HomeMy WebLinkAbout2024-05-07; City Council; ; Awarding a contract to Basile Construction, Inc. for construction of the Valley Street Water Main Replacement and the Foxtail Loop Sewer Replacement ProjectsCA Review GH
Meeting Date: May 7, 2024
To: Mayor and City Council/President and Board Members
From: Scott Chadwick, City Manager/Executive Manager
Staff Contact: Dave Padilla, Utilities Assistant Director/District Engineer
dave.padilla@carlsbadca.gov, 442-339-2356
Daniel Zimny, Senior Engineer
daniel.zimny@carlsbadca.gov, 442-339-2551
Subject: Awarding a contract to Basile Construction, Inc. for construction of the
Valley Street Water Main Replacement and the Foxtail Loop Sewer
Replacement Projects
Districts: 1, 2
Recommended Actions
1.Adopt a City Council resolution accepting the bid and awarding a contract to Basile
Construction, Inc. for construction of the Foxtail Loop Sewer Replacement Project in an
amount not to exceed $670,060.
2.Adopt a Carlsbad Municipal Water District Board of Directors resolution accepting the bid
and awarding a contract to Basile Construction, Inc. for construction of the Valley Street
Water Main Replacement Project in an amount not to exceed $360,614.
Executive Summary
This project will replace 545 feet of water pipeline along Valley Street and 615 feet of sewer
pipeline along Foxtail Loop, as shown in Exhibit 3. This action would award a construction
contract to Basile Construction, Inc., in an amount not to exceed $1,030,674 for work at two of
four sites included in the bid solicitation authorized by the City Council on Jan. 9, 2024.
The replacement of the sewer lines on Palomar Oaks Way and Tyler Street Alley north of Grand
Avenue would not be included in the contract and would be re-bid at a future date with a larger
sewer replacement project.
The City Council and the Carlsbad Municipal Water District Board of Directors approvals are
required under Carlsbad Municipal Code Sections 3.28.080, Construction projects, subsections
(C)and (I)(6) which apply to construction contracts when the value exceeds $200,000, as this
project does.
May 7, 2024 Item #3 Page 1 of 10
Explanation & Analysis
The City Council and the CMWD Board approved the project’s plans and specifications and
authorized staff to seek bids for construction. On Jan. 9, 2024, at a Joint City Council meeting,
adopted Resolution Nos. 2024-0004 and 1725. The pipelines selected for replacement were
chosen because of their age, condition and to prevent potential sewer overflows.
The bundled project originally consisted of four non-contiguous sites under two Capital
Improvement Program projects:
•Project No. 3904, which included the Valley Street water main replacement
(Bid Schedule A)
•Project No. 5503, which included the Foxtail Loop sewer replacement (Bid
Schedule B), Palomar Oaks Way sewer extension (Bid Schedule C) and Tyler
Street Alley sewer replacement
The specifications on the bid allowed for the City Council and the CMWD Board to award the
contract based on the total of all bid schedules or on the total of Bid Schedule A plus any
combination of the remaining bid schedules. The engineer’s construction estimate was
$1,832,000 for all four bid schedules.
•Staff advertised the project in accordance with the city’s formal bidding
procedures in Carlsbad Municipal Code Section 3.28.080, Construction projects.
•On Feb. 7, 2024, four general contracting firms attended a mandatory pre-bid
meeting.
•The city did not receive any bids at the opening of bidding on Feb. 27, 2024.
•Staff then proceeded with negotiations with prospective contractors – in
accordance with California Public Contract Code Section 22038(c) and CMC
Section 3.28.080(I)(5) - and received a bid price of $2,384,431 for all bid
schedules (i.e., A, B, C and D), from Basile Construction, Inc. whose
representatives had attended the pre-bid meeting.
Staff recommend proceeding with the work in Bid Schedules A and B in the amount of
$1,030,674. Staff recommend the work in Bid Schedules C and D be excluded from the contract
due to the high costs of the bid and to later advertise for the bids as part of a larger sewer
replacement project.
Fiscal Analysis
The total estimated cost to complete construction of the work in Bid Schedules A and B is
$1,500,674 and includes construction costs, contingency, engineering support, public outreach
and construction management and inspection services. The Water Replacement Fund will
provide funding for Valley Street Water Main Replacement, as part of Capital Improvement
Program Project No. 3904, Water System Rehabilitation and Replacement, and the Sewer
Replacement Fund will provide funding for Foxtail Loop Sewer Replacement, as part of Project
No. 5503, Sewer System Rehabilitation and Replacement.
