Item 24 - Award of Bid Water Treatment Plant Upgrade TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the
Redevelopment Agency
James L. Bowersox, City Man
Executive Director
INIIIA~OBY: John D. Fitch, Assistant City Manager
Mark S. Weston, Director of Engineering. Services
Alan F. Schuler, Senior Civil Enginee~
DAII~: April 18, 1995
SUBJECt: Award of Bid for The Water Treatment Plant Upgrade (1718}
and Approval of Reimbursement Resolution
This proposal would award the Lester J. Berglund Water Treatment Plan Improvement
project to C. E. Wylie Construction Co., in the amount of $5,700,672.00. The contract
time for the project is 359 working days.
Funds for this project have been budgeted with the overall improvement program.
Additional funding is requested with this action.
,NVIRONMENTALREVIEW
An environmental review of the project was previously conducted with the Conditional
Use Permit approval on February 28, 1295. The review determined that the project was
exempt from CEQA and a notice has been filed with the County Clerk. No additional
environmental review is necessary.
ADDITIONAL PUBLIC NOTIFICATIONANDCORRESPONDENCE
~one.
RECOMMENDATION
It is recommended that the Redevelopment Agency award the Water Treatment Plant
contract to C.E. Wylie Construction in the amount of $5,700,672.00, including Additive
Bid Item B. This action includes authorization for the transfer of $440,000 from Fund
432-8912 to Project ~1718, the appropriation of $300,000 from the Sewer Fund Reserves
(520) to Fund 520-1718, an increase in the Revenue Bond amount from $2,500,000 to
$2,915,300, and authorization of Resolution No. 95-
ACTION
1 of 9 APR 18 1995 ITEM ,'
1
AGENDA
CITY OF POWAY
This re~ is included on ~e Con~nt Calendar. There Mil ~ no ~r~e discussion
Ci~ Council unless mem~rs of the Council, s~ff or public ~quest it to ~ remo~d from me Con~nt Calendar and
discussed ~rately. If you ~sh to have ~is rein pull~ for di~ussion, pl~ fill out a slip indica~ng ~e m~ numar
and give ~ to the Ci~ Clerk prior m ~e ~ginning ~ the C~ Council meeting.
TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Redevelopment Agency
James L. Bowersox, Cit~ Menager/Executive
FROM:
INITIATED B¥: John O. Htch, Assistant City Manager
Mark S. ~eston, Director of Engineering Services
Alan F. Schuler, Senior Civil Engineer,S'
DATE: April 18, 1995
SIJ'BJECT: Award of Bid for The ~ater Treatment Plant Upgrade (#1718)
and Approval of Reimbursement Resolution
City Council has authorized upgrading the Lester J. Berglund ~ater Treatment
Plant in order to meet Federal and State drinking water treatment requirements
contained in the Surface ~ater Treatment Rule promulgated from the Safe
Brinking Nater Act.
On March 14, 1995 bids were opened for the Lester J. Berglund ~ater Treatment
P]ant ]mprovement Project. The Engineer's Estimate was $4,900,000.00. The
contract time for this project is 359 working days.
On further review, we have determined that the Engineer's Esttmate provided by
Malcom Pirnie was in error and that C. E.~yl~e's total b~d of $5,700,672
represents a fair value for the proposed work.
The revised estimate of total project costs, including design, construction
management and three other phases of construction ~s summarized on Attachment
1.
Staff ~s recommending an incremental tncrease in RDA funding, an ~ncrease in
Revenue Bond authority, and an increase ~n funding from the Sewer Fund
Reserves. The Sewer Fund contribution has been ~ncreased in consideration of
the Control Building Expansion, SCADA System, and Administrative Building
contributions to the Sewer System operations.
ACTION:
2 of 9 1995 ~4"
Agenda Report - Award of Bid for Water Treatment Plant Upgrade (1718)
_ April 18, 1995
Page 2
The revised funding sources identified for this project are as follows:
Water Fund
RDA Funds {Tax Allocation Bonds} $2,940,000
Revenue Bonds to be Issued in 1995 2,915,300
Pilot Plant Study (520-1714) 211,450
Water Fund Reserves (520) 2.908.500
Subtotal: $8,974,800
Sewer Fund
Sewer Fund Reserves (520} $ 500.000
TOTAL: $9,474,800
It is anticipated that the revenue bonds will be issued in August 1995. The
total amount of the bond issue, including debt service reserves and debt
issuance costs, should not exceed $3,500,000. Since expenditures for the
project will be made prior to issuance of the bonds, bond counsel has
recommended that the City Council approve a reimbursement resolution so that
the City will be in compliance with Treasury Regulation 1.]03-18. This
resolution provides that expenditures incurred prior to the issuance of the
bonds may be reimbursed from bond proceeds.
