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Home My WebLink AboutStaff Report 308-10TO: FROM: DATE: REPORT TYPE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS JULY 26, 2010 CMR:308:10 CONSENT Adoption of a Resolu(ion 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) RECOMMENDATION Staff recommends that Council: 1. Adopt Resolution (Attachment A) authorizing use of the design-build project delivery method for the design and construction of new fuel pumps and related equipment at Foothills Park (VR-92006). BACKGROUND 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. 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. The fuel station could also be used by State fire crews in the event of a fire emergency in the foothills. DISCUSSION The fuel station at Foothills Park has not been operational since approximately January, 1999. As a result staff is required to drive four trucks to the Municipal Service Center (MSC) off of East Bayshore Road for fuel. Fueling trips for the four trucks occur approximately four times a week, a trip of 30 minutes in each direction. In addition to the lost work time due to travel times, there are costs related to increased fuel usage, vehicle mileage and greenhouse gas emissions. 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. A construction contract for this work was never awarded as bid prices exceeded the construction budget. 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. The construction documents prepared by staff are approximately 90 percent complete. To finalize the design and complete construction, staff believes that it would be more cost effective to conduct on a design-build procurement, rather than the more traditional design-bid build. The construction documents previously prepared by staff would be reviewed, revised and CMR:308:10 Page 1 of2 stamped by a licensed Engineer who specialized in this type of work and the State and County permits needed for the project. 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 not to exceed fee for the total project including construction. This will ensure that design fees are not expended only to find out after the construction bid process that there is no money remaining in the budget for permits. and construction. Section 2.30.300 of the Municipal Code authorizes design-build, but requires Council adopt a resolution supporting the use of an alternative delivery method. The plans for this design-build concept would be advertised for fee proposals through a Request for Proposals (RFP) process. The successful design-build proposer will complete the construction documents, secure the necessary permits and install new fuel pumps, electrical wiring and improve the concrete pad area. RESOURCE IMPACT Funds for a design-build contract are included in Capital Improvement Project (CIP) VR-92006, Foothills 'Park Gas Pump Replacement. If the proposed design-build fees are well over the $86,000 CIP budget, a contract will not be awarded and funding for the fuel station upgrade will be proposed as part of a future year CIP. If the design-build fees are close to the budget, staff may return to Council requesting approval of a Budget Amendment Ordinance. POLICY IMPLICATIONS This recommendation is consistent with existing City policies, and with Municipal Code Title 2, section 2.30.300, Public Works Contracts, with respect to alternative delivery methods. The design-build model, however, is a departure from the City's customary design-bid-build practice. TIME LINE The project will be advertised as an RFP shortly after any Council approval of a design-build delivery system. ENVIRONMENTAL REVIEW Replacement of the fuel station pumps and improvement of the existing concrete pad area is determined to be exempt from the California Environmental Quality Act (CEQA) review pursuant to Section 15301, "existing facilities". PREPARED BY: /~------ KAREN BENGARD DEPARTMENT HEAD: 7!l~1£4- GLENNS. ROBERTS CITY MANAGER APPROVAL: . D71 OfP:hli~ Works ~Lo:iJ~ CMR:308:10 Page 2 of2 ATTACHMENT A. Not Yet Approved Resolution No. ~~~ 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 1 100721 jb 0130608 Not Yet Approved building, street, sidewalk, utility, park or open space improvement, or other public improvement; and WHEREAS, the Foothill Park New Fuel Pump Station is a public works contract; and WHEREAS, Section 2JO.300 of the City of Palo Alto Municipal Code provides that public works contracts not exempt from competitive solicitation requirements under Section 2.30J60 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'JOO(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; 2 100721 jb 0130608 Not Yet Approved (5) Staff has already completed considerable design work in-house, but lacks the expertise to complete the specifications relating to fuel pump particulars; and (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 staffwill select the design-build team for contract award using the following criteria: II II II II (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 ofthe activities. (7) Cost Proposal (8) Staff experience on similar projects 3 100721 jb 0130608 Not Yet Approved SECTION 6. Replacement of the fuel station pumps and improvement of the existing concrete pad area is determined to be exempt from the California Environmental Quality Act (CEQA) review pursuant to Section 15301, "existing facilities". INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: . APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Public Works 4 100721 jb 0130608