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Home My WebLink About2018-09-25; City Council; ; Acceptance of bids and award of contract to NEWest Construction Company, Inc. for construction of the Lift Station Generator Replacements and authorization of an additionCA Review ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject Sept. 25, 2018 Mayor and City Council Scott Chadwick, City Manager David Hull, Associate Engineer David.hull@carlsbad ca.gov or 760-603-7322 Acceptance of bids and award of contract to NEWest Construction Company, Inc. for construction of the Lift Station Generator Replacements and authorization of an additional appropriation of $100,000. Recommended Action Adopt a Resolution accepting bids and awarding a contract to NEWest Construction Company, Inc. (NEWest) for an amount not to exceed $329,000 for construction of the Lift Station Generator Replacements Project, Project No. 3840-12 (Project), and authorizing an additional appropriation of $100,000. Executive Summary The Project is necessary to ensure the sewer lift stations are equipped to sustain sewer service in case of an emergency power outage. Modern generators are also more fuel efficient and reduce exhaust air pollution thus reducing environmental impacts while maintaining a high level of reliability and service. Bids were received on July 10, 2018 and the lowest responsive and responsible bidder was NEWest. Carlsbad Municipal Code subsections 3.28.080(() and (G) require City Council approval to award Public Works contracts when the value exceeds $175,000. The bid amount for this Project is $329,000. Staff recommends accepting bids and awarding a contract to NEWest for construction of the Project. Discussion Sewer pipeline systems are ideally constructed to flow by gravity from higher elevations to lower elevations, relying when possible on the topography of the basin. Lift stations become necessary when sewer pipelines get significantly deep or water bodies are encountered. The City of Carlsbad's sewer system includes 12 sewer lift stations, 10 of which are equipped with stationary emergency generaJors to facilitate continuing sewer service during power outages. The other two stations do not have generators on site but can be powered via portable generators. The emergency stationary generators at Knots Lane and North Batiquitos Sewer Lift Stations were manufactured in 1998 and 1996, respectively. These generators are at the end of their service life and need replacement. Spare parts for these generators are difficult to obtain and will be even harder to procure in the future. The Project will replace the existing generators September 25, 2018 Item #10 Page 1 of 7 with modern units and upgrade the associated electrical equipment to ensure reliability. The new generators will reduce the likelihood of operational complications during power outages that could lead to sewage spills. On Dec. 12, 2017, the City Council adopted Resolution No. 2017-234 approving the plans and specifications and authorizing advertisement of the Project for construction bids,' All bid documents were posted on the city's website for contractor notification and access. On July 10, 2018, four sealed bids were received for construction of this Project as shown in the following table: LIFT STATION GENERATOR REPLACEMENTS PROJECT, PROJECT NO. 3840-12 CONTRACTOR TOTAL BID 1. NEWest Construction Company, Inc. $329,000 2. Baker Electric, Inc. $339,026 3. Cora Constructors, Inc. $448,500 4. Global Power Group, Inc. $497,237 Staff has completed a review of the bid documents and has determined that NEW est is responsive and responsible and the confirmed low bidder. NEWest submitted a list of similar projects demonstrating their capabilities and qualifications to perform the specified work. NEWest did not include proof of insurance which is a minor irregularity that staff recommends waiving under Carlsbad Municipal Code section 3.28.080(G)(3). Staff will ensure insurance requirements are fulfilled prior to fully executing the contract. The construction contract contains general performance standards, and references technical specifications, which if not met, allow the city to withhold payment, and includes a one-year warranty period. A five percent retention will be withheld from each progress payment until final acceptance of the Project. The construction contract includes liquidated damages which may be assessed for each day in excess of the time specified for completion of the work or work that is performed outside designated work hours at high traffic sites. Fiscal Analysis The total estimated Project cost of $450,000 includes construction contract, contingency for change orders, construction management and inspection, engineering and administrative support for contractor shop drawings, requests for information, meetings, and community outreach. The Project will be funded by the Sewer Lift Station Repairs and Upgrades Program, Capital Improvement Project (CIP) No. 3840. A summary of funds, estimated construction costs, and additional CIP No. 3840 project costs are shown in the table below: September 25, 2018 Item #10 Page 2 of 7 SEWER LIFT STATION REPAIRS AND UPGRADES, CIP NO. 3840 Current Appropriation -Sewer Lift Station Repairs and Upgrades, CIP No. 3840 $2,310,380 Previous Expenditures/Encumbrances -Sewer Lift Station Repairs and Upgrades, $1,707,239 CIP No. 3840 TOTAL AVAILABLE SEWER LIFT STATION