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Home My WebLink About08/01/2006, C9 - WRF AIR-GAP REPLACEMENT, SPECIFICATION NO. 90399 Counat M.6"Da Aug. 1,2006 ac En oa Repoat =N CITY OF SAN L U I S OBI SPO FROM: Jay Walter, Public Works Director Prepared By: Michael J. McGuire, Engineer III MVA SUBJECT: WRF AIR-GAP REPLACEMENT, SPECIFICATION No. 90399 CAO RECOMMENDATION 1. Award the contract for the "WRF Potable Water Air-Gap Replacement", Specification No. 90399, to Maino Construction Co. Inc. in the total project bid amount of$106,979. 2. Authorize the transfer of$122,000 from the WRF Major Facility Maintenance account to the project account for funding of the Contract plus related construction contingencies and project costs. DISCUSSION On June 22, 2006, bids were opened for the WRF (Water Reclamation Facility) Potable Water Air-Gap Replacement project, for replacement of failing pump equipment and a deteriorating structure housing that equipment. The City received two bids with both bids exceeding the Engineer's Estimate for construction. The lowest project bid was from Maino Construction Co. Inc. in the amount of$106,979. This low bid is 33% over the Engineer's Estimate of$80,000, primarily due to the costs for masonry block construction. Masonry block construction costs have recently skyrocketed due to cement shortages and the escalating costs for fuel. Staff recommends awarding the Contract for this project to maintain and improve the potable water supply. CONCURRENCES This project has the approval of the Public Works and Utilities Departments. FISCAL IMPACT This project was approved as part of the Water Reclamation Facility Major Facility Maintenance, in the 2001-03 Financial Plan, Appendix B Capital Improvements Plan, page 140. Currently, there is $1,018,963 available to fiord capital projects at the WRF. In 2001, this project was originally estimated to cost $50,000. The low bid of $106,979 is higher than the budgeted amount due to increasing construction costs and the current bidding climate. Approval of the CAO Recommendation will allow the transfer of $122,000 from Water Reclamation Facility Major Facility Maintenance to the specific project account. The following table illustrates the project costs and funding sources. WRF Air-Gap Replacement Page 2 . Project Costs Construction $106,979 Construction Contingency(10%) 11,021 Printing&Advertising 1,000 Materials Testing 2,000 Miscellaneous Costs 1,000 Total Cost: $122,000 Project Funding 2001-03 Financial Plan (Original Budget) $50,000 Additional Funding(from Major Equip. Maint.) 72,000 Total: $122,000 ALTERNATIVES 1. Reject all bids and re-bid the project Staff could redesign the equipment building to be of wood-frame construction instead of masonry. While saving some money, wood is also an expensive building material that would result in minimal savings. Any savings would be offset by the continual cost escalation of other building materials, the cost of re-bidding the project and the time delay which, if existing equipment failed, could be potentially very expensive to repair. 2. Defer the project The existing equipment is over 40 years old and cannot sufficiently handle the current water demands of the WRF. It must be replaced with new, energy efficient equipment so as to avoid a shutdown of the potable water supply and consequently, incur potential fines or penalties.. ATTACHMENTS 1. Bid Summary Sheet 2. Construction Agreement 7 G: Staff-Reports-Agendas-Minutes/ CAR/2006/CIP/90399 WRF Air-Gap/CAR Award.doc CITY OF SAN LUIS OBISPO: BED SU' IARY SHEET Attachment 1 Project: WRF Potable Water Air-Gap Replacement Spvc.No.: 90399 Bid Opening: June 22,2006 @ 3:00pm Estimated follownu dates: Project Contact: Mike McGuire Award: 6/272006 Request for bondstins: 7/13/2006 Pre-job: I?kGINEER'S Maino Construction Ahrens Corporation BID ITEM&DESCRIPTION ESTIMATE IT TOTAL UNIT TOTAL UNIT TOTAL No. ITEM UNIT QUAN PRICE PRICE PRICE PRICE PRICE PRICE I Mobilization/Demobilization LS 1 3000.00 $3,000.00 2884.00 $2,884.0 5000.00 $5,000.00 2 Demolition LS 1 4000.00 $4,000.0 1845.00 $1,845.001 5000.00 $5,000.00 3 AirEquipment CS 1 35000.00 $35,000.00 29176.00 $29,176.0d 26000.00 $26,000.00 4 Air-Gap Equipment Installation LS 1 10000.001 $10,000.00 6922.00 $6,922.00 1 47000.001 $47,000.00 5 Masonry Equipment Building IS 1 28000.001 $28,000.00 66152.00 $66,152.00 63000.00 $63,000.00 TOTAL: $80,000.00 $106,979.00 $146,000.00 � 9-,3 1 i Attachment 2 CITY OF SAN LUIS OBISPO CALIFORNIA AGREEMENT THIS AGREEMENT,made on this day of ,20_,by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (Hereinafter called the Owner) and Maino Construction Company Incorporated (hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be perforated, shall provide and fiimish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of WRF POTABLE WATER AIR-GAP REPLACEMENT,SPECIFICATION NO.90399 in strict accordance with the plans and specifications therefor,including any and all Addenda,adopted by the Owner,in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be fitmished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE H, CONTRACT PRICE: The Owner shall pay the. Contractor as full consideration for the faithfid performance of this Contract,subject to any additions or deductions as provided in the Contract Documents,the contract prices as follows: Item Item Unit of Estimated Item Price Total No. Measure Quantity (in figures) (in figures) 1. Mobilization/Demobilization LS 1 2,884.00 2,884.00 2. Demolition LS 1 1,845.00 1,845.00 3. Air-Gap Equipment LS 1 29,176.00 29,176.00 4. Air-Gap Equipment Installation LS 1 6,922.00 6,922.00 5. Masonry Equipment Building LS 1 66,152.00 66,152.00 BUD TOTAL: $106979 Payments are to be made to the Contractor in accordance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted,or of any extra work which the Contractor may be required to do,or respecting the size of any payment to the Contractor,during the performance of this Contract,said dispute shall be decided by the Owner and its decision shall be final,and conclusive. c 9-y - 1 - Attachment 2 ARTICLE III,COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full,and if not attached,as if hereto attached: 1. Notice to Bidders and information for bidders. 2. Standard Specifications,Engineering Standards and Special Provisions. 2. Accepted Proposal. 4. Public Contract code Section 10285.1 Statement and 10162 Questionnaire. 5. Noncollusion Declaration. 6. Plans. 7. List of Subcontractors. 8. Agreement and Bonds. 9. Insurance Requirements and Forms. ARTICLE IV. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. IN WITNESS WHEREOF, the patties to these presents have hereunto set their hands this year and date first above written. CITY OF SAN LUIS OBISPO, A Municipal Corporation Ken Hampian,City Administrative Officer APPROVED AS TO FORM: CONTRACTOR Lo an P.Lowell Maino Construction Co.Inc. City Attorney Tom Maino,President -2-