DATE: October 9, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AWARD OF CONTRACTS FOR THE FIRE MOUNTAIN RECYCLED WATER RESERVOIR AND PUMP STATION
RECOMMENDATION
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Staff recommends that the City Council award a contract to Gateway Pacific Contractors, Inc., in the amount of $9,999,000, for the construction of the Fire Mountain Recycled Water Reservoir and Pump Station; approve a Professional Services Agreement with Hoch Consulting, in the amount of $1,131,932, for construction management and inspection services; authorize the City Engineer to execute Change Orders up to a total of 10 percent of the contract value; and authorize the City Manager, or designee, to execute the agreements upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The City Council has set a goal for the Water Utilities Department to produce 50 percent of the City’s water supply locally by 2030. In order to help accomplish this goal, the Department is implementing a phased expansion of the recycled water system throughout the City.
The Fire Mountain Recycled Water Reservoir and Pump Station (Project) includes the construction of a 2.2 million gallon pre-stressed concrete reservoir, a booster pump station, and the necessary on-site piping to connect these facilities to the existing off-site pipelines. The Project also includes associated water, electrical, and security appurtenances.
This Project will complete the first phase of expanding the City’s Lower Recycled Water system, which currently delivers recycled water from the San Luis Rey Wastewater Reclamation Facility (SLRWRF) south towards Fire Mountain. The Lower system currently serves customers via pumps at SLRWRF which respond to user demands, without the aid of a reservoir providing consistent pressure to the system. With the addition of the reservoir, these pumps will operate less frequently with the additional storage to attenuate supply fluctuations. The reservoir will also increase the system pressure to this existing pressure zone, and the new pump station will supply a higher pressure zone, to better serve customers at higher elevations within the area.
The Project will be located on a City-owned parcel on Fire Mountain Drive, where an existing potable water reservoir and pumping facilities are already located. The estimated
Project duration is 18 months.
In April 2022, the City was awarded two grants from the State Water Resources Control Board for the Project totaling $5 Million.
On September 4, 2024, the City received and opened three bids for the construction of the Project. The apparent low bidder is Gateway Pacific Contractors, Inc. (Gateway Pacific) with a bid amount of $9,999,000. Staff reviewed the bid documents submitted by Gateway Pacific and have determined that its bid, bid bond, and references are in accordance with City standards.
Additionally, staff recommends authorizing the City Engineer to execute Change Orders up to 10 percent of the contract amount to address any unforeseen conditions.
On August 15, 2024, the City received three proposals for construction management and inspection services for this project. A panel of City staff reviewed and scored proposals using a standardized rating process. The panel selected Hoch Consulting as the highest rated consultant based on its relevant experience and capability to manage and inspect the Project effectively.
FISCAL IMPACT
The recommended construction contract with Gateway Pacific is $9,999,000.
Construction costs will be charged to the Lower Recycled Package account 908142215715.5703.10600, phased over two fiscal years from 2024-25 to 2025-26. The current available balance is $5,741,804. The available balance will cover expenses through the end of FY 2024-25. Future years will be budgeted during the normal capital improvement budget process. Table 1 shows the cost breakdown.
Staff is requesting that the City Council authorize the City Engineer to approve change orders up to 10 percent of the contract cost to streamline the approval process for contingencies. The total contingency amount is $999,900.
The Professional Services Agreement with Hoch Consulting for construction management and inspection services is $1,131,932. This agreement will be charged to the Lower Recycled Package account 908142215715.5305.10600, which has an available balance of $599,726, as shown in Table 1 below. Staff anticipates spending less than the available balance in FY 2024-25. The remaining contract value will be funded through the budget process for FY 2025-26.
Table 1.
|
Lower Recycled Package - 908142215715 |
|
Budget |
Construction 5703.10600 |
CM&I 5305.10600 |
|
Current Available Balance |
$ 5,567,458 |
$ 599,726 |
|
FYs 2025-27 Budget |
7,500,000 |
1,351,000 |
|
Total Budgeted Costs |
$13,067,458 |
$ 1,950,726 |
|
Project Costs |
Gateway Pacific |
Hoch Consulting |
|
Construction and CM&I Costs |
$ 9,999,000 |
$ 1,131,932 |
|
Contingency (10%) |
999,000 |
|
|
Total Estimated Costs |
10,998,900 |
1,131,932 |
|
Budget Amount Remaining |
$ 2,068,558 |
$ 818,794 |
The majority of the construction and construction management & inspection (CM&I) services costs will be funded by a combination of grant funding, state water revolving fund loan and WIFIA loan. The remaining amount will be funded by Water Connection Fees Fund 715 for water system expansion.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on September 17, 2024.
CITY ATTORNEY’S ANALYSIS
The Professional Services Agreement has been reviewed by the City Attorney and approved as to form. The bid documents for the public works contract were previously reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract. City Council also has discretion to reject all bids and re-advertise.
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Prepared by: Philip Tunnell, Senior Civil Engineer
Reviewed by: Lindsay Leahy, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Bid Tabulation
3. Gateway Pacific Public Works Agreement
4. Hoch Professional Services Agreement