Resolution No. 93-135, determining that this improvement project is of benefit
- to the Paguay Redevelopment Project, was adopted on August 31, 1993.
FINDINGS
The following six (6) bids were received:
Company Base Bid 8-1GAC
Alternate
1. C.E. Wylie Construction,
Co. $5,490,672 $210,000
2. Cox Construction Co. $5,885,300 $190,000
3. C.W. Roen Construction $5,926,585 $220,000
Co.
4. O.R. Filanc Construction $6,101,625 $180,000
Co., Inc.
5. Pacific Mechanical $7,024,825 $192,000
Corporation
6. Merco Construction
Engineers, Inc. $7,415,970 $193,000
ENVIRONMENTPs~L REVIEW
An environmental review of the project was previously conducted with the
Conditional Use Permit approval on February 28, 1995. The review determined
that the project was exempt from CEQA and a notice has been filed with the
- County Clerk. No additional environmental review is necessary.
'.APR 18 1995 ITEM '
3of9
Agenda Report - Award of Bid for Water Treatment Plant Upgrade (1718)
April 18, 1995
Page 3
Funds for this project have been previously budgeted with the overall capital
improvement program. In light of the revised overall improvement program
estimate, staff is recommending transfer of $440,000 from Fund 432-8912 to
Project #1718, the appropriation of $300,000 from the Sewer Fund Reserves
(520) to Fund 520-1718, and authorization to increase the Water Bond amount
from $2,500,000 to $2,915,300.
ADDITIONAL PUBLICNOTIFICATIONANDCORRESPONDENCE
~one.
RECOMMENDATION
It is recommended that the Redevelopment Agency award the Lester O. Berglund
Water Treatment Plant Improvement Project contract to C. E. Wylie Construction
Co. in the amount of $5,700,672.00, which includes the Additive Bid Alternate
for GAC.
It is further recommended that the Redevelopment Agency appropriate the
additional sum of $440,000 for the project from Fund 432-8912 to Project
#1718.
It is further recommended that the City Council authorize the transfer of
$300,000 from the Sewer Fund Reserves (520} to Fund 520-1718, and an increase
in the Revenue Bond amount from $2,500,000 to $2,915,300.
It is further recommended that the Redevelopment Agency adopt Resolution No.
95- authorizing the reimbursement of the expenditures from the proceeds of
a bo--6-d sale to be conducted later in 1995.
ATTACHMENT #1 Summary of Revised Estimate of Total Project Costs
ATTACHMENT #2 Resolution
'APR 1 8 1995 ITEM '
4of9
WATER PLANT
phase I
Traveling Bridge $ 300,000 $ 280,000
Phase II
Filters, Chemicals, Standby Power 5,001,000 5,701,000
Operations Building, GAC
SCADA 625,000 882,000
Phase III
Administration/Ops Building 500,000 500,000
Phase IV
Clearwell 300,000 300,000
Predesign 240,000 215,000
Design 595,000 608,200
Construction Management 758,000 619,000
Contingency (Construction) (included) 369,100
TOTAL $8,319,000 $9,474,300
BALANCE NEEDED $1,555,300
ATTACHMENT I 'APR181995 rrEM
5of9
RESOLUTION NO. 95 -
RESOLIJTION OF THE CITY COUNCIL OF THE CITY OF
POWAY REGARDING ITS INTENTION TO ISSUE
TAX-EXEMPT OBLIGATIONS
WHEREAS, the City Council of the City of Poway (the "Issuer") desires to finance the
costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached
hereto and incorporated herein (the "Project");
WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of the
Project with the proceeds of the sale of obligations the interest upon which is excluded from
gross income for federal income tax purposes (the 'Obligations"); and
WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain
expenditures with respect to the Project from available monies of the Issuer which expenditures
are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the
Obligations;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
~ECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse
Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations.
Exhibit A describes either the general character, type, purpose, and function of the Project, or
the fund or account from which Project costs are to be paid and the general functional purpose of
the fund or account.
SECTION 2. The reasonably expected maximum principal amount of the Obligations is
$3,500,000.00.
