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HomeMy WebLinkAbout09/22/1992, 2 - WHALE ROCK COMMISSION MEETING, TUESDAY, SEPTEMBER 24, 1992 lllry^I�IIIr�lllllll�l II MEETING DATE: CivJ Or Sar. _A5 OgI'SpO Sept. 22, 1992 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: William T. Hetland, Utilities Director SUBJECT: Whale Rock Commission Meeting, Tuesday, September 24, 1992 CAO RECOMMENDATION: Receive and file report. Comment if necessary to provide direction to City representative/staff. ACTION ITEM: 1. Authorize the Whale Rock Commission Chairman to award and execute a contract with Nick E. Pokrajac, Inc. in Templeton, for $1,063,370 for the construction of the Facilities Upgrade Project at the Whale. Rock Reservoir. If the Whale Rock Commission awards the bid to Nick E. Pokrajac, Inc., the member agencies will be assessed a one-time charge to assure fund reserves do not drop below 20% of operating expenses. The City of San Luis Obispo's assessed contribution will be $68,812.50. The City's assessment could be funded by the savings from the reduced cloud seeding program if Council approves staff's recommendation to modify the term of the program for this fiscal year. AGENDA WHALE ROCK COMMISSION MEETING TUESDAY, SEPTEMBER 24, 1992 at 2:00 P.M. CITY HALL HEARING ROOM 990 PALM STREET, SAN LUIS OBISPO, CA 2:00 P.M. Commissioners convene in City Hall Hearing Room 990 Palm Street, San Luis Obispo Roll Call: Carmen J. Salvato, California Men's Colony Commission Chairman Carlos Madrid, Department of Water Resources Commission Vice Chair John Dunn, City of San Luis Obispo Commission Secretary Ron Dunin, City of San Luis Obispo Ed Naretto, Cal Poly University Bill Statler, City of San Luis Obispo PUBLIC COMMENT PERIOD (5 Minutes) The Whale Rock Commission will receive public comment on items of interest to the public within the Commission's jurisdiction. As a general rule, action will not be taken on issues not listed on the agenda. Staff will generally be asked to follow up on such items at the discretion of the Chair. Written material is also encouraged. I. Action Items 1. Minutes - approval of draft minutes of the June 18, 1992 meeting. 2. Whale Rock Pump Upgrade Project - Authorization to award and execute a contract with Nick E. Pokrajac, Inc. for the construction of the Facilities Upgrade Project at the Whale Rock Reservoir. (Zweig) �'a2 DRAFT MINUTES WHALE ROCK COMMISSION MEETING Thursday, June 18, 1992 City Hall Hearing Room 990 Palm Street, San Luis Obispo, California Commission Members Present: Ron Dunin, City of San Luis Obispo, Chairman Carmen J. Salvato, California Men's Colony, Vice Chairman John Dunn, City of San Luis Obispo, Secretary Ed Naretto, Cal Poly University Carlos Madrid, Department of Water Resources Bill Statler, City of San Luis Obispo City Staff Present: Becki Austin, Recording Secretary Bill Hetland, Utilities Director Gary Henderson, Water Division Manager Bob Hamilton, Water Supply Supervisor David Zweig, Water Projects Manager Guests: Charles White, Chief of Water Mgmt., Department of Water Resources Frank Lebens, Vice President of Public Affairs, Cal Poly University Glen Priddy, Deputy County Engineer, County of San Luis Obispo Roll Call Chairman Dunin called the meeting to order at 1:30 p.m. and asked for a roll call. All Commissioners were present. Chairman Dunin addressed the audience and asked for any public comment in accordance with the Brown Act (items not on the agenda). INFORMATION ITEMS 1. Carlos Madrid introduced Charles White, Chief of Water Management, Southern District, Department of Water Resources. Ed Naretto introduced Frank Lebens, Vice President of Public Affairs, Cal Poly University. 