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Home My WebLink About02/07/2006, C5 - PALM GRAND SEWER REPLACEMENT PROJECT SPECIFICATION NO. 90242 1� Ccouncil °27/2006 A aGEnaa Report ,�� c s CITY OF SAN LUIS O B I S P O FROM; Jay D. Walter,Public Works Director PREPARED BY: Daniel Van Beveren, Principal Civil Engineef'�10 SUBJECT: PALM GRAND SEWER REPLACEMENT PROJECT SPECIFICATION NO. 90242 CAO RECOMMENDATION: 1) Approve plans and specifications for Palm Grand Sewer Replacement Project, Spec. No. 90242; 2) Authorize staff to advertise for bids; 3) Authorize the CAO to award the contract if the lowest responsible bid is less than the engineer's estimate of$1,050,000; 4) Accelerate funding in the amount of$362,600 from collection systems improvements in 2006-07 to 2005-06 in order to fund this project. DISCUSSION The Palm Grand Sewer Replacement project has been identified by the Utilities Department as an important project for many years. Recently, the scope of the project has increased along with the estimated total cost, resulting in a scheduled construction for the summer of 2006. This project extends from the intersection of Palm and California, to the intersection of Grand and Loomis (see attached map). - This project involves the replacement of aged sewerlines which are not up to current standards, require ongoing maintenance and repair, and do not adequately prevent groundwater intrusion into the sewer system. In a few locations, parallel dual sewerlines will be replaced with a larger single sewerline. This will increase the capacity of the sewer system and reduce the need for repair and the potential for leakage or water intrusion. The original scope of this project included the replacement of the existing sewerlines from within an easement along the Vet's Hall parking lot between Mill Street and Palm Street. Based on an analysis of the estimated replacement cost of this easement line along with adjacent sewerline replacement needs, a revised design of the sewerline system will redirect flow along Mill and Grove Streets and will allow for the existing line within the Vet's Hall parking lot to be abandoned. Based on the available budget, and the need to complete at least a portion of the overall project, this project has been divided into subcomponents for bidding purposes. The total overall project consists of the replacement of sewerline from California & Palm to Grand & Loomis. The lowest bidder shall be determined using method (c) of Section 20103.8 of the California Public Contract Code,which reads as follows: Gs/ Council Agenda Report—Palm Grand Sewer Replacement Project,Specification 90242 Page 2 "The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the local agency before the first bid is opened." The publicly disclosed funding amount used for the purpose of determining the lowest bidder is $1,050,000. The following listing presents the additive items of the project which will be added to the base bid in the following order in determining the lowest bid. 1. Bid Additive#1 - Grand Avenue from Hill to Abbott 2. Bid Additive#2 -Grand Avenue from Abbott to Loomis 3. Bid Additive#3 - Palm Street from Grove to MH L07-50 If the actual bids (including all Bid Additives) are higher than the engineer's estimate, the project may either be returned to the City Council for the award of the total project at the higher price, or be awarded by the CAO without one or more of the alternate components included. Regardless of which alternates are included in the award, the lowest responsible bid which includes the greatest number of alternate bid components within the engineer's estimate of$1,050,000 will be considered to be the lowest responsible bidder and will be awarded the construction contract. CONCURRENCES The plans and specifications have been reviewed by the Utilities Department. A Notice of Exemption has been approved by the Community Development Department, therefore the project is exempt from further environmental review. FISCAL IMPACT The project is identified in the 2005-07 Financial Plan. The budgeted estimate for the project is $516,000.. The engineer's estimate, however, is $1,050,000. The difference in expected costs is likely due to a number of factors. The project is now somewhat larger than originally planned, due to new information and a common sense approach to addressing the problems in this area of the wastewater collection system. In addition, a soils investigation study prepared specifically for this project revealed that this location contains both shallow bedrock and high groundwater. Furthermore, construction costs have been going up at an alarming rate, as a result of higher fuel and material prices that are likely due to world affairs and the devastating hurricane damage in the southern United States. The Wastewater Collections System Improvements account currently has an available balance of $802,400. Because of the anticipated higher project costs, and the resulting shortage in available funds, it is proposed that the project be allowed to move forward with a portion of funding coming from the 2006-07 budget. Future sewer replacement CIP projects will then be reprioritized to account for these higher than expected costs. C S—� Council Agenda Report—Palm Grand Sewer Replacement Project,Specification 90242 Page 3 Costs Fundina Construction: ; $1,050,000 1 Construction Contingencies: I $100,000 Total for Construction: 1 $ 1,150,000 Amount Available in $802,400 Wastewater Collections Account Materials Testing, Printing $15,000 Amount requested from 2006-07 $3629600 and other Misc. Costs: Account r ...... _ . ........ - Total: . $ 11650001, v^� Total , $ 1,165,000 ATTACHMENTS: 1. Project Location Map AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Plans and Specifications for"Palm Grand Sewer Replacement Project" I:\CAR RcpoM\1IX1E\CIPV9 0242 Palm Gwd ScwcA90242 CAR-adv.doc ( j .I L OOMI S - W z U.S. HIGHWAY 101 J Q ABBOTT WILSON Q 41 Q GARFIELD Z E .Q G� o� 0 oL P o �G �Z -9 P P�� Cl /Or ATTACHMENT #1 Sari 11A1S OBISPO PALM CRAND SEWER REPLACEMENT Public Works Department 955 Morro street, son Luis Obispo, CA 93402 PROJCT LOCATION MAP l/ C �7