03 Staff Report - Storm Drain Rehabilitation Projectq4~ N OTC MEETING DATE: 918109
ITEM NO:
3
!ps Gp~flS COUNCIL AGENDA REPORT
DATE: AUGUST 19, 2009
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: PPW JOB NO. 09-17 - STORM DRAIN REHABILITATION PROJECT 461-
816-0408
A. ADOPT RESOLUTION DECLARING PIPENOLOGY INC. TO BE THE
LOWEST RESPONSIBLE BIDDER ON THE PROJECT AND AWARD
A CONSTRUCTION CONTRACT IN AN AMOUNT NOT TO
EXCEED $45,890.
B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO
THE CONSTRUCTION CONTRACT AS NECESSARY IN AN
AMOUNT NOT TO EXCEED $5,000.
RECOMMENDATION:
1. Adopt resolution declaring PIPEnology Inc. to be the lowest responsible bidder on the
project and award a construction contract in an amount not to exceed $45,890.
2. Authorize staff to execute future change orders to the construction contract as necessary
in an amount not to exceed $5,000.
BACKGROUND:
The Town's storm drain system was built several decades ago. The infrastructure is primarily
constructed of corrugated metal pipes, without any coating to protect the pipes from rust and
corrosion. Storm water run-off causes corrosion and deterioration over time as it comes in
contact with the pipes. This corrosion is especially evident in the bottom sections of pipes,
which have the most frequent contact with storm water.
PREPARED BY: TODD CAPURSO
Director of Parks and Public Works
Reviewed by: Assistant Town Manages ~'Town Attorney
Cleric Administrator ~1TVlance Community Development
N:IPPWIMANAGEMENTICOUNCILICOUNCLL REPORTWO09 reportslSentember 8109-17.stonn.drain.rehab.award.doc
PAGE 2
AUGUST 19, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 09-17- STORM DRAIN REHABILITATION PROJECT 461-
816-0408
BACKGROUND (cont'd):
Over the past few years, many of the metal pipes have been replaced with newer, high-density
polyethylene pipes, which do not corrode and have superior hydraulic performance. However,
certain locations and conditions require alternative methods of storm drain rehabilitation.
Alternatives methods are required when there are conflicts with utility lines or when excavation
work could cause significant disruption on the roadway.
On Alberto Way at the Highway 9 intersection and on Elm Street at University Avenue, there are
existing 12" and 36" metal storm drain pipes which are old and corroding, and therefore in need
of rehabilitation. Excavation and replacement of these pipes is not practical due to major utility
conflicts. In addition, performing excavation work at these intersections is not recommended
due to the negative impact it would have on traffic flow and the general public.
For these reasons, the storm drain pipe rehabilitation process being proposed is to re-line the
interior of the existing pipe. The new lining will provide a smooth flow, add structural strength,
prevent leakage, and provide corrosion resistance. This is achieved by pulling a resin-saturated,
coated felt tube through the damaged pipes. Steam is then used to cure the resin and form a
tight-fitting, corrosion-resistant replacement pipe. This rehabilitation process is used in similar
applications for sewer and storm drain utility lines.
T)TSC',T 19STON,
For constmetion projects under $100,000, the Town's informal bid process does not require
public advertising and the preparation of a set of complete plans and specifications for a project.
This informal bid process allows staff to prepare a scope of work, solicit bids from three
contractors, and award the contract to the lowest bidder.
Three bids for the rehabilitation project of the storm drain pipes on Alberto Way and Elm Street
were received on August 20, 2009 as follows;
PIPEnology Inc. $ 45,890.00
Michels Corporation $ 50,000.00
Insituform Technology Inc. $ 51,900.00
It is recommended the Town Council adopt a Resolution (Attachment 1) declaring PIPEnology
Inc. to be the lowest responsible bidder for the project and award a construction contract (Exhibit
A) in an amount not to exceed $45,890.
It is further recommended the Town Council authorize staff to execute future change orders to
the construction contract as necessary in an amount not to exceed $5,000. Due to the variables
associated with this particular type of construction, this change order amount is adequate to
cover the cost of unforeseen circurnstances or for additional quantities of work that may exceed
PAGE 3
AUGUST 19, 2009
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 09-17- STORM DRAIN REHABILITATION PROJECT 461-
816-0408
DISCUSSION (cont'
those included in the contract. Staff anticipates construction of this project to be completed by
November 2009.
CONCLUSION:
Staff recommends the Town Council adopt a Resolution declaring PIPEnology Inc. to be the
lowest responsible bidder on the project and award a construction contract in an amount not to
exceed $45,890. Staff further recommends Town Council authorize the execution of future
change orders to the construction contract as necessary in an amount not to exceed $5,000.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301c).
A Notice of Exemption will not be filed.
FISCAL IMPACT:
There are sufficient fiends available for this project as demonstrated in the table below.