2. State Water Project/Whale Rock Exchange - Upon the San Luis Obispo City Council's decision to participate in the State Water Project on April 21, 1992, staff presented two recommended alternatives in response to a number of agencies requesting the City of San Luis Obispo to exchange water from the Whale Rock Reservoir for State water. This would eliminate the need to build all or a portion of the Chorro Valley pipeline delivering State water. One alternative is to agree to exchange water with only Cuesta College and the 013 Draft Minutes Whale Rock Commission Meeting June 18, 1992 Page 2 Cayucos Water agencies with each agency receiving approximately 72% of the State water exchanged with the City. The other alternative is to only exchange water with the Cayucos Area Water organizations with each agency receiving approximately 86% of the State water exchanged with the City. If this alternative were implemented, Cuesta College would need to negotiate with the California Men's Colony to provide for peaking capability. Glen Priddv from the County Government Center concurred with City staff in their analysis of the recommended exchanges if a pipeline is constructed . After discussion, the Commission voted unanimously to receive and-file this report. CONSENT ITEMS 1. Approval of draft minutes of the March 26. 1992 meeting. 2. Surplus Whale Rock Utility Boat - Staff made a recommendation to declare the Crestliner utility boat at the Whale Rock Reservoir surplus and authorize the City Finance Director to prepare a Council Agenda Report and after approval, sell the Crestliner in accordance with the City's Property Disposal Policy. Funds received for salvage will return to the Whale Rock Fund. Commissioner Salvato moved to amend the recommendation to set a minimum auction price of $500 (one third of the boat's estimated value). Commissioner Madrid seconded the motion. Motion carried. Commissioner Statler made a motion to approve the Consent Items, seconded by Commissioner Salvato. Motion carried. BUSINESS ITEMS 1. Election of Officers - Commissioner Dunin made a motion to appoint Commissioner Salvato as Chairman for the 1992-1993 fiscal year, seconded by Commissioner Naretto. Motion was unanimous. Commissioner Naretto made a motion to appoint Carlos Madrid as Vice Chairman for the 1992-1993 fiscal year, seconded by Commissioner Dunn. Motion was unanimous. Commissioner Salvato made a motion to appoint John Dunn Secretary for the 1992-1993 fiscal year, seconded by Commissioner Naretto. Motion was unanimous. Whale Rock Commission Meeting June 18, 1992 Draft Minutes Page 3 2. Annual Whale Rock Reservoir 1992-1993 Budget - Staff recommended that the Commission adopt a budget policy requiring a minimum of 20% of operating expenditures in the Whale Rock Fund. Approval of the Whale Rock Pump Station project will significantly reduce fund balance. If any other projects were to be approved in the immediate future, fund balance might drop below the recommended 20% requiring assessments from the member agencies. After discussion, Commissioner Dunn made a motion to approve the 1992-1993 Whale Rock Reservoir Budget, seconded by Commissioner Statler. Motion carried. 