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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 15

Meeting Date: September 14, 2004

Subject/Title: Approve a Resolution approving the Contract Documents and Award the Construction Contract for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630 and Amend the CIP Budget Sheet.

Prepared by: Engineering: P. Eldredge

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Approve a Resolution approving the contract documents and award the construction contract for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630, to G.S.E Construction Co., Inc., and authorize the City Manager to execute the agreement and necessary documents in the amount of $3,345,564, plus a 10% contingency and amend the CIP Budget Sheet to reflect increased industry construction and labor costs.

PREVIOUS ACTION
On May 27, 2003, by Resolution No. 2868, City Council adopted the City’s 2003/04 – 2007/08 Capital Improvement Program that included the Zone 1 Reservoir 1.3, CIP Project No. 562-5630.

On August 12, 2003, City Council authorized the City Manager to execute a Professional Services Agreement with Kimley Horn and Associates for the design of the Zone 1 Reservoir 1.3, CIP Project No. 562-5630.

On August 12, 2003, City Council authorized the City Manager to execute a Professional Services Agreement with The Covello Group, Inc., to provide project management assistance for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630.

On November 25, 2003, City Council approved Resolution No. 3033, amending the CIP Budget Sheet for the Zone I Reservoir 1.3, CIP Project No. 562-5630.

On July 13, 2004, City Council approved Resolution No. 2004-169, certifying the mitigated Negative Declaration for the Zone I Reservoir 1.3, CIP Project No. 562-5630.

On July 27, 2004, City Council approved Resolution No. 2004-186, rejecting all bids received for construction of the Zone 1 Reservoir 1.3, CIP Project No. 562-5630, authorizing staff to proceed in re-advertising the project for bid and to return to the City Council for award of the construction contract.

BACKGROUND
In previous years, the City acquired entitlement for raw water and treatment of the same for the build out of the City. Another main component of the water system is the reservoir capacity and transmission system, which increases with the increase in population. This Zone 1 Reservoir 1.3 is part of the overall reservoir capacity. Good engineering design requires a reservoir capacity equal to the sum of the worst case fire flow requirements, the equalizing volume (typically 40% of the average daily demand), and an average daily volume reserved for emergency purposes.

The equalizing volume is the storage volume required to allow for the differences between the peak hour demand during the day and the uniform pumping rate of the wells and pump stations. The capacity in the reservoirs should be able to make up the difference between the well(s) pumping rate and the peak demand rate and still have fire fighting and emergency capacity available. Typical reservoir design uses an annual average daily volume instead of maximum day volume as the basis for sizing the required storage for each water zone (currently there are three zones in the City and they are distinguished by elevation). This average daily volume is directly proportional to the population of the City of Brentwood and the storage requirement in each zone will continue to grow as the population of the City grows.

Previously the City of Brentwood advertised the project for construction beginning Wednesday, June 23, 2004 and bids were opened on July 21, 2004. A total of three bids were received and all bids exceeded the project budget amount for construction. Staff recommended the rejection of all bids and to have the project re-advertised. Staff reviewed the existing scope of work to see if there was any ability to reduce the overall scope of the project or changes in design and therefore possibly reduce the construction cost. However, during this review it was concluded that the project was fairly streamlined to begin with and there was not much opportunity to reduce the scope. The review was somewhat fruitful as the apparent low bid is approximately $108,000 lower than the previous apparent low bid.

The City of Brentwood readvertised the project for construction beginning Wednesday, August 11, 2004 and bids were opened on September 2, 2004. A total of 5 bids were received, the bids were reviewed and the lowest responsive, responsible bid was received from G.S.E Construction Co., Inc.

The 5 bids were:

1. G.S.E Construction Co., Inc. $3,345,564
2. Proven Management, Inc. $3,397,969
3. SSC Construction, Inc. $3,485,084
4. NCCI, Inc. $3,519,410
5. Gateway Pacific Contractors, Inc. $3,533,045

Staff recommends the award of the construction contract for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630 to G.S.E. Construction Co., Inc., for the amount of $3,345,564, plus 10% contingencies for a total contract amount of $3,680,120.40.

Since the low bid was higher than the construction budget, the CIP Budget Sheet must be amended to reflect this increase of approximately 30%, should City Council decide to move forward with this project. Since the beginning of 2003 the construction industry has seen increases up to 30% in several key construction materials, most notably structural steel, lumber, copper, petroleum products and concrete. Additionally, skilled labor costs have risen 6.4% over the last year and workers compensation insurance has increased employers overhead costs. Therefore, after review of the apparent low bid, it appears that the unit price items are at a reasonable cost, considering the recent trend in higher material and labor costs.

FISCAL IMPACT
The funds associated with this work are included in the recently adopted Capital Improvement Program 2004/2009 and the budget contains funds for the construction of the Zone 1 Reservoir 1.3, CIP Project No. 562-5630, in the amount of $2,600,320 and with the apparent low bid of $3,345,564 being above the construction budget, the project budget for construction requires amendment as indicated in greater detail below should City Council concur with staff’s recommendation and proceed with the project.

Original Budget Amended Budget
Legal $ 6,000 $ 2,000
Planning & Design $ 300,000 $ 250,000
Construction $2,600,320 $3,681,120
Project Administration $ 140,000 $ 140,000
Land/ROW/Acquisitions $ 0 $ 0
Total Project Budget $3,046,320 $4,073,120

This project is funded from development fees and staff has reviewed and confirmed with the Finance Department that there are sufficient funds to cover the proposed amended budget.