REPAIRS AND UPGRADES, CIP NO. 3840 $603,141 GENERATOR REPLACEMENT PROJECT, PROJECT NO. 3840-12 Construction Contract $329,000 Construction Contingency (estimated) $50,000 Construction Management, Inspection, and Material Testing (estimated) $41,000 Engineering Support for Contractor Shop Drawings, Requests for Information, and $30,000 Meetings (estimated) TOTAL ESTIMATED CONSTRUCTION COSTS $450,000 REMAINING BALANCE AFTER PROJECT NO. 3840-12 $153,141 OTHER SCHEDULED FY 2019 CIP NO. 3840 PROJECTS (ESTIMATED) $250,000 REMAINING FY 2019 CIP NO. 3840 BALANCE AFTER EXPECTED EXPENDITURES -$96,859 ADDITIONAL APPROPRIATION NEEDED $100,000 Several other projects are forecasted for fiscal year 2019 (FY 2019) that will be funded by CIP No. 3840. Much of this work was anticipated and included in the CIP budget formulation and approval process; however, the surge tank at North Batiquitos has only recently become problematic and requires replacement. A reliable surge protection system is needed to protect the pipeline and pumps. Staff is requesting funds to cover all work anticipated during FY 2019 because the remaining projects are less than $100,000 each and the projects have already been approved as part of the CIP budget process. Since staff will not be returning to City Council on these smaller projects, an additional appropriation of $100,000 is being requested now to fund the other fiscal FY 2019 lift station repair and replacement projects in CIP No. 3840. Sufficient funds are available for this request in the Sewer Replacement Fund. Next Steps Once contract documents are fully executed and a purchase order is issued, staff will schedule a pre-construction meeting with NEWest and issue a notice-to-proceed for construction of the Project. The contract provides 100 working days to construct the Project, excluding change orders and unforeseen circumstances. Environmental Evaluation (CEQA) The Project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15302(c) -replacement or reconstruction of existing utility systems and/or facilities inyolving negligible or no expansion of capacity, and Section 15304(f) -minor trenching and backfilling where the surface is restored. I September 25, 2018 Item #10 Page 3 of 7 Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Prior to the start of construction, the public will be notified of the construction activities using media methods such as signage, email, website, and other city communication channels. The construction contractor will also be required to notify the public of construction activities via changeable message signs, door hangers, letters to residents, and/or "NO PARKING" signs, as applicable. Exhibits 1. City Council Resolution. 2. Location Map. September 25, 2018 Item #10 Page 4 of 7 RESOLUTION NO. 2018-177 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARDING A CONTRACT TO NEWEST CONSTRUCTION COMPANY, INC. FOR AN AMOUNT NOT TO EXCEED $329,000 FOR CONSTRUCTION OF THE LIFT STATION GENERATOR REPLACEMENTS PROJECT, PROJECT NO. 3840-12, AND AUTHORIZING AN ADDITIONAL APPROPRIATION OF $100,000. Exhibit 1 WHEREAS, the City Council of the City of Carlsbad, California has determined that it is necessary, desirable, and in the public interest to replace the emergency generators at Knots Lane and North Batiquitos Sewer Lift Stations; and WHEREAS, City Council adopted Resolution No. 2017-234 on Dec. 12, 2017 approving the plans and specifications and authorizing advertisement of the Lift Station Generator Replacements Project, Project No. 3840-12 (Project); and WHEREAS, four sealed bids were received on July 10, 2018 for construction of the Project; and WHEREAS, the lowest responsive and responsible bid was submitted by NEWest Construction Company, Inc. in the amount of $329,000; and WHEREAS, the Project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15302(c) -replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity, and Section 15304(f) -minor trenching and backfilling where the surface is restored. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the minor irregularity in the bid submitted by NEWest Construction Company, Inc. in failing to include proof of insurance, is hereby waived under Carlsbad Municipal Code section 3.28.080(G)(3). 3. That the low bid in the amount of $329,000 submitted by NEWest Construction Company, Inc. for construction of the Project is accepted and the mayor is hereby authorized to execute a contract for the Project. 4. That the city manager or designee is hereby authorized to approve construction change orders up to $50,000. September 25, 2018 Item #10 Page 5 of 7 5. That the finance director is hereby authorized to appropriate $100,000 from the Sewer Replacement Fund to the Sewer Lift Station Repairs and Upgrades, Capital Improvement Project No. 3840. 6. That the award of this contract is contingent upon NEWest Construction Company, Inc. executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 days of adoption of this Resolution. The city manager may grant reasonable extensions of time. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of September, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. (SEAL) ,,,,,11,,,,, ,,,, \_SB4D ,,,, ,' "fl-~ .......... C' ... ., ~-~ ~'-<..: . .._, ..... ~ ::o .. /. •"1'\:: ->-. ··0-:: :. i;u: -;.i::;,·. ' :~-~ .... u ·. . .·. ', ..... ··J:,., ~ ,, ... ········ , ..... /,,' * ., ,,,' ,,,,,,.111111 September 25, 2018 Item #10 Page 6 of 7