3. Whale Rock Facilities Upgrade Project - David Zweig gave a slide presentation and explained that the upgrade project will expand the capacity and modernize the thirty-year old pump stations at the Whale Rock Reservoir. Three recommendations were presented to initiate this project: 1) approve plans and specs; award contract if lowest bid is within the Engineer's cost estimate; 2) approve and authorize the Commission Chairman to execute the contract with Kennedy/Jenks Consultants in an amount not to exceed $69,500 for construction support services for the project; and 3) approve the expenditure of $38,400 for the purchase of telemetry equipment for the Whale Rock system, $20,000 for PG&E work at the pump 'stations and $50,000 for construction inspection. Commissioner Dunn made a motion to amend Recommendation No. 1 to authorize the Chairman of the Whale Rock Commission to award the contract, seconded by Commissioner Naretto. Commissioner Madrid made a motion to approve all three recommendations for the Whale Rock Facilities Upgrade Project, seconded by Commissioner Statler. Motion carried. Commissioner Statler made a motion to adjourn, seconded by Commissioner Madrid. Motion carried and meeting adjourned at 2:45 p.m. Recording Secretary d S MEETING DATE: Sept. 22, 1992 WHALE ROCK COMMISSION REPORT ITEM NUMBER: FROM: William T. Hetland, Utilities Director .: Prepared By: David Zweig SUBJECT: WHALE ROCK FACILITIES UPGRADE PROJECT RECOMMENDATIONS: Authorize the Chairman to award and execute a contract with Nick E. Pokrajac, Inc., for $1,063,370, for the construction of the Facilities Upgrade Project. Approve the expenditure of an additional $204,100 for the Facilities Upgrade Project, above and beyond the $1,147,000 expenditure approved on June 18, 1992, for a'total project cost of $1,351,100 including contingencies. Approve an assessment of the member agencies to assure fund balance reserves do not drop below 20% of operating expenditures. DISCUSSION: Background On June 18, 1992 the Commission approved the expenditure of up to $1,147,000 for the Facilities Upgrade Project, with $919,500 of that amount intended for the primary construction contract. The $919,500 figure was based on the design engineer's estimate for construction. Seven contractors submitted bids for the project on August 20, 1992 (bid sheet attached as "EXHIBIT A"). The low bidder was Kaweah Construction Co., Fresno, at $1,049,000. Kaweah, however, has requested relief from their bid due to mistakes in calculation (letter attached as "EXHIBIT B"). The second to lowest bid was from Nick E. Pokrajac, Inc., Templeton, at $1,063,370. It is staff's recommendation that the commission award.the construction contract to the second to lowest bidder. This bid is approximately 16% above the engineer's estimate. A letter from the design engineer explaining the discrepancy between the estimate and the low bid is attached as "EXHIBIT C". The additional $204,100 requested will cover the difference between the engineer's estimate and the bid from Nick E. Pokrajac, Inc., and also provide for a 10% contingency fund. The other costs associated with the project, namely consultant services, telemetry equipment, PG&E work, and inspection, remain unchanged. To maintain the required reserye in the Whale Rock Fund, a special assessment of the member agencies will be needed. The special assessment is discussed in detail in the "Fiscal Impacts" section of this report. Purpose and Scope of Project The Facilities Upgrade Project will increase the capacity of Whale. Rock system, increase redundancy within the system, and replace mechanical and electrical equipment that is nearing the end of its useful life. WHALE ROCK COMMISSION REPORT Whale Rock Facilities Upgrade Project Page 2 The Facilities Upgrade Project includes the following items of work: 1. . Replace two existing corrugated metal pumphouses with new concrete block pumphouses at Pump Stations A and B 2. Add two new 200 