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HomeMy WebLinkAbout10-15-2013 c6 transfer of additional funding for trench repair FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Kyle Rowland, Engineering Inspector SUBJECT: TRANSFER OF ADDITIONAL FUNDING FOR TRENCH REPAIR-JOB ORDER CONTRACT 2013, SPECIFICATION NO. 91196 RECOMMENDATION Appropriate an additional $162,000 from the Water Fund Completed Projects account and Water Fund Working Capital to the Trench Repair Master account for use on trench repairs. DISCUSSION Background Throughout the course of the year, small street repairs need to be completed following repair of underground pipelines and on areas of street settlement. When a water or sewer pipe is repaired, Utility Department staff complete the work on the pipeline and then temporarily patch the roadway. Engineering Division staff collects the location information after the repair is made and issues a construction contract to replace the temporary patch with a stronger, permanent asphalt patch. This is currently performed on an as-needed basis using Trench Repair and Minor Concrete – Job Order Contract – 2013 (JOC). The current was approved in July of 2013 for a two year period. The current Utility Trench Repair JOC has been developed to pay the contractor for each square foot of roadway repaired, regardless of number of pieces of equipment or the number of staff the contractor plans to use. This methodology is consistent with other types of projects the City completes and has made it simpler for the contractors to prepare and submit proposals. Current Status The current Financial Plan includes $125,000 from the Utility funds to complete the anticipated amount of trench repair. Recently, however, the backlog of repairs has been growing such that the $125,000 is inadequate for timely construction of the permanent patch work. Based on the existing backlog, an estimated additional $162,000 is required to complete those repairs. Public Works and Utilities staff will be reviewing past and anticipated future work to determine the most appropriate annual budget for ongoing trench repair in the future. If there is a recommended change this may be included in upcoming Financial Plans. Last fiscal year, the City generated 17 Task Orders, totaling $362,000. This has proven to be an effective and efficient method of completing roadway repairs. Water Distribution accounted for 13 of the Task Orders, 3 Task Orders were for Street Reconstruction and Resurfacing, and 1 addressed a Wastewater Collection repair. These Task Orders contained multiple roadway repairs and minor utility repair work. Trench repair funding comes from three different Master Account sources: Street Reconstruction and Resurfacing (R&R), Water Distribution Trench Repair and Collection System Improvement. Meeting Date Item Number October 15, 2013 C6 - 1 Transfer of Additional Funding for Trench Repair JOC 91196 Page 2 While City staff is capable of completing trench repairs, the current volume would detract from their ability to perform the necessary preliminary patching and repair work in advance of Measure Y-funded microsurfacing on local streets. By operating this JOC project, the maintenance staff remains focused on delivering Measure Y priority paving work, and the contractor provides rapid response for utility trench repairs and minor concrete work as needed. Contract preparation costs are kept to a minimum as well, by using this on-call service concept. Water Distribution Permanent Trench Repairs Currently the City has 216 water line repair locations with temporary asphalt concrete patches. In order to eliminate this backlog and complete permanent repairs to these temporary patches, the Water Distribution Division is requesting the appropriation of an additional $162,000 to the Water Distribution Trench Repair Master Account. This will provide additional funding for the completion of trench repairs. City staff is actively engaged in improving the timeliness and quality of permanent patch repair on City streets. One recent enhancement has been the use of Google Earth to locate and bundle the existing trench work to enable the Contractor to evaluate and streamline repairs. In addition, staff is continually monitoring and inspecting trench repairs to insure compliance with City Standards. CONCURRENCES This project is exempt from environmental review since it is a maintenance and replacement project and a Notice of Exemption has been filed through the Community Development Department. The Utilities Department concurs with this transfer of this funding in order to make permanent repairs to temporary roadway patches. FISCAL IMPACT The source of funding for waterline trench repairs is the Trench Repair Master Account and identified in the 2013-15 Financial Plan, Appendix B, Pages 3-114 through 3-119. Currently, there is $138,896 available in the Trench Repair Master account. The proposed transfer of additional funding will come from the Water Fund Completed Projects account ($60,000) and Water