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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 AVECOSTALA B L V D C A R L S B A D RD ALGA PALOMAR AIRPOR T RD EL CAMI N O RE A L RA N C H O SAN T A F E RD POINSE T T I A LANE AL I C A N T E RD EL FU E R T E OLIVENHAIN RD. M E L R O S E D R . FARADAY COLLEG E BL V D PA S E O DEL NO R T E AVE A V E N I D A E N C I N A S CANNON RD MO N R O E ST CARLS B A D VILLAGE D R MARRON TAMAR A C K AVE RD LAKECALAVERA LAGOO N AGUA HEDION D A LAGO O N BATIQUITOS LAGOON A V I A R A PKWY POINSETT I A LANE PROJECT NAME PROJECT EXHIBIT NUMBER PROJECT SITE REPLACEMENT VALLEY STREET WATER MAIN 3904-H 2 PROJECT SITE Exhibit 3 May 7, 2024 Item #3 Page 9 of 10 LOCATION MAP VICINITY MAP AVECOSTALA B L V D C A R L S B A D RD ALGA PALOMAR AIRPOR T RD EL CAMI N O RE A L RA N C H O SAN T A F E RD POINSE T T I A LANE AL I C A N T E RD EL FU E R T E OLIVENHAIN RD. M E L R O S E D R . FARADAY COLLEG E BL V D PA S E O DEL NO R T E AVE A V E N I D A E N C I N A S CANNON RD MO N R O E ST CARLS B A D VILLAGE D R MARRON TAMAR A C K AVE RD LAKECALAVERA LAGOO N AGUA HEDION D A LAGO O N BATIQUITOS LAGOON A V I A R A PKWY POINSETT I A LANE PROJECT NAME PROJECT EXHIBIT NUMBER PROJECT SITE 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