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Item 1.18 - Award of Contract to J.R. Filanc; Treatment Plant Chem. Bldg & Tank Upgrades; Bid 19-022DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT June 18, 2019 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services /Al\ Andrea Thomas, Associate Civil Engineer ,:: .A-­(858) 668-4605 or athomas@poway.org C/U'f' APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CO NTINUED ____ _ RESOLUTION NO. Award of Contract to J.R. Filanc Construction for the Treatment Plant, Chemical Building and Tank Farm Upgrades Project; Bid No. 19-022 This project involves various upgrades at the Lester J. Berglund Water Treatment Plant, specifically focusing on the chemical building, tank farm and filter valve replacement. These upgrades will increase safety, enhance efficiency, and modernize plant operations. Equipment that is continuously manually monitored will be upgraded to be automated and filter valves to be replaced are at the end of their serviceable life. Although components have been replaced over the years, a recent assessment study recommended various upgrades to extend the useful life of the Water Treatment Plant. Recommended Action: It is recommended that the City Council award the contract for the Treatment Plant, Chemical Building and Tank Farm Upgrades Project to J.R. Filanc Construction, the lowest responsible and responsive bidder, in the amount of $1,466,241.00. Discussion: The contract time for this project is 245 working days with an Engineer's Estimate of $1,184,000.00. Bids were opened on May 23, 2019 and exceeded the Engineer's Estimate. The following four bids were received: Company Bid Amount J.R. Filanc Construction $1,466,241.00 Stanek Constructors, Inc. $1,482,200.00 Pacific Hydrotech Corporation $1,549,500.00 Tharsos, Inc. $1,690,000.00 The Water Treatment Plant is the City's sole water source. Due to the complexity of construction and coordination of this project, specific procedural requirements were included. These requirements were intended to minimize disruptions to treatment plant operations but do not stipulate how a contractor should implement the project. The various methods by which contractors propose to implement a project is what promotes competitive bidding. Implementation variability includes items such as: types and quantity of equipment, classification and number of 1 of 2 June 18, 2019, Item #1.18 personnel, schedule, and coordination of onsite work which are difficult to predict in an Engineer's Estimate. Funding for this project was approved with the FY 2017-18 and FY 2018-19 CIP budgets. Water rates that became effective in March 2019 factored in the cost of completing this project. A CIP budget transfer in the amount of $181,004.79 from the Waterline Repair and Replace Project has been processed to cover the funds needed for the construction contract and construction contingency. The Waterline Repair and Replace Project was an acceptable fund for the transfer request because the project is not currently scoped or programmed for the next five years. The total project budget with this transfer is $1,881,004.79. Due to the timing of processing the budget transfer, the FY 2019-20 CIP Budget that is being presented to City Council for approval on June 18, 2019 does not reflect the transfer. Environmental Review: The proposed project is Categorically Exempt from the California Environmental Quality Act (CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines, in that the project involves repairs, upgrades, and equipment replacement at an existing Water Treatment Plant. Fiscal Impact: There is sufficient funding available in the Treatment Plant, Chemical Building and Tank Farm Upgrades Project account (WTR0017) to award the contract. After the contract is awarded, funds in the amount of $149,418.55 remain. Public Notification: None. Attachments: None. Reviewed/Approved By: Assistant City Manager 2 of 2 Reviewed By: Alan Fenstermacher City Attorney Approved By: c� City Manager June 18, 2019, Item #1.18