May 7, 2024 Item #3 Page 2 of 10
Sufficient funds are available in each funding source to complete the project as shown in the
table below:
Water System Rehabilitation and Replacement
Capital Improvement Program Project No. 3904
Total appropriation to date $16,058,366
Total expenditures and encumbrances to date -$8,614,452
Total available funding $7,443,914
Valley Street Water Main Replacement
Construction contract - Basile Construction, Inc. -$360,614
Construction contingency (approximately 20%) -$70,000
Construction management, inspection and testing (estimated) -$70,000
Community outreach during construction (estimated) -$10,000
Total estimated construction costs -$510,614
Remaining balance $6,933,300
Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) allow for the City Council and
the CMWD Board to authorize the City Manager/Executive Manager or designee to approve
change orders in an amount equal to the contingency set at the time of contract award, which,
for this project, is $70,000 for Valley Street Water Main Replacement and $135,000 for Foxtail
Loop Sewer Replacement.
The city has a funding source for sewer improvements called the Sewer Benefit Area. The work
in Bid Schedule B is consistent with the scope of this program (specifically, the South Agua
Hedionda Interceptor Reach T1D project.) This makes the construction costs of the Foxtail Loop
Sewer Replacement project eligible for reimbursement by the SBA Basin E Fund. That fund has
a current balance of $1,507,237. Upon completion of the project, staff will return to the City
Sewer System Rehabilitation and Replacement
Capital Improvement Program Project No. 5503
Total appropriation to date $10,626,475
Total expenditures and encumbrances to date -$5,806,326
Total available funding $4,820,149
Foxtail Loop Sewer Replacement
Construction contract - Basile Construction Inc. -$670,060
Construction contingency ( approximately 20%) -$135,000
Construction management, inspection, material testing services (estimated) -$135,000
Community outreach during construction (estimated) -$50,000
Total estimated construction costs -$990,060
Remaining balance $3,830,089
May 7, 2024 Item #3 Page 3 of 10
Council to request authorization to reimburse the Sewer Replacement Fund from the Sewer
Benefit Area Basin E Fund.
Next Steps
Once the City Council and the CMWD Board accept the bid and award the construction contract
to Basile Construction Inc., 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 project site is near Valley Middle School and Magnolia Elementary School, so construction
has been scheduled to begin at the Valley Water Main Replacement site on June 10, 2024, upon
the start of the Carlsbad Unified School District’s summer break. Work is required to be
completed at this site by Aug. 9, 2024, under the contract requirements and will then
commence at the site of the Foxtail Loop Sewer Replacement. Construction for both sites is
expected to take six months. A notice of completion to release bonds issued for the project will
be recorded once the project is completed.
Environmental Evaluation
The project is classified as a replacement or reconstruction of existing utility and/or facilities
involving negligible, or no expansion of capacity and the City Planner has determined it is
exempt from environmental review according to California Environmental Quality Act
Guidelines Sections 15302(c) and 15303(d). A notice of exemption was filed with the San Diego
County Clerk on Jan. 17, 2024, in compliance with Section 21152(b) of the California Public
Resources Code.
Exhibits
1.City Council resolution
2.CMWD Board resolution
3.Location map
May 7, 2024 Item #3 Page 4 of 10
RESOLUTION NO. 2024-089
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING THE BID AND AWARDING A CONTRACT TO BASI LE
CONSTRUCTION, INC. FOR CONSTRUCTION OF THE FOXTAIL LOOP SEWER
REPLACEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $670,060
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 sewer pipeline at Foxtail Loop as part of
Capital Improvement Program, or CIP, Project No. 5503, Sewer System Rehabilitation and
Replacement; and
WHEREAS, the City Council adopted Resolution No. 2024-004 at a Joint City Council and
Carlsbad Municipal Water District Board of Directors meeting on Jan. 9, 2024, approving plans and
specifications and authorizing advertisement of the construction bids, for the overall water main and
sewer replacement projects; and
WHEREAS, on Feb. 27, 2024, staff did not receive any bids for con struction of the overall project;
and
WHEREAS, in accordance with Public Contract Code Section 22038(c) and Carlsbad Municipal
Code, or CMC, Section 3.28.080(1)(5), staff negotiated a bid price in the amount not to exceed $670,060
with Basile Construction, Inc. for the construction of Foxtail Loop Sewer Replacement, which is Bid
Schedule B of the contract; and
WHEREAS, CMC Sections 3.28.040(C)(5) and 3.28.090(B) authorize the City Manager or
designee to approve change orders in an amount equal to the contingency set at the time of project
award, which is $135,000; and
WHEREAS, the estimated cost of Foxtail Loop Sewer Replacement is $990,060, including
construction contingency, construction management, community outreach and staff costs; and
WHEREAS, sufficient funds are available in CIP Project No. 5503 to complete the project; and
WHEREAS, the City Planner has determined that the project is exempt from the California
Environmental Quality Act, or CEQA, per CEQA Guidelines Sections 15302 (replacement or
reconstruction of existing facilities) and 15303 (new construction or conversion of small structures),
because the project is a replacement or reconstruction of existing utility and/or facilities involving
negligible or no expansion of capacity.
