Title
Adopt a Resolution to Approve and Authorize the City Manager to Award a Construction Contract to Eaton Drilling Company, LLC in the amount of $312,930 for the Washington Manor Park Irrigation Well, Project No. 2022.3060; to Authorize the City Manager to Negotiate and Approve Individual Change Orders Up to 10% of the Original Contract Amount ($31,293); and to Authorize the City Manager to Negotiate and Approve Cumulative Change Orders up to 25% of the Original Contract Amount ($78,233)
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• COVID Recovery (ARPA Spending Plan)
SUMMARY
This contract will provide a new irrigation well, control system and electrical connection at Washington Manor Park to replace the existing aged irrigation well, which is losing production and cannot meet current irrigation demand.
RECOMMENDATIONS
Staff recommends the following actions:
• Award a construction contract in the amount of $312,930;
• Authorize the City Manager to negotiate and approve individual change orders up to 10% (or $31,293) of the original contract amount; and
• Authorize the City Manager to negotiate and approve change orders up to a cumulative value not to exceed 25% (or $78,233) of the original contract amount.
BACKGROUND
The existing well has been used in combination with East Bay Municipal District (EBMUD) water to irrigate Washington Manor Park. Due to aging and silting of the well, the well can no longer fulfill the irrigation demand of the park landscaping. To ensure that the park landscape is maintained at a reasonable cost and avoid the high costs of water supply from EBMUD, a new more productive irrigation well is needed.
The new well will be relocated from near the family aquatic center to an area covered with mulch east of the tennis courts to provide room for potential future pool expansion.
Analysis
On August 3, 2023, the City opened bids for the subject project. Only one bid was received from Eaton Drilling Company, LLC in the amount of $312,930. The engineer’s estimate for this project was $270,500. This bid was 16% above the engineer’s estimate; however, given the current challenging bidding climate and recent economic inflation, this bid cost is considered reasonable. Re-bidding this project is not expected to result in lower costs and staff recommends the award of the construction contract to Eaton Drilling Company, LLC. This bid was found to be responsive and staff verified the validity of the Contractor’s State License Board license as well as their registration with the California Department of Industrial Relations.
This project was not subject to the provisions of the Community Workforce Agreement (CWA) because its cost is below the $1,000,000 threshold. The City’s Local Inclusion Policy Ordinance was also not included in this bid because its provisions conflict with the requirements of the project’s Federal American Rescue Plan Act (ARPA) funding.
As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction, as well as the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered during construction and plan details may need to be adjusted or clarified. To minimize delay to the project and ensure that the scope of work is adjusted as needed to provide the highest quality project, staff requests that the City Council authorize the City Manager or her designee to negotiate and approve individual change orders up to 10% ($31,293) of the original contract amount. In addition, staff requests authority to negotiate and approve cumulative change orders up to 25% ($78,233) of the original contract amount. This contract allowance will facilitate efficient completion of the project on budget and on schedule.
Current Agency Policies
• Maintain and enhance the City’s infrastructure
Applicable General Plan Policies
• Policy OSC-1.2 Park Maintenance. Provide for the regular, systematic maintenance of San Leandro’s parks and recreational facilities to prevent deterioration, ensure public safety, and permit continued public use and enjoyment.
Environmental Review
• This project is Categorically Exempt per California Environmental Quality Act (CEQA) Section 15301(c) of the CEQA guidelines. A Notice of Exemption was filed with the Alameda County Recorder’s Office on February 4, 2019, for the Farrelly Pool Rehabilitation Project which includes the relocation of this irrigation well
Code Compliance Review
This work will be done under the following permits:
• A building permit from the City’s Community Development Department.
• A permit from the Alameda County Department of Environmental Health.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, the South County Post, Visión Hispana and World Journal. Staff also notified local builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email. The project is described on the Engineering and Transportation Department website.
Two pre-bid meetings were held on July 14th and 18th 2023, with potential bidders.
Construction will not require closure of the park or parking lot. Notices will be posted on site at the park in advance of any temporary park pathway closures or detours.
Financial Impacts
The estimated cost of this project is detailed below. The budget authority section has details on funding types, accounts, and authorizations. CIP accounts are carried forward for five years or until the work is complete, whichever occurs first.
Design and Bid $115,500
Construction Contracts $312,930
Construction Management & Inspection $23,337
Construction Contingencies $78,233
Total Cost: $530,000
Sufficient funds are included in the Fiscal Year 2022-2023 budget for this project as follows:
• American Rescue Plan Act (ARPA) Grant Funds in
Streets and Highways Fund Account 190-17-802 $363,596
• General Funds in
Capital Improvement Fund Account 210-62-129 $166,404
Total Project Funding Available: $530,000
This Council action will not impact fund balance because there are funds available in the FY2022-2023 adopted budget.
ATTACHMENTS
• Attachment A - Resolution
• Attachment B - Bid Summary - Project No. 2022.0050
PREPARED BY: Mark Goralka, PE, Associate Engineer, Engineering and Transportation Department