HomeMy WebLinkAboutStaff Report 423-08TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:NOVEMBER 3, 2008 CMR: 423:08
REPORT TYPE: CONSENT
SUBJECT:Approval of a Utilities Enterprise Fund Contract with Lewis and
Tibbitts, Inc. in an Amount Not to Exceed $3,859,795 for Capital
Improvement Program GS-07002, Gas Main Replacement Project 17,
in the College Terrace, Evergreen Park, Ventura, Crescent Park,
University South, Duveneck/St. Francis and University Park
Subdivisions
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with Lewis and Tibbitts, Inc. (Attachment A) in the amount not to
exceed $3,859,795 for the Capital Improvement Program (CIP) GS-07002 (Gas Main
Replacement (GMR) Project 17).
Staff also recommends that Council approve and authorize the City Manager or his designee to
negotiate and execute one or more change orders to the contract with Lewis and Tibbitts, Inc.
for related additional but unforeseen work, which may develop during the project, the total value
of which shall not exceed $578,970 (which represents 15% of the contract amotmt).
DISCUSSION
Project Description
The work to be performed under the contract is for installation of 36,242 linear feet of new
polyethylene (PE) gas main, 555 new customer services, and service stubs to reconnect 107
existing customer PE services within the City Limits of Palo Alto. The project will replace mains
in College Terrace from Wellesley to E1 Camino, California, Cambridge, College, Sheridan,
Olive, Chestnut, Lambert, Margarita, Matadero, Wilton Avenues from E1 Camino Real to Park
Boulevard, on Park Boulevard between Stanford and California, Page Mill to Olive, and
Margarita to Wilton. Mains will also be replaced on Ramona between University and Forrest
and Homer to Channing, on Lane A West, on Hamilton from Lincoln to Newell, Rhodes Drive
and on Alannah Court (project locations are shown in Attachment C). Replacing the gas
distribution system mains with Polyethylene (PE) pipe will eliminate leaks in the project areas
and reduce loads on the existing cathodic protection system, a corrosion control system on the
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remaining steel mains, thereby extending the useful life of the system. Installing larger diameter
gas mains in the project areas will increase the City’s gas distribution system reliability.
This project continues the acrylonitrile-butadiene-styrene (ABS) replacements started in 1992-93
and will continue until all of the ABS mains are removed from the gas system in 2013. The
project currently targets ABS mains that have caused additional maintenance problems and
expense due to their brittle pipe walls. Additionally, over time, these mains have developed an
elliptical shape with brittle sidewalls. Repairs to these oddly shaped brittle mains are time
consuming and difficult. Accelerated replacement of ABS mains and services are required to
maintain the City’s planned capital project schedule. ABS material failures will continue to
contribute to increasing gas maintenance expenses associated with gas leaks. The work is being
performed by contract because the project resource requirements are beyond the City’s personnel
and equipment capacity.
Summary o, fBid Process
Bid Name/Number
Proposed Length of Project
Number of Bids Mailed to
Contractors
Number of Bids Mailed to Builder’s
Exchanges
Total Days to Respond to Bid
Pre-Bid Meeting?
Number of Company Attendees at
Pre-Bid Meeting
Number of Bids Received:
Bid Price Range
Gas Main Replacement Project 17, CIP GS-07002, IFB
Number 128534
270 calendar days
14
5
21
Yes
11
7
From a low of $3,859,795 to a high of $5,783,985
*Bid summary provided in Attachment B.
Staff has reviewed all bids submitted and recommends that the bid of $3,859,795 submitted by
Lewis and Tibbitts, Inc. be accepted and that Lewis and Tibbitts, Inc. be declared the lowest
responsible bidder. The bid is 26 percent below the staff engineer’s estimate of $5,222,020. The
change order amount of $578,970, which equals 15 percent of the total contract, is requested for
additional unforeseen work that may develop during the project. Due to the complexity of the
project, staff anticipates additional change orders associated with the work to be performed on E1
Camino Real between Femando Avenue and Los Robles and on California Avenue between E1
Camino Real and Park Boulevard.
Staff confirmed with the Contractor’s State License Board that the contractor has an active
license on file. Staff checked references supplied by the contractor for previous work performed
and found no significant complaints.
PROJECT COORDINATION
The work for the project has been and will continue to be coordinated with the Public Works
Department at the monthly Utilities/Public Works coordination meetings. Project coordination
within the City is enhanced by using the City’s Geographical Information System Project
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Coordinator Program for staff discussions on potential project conflicts. The project conflicts are
resolved by staff at the monthly coordination meetings, Staff’s GMR Project 17
communications will include project notifications 1nailed to all residents and businesses along
the project aligmnent. Links to the GMR Project 17 website will be included in the mailed
project notifications and staff will hold project information meetings to inform the residents and
businesses of the project schedule and methods of construction, Project communication
meetings started with the College Terrace Residents Association during GMR Project 16, which
replaced gas mains in College Ten’ace fi’om Amherst Street to Princeton Street, will continue as
part of GMR Project 17. Construction on the project will most likely start in the January 2009.
RESOURCE IMPACT
Funds for this capital project were inclnded in the FY 2007/08 Gas Enterprise CIP budgets. This
project includes ftmding transfers of $274,725 to the General Fund for Street Cut Fees. Funds
for Street Cut Fees for this project were included in the FY 2007/08 Gas Enterprise CIP budgets.
POLICY IMPLICATIONS
Gas Main Replacement Project 17 was approved by Council as part of the FY 2007-08 CIP
budget approval process. The approval of this Gas Enterprise Fund contract is consistent with
existing City policies. This recommendation is .consistent with the Council-approved Utilities
Strategic Plan Key Strategy No. 1, "Operate distribution system in a cost effective manner,"
Strategy No. 7, "Inaplemelat programs that improve the quality of the enviromnent"
Objective No. 2, "Invest in utility infi’astructure to deliver reliable service."
ENVIRONMENTAL REVIEW
This project is categorically exelnpt from California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Sections 15301 (b) repair, maintenalace of existing facilities and
15302 (c) replacement or reconsta’uction of existing facilities.
ATTACHMENTS
A: Contract
B: Bid Summary
C: Project Map
PREPARED BY:Liza Sorin, Engineer .
Aleksandr Pishchik, Project Engineer
/~RGreg Seoby, St. Project Engineeroger Cwiak, WGW Engineering Manager
DEPARTMENT HEAD:
Director 6f Utilities
CITY MANAGER APPROVAL:
City/~’maager
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