Fund Working Capital ($102,000). Funding Available Funding Used Funding Available Funding Used Funding Available Funding Used Trench Repair Master 91147 $ 43,800 25,525$ $ 191,775 177,879$ 138,896$ -$ Street Reconstruction and Resurfacing Master 90346 $ 89,483 -$ $ 658,157 165,870$ 1,200,000$ -$ Collection System Improvement Master 90239 $ 370,732 -$ $ 244,560 22,830$ 495,000$ -$ Total $ 504,015 $ 25,525 1,094,492$ 366,579$ 1,833,896$ -$ Account 2011-12 FY 2012-13 FY 2013-14 FYTask Order Funding Sources C6 - 2 Transfer of Additional Funding for Trench Repair JOC 91196 Page 3 ALTERNATIVES Deny authorization to transfer. The City Council could choose not to transfer the additional funding for this project. This is not recommended because the JOC program is a cost-effective way in which to get necessary maintenance work complete in a short timeframe. ATTACHMENT CAR to Advertise Trench Repair & Minor Concrete JOC-2013, Spec. 91196 t:\council agenda reports\2013\2013-10-15\transfer of additional funding for trench repair (grigsby-rowland)\car-transfer of additional funding for trench repair 91196.docx Fiscal Impact Summary Account Account Number Current Proposed Change Ending Balance Water Fund Working Capital (102,000)$ Water Fund Completed Projects 99899999186,935$ (60,000)$ 126,935$ Trench Repair Master 91147953138,896$ 162,000$ 300,896$ Total -$ C6 - 3 FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Kyle Rowland, Engineering Inspector SUBJECT: TRENCH REPAIR AND MINOR CONCRETE, JOB ORDER CONTRACT – 2013, SPECIFICATION NO. 91196 RECOMMENDATIONS 1. Approve plans and specifications for the Trench Repair and Minor Concrete, Job Order Contract - 2013, Specification No. 91196. 2. Authorize staff to advertise for bids and authorize the City Manager to award the contract to the lowest responsible bidder. DISCUSSION Background Throughout the course of the year, small street repairs need to be completed due to repair on underground pipelines, or street areas that have settled significantly. When a water or sewer pipe is repaired, Utility Department staff complete the work to the pipeline and then temporarily patch the roadway. Engineering Division staff collects the location information after the repair is made and issues a construction contract periodically to replace the temporary patch with a stronger and more permanent asphalt patch. This is currently performed on an as-needed basis using Utility Trench Repair–Job Order Contract-2011, entered into in March of 2012 for one year. In order to streamline this activity and allow these permanent repairs to be completed more rapidly, while still retaining the benefits of low bids, staff is proposing re-establishing a Job Order Contract (JOC) for trench repair work for the upcoming year. JOC is an alternative bidding procedure that was approved by the voters and added to the City’s Charter on November 5, 2002 (See Attachment 1). Simply put, it is an on-call service contract. The JOC provisions allow the City to perform maintenance related construction projects for repair, remodeling or other repetitive work under a unit price contract. The City first implemented a JOC program shortly after the Charter amendment was approved by the voters. The Gordian Group was retained to develop the JOC program in which 160,000 pre-priced construction tasks were developed and the contractors bid a percentage mark-up. The Gordian Group developed the specifications and a contract was awarded in August 2003. The City used this contract for about 2 years. Multiple projects were completed using the JOC and the success of the program evaluated. The 160,000 pre-priced construction tasks covered every imaginable type of work and broke it down into very small elements, such as traffic control where the City paid per cone costs. This minute breakdown required staff to spend a great deal of time unraveling a cost proposal to see if it made 5/7/2013 C6 - 4 Trench Repair and Minor Concrete, Job Order Contract - 2013, Specification No. 91196 Page 2 sense for the work proposed to be completed or if there were unnecessary elements in the proposal. The additional staff time needed for review made controlling City costs more challenging. Engineering staff revisited the JOC concept in 2011 and created a contract serving as a “focused program.” Instead of bidding a JOC program which covers every imaginable type of work and essentially pays the contractor for each worker and each piece of equipment that is used to complete the work, staff has developed a program that bids the finished product. The current Utility Trench Repair JOC has been developed to pay the contractor for each square foot of roadway repaired, regardless of number of pieces of equipment or the number of staff the contractor plans to use. This methodology is consistent with other types of projects the City completes and has made it simpler for the contractors to prepare and submit proposals, and streamlined delivery of work. Last year, the City generated 14 Task Orders, totaling $345,000 and proving