HP pumps to each of the two pump stations 3. Add emergency generators to each of the two pump stations 4. Upgrade and modernize the electric controls at pump station A and B 5. Replace two pumps and the electric controls at the Chorro Pump Station 6. Upgrade electrical controls at the Chorro pump station to correct code violations and permit the simultaneous operation of the two pumps 7. Upgrade surge protection air valves at five locations along the Whale Rock pipeline ALTERNATIVES: 1. One alternative would be to postpone the implementation of the project to a later date. This alternative is not recommended for the following reasons: A. If the award of the construction contract is significantly delayed, the plans and specifications will have to be redone to reflect changes in technology, product availability, building codes, and other circumstances. The project would also have to be rebid. B. The recent bidding on the project was very competitive, in part due to present economic conditions which impact the construction industry. Bidding at a future date may result in fewer and higher bids. 2. A second alternative would be to eliminate the special assessment, and instead, maintain the required fund balance by postponing certain features of the proposed project. Two items which could be postponed with a minimal impact to operations would be: Telemetry equipment $38,400 Emergency Generators approx. $100.000 $138,400 The elimination of these items will make available a satisfactory fund balance reserve. FISCAL IMPACT: The revised estimated cost for this project is $1,351,100 as summarized below: Construction $1,063,370 + 10010 contingency $1,169,700 Construction Svcs $ 69,500 + 5% contingency 739000 Telemetry Equipment 38,400 PG&E 20,000 Inspection - Force Account 50.000 TOTAL $1,351,100 EXHIBIT A � O v O O O O O L. � O O O O. 0 0 0 LU Jw000vQm00MO _ Jw $ g $ o ogoo a mmm rmin o Q o 0 00 H U N N m IA .- lD y r U N N O O O Q m r C') pQrrvcoir: mi(6L p ¢ rr- U) m0molrir- a ~ aa. N�» NN cliNv� 6% 6% 69 � a � vvNNN� � iafila.N t4 v LL CL rn t9 tl� m p coo 0 0 0 0 0 < 0 0 0 0 0 0 0 0 d cn W o 0 0 0 0 0 0 o N w w o 0 p 0p 0 0 0 0 0 Ue ~ U m m a N N z m Z 0 0 0 0 0 00 0 0 Z Z � a � � emrnrnwc0c Z � aNrllnm000 � LO CO CZ y N N N CO N ^ ' -J Q N N Cl) 0 0 0 0 0 0 0 O O 0 0 0 0 0 0 LL 000000000 p co p J CC w C v v v co C O J 0 0 8 8 0 et O CG LU awin Irr 0Wr aw0O In Om (OT O i„ U m O O O 8 O N N i5 U o o O o o O m O m Q 0 Fr ti Ldr�: r: ao o v v re toto ¢ 0 = =w o ui ( � d C7 F- a NN cli cNu uC\j te#o, % 0 a m cn N� Nw b% 6% t m 9. n 0 to "' z a. 107M S808S00 0t U, gogo $ $J r r o r o N Z U O p p O to 0 c mO LLI CLin t0 m 0 O mN ¢ O O8 O m c7 mlnrrno0C.) CL (mmu') v )O d H N N N N ^ a z C7 Cl) N N U) 888000808 $ 0808080O 0N W J O 0 00 0 LU OO 0W U § 0 �F0880U080080800 C = p ¢ CPT 0000rnNrioi p ¢ oo0oorncounco a 6N9 � cli � t% u) u3 � 0_ ~: N a m m bN9 N � in ifl � N O V'/ m D V 0 0 0 0 0 0 O Q O O O 0 0 0 0 0 0 8 0 V ot- V 0000c000 a �-- V 00000go $ z z _ o o 0 0 0 o g o — �i Z ¢ e o S O o 0 0 0 y ¢ 0 0 0 0 0 0 O OC w aaoouoirOimcOvu� c� co ' J aLOLOLnLO V n � M 1C LL N N N N C7 [7 N N X �,/, W 858880880 $ 00000880 O) Of IA O O r J O 117 O 0 N O O 17 ,J -JLU aUSmmoNwwomCO O F U co cc O r o u7 v_ 0 m NO Q p ¢ t: N . M O 7 � c6 01 p ¢ Q N Qf O L N kr IA r+ Hd NV3 NN !9 Hin U! Fa NNta NN nes of N b9 p U o ¢Cn w 5 0 5 0 0 8 80 z Y w 8 5 0 0 0 5 5 0 rn ¢ � Urno> Incc000 wg � 0ui Inrioo _ coo0V00Ln � ZUSoNge o0 to r,Z ^ N = acrocnoomccm�rm 0Q = ac < CN� NIco co 0 N T ZN � w NNNN ^ QC!) mmNN LLJ CL 72- z Q Cn co O a iri ° QQ o ° o O Q z J J CO J J J W W z J J J J J J W W O m 0 F ZO z m z