Exhibit 1
May 7, 2024 Item #3 Page 5 of 10
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 bid in the amount of $670,060 submitted by Basile Construction, Inc., for
construction of the Foxtail Loop Sewer Replacement as part of CIP Project No. 5503,
Sewer System Rehabilitation and Replacement, is accepted, and the Mayor is hereby
authorized to execute a contract with Basile Construction, Inc.
3. That the City Manager or designee is hereby authorized to approve construction change
orders for the project up to $135,000.
4. That the award of this contract is contingent upon Basile Construction, 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
City 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 Joint Meeting of the City Council of the City of Carlsbad
and the Carlsbad Municipal Water District Board of Directors on the 7th day of May, 2024, by the
following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE .
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
May 7, 2024 Item #3 Page 6 of 10
RESOLUTION NO. 1731
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL
WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE
BID AND AWARDING A CONTRACT TO BASILE CONSTRUCTION, INC. FOR
CONSTRUCTION OF THE VALLEY STREET WATER MAIN REPLACEMENT
PROJECT IN AN AMOUNT NOT TO EXCEED $360,614
WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors of the City of
Carlsbad, California has determined that it is necessary, desirable and in the public interest to replace
water distribution pipeline on Valley Street between Magnolia and Andrea Avenues for the Valley
Street Water Main Replacement Project as part of Capital Improvement Program, or CIP, Project No.
3904, Water System Rehabilitation and Replacement; and
WHEREAS, the CMWD Board of Directors adopted Resolution No. 1725 at a Joint City Council
and CMWD Board meeting on Jan. 9, 2024, approving plans and specifications and authorizing
advertisement of the construction bids, for the overall water main and sewer replacement projects;
and
WHEREAS, on Feb. 27, 2024, staff did not receive any bids for construction of the overall project;
and
WHEREAS, in accordance with Public Contract Code Section 22038(c) and Carlsbad Municipal
Code, or CMC, Section 3.28.080(1)(5), staff negotiated a bid price in the amount not to exceed $360,614
with Basile Construction, Inc. for Valley Street Water Main Replacement, which is Bid Schedule A of the
contract; and
WHEREAS, CMC 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 is $70,000; and
WHEREAS, the estimated cost of Valley Street Water Main Replacement is $510,614, including
construction contingency, construction management, community outreach and staff costs; and
WHEREAS, sufficient funds are available in CIP Project No. 3904 to complete the project; and
WHEREAS, the City Planner has determined that the project is exempt from the California
Environmental Quality Act, or CEQA, per CEQA Guidelines Sections 15302 (replacement or
reconstruction of existing facilities) and 15303 (new construction or conversion of small structures),
because the project is a replacement or reconstruction of existing utility and/or facilities involving
negligible or no expansion of capacity.
May 7, 2024 Item #3 Page 7 of 10
Exhibit 2
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District 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 $360,614 submitted by Basile Construction, Inc., for
construction of the Valley Street Water Main Replacement Project as part of CIP Project
No. 3904, Water System Rehabilitation and Replacement, is accepted, and the President
is hereby authorized to execute a contract with Basile Construction, Inc.
3. That the Executive Manager or designee is hereby authorized to approve construction
change orders for the project up to $70,000.
4. That the award of this contract is contingent upon Basile Construction, 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 Joint Meeting of the Board of Directors of the
Carlsbad Municipal Water District and the City Council of the City of Carlsbad on the 7th day of May,
2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, President
Qg fnr
SHERRY FREISINGER, Secretary
(SEAL)
May 7, 2024 Item #3 Page 8 of 10
LOCATION MAP
VICINITY MAP
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VALLEY STREET WATER MAIN 3904-H 2
PROJECT SITE
Exhibit 3
May 7, 2024 Item #3 Page 9 of 10
LOCATION MAP
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SOUTH AGUA HEDIONDA INTERCEPTOR 5503-25 2
PROJECT SITE
IMPROVEMENTS REACH T1D (FOXTAIL LOOP)May 7, 2024 Item #3 Page 10 of 10
Exhibit 1