HomeMy WebLinkAboutRESO 9079Resolution No. 9079
Resolution of the Council of the City Palo Alto
Authorizing Use of a Design-Build Project Delivery Method
for Design and Construction of Replacement Fuel Pumps and
Related Equipment at Foothills Park VR-92006
WHEREAS, the existing conventional fuel station at Foothills Park was constructed
in approximately 1970 and consists of a 500 gallon diesel tank, a 1,000 gallon gasoline tank and
a fuel pump; and
WHEREAS, the fuel station is located within an enclosed staff equipment and work
area and had been used primarily by Open Space staff, with seasonal use by Fire Department
staff; and
WHEREAS, in the event of a fire emergency in the foothills the fuel station could
also be used by State fire crews; and
WHEREAS, in July 2007, staff entered into a contract with Blymyer Engineering for
design services related to a new fuel station at Foothill Park, which would have consisted of
improved fuel tanks, pumps and lighting; and .
. WHEREAS, a construction contract for this work was never awarded as bid prices
exceeded the construction budget; and
WHEREAS, since that time, staff has reduced the project's construction cost by
including only the most critical items in the scope of work and has revised the plans in-house in
order to save money on design fees; and
WHEREAS, Council's approval of the attached design-build resolution will allow
staff to advertise the project with sufficient information for a specialized contractor-designer
team to finalize the design, obtain the permits, and propose a fee for the total project; and
WHEREAS, the term "design-build" is defined by California Public Contracts Code
Sec. 20133(c)(2) as "a procurement process in which both the design and construction of a
project are procured from a single entity; and
WHEREAS, the term "design-bid-build" is the traditional project delivery method in
which the agency contracts with separate entities for both the design and construction of a
project; and
WHEREAS, Section 2.30.100 of the City of Palo Alto Municipal Code defines a
public works contract as a contract paid . for in whole or in part out of public funds for the
construction, alteration, repair, improvement, reconstruction or demolition of any public
building, street, sidewalk, utility, park or open space improvement, or other public improvement;
and
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WHEREAS, the Foothill Park New Fuel Pump Station is a public works contract; and
WHEREAS, Section 2.30.300 of the City of Palo Alto Municipal Code provides that
public works contracts not exempt from competitive solicitation requirements under Section
2.30.360 or by resolution of the city council shall be solicited via a competitive bidding process;
and
WHEREAS, in order to allow consideration of qualitative factors such as a bidder's
experience and performance on prior jobs, in addition to price, design-build contracts are usually
awarded by some process other than formal competitive bidding; and
WHEREAS, Section 2.30.300(c) of the City of Palo Alto Municipal Code provides
that the Council may determine by resolution that a particular public works project may be
solicited and contracted for using alternate project delivery methods, including but not limited to
design build, construction manager at risk, or competitive negotiation, provided that any such
resolution shall set forth the reasons supporting the use of the alternate project delivery method
for the project and describe the solicitation method to be used and the criteria for determining the
party to whom the contract should be awarded; and
WHEREAS, the award of the this contract will not involve or require any funding by
bonded indebtedness of the city or by assessment against any particular property in the City; and
WHEREAS, several factors support the use of the design build alternative project
delivery method for this project:
(1) A 1997 study of 351 design-build projects by the Construction Industry
Institute and Penn State University that found that project delivery time,
including design and construction, was 33 percent faster, construction time
was 12 percent faster and project costs were 6 percent lower when the design-
build method of project delivery was used, compared to when the traditional
design-bid-build delivery method was used;
(2) A ·1996 study by the University of Reading in the United Kingdom found that
the design-build method reduced construction risks by 14 percent when
compared with design-bid-build method;
(3) The design-build method's structure allows the design-build engineer and
builder to jointly consider options to improve the design, cut project costs
during the bid process and streamline the schedule;
(4) The design-build method, with its single point of responsibility, minimizes
the contract's administration burden and allows leveraging of available staff
resources;
(5) Staffhas already completed considerable design work in-house, but lacks the
expertise to complete the specifications relating to fuel pump particulars; and
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(6) Staff estimates that by using the design-build method, the project will be
completed approximately 6 month sooner than a traditional design bid build
project and that this process would save approximately $20,000 in design
costs in that a large portion of the staff design could be utilized by the design
build team. Additionally, design fees that would have been needed to
complete the staff design would not need to be expended only to later
discover that the project cannot be awarded due to high bid prices.
NOW THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as
follows: '
SECTION 1. Findings. The City Council finds and determines that each of the
findings set forth above are true and correct.
SECTION 2. Authorization for Design Build Project Delivery Method.
Council hereby determines that findings outlined above support the use of a design-
build solicitation method for the New Fuel Pumps and Related Equipment at
Foothills Park Project.
SECTION 3. Criteria for Contract Award. City staff will select the design-build team
for contract award using the following criteria:
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(1) Quality and completeness of the proposal.
(2) Proposer's understanding of the scope of work outlined in the RFP.
(3) The proposer's stated work plan, including text, preliminary
layoutsldrawings, equipment control strategies, etc.
(4) Quality of materials and equipment to be furnished, beyond what is required
in the proposal and on which the bid price was based.
(5) Any realistic and innovative ideas proposed.
(6) Evidence that the proposer can meet the schedule, such as from the
description of project management method or clarity of the work plan in
terms of task detail and interrelationship of the activities.
(7) Cost Proposal
(8) Staff experience on similar projects
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