M m a_ a ¢ U — Cl) U U V w U U V - - v 13 °� U oa o6 U U ca U m m m m m m > > W_ O m m m > > F2w2 2www » » QmQ Q mQ pcc 21 mC6Cn Cd fn 0 QQ m NCANNLLQQ CL a,"T- CL CL CIO_ UUNQ ZNM Q Ln m r m 6 I N co Q In m r m 4 -4 WHALE ROCK COMMISSION REPORT Whale Rock Facilities Upgrade Project Page 3 As of June 30, 1992, the Whale Rock Fund had an available cash balance of $1,351,669. Any encumbrances that were owing and not paid would not have been deducted from that amount. An estimate of the outstanding encumbrances as of that date pis $42,000. If the project is approved, available fund balance would be reduced as follows: Available Fund balance $1,395,669 Approved Project $1,351,100 Estimate of outstanding encumbrances 42.000 Total expenses $1,393,100 Projected fund balance, if no assessment $ 2.569 To assure that the"Whale Rock fund continues to meet its adopted policy of maintaining reserves at a minimum level of 20% of the operating expenses, it will be necessary to assess the member agencies. Proportionate A en Ownership % Share City of SLO .5505 $ 68,812.50 Cal Poly 3371 42,137.50 CMC .1124 14.050.00 Required reserve level $125,000.00 Attachments: Exhibit A - Whale Rock Commission Bid Summary Sheet Exhibit B - Kaweah Construction Co. memo dated 9/1/92 Exhibit C - Kennedy/Jenks Consultants memo dated 9/1/92 Exhibit D - Whale Rock Commission Statement of Revenues and Balance Sheet 'O EXHIBIT B T-KAWEAH--7 CONSTRUCTION CO. GENERAL ENGINEERING CONTRACTORS POST OFFICE BOX 7780.FRESNO.CALIFORNIA 93747 REPLY TO: SACRAMENTO DIVISION PHONE (209)252.9492 • FAX (209)252-7377 P.O.BOX 292096,SACRAMENTO.CA 95829-2096 CALIFORNIA CONTRACTOR'S NO. 130865 PHONE 191 6)739-6830 • FAX(916)7i9-6319 September 1 , 1992 RECEIVED Whale Rock Commission c/o City Clerk S7V992 City Hall 990 Palm Street CLERK San Luis Obispo, CA 93401 SAN LUIS OBISPO,CA Re: Whale Rock Commission UPGRADE OF EXISTING PUMP FACILITIES To Whom It May Concern: It is with regret that we must notify you of a mistake in our bid for the "Upgrade of Existing Pump Facilities" and request relief from our bid per General Condition 2 .08 . Our bid contained the following two mistakes : 1 . The quote we received for the HVAC work on the project was per building. We failed to double the price leading to a $17 , 192 .00 mistake. 2 . Our bid only included one flow meter instead of the two required leading to an additional $9,000 .00 mistake. We note that our listed electrical subcontractor excluded the flow meter from their price and that we only added enough money for one flow meter. Based on the above two mistakes it would not be in Kaweah Construction Company's interest to enter into a Contract for this project . Please let us know if you would like additional information. Sincerely, William M. Lyles IV V. P. & Division Manager WML/ac a_/d 08- 27. . 92 -09 : 1 ( AM ROSS I CARR , ECTRI C Po 1 ROSSI&CARR XLECTBICAL, INO. w. P.O. Box 3988,Pale ROWS,CA 03447 SOS/238-3502 SCOPE OF WORK - ELECTRICAL WHALE ROCK PUMP FACILITIES U NRADF BID DATE 8/27/92 3 : 00 PM W9 propose to provide electrical labor and matcriale per plana , Sheets E1 through $7 , I-1 through I-41and epeoifieations Sections 16000 (Electrical ) and 13000 (Instrumentation and Controls ) , Addenda 1 - 3 noted . Exolusions : i , Permits or fees . 311559 t 2 . Concrete work and associated excavation and form work for generator and transformer pads . 3,?, 3 , Painting . �. Temporary MCC enclosures . /73)IfZ" Flow meters and calibration ( electrical hook up is included in ri ;zi our price . ) 1 /4 inch tape into auction and discharge lines . 71$ Generators Section 16622 .