to be an effective approach of handling roadway repairs. The proposed Trench Repair and Minor Concrete JOC – 2013 is modeled after the successful Utility Trench Repair JOC, but has been expanded to include other, easily identified work items and extends the contract time to 24 months. The new contract items are various types of minor concrete work construction, including sidewalk repairs and ramps. These changes will expedite delivery of routine, ongoing, small City funded construction projects. While this contract will be available for City funded work, other Utilities such as the Gas Company, PG&E and Charter Communications would be required to create their own contract with their own contractor if they want a similar system for those projects. How JOC Contracts Work When Engineering staff is notified of the specific sites needing repair by maintenance staff in both the Utilities and Public Works departments, and from members of the public, locations are entered into a GIS database for tracking and documentation. Engineering compiles the work in a Task Order with a manageable number of locations marked for repair. With this information the contractor will calculate the cost of the repairs based on the contract prices established through the JOC contract. Once staff has verified the contractor’s calculation is correct, a purchase order will be issued for the work, authorized by the City Engineer for projects of $25,000 or less, and by the City Manager for all other projects within approved budget. Task Orders in excess of approved budget will return to Council for approval. This process follows the City Purchasing Policy and the authorization limits have been set by the Council in Resolution 9444 as part of the JOC program (See Attachment 2). Once the work is authorized at the appropriate level and budget transfer completed, a work order is issued to complete the repair and work can commence. Payment and close out of the individual task orders will generally follow existing practices, with the exception that a final report is not completed on individual task orders. The program will be assessed to determine its effectiveness. If the program works well, other focused JOC projects will be recommended for release to handle the more routine project work. C6 - 5 Trench Repair and Minor Concrete, Job Order Contract - 2013, Specification No. 91196 Page 3 Routine repairs can, and sometimes are, completed by staff. This is a very effective approach when immediate response is needed, or funding is not readily available for contract services. This delivery method is not routinely used due to the very high volume of repair requests and the need for street maintenance support work to be completed in advance of microsurfacing projects to streamline delivery of those projects. By operating this JOC project, the maintenance staff remains focused on delivering Measure Y priority paving work, while still providing a rapid response for utility trench repairs and minor concrete work as needed. Contract preparation costs are kept to a minimum as well, by using this on-call service concept. CONCURRENCES This project is exempt from environmental review since it is a maintenance and replacement project and a Notice of Exemption has been filed through the Community Development Department. FISCAL IMPACT This contract does not obligate any funds for construction. Once the contract has been executed, staff will begin scoping work and issuing work orders. Funding will be transferred into this project account from previously approved and funded Capital Improvement Plan projects, not-to- exceed the funding authorized by Council or authorization limits as approved by Council Resolution Number 9444 (2003 Series). Transfers of existing appropriations between projects will be completed in accordance with Council adopted financial policies. The funding sources for this work include the Street Reconstruction and Resurfacing (R&R) Master Account, Water Distribution System Improvement – Trench Repair Master Account, Collection System Improvement Master Account, and the Sidewalk Repair Master Account. ALTERNATIVE Deny authorization to advertise. The City Council could choose not to authorize the advertisement of the project. This is not recommended because the JOC program is a cost- effective way in which to get necessary maintenance work complete in a short timeframe. ATTACHMENTS 1. Council Agenda Report, Authorizing JOC 2. Resolution 9444 (2003 Series) AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Trench Repair and Minor Concrete - JOC - 2013 Specifications T:\Council Agenda Reports\2013\2013-05-07\2013 Trench Repair & Minor Concrete JOC 91196 (Grigsby-Rowland)\91196 CAR Advertise.doc C6 - 6 Attachment 1 C6 - 7 Attachment 1 C6 - 8 Attachment 1 C6 - 9 Attachment 1 C6 - 10 Attachment 1 C6 - 11 Attachment 1 C6 - 12 Attachment 1 C6 - 13 Attachment 1 C6 - 14 Attachment 2 C6 - 15 Attachment 2 C6 - 16 Attachment 2 C6 - 17 Attachment 2 C6 - 18 Attachment 2 C6 - 19 Page intentionally left blank. C6 - 20