SECTION 3. This resolution is being adopted on or prior to the date (the 'Expenditures
Date or Dates") that the Issuer will expend monies for the portion of the Project costs to be
reimbursed from proceeds of the Obligations.
~ECTION 4. The expected date of issue of the Obligations will be within one year of
the later of the Expenditure Date or Dates and the date the Project is placed in service.
SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are
not expected to be used directly or indirectly to pay debt service with respect to any obligation
(other than to pay current debt service coming due within the next succeeding one year period on
any tax-exempt obligation of the Issuer (other than the Obligations)) or to be held as a reasonably
required reserve or replacement fund with respect to a obligation of the Issuer or any entity
related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with
the proceeds of any obligation, or to replace funds that are or will be used in such manner.
puat.=24760_ll135tB2468.9 ATTACHMENT 2 'APP, 18 1995 ITEM
6of9
- Reso~tion No. 95-
Page 2
SECTION 6. This resolution is consistent with the budgetary and financial circumstances
of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are,
or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside
by the Issuer (or any related party) pursuant to their budget or financial policies with respect to
the Project costs. To the best of our knowledge, this City Council is not aware of the previous
adoption of official intents by the Issuer that have been made as a matter of course for the
purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.
SECTION 7. This resolution is adopted az official action of the lzsuer in order to
comply with Treasury R~gulation § 1.103-18 and any other regulations of the Internal Revenue
Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the
date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available
for inspection by the general public at the main administrative office of the Issuer.
SECTION 8. All the recitals in this Resolution are true and correct and this City Council
so finds, determines and represents.
Mayor of the City of Poway
- ATTEST:
City Clerk of the City of Poway
AYE S:
NOES:
ABSENT:
l~Ul~h:24760_l [ 1~8 [ B2465.9 2
7 of 9 APR 1 8 1995 ITEM
2esolution No. 95-
Page 3
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
I, , City Clerk of the City of Poway, hereby certify that the above
and foregoing Resolution was duly and regularly adopted by the City Council of the City of
Poway at a regular meeting thereof held on the day of ,199__ and
passed by a vote of the City Council.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this day
, 199__.
City Clerk of the City of Poway, California
8of9
EXHIBIT A
DESCRIPTION OF PROJECT
The following improvements to the City of Poway Lester J. Berglund Water Treatment Plant:
1. Replace H. ardinge filters with new deep bed filters;
2. Rehabilitate existing filters and wash water system replacing valves, controllers
and surface wash system;
3. Install new chlorinator, emergency chlorine scrubber, new chemical storage tanks
and pipelines;
4. Improve existing sedimentation basin sludge removal system;
5. Improve standby power capability;
6. Replace telemetry system and controllers for plant and distribution system;
7. Improve existing plant pressure reducing station;
8. Replace clearwell floating cover.
~,ua~.:24760_111381112468.9 4
APR 1 8 1995 ITEM ,
9of9
WATER PLANT
DESCRIPTION JAN. 1995 APRIL 1995
Phase I
Traveling Bridge $ 300,000 $ 280,000
Phase II
Filters, Chemicals, Standby Power 5,001,000 5,701,000
Operations Building, GAC
SCADA 625,000 882,000
Phase III
Administration/Ops Building 500,000 500,000
Phase IV
Clearwell 300,000 300,000
Predesign 240,000 215,000
Design 595,000 608,200
Construction Management 758,000 619,000
Contingency (Construction) (included) 369,100
TOTAL $8,319,000 $9,474,300
ANCE NEEDED $1,155,300~
~APR I $1995 ITEM 24 ~'
Sol9 ATTACHMENT I
-AGENDA REPORT
CITY OF POWAY f~~~
This report is included on the Contra Calendar. ~ere ~lt ~ no ~rate dl~ussion of ~e m~ p~ m a~r~al ~ ~e
Ci~ Council unless mem~rs of the Council, ~ff or public request It to ~ removed from ~e ~on~ Cale~ar and
discussed se~rately. I~ you wish ~ h~e this m~ pulled for discussion, plea~ ~ll out a slip indicating ~e ~ numar
and gi~ it to the C~ Clerk prior to ~e ~inning o~ ~e Ci~ Council m~Ung.
TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Direc~
INI~'I'~D BY: John D. Fitch, Assistant City Manager~)~~.~j
Mark S. Weston, Director of EngineerFng Servicesaq~7'
Alan F. Schuler, Senior Civil Engineer~k~~
DATE: April 18, 1995
SUBJECT: Revision to Award of Bid for The Water Treatment Plant
Upgrade