmental Quality act under CEQA Guidelines Section 15302(c) -Replacement or Reconstruction, which applies to projects involving the replacement or reconstruction of an existing utility system and/or facility involving negligible or no expansion of capacity. None of the exceptions described in CEQA Section 15300.2 are applicable to this project. NOW, THEREFORE, BE IT RESOLVED by the CMWD Board of Directors of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the bid in the amount of $278,375.00 submitted by Palm Engineering Construction Company, Inc. for construction of the Ponto Water Main Replacement Project, CIP Project No. 5035-5, is accepted, and the President of the CMWD Board of Directors is hereby authorized to execute a contract with Palm Engineering Construction Company, Inc. 3. That the Executive Manager or designee is hereby authorized to approve construction change orders for the Ponto Water Main Replacement Project up to $55,675.00. 4. That the Executive Manager or designee is authorized to sign all other documents necessary for regulatory compliance, to extend funding opportunities, or to otherwise implement and finalize the Project, all of which are subject to review and approval as to form by the City Attorney. 5. That the award of this contract is contingent upon Palm Engineering Construction Company, Inc. executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 calendar days after adoption of this Resolution . The Executive Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 28th day of January 2025, by the following vote, to wit: AYES : NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin . None. None. None. [v1 KEITH BLACKBURN, President LOCATION MAP PROJECT NAME PONTO WATER MAIN PROJECT CIP PROJECT EXHIBIT 3NUMBER REPLACEMENT PROJECT NO. 5035-5 PROJECT SITE Exhibit 2 Jan. 28, 2025 Item #1 Page 6 of 6