Attachments:
Resolution
Site Map
CIP Budget Sheet
Agreement

RESOLUTION NO.


APPROVE A RESOLUTION APPROVING THE CONTRACT DOCUMENTS AND AWARD THE CONSTRUCTION CONTRACT FOR THE ZONE 1 RESERVOIR 1.3, CIP PROJECT NO. 562-5630, TO G.S.E CONSTRUCTION CO., INC., AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT AND NECESSARY DOCUMENTS IN THE AMOUNT OF $3,345,564, PLUS A 10% CONTINGENCY AND AMEND THE CIP BUDGET SHEET TO REFLECT INCREASED INDUSTRY CONSTRUCTION AND LABOR COSTS.


WHEREAS, on August 12, 2003, City Council authorized the City Manager to execute a Professional Services Agreement with Kimley Horn and Associates for the design of the Zone 1 Reservoir 1.3, CIP Project No. 562-5630; and

WHEREAS, on August 12, 2003, City Council authorized the City Manager to execute a Professional Services Agreement with The Covello Group, Inc., to provide project management assistance for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630; and

WHEREAS, on July 13, 2004, City Council approved Resolution No. 2004-169, certifying the mitigated Negative Declaration for the Zone I Reservoir 1.3, CIP Project No. 562-5630; and

WHEREAS, on July 27, 2004, City Council approved Resolution No. 2004-186, rejecting all bids received for construction of the Zone 1 Reservoir 1.3, CIP Project No. 562-5630, authorizing staff to proceed in re-advertising the project for bid and to return to the City Council for award of the construction contract; and

WHEREAS, the project was re-advertised for construction beginning Wednesday, August 11, 2004 and bids were opened on September 2, 2004. A total of 5 bids were received, the bids were reviewed and the lowest responsive, responsible bid was received from G.S.E Construction Co., Inc., for the amount of $3,345,564; and

WHEREAS, since the beginning of 2003 the construction industry has seen increases up to 30% in several key construction materials, most notably structural steel, lumber, copper, petroleum products and concrete. Additionally, skilled labor costs have risen 6.4% over the last year and workers compensation insurance has increased employers overhead costs; and

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve the contract documents and award the construction contract for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630, to G.S.E. Construction Co. Inc., plus a 10% contingency for a total authorized contract amount of $3,680,120.40.

BE IT FURTHER RESOLVED that the budget sheet for the Zone 1 Reservoir 1.3, CIP Project No. 562-5630 hereby be amended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 10th day of August 2004 by the following vote:

AGREEMENT

ZONE 1 RESERVOIR 1.3
CIP PROJECT NO. 562-5630

THIS AGREEMENT FOR CONSTRUCTION is made and entered into this 14th day of September 2004, by and between the City of Brentwood (herein called City) and G.S.E. Construction Co., Inc., a California corporation, a partnership or an individual (circle one) located at 1020 Shannon Court, Livermore, CA 94550, herein called Contractor.

The City and the Contractor agree as follows:

(1) CONTRACT SUM: The City agrees to pay, and the Contractor agrees to accept, in full payment for constructing the Project in strict accordance with the Contract Documents and performing all other requirements of the Contract Documents, the sum of Three Million Three Hundred Forty Five Thousand Five Hundred and Sixty Four dollars ($3,345,564) to be paid in accordance with the Contract Documents.

(2) COMPLIANCE WITH LAW: The City is a public agency. All provisions of law applicable to public contracts are a part of this contract to the same extent as though set forth herein and will be complied with by the Contractor.

(3) CONTRACT DOCUMENTS: The following Contract Documents relating to this Agreement are hereby made a part of and incorporated by reference into this Agreement: The Notice Inviting Bids, Invitation to Bid, Information for Bidders, Contract Proposal, Faithful Performance Bond, Labor and Materials Payment Bond, Contractor’s Certificate Regarding Worker’s Compensation, Certificate of Insurance and Endorsement (Worker’s Compensation), Certificate of Insurance and Endorsement (General Liability), General Conditions, Special Provisions, Plans and Specifications, CalTrans Standard Plans and Specifications, City of Brentwood Standard Plans and Specifications, Plans, and supplemental agreements, certifications, and endorsements applicable to this work, with all modifications incorporated in said documents prior to receipt of the Contract Proposals. Any work called for in one Contract Document not mentioned in another is to be performed and executed the same as if mentioned in all Contract Documents.

Contractors are required by law to be licensed and regulated by the Contractor’s State License Board which has jurisdiction to investigate complaints against contractors if a complaint is filed within three years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.

This Agreement is executed by the City upon approval by the City Council at their regular scheduled meeting of September 14, 2004 and the Contractor has caused this Agreement to be duly executed.

CITY OF BRENTWOOD G.S.E. CONSTRUCTION CO., INC.:

By: By:
John E. Stevenson, City Manager (Authorized Representative of Contractor)

Dated: _________________________, 2004 Printed Name:

ATTEST: Title:
(Attach Acknowledgment for Authorized
Representative of Contractor)
___________________________________
Karen Diaz, CMC
City Clerk Dated :________________________, 2004

APPROVED AS TO FORM:
___________________________________
Dennis Beougher, City Attorney

(Attach Acknowledgment for Authorized Representatives of Contractor)

City Administration
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