STORM DRAIN REHABILITATION
PROJECT 461-816-0408
Available
Expended/
Proposed
Budget
Encumbered
Contract
Available
FY 2009/10 Fiscal Impact
Funding
To Date
Amount
Balance
461-816-0408
$ 55,000
$ - $
50,890
$ 4,110
TOTALS
$ 55,000
$ -
50,890
$ 4,110
TOTAL EXPENDITURES BY CATEGORY:
Construction
$
45,890
Contingency
5,000
TOTALS
$
50,890
Attachments:
Resolution declaring PIPEnology Inc. to be the lowest responsible bidder and awarding a
construction contract (Exhibit A)
Attachment 1
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AWARDING A CONSTRUCTION CONTRACT
TO PIPENOLOGY INC. FOR
PPW JOB NO. 09-17 - STORM DRAIN REHABILITATION PROJECT
WHEREAS, bids were sought in conformance with State and Town law for PPW Job
No. 09-17 - Storm Drain Rehabilitation Project; and
WHEREAS, PIPEnology Inc. submitted the lowest bid which the Town Council deems
to be responsive to the Town's solicitation.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California, that PIPEnology Inc. is declared to be the
lowest responsible bidder for PPW Job No. 09-17-- Storm Drain Rehabilitation Project.
BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and
directed to execute a construction contract (Exhibit A) for said project on behalf of the Town in
an amount not to exceed $45,890.
BE IT FURTHER RESOLVED, that staff is authorized to execute future change orders,
as necessary, in an amount not to exceed $5,000.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 8t" day of September, 2009, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: MAYOR OF THE TOWN OF LOS GATOS/
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CONTRACT
Exhibit A
THIS AGREEMENT is between the Town of Los Gatos (hereinafter referred to as
"Owner") and PIPEnology Inc. (hereinafter referred to as "Contractor"). Owner and Contractor,
for the consideration hereinafter named, agree as follows;
A. SCOPE OF WORK
Contractor shall furnish all materials and perform all of the work for the construction of PPW
Job No. 09-17 Storm Drain Rehabilitation Project in accordance with the Contract
Documents.
B. CONTRACT PRICE
As full compensation for furnishing all materials and for doing all the work contemplated and
embraced in this Contract, also for all loss or damage arising out of the nature of the work
aforesaid, or from the actions of the elements, or from any unforeseen difficulties or obstructions
which may arise or be encountered in the prosecution of the work until its acceptance by Owner,
and for all risks of every description connected with the Work, also for all expenses incurred by
or in consequence of the suspension or discontinuance of work, and for well and faithfully
completing the Work, and the whole thereof, in the manner and according to the Contract
Documents, Owner shall pay (forty-five thousand eight-hundred ninety dollars) $4( 5,890),
which shall supersede any other amount specified in the Contract Documents.
C. CONTRACT DOCUMENTS
All rights and obligations of Owner and Contractor are fully set forth and described in the
Contract Documents. All parts of the Contract Documents are intended to be correlated so that
any work called for in one part and not mentioned in the other, or vice versa, is to be executed
the same as if mentioned in all said documents. The Contract Documents are defined in Part I,
Section 1-1.01(A) of these Specifications and are incorporated herein by reference the same as
though set out in full.
D. BEGINNING OF WORK
Following the execution of this Contract and the approval of bonds and insurance policies and
certificates, Owner shall issue a Notice to Proceed with the Work. Commencing work or the
entrance of equipment or materials on the site of the Work by Contractor before receipt of the
Notice to Proceed is at the sole risk and expense of Contractor and the Contractor shall be fully
liable for any damage or injuiy sustained by Owner or third persons resulting there from.
E. TIME OF COMPLETION
The Work called for herein shall he fully completed in thirty (30) working days of Contractor's
receipt of the Notice to Proceed.
F. CORRECTION OF WORK AFTER ACCEPTANCE AND FINAL PAYMENT BY
TOWN
Contractor shall rernedy any defects due to faulty materials and/or workmanship and pay for any
damages to other work and/or existing facilities resulting there from which shall appear within a
period of 2 years from the date of recording of the Notice of Completion.
G. LIQUIDATED DAMAGES
The undersigned has reviewed and is thoroughly familiar with the appropriate sections of the
Contract and Part 11, Section 8-1.03 of these Specifications pertaining to liquidated damages.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
day of , 2009.
TOWN OF LOS GATOS, by:
CONTRACTOR, by:
PIPEnology Inc.
Greg Larson, Town Manager
RECOMMENDED BY:
Todd Capurso
Director of Parks and Public Works
(Signature)
(Print Name)
(Address)
APPROVED AS TO FORM:
Orry P. Korb, Town Attorney
ATTEST:
Jackie Rose, Clerk Administrator
(City, State, Zip)
(Contractor's License Number)