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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)