CC 2016-06-28_09g Award Contract_Le Point Water Main Upgrade
MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO SPECIALTY
CONSTRUCTION INC. FOR CONSTRUCTION OF THE LE POINT AREA
WATER MAIN UPGRADE PROJECT, PW 2015-15
DATE: JUNE 28, 2016
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the Le Point Area Water Main Upgrade Project to Specialty
Construction Inc. in the amount of $486,892;
2. Authorize the City Manager to approve change orders for 15% of the contract
amount, $73,034 for unanticipated costs during the construction phase of the
project (total construction costs = $486,892 + $73,034 = $559,926); and
3. Direct the City Clerk to file a Notice of Exemption.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2015/16 and FY 2016/17 Capital Improvement Program Budget includes
$684,100 for the subject project. The engineer’s estimate for the project was $490,000.
The total cost of the project including design, construction inspection and contingencies
is estimated at $684,100.
BACKGROUND:
As presented in the City’s Water Master Plan as priority B-7, the project is to install
approximately 2,300 linear feet of 8-inch diameter PVC potable water mains in the Le
Point area, replace water services and appurtenances, install additional fire hydrants,
and abandon the existing cast iron 4-inch water mains that were installed in 1938. The
City has experienced numerous breaks in these cast iron mains, and an analysis
showed that the cast iron pipe is in poor condition. Cast iron pipe is estimated to have a
useful life of 50 to 100 years. The recent main breaks signal that the cast iron pipe in
the Le Point area has reached the end of its useful life.
Item 9.g. - Page 1
CONSIDERATION OF AN AWARD OF CONTRACT TO SPECIALTY
CONSTRUCTION INC. FOR CONSTRUCTION OF THE LE POINT AREA WATER
MAIN UPGRADE PROJECT, PW 2015-15
JUNE 28, 2016
PAGE 2
The waterlines to be replaced are within the public right of way on (1) Crown Terrace
from Crown Hill Street to Le Point Street, (2) Le Point Street from Crown Terrace to
Highway 227/Corbett Canyon Road, and (3) McKinley Street from Le Point Street to
Crown Hill Street.
Staff conducted a non-mandatory pre-bid meeting to ensure that all prospective bidders
were informed of potential impacts to Paulding Middle School. The project has been
designed to allow for phased construction beginning with the pipelines on McKinley
Street, and Le Point Street between McKinley Street and Highway 227/Corbett Canyon
to avoid potential traffic and pedestrian conflicts. Should construction not be completed
on those streets by August 16, 2016, work hours on these streets will be restricted from
10:00 am to 2:00 pm Mondays, and from 9:00 am to 2:00 pm Tuesday through Friday.
ANALYSIS OF ISSUES:
On June 14, 2016, seven bids were opened for the Le Point Area Water Main Upgrade
project. The lowest bid, $486,892 from Specialty Construction, Inc., was deemed
responsive and staff recommends award of a construction contract to Specialty
Construction, Inc. accordingly.
The contract time is 80 working days. Work is expected to begin in July and be
completed in November.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation to award a construction contract to Specialty
Construction, Inc. for the Le Point Area Water Main Upgrade project;
2. Do not award a construction contract for the project; or
3. Provide direction to staff.
ADVANTAGES:
Replacement of the water mains and installation of additional fire hydrants will ensure
safe and reliable delivery of drinking water and provide enhanced fire protection to the
surrounding properties.
DISADVANTAGES:
There may be some impact to traffic and pedestrians accessing Paulding Middle
School. However, phased construction and/or limited work hours should help avoid
potential impacts.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15301(b).
Item 9.g. - Page 2
CONSIDERATION OF AN AWARD OF CONTRACT TO SPECIALTY
CONSTRUCTION INC. FOR CONSTRUCTION OF THE LE POINT AREA WATER
MAIN UPGRADE PROJECT, PW 2015-15
JUNE 28, 2016
PAGE 3
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, June 23, 2016. The agenda and staff
report were posted on the City’s website on Friday, June 24, 2016. No public comments
were received as of the time of preparation of this report.
Attachment:
1. Bid Opening Log Sheet
2. Notice of Exemption
Item 9.g. - Page 3
Attachhment Noo. 1
Item 9.g. - Page 4
Attachment No. 2
Notice of Exemption
To: Office of Planning Research From: (Public Agency) City of Arroyo Grande
1440 Tenth Street, Room 121 300 East Branch Street
Sacramento, CA 95814 Arroyo Grande, CA 93420
County Clerk
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: Le Point Area Water Main Upgrade Project, PW 2015-15
Project Location - Specific: Le Point Street, Crown Terrace, and McKinley Street
Project Location - City: Arroyo Grande Project Location - County: San Luis Obispo
Description of Project: Installation of approximately 2,300-lf of potable water mains and service laterals,
and installation of additional fire hydrants
Name of Public Agency Approving Project: City of Arroyo Grande – Public Works Department
Name of Person or Agency Carrying Out Project: Geoff English, Director of Public Works
Exempt Status: (check one)
Ministerial (Section 12080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: Section 15301(b)
Statutory Exemptions. State code number:
Reason Why Project is Exempt: Negligible expansion of an existing publicly owned utility facility
Lead Agency
Contract Person: Jill McPeek, CIP Manager Area Code/Telephone/Extension: (805) 473-5444
E-mail: jmcpeek@arroyogrande.org
If filed by Applicant:
1. Attach a certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No
Signature: Date:
Teresa McClish
Director of Community Development
Signed by Lead Agency Date received for filing at OPR:
Signed by Applicant
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