HomeMy WebLinkAbout23C - PROJ - DIAMOND PARK WATER COMPANYREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 28, 2011
CLERK OF COUNCIL USE ONLY:
TITLE: APPROVED
CONTRACT AWARD FOR DIAMOND ? As Recommended
PARK MUTUAL WATER COMPANY ? As Amended
? Ordinance on 15t Reading
WATER MAIN IMPROVEMENTS ? Ordinance on 2nd Reading
(PROJECT NO. 106404 REBID) ? Implementing Resolution
PROPOSITION 84 GRANT ? Set Public Hearing For_
CONTINUED TO
?0?,CITY MANAGER
RECOMMENDED ACTION
FILE NUMBER
Approve an appropriation adjustment accepting funds in the amount of $1,121,727 into the
Miscellaneous Revenue Fund for State Grants (accounting unit 16417002-52025) and
appropriating $1,121,727 to the Public Works Water Quality and Control Expense Fund for
Water Capital Improvements (accounting unit 16417640-66301)
2. Award a contract to J.A. Salazar Construction and Supply Corporation, the lowest responsible
bidder, in accordance with unit bid prices for estimated amount of $593,068.50, for
construction of Diamond Park Mutual Water Company Water Main Improvements.
3. Approve a Funding Analysis with a total estimated construction cost of $771,000.
DISCUSSION
The Diamond Park Mutual Water Company (DPMWC) is a privately owned water system that
provides domestic water service to approximately 144 residences in the City of Santa Ana. (Exhibit
1). The well serving DPMWC is contaminated with high levels of nitrates and does not meet Title
22 drinking water standards. Moreover, DPMWC does not have regular certified water distribution
operators and cannot afford to purchase a water treatment system. Therefore, the State
Department of Public Health (DPH) together with the DPMWC is requesting that water service be
provided by the City of Santa Ana. In order for service to be provided, water services must be
connected to the Santa Ana public water system. Improvements include distribution mains,
services, hydrants and isolation valves and abandonment of the existing private well. Once
completed, the residents will have access to City water.
In accordance with Safe Drinking Water, Water Quality and Supply, Flood Control, River and
Coastal Protection Act of 2006 (Proposition 84 Grant) requirements, a resolution was adopted by
the City on July 18, 2011 allowing the City to accept State Grant Funding, construct public water
system improvements and provide servic tQf?m?r customers of DPMWC. Following adoption of
Contract Award For Diamond Park Mutual Water Company
Water Main Improvements
November 28, 2011
Page 2
the resolution, the City received a Letter of Commitment that promises funding and authorizes
construction of the water improvements for DPMWC while awaiting completion of the Proposition
84 Grant funding application.
This project was previously bid in September 2011. Originally, a combination of Proposition 84
Grant funds and a State Revolving Fund (SRF) loan were intended to be used for the project. The
SRF loan required a Disadvantage Business Enterprise goal be applied to the project. Since then,
Proposition 84 has been identified as the sole funding source for this project and the
disadvantaged business goal was no longer required. On this basis, the City Council rejected all
bids and directed staff to rebid with a revised bid package that excluded the SRF requirements
from this project.
The Notice Inviting Bids was advertised on October 19 and 21, 2011 and bids were opened on
November 9, 2011. A summary of the bid invitations mailed, the bids received, and the bid results
follows.
Santa Ana Contractors receiving notices: 6
Contractors requesting bidding documents: 18
Bids received: 11
Bids received from Santa Ana Contractors: 0
While the City made outreach efforts to Santa Ana contractors regarding the Notice Inviting Bids,
only one requested plans. The five remaining plan holders were telephoned to inquire about intent
to bid. One Santa Ana firm indicated they did not perform the type of work required, one indicated
they didn't received the notice, and the other firms could not be reached.
The bids received are as follows.
NAME OF RESPONSIVE BIDDER CITY BID AMOUNT
1. J.A. Salazar Construction & Supply La Habra $593
068.50
Corporation ,
2. Dominguez General Engineering, Inc. Rosemead $652,050.00
3. T.E. Roberts, Inc. Tustin $657,093.00
4. Kana Pipeline. Placentia $674,443.00
5. Stephen Doreck Equipment Rentals Pico Rivera $678,285.75
6. Garcia Juarez Brea $729,305.00
7. John T. Malloy, Inc. Los Angeles $748,029.00
8. VCI, Inc. Upland $771,490.00
9. Paulus Engineering Anaheim $894,554.00
10.Excel Paving Company Long Beach $918,495.00
11. TBU, Inc. Beaumont $920,224.50
A total of eleven bids were received and all were responsive. The lowest bid was submitted by J.A.
Salazar Construction & Supply Corporation for $593,068.50, which is below the Engineer's
Estimate of $978,026. The low bid is a !? r oi;lhe downturn of the economy, the competitive
Contract Award For Diamond Park Mutual Water Company
Water Main Improvements
November 28, 2011
Page 3
market and the fact that the Engineer's Estimate was based on the original State Revolving Fund
Grant application.
ENVIRONMENTAL IMPACT
In Accordance with the California Environmental Quality Act, the recommended action is exempt
from further review. Categorical Exemption Environmental Review No. 2010-139 has been filed for
this project.
FISCAL IMPACT
The funding analysis shows a total estimated construction cost of $771,000 for the project
(Exhibit 2). Upon approval of the appropriation adjustment, funds will be available in the Public
Works Water Quality and Control Expense Fund (accounting unit 16417640-66301).
r--
Raul Godinez II
Executive Dire v
Public Works Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
RG/ET
Exhibit 1: Project Location Map
2: Funding Analysis
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VICINITY MAP
EXHIBIT 1
3,160 L.F. OF 8" P.V.C. WATER MAIN
1,100 L.F. OF 12" P.V.C. WATER MAIN
Title:
City Council DIAMOND PARK MUTUAL WATER COMPANY
Agenda Date WATER MAIN IMPROVEMENTS
V NOVEMBER 28, 2011 (PROJECT 10-6404)
OM
i 1
23C-4
FUNDING ANALYSIS
PROJECT NO. 106404 (REBID)
DIAMOND PARK MUTUAL WATER COMPANY WATER MAIN IMPROVEMENTS PROJECT
Construction Contract $593,069
Contract Administration $38,504
Inspection and Testing $50,467
Contingencies $88,960
TOTAL ESTIMATED CONSTRUCTION COSTS 771 0 0
Exhibit 2
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