( electrical hook up is included in our price . ) 8 . Trash removal off site . TO•fAL PRICE FOR WORK DESCRIBED ABOVE: Respectfully submitted , Steve Carr al• & Carr . Electrical , Inc. C10ik438268 V—KAWEAH--- 7 CONSTRUCTION CO. Jog # : TELEPHONE QUOTATION DATE : _+ TIME : BIDDER FIR.*i: TAKEN By : �NCY.IL ADDRESS : CITY & STATE: QUOTED By 7 PHONE: YES NO YES NO Per Plans & Specs / Tax Included Addenda (No . ' s ) FOB Jobsite Bondable (Rate Start-up Service DBE MBE WBE (Circle) Delivery Time License3 .( #_ 57355 1 ) Payment Terns ITEM DESCRIPTION QTY. UNIT PRICE1 MOUNT yzo l.60 QW,< 10 s / EXCLUSIONS, QUALIFICATIONS, & REMARKS SUB TOTAL SALES TAX $ BOND $ TOTAL QUOTE ( Rev. Math Chk , Bid Sheet MIBIT C Kennedy/Jenks Consultants Engineers and Scientists Marathon Plaza,Tenth Floor 303 Second Street San Francisco,California 94107 1 September 1992 415-243-2150 FAX 415-896-0999 Mr. David Zweig Water Projects Manager City of San Luis Obispo 955 Morro Street San Luis Obispo, CA 93401 Subject: Whale Rock Commission: Upgrade of Existing Pump Facilities Contractor's Bids K/J 900101.00 Dear David: On August 27, 1992, bids were opened for the Whale Rock Commission's Upgrade of Existing Pump Facilities project. The apparent low bidder was Kaweah Construction with a bid of $1,049,000. This apparent low bid is approximately 14 percent higher than the engineer's estimate of $920,000. This letter provides Kennedy/Jenks Consultants' evaluation of the bids received. Seven bids were received for the project. They were as follows: Kaweah Construction $1,049,000 Nick E. Pokrajack, Inc. $1,063,370 R. Burke Corporation $1,175,786 Alder Engineering & Construction $1,235,583 R.P. Richards Construction $1,276,000 miesc.^. Cc^structs^n $1,370,308 Jenkins Construction $1,437,300 The close grouping of the two lowest bids (within 2 percent of each other) and the spread between the bids is reasonable for the size and complexity of the project. An engineer's estimate is an estimate of the probable construction cost based on generally available information and the engineer's experience. Contractor's bids are developed in more detail and are in part based on actual quotes from suppliers and subcontractors that are not typically available to the engineer. In addition, supplier's and subcontractor's quotes as well as the contractor's bid vary with market conditions including the availability of work and the contractor's need for work. Therefore, contractor's bids often differ from the engineer's estimate. 3 EOMT IT D \\'7 2 co § 7 f - \ 2 ] � � $ - \ a @ §Ln r - 2 ~ § k « 7 ° 00 en cc - - 7kk k k k � f�� $ 7 wi r— 2 ® / \ 2 q - 2 - � G . u ' z � « =a Z. . < �z zzz< \ k§� � u YE$/ . _ A §\k \ w\\ § < z = »z< ° /\ \_ `< < > _( G ° q LT. z z z / k/ z § v 2 �� B c . § \ S z g § 0 / - u / / U | - § - k x k //. 3 / 52 § 2 c cc ƒ) ( \ k § ƒ § t § j § § k z § ( § 2 x \§ k k \ . _ ■ b / � 7a � 5 § � � ± 2 ° � � z � • o z 6 2 © = I _ m ; « w ; _ ° r- o < W_ > e » = e CL. 0 e B u> I I 2 = a o � u ] o §o § u . �/� Kennedy/Jenks Consultants Mr. David Zweig City of San Luis Obispo 1 September 1992 Page 2 If you have any additional questions, please call me at 415/243-2452. Very truly yours, KENNEDY/JENKS CONSULTANTS Elizabeth Teien, P.E. Project Coordinator a aNn N O � N 1N O N W) r- 1N e'; m . fV f '1 N t+1 t' � S m NR b tN co C � n N � h a O P'1 Q P1 C'1 Q H N N M .Z O a NF= � p -Z py< U V N a UZ= O< F -2�Z � < L Z 3 0 h N V 0 hl U h < p Z V7 � � F F Cy c u < Z -� O ' y h cGc i y u U > =o o` < uj M y .d a C '7 .w ..1 •i V V N �+ m V �. 'Q C cm Q EMm _< m d > < F u s N ` d m < 7 F 7 0 v Q O U < < FO < < < E- ocM F- F U �-lG