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Home My WebLink About05 AWARD CONTRACT FOR SIMON RANCH RESERVOIR (CIP NO. 60114)1�Y OAGENDA REPORT MEETING DATE: FEBRUARY 18, 2020 TO: MATTHEW S. WEST, CITY MANAGER Agenda Item 5 Reviewed: ^ City Manager Finance Director FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE SIMON RANCH RESERVOIR, BOOSTER PUMP STATION, AND PIPELINE REPLACEMENT PROJECT (CIP NO. 60114) SUMMARY Staff is recommending that the City Council award the construction contract for the Simon Ranch Reservoir, Booster Pump Station, and Pipeline Replacement Project (CIP No. 60114) to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation. RECOMMENDATION It is recommended that the City Council: 1. Award the construction contract for the Simon Ranch Reservoir, Booster Pump Station, and Pipeline Replacement Project (CIP No. 60114) to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation, in the amount of $12,599,070.00 and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City, and 2. Appropriate $776,200 from Operating Reserves (Fund 300), $5,974,800 from Capital Reserves (Fund 301), and $289,000 from 2011 Water Bond Fund balance (Fund 305). FISCAL IMPACT The City's Fiscal Year 2019-2020 beginning reserve balance for all water funds is approximately $20.6M and the City also has $9.5M of bond proceeds remaining. Currently, the City maintains 4 designated reserve funds including Operating Reserve, Capital Reserve, Rate Stabilization Reserve, and Emergency Reserve. Based on the City's reserve policies the running balance should be at least $8.2M for Fiscal Year 2019-2020. Although the City's reserve balance exceeds this threshold as of July 1, 2019, the capital needs in Fiscal Year 2019-2020 will require the planned use of reserves to fully fund the Simon Ranch Reservoir project, resulting in a reduction in reserves. The remaining available budget for the Simon Ranch Road Main Line Replacement Project (CIP No. 60171) is $850,000 and for the Simon Ranch Reservoir and Booster Pump Station Project (CIP No. 60114) is $8,110,000, for a total of $8,960,000 (2013 Water Bond, Fund 306). An additional appropriation of $7,040,000 will be needed to bring the total budget for this project to $16,000,000. Staff has identified available funding from Funds 300 (Operating Reserve), 301 (Capital Reserve) and 305 (2011 Water Bond) in the amounts of $776,200, $5,974,800 and $289,000, respectively. The total estimated expenditure for the construction of this project is $14,501,520. Award Contract for the Simon Ranch Reservoir Project February 18, 2020 Page 2 Project expenditures include: • Construction Contract.............................................................$12,599,070 • Construction Management and Inspection................................$1,230,700 • Construction Engineering/Support ...............................................$390,000 • Geotechnical Engineering and Materials Testing .........................$170,750 • Certification Line/Grade & Deputy Inspection ................................ $50,000 • Environmental Compliance and Monitoring ................................... $36,000 • Utility Coordination Allowance....................................................... $25,000 Estimated Expenditures.......................................................$14,501,520 The remaining budgetary appropriation will be set aside as project contingency for potential unforeseen conditions that may arise necessary to complete the work within the approved project scope and budget. Additionally, the City purchased two residential properties adjacent to the reservoir to facilitate construction. The combined value of the properties is approximately $4,000,000. All proceeds from the sale of the properties will be applied to the appropriate water fund. CORRELATION TO THE STRATEGIC PLAN The proposed project furthers Goal B of the City of Tustin Strategic Plan pertaining to Public Safety and the Protection of Assets, in that the project will improve vital public facilities which enhance Tustin's readiness in responding to fire and drought conditions. DISCUSSION AND BACKGROUND The Simon Ranch Reservoir, constructed in 1960, is located at the intersection of Valhalla Drive and Outlook Lane within the unincorporated territory of Orange County. The existing Simon Ranch Booster Pump Station, located at 11921 Simon Ranch Road, pumps water from Zone 1 into Zone 3, working in conjunction with the John Lyttle Reservoir. The City completed technical studies of the existing reservoir and booster pump station in 1990, 1996, and 2000, and determined that, due to age and the existing deteriorated condition, the Simon Ranch Reservoir should be rehabilitated or replaced and that the Simon Ranch Booster Pump Station has reached the end of its service life and should be replaced. The project will replace the existing buried, gunite lined, earthen reservoir with a new circular, pre -stressed concrete tank. A new pump station has been designed and integrated within the reservoir site. A portion of existing 8 inch pipeline serving the existing booster station and 10 inch pipeline leading to the Simon Ranch Reservoir will be abandoned and a new 16 inch ductile iron transmission pipeline, approximately 1,600 feet in length, will be constructed to feed both the new pump station and reservoir. The City Council adopted Resolution No. 19-38 approving the plans and specifications and authorized and directed the City Clerk to advertise for Project bids on August 20, 2019. The Project was advertised and the bids were opened on October 15, 2019, and evaluated. Three (3) bids were received by the noticed deadline and are summarized as follows: Pacific Hydrotech Corporation ..............................................$ 12,599,070.00 Lonerock, Inc.................................................................... $ 14,850,600.00 Kiewit Infrastructure West Co ................................................$ 15,238,000.00 Award Contract for the Simon Ranch Reservoir Project February 18, 2020 Page 3 Staff has reviewed the references and verified the State Contractor's License for Pacific Hydrotech Corporation and has determined they are in good standing and current. Pacific Hydrotech constructed the Edinger Avenue Well and Rawlings Reservoir projects. The quality of both projects met the City's expectations and both were completed in timely manner. It is recommended that the City Council award the construction contract to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. ZDIa S. Stack, P.E.f Public Works/City Engineer Attachment: Location Map ALF S�MON RANCH Rogo w z Q J W z Q J FLE: OP -6114. CITY OF TUSTIN P RP�G�O LAS cticF S NO SCALE p PROJECT LOCATION �P dp O� TU STI N HILLS RACQUET CLUB PROJECT NAME- SIMON RANCH RESERVOIR, BOOSTER PUMP STATION & PIPELINE REPLACEMENT PROJECT (CIP NO. 60t14)