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HomeMy WebLinkAboutItem 11d - Budget Appropriation for Orange Grove Well 1A ProjectAward Inspection and Rehabilitation of Orange Grove Well 1A Project April 19, 2022 Page 1 of 3 DATE: April 19, 2022 TO: Honorable Mayor and City Council FROM: Paul Cramer, Public Works Services Director By: Eddie Chan, P.E., Principal Civil Engineer SUBJECT: RESOLUTION NO. 7422 AMENDING THE FISCAL YEAR 2021-22 CAPITAL IMPROVEMENT PROGRAM BUDGET AND AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR INSPECTION AND REHABILITATION OF THE ORANGE GROVE WELL 1A IN THE AMOUNT OF $57,200, OFFSET BY FUNDS RECEIVED FROM THE AMERICAN RESCUE PLAN ACT OF 2021, AND CONTRACT WITH GENERAL PUMP COMPANY, INC. FOR THE INSPECTION AND REHABILITATION OF THE ORANGE GROVE WELL 1A PROJECT IN THE AMOUNT OF $307,200 Recommendation: Adopt and Approve SUMMARY The Public Works Services Department’s (“PWSD”) water well management program provides preventative maintenance to the City’s water supply wells. The City has 11 active wells that are video-inspected and rehabilitated once every 7 to 10 years to ensure well performance and reduce the possibility of unexpected mechanical failure. The inspection and rehabilitation of the Orange Grove Well 1A is recommended for Fiscal Year 2021-22. To ensure the City is receiving the most competitive prices and quality service for this work, a formal bid was conducted. General Pump Company, Inc. submitted a responsive bid and has demonstrated previously their capacity to perform this work. It is recommended that the City Council adopt Resolution No. 7422 amending the Fiscal Year 2021-22 Capital Improvement Program budget and authorizing a supplemental budget appropriation for inspection and rehabilitation of the Orange Grove Well 1A in the amount of $57,200, offset by funds received from the American Rescue Plan Act of 2021, and approve, authorize, and direct the City Manager to execute a contract with General Pump Company, Inc. for the inspection and rehabilitation of the Orange Grove Well 1A Project in the amount of $307,200. BACKGROUND The City operates and maintains 11 groundwater wells, which produce an average of 16,500 acre-feet, or 5.4 billion gallons, of water to Arcadia customers each year. Regular Award Inspection and Rehabilitation of Orange Grove Well 1A Project April 19, 2022 Page 2 of 3 inspection and maintenance of the City wells is crucial to ensuring that the wells are operating at maximum production capacity and efficiency. The American Water Works Association (“AWWA”) is a nonprofit organization that develops and publishes standards for the proper treatment, transportation, and storage of drinking water supplies. The AWWA Standards for Water Supply Wells recommend performing preventative maintenance every 7 to 10 years. This includes removing the well pump assembly, video inspecting the pump casing, and performing a comprehensive inspection of the well pump assembly and components. The PWSD has developed a water supply well inspection and rehabilitation program that follows these guidelines. Each year, one to two wells are selected for preventative maintenance based on the date of last inspection, maintenance records, and the current well efficiency. Preventative maintenance performed on the City’s water supply wells protects against higher emergency repair costs and the possibility of not meeting system demands should a water supply well go out of service for a long period of time. The Orange Grove Well 1A is scheduled to be pulled, video inspected, and rehabilitated this year (see attached Project Location Map). The Orange Grove Well 1A was drilled in 1921 and the last time preventative maintenance was performed was in 2013. The well is part of a group of four wells that supply water from the Santa Anita Subarea of the Raymond Groundwater Basin. The well has been rehabilitated multiple times during its operational life. The production of Orange Grove Well 1A is significantly below its optimum performance, probably due to the build-up of mineral deposits on the well casings and the wear and tear on the pump components. Therefore, the rehabilitation of Orange Grove Well 1A will improve well efficiency and production capacity and will protect against an unplanned outages. DISCUSSION A Notice Inviting Bids was published in the City’s adjudicated newspaper and bid packages were distributed to contractors that perform this type of work. The City Clerk received one sealed bid on March 29, 2022, with the following result: Bidder Location Bid Amount General Pump Company, Inc. San Dimas, CA $ 307,200.00 Although the notice inviting bids was sent to various contractors that provide this type of work and was published in the City’s adjudicated newspaper and City website, only one bid was received. Staff contacted several contractors that received the notice inviting bids to find out why they did not submit a bid. The response received was that they are short on labor and have prioritized other projects. Furthermore, the scope of work required as part of this project is very specialized; as such, there are not many contractors that perform this work. After careful review and consideration, it was determined that General Pump Company, Inc. is a responsive bidder, and is qualified to complete the project as Award Inspection and Rehabilitation of Orange Grove Well 1A Project April 19, 2022 Page 3 of 3 defined in the bid documents. General Pump Company, Inc. has successfully completed preventative maintenance on City of Arcadia wells and has completed similar projects for the Cities of Colton, Ontario, South Gate, Orange, and Anaheim. ENVIRONMENTAL ANALYSIS This well inspection and rehabilitation project is considered a Class 1 exemption as defined in Section 15301(b) of the California Environmental Quality Act since the project consists of the maintenance of existing public facility providing public utility service. FISCAL IMPACT Funds in the amount of $250,000 were budgeted in the Fiscal Year 2021-22 Capital Improvement Program for this project. However, due to the latest inflation rate, the gasoline price surge, and material supply and labor shortages, the cost of this project has increased. The total cost of the project has exceeded the approved budget by $57,200. On February 18, 2022, the City Council agreed that this project could be funded utilizing funds received from the American Rescue Plan Act of 2021. Therefore, a supplemental appropriation of $57,200 is being requested from funds received from the American Rescue Plan Act of 2021. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7422 amending the Fiscal Year 2021-22 Capital Improvement Program Budget and authorizing a supplemental budget appropriation for inspection and rehabilitation of the Orange Grove Well 1A in the amount of $57,200, offset by funds received from the American Rescue Plan Act of 2021, and approve, authorize, and direct the City Manager to execute a contract with General Pump Company, Inc. for the inspection and rehabilitation of the Orange Grove Well 1A Project in the amount of $307,200. Attachments: Resolution No. 7422 Project Location Map Proposed Contract CITY OF ARCADIA WELL INSPECTION AND REHABILITATION OF ORANGE GROVE WELL 1A PROJECT PROJECT NO. 72863322 BETWEEN CITY OF ARCADIA AND GENERAL PUMP COMPANY, INC. CONTRACT Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arcadia, sometimes hereinafter called “City,” and General Pump Company, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: WELL INSPECTION AND REABILITATION OF ORANGE GROVE WELL 1A PROJECT / PROJECT NO. 72863322 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within NINETY (90) CALENDAR DAYS calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of THREE HUNDRED SEVEN THOUSAND, TWO HUNDRED DOLLARS AND NO CENTS ($307,200.00). Payment shall be made as set forth in the General Conditions. D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Contract - 2 Public Works Contractor Registration Certification Performance Bond Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Contract - 3 IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA By: Dominic Lazzaretto City Manager GENERAL PUMP COMPANY, INC. By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Stephen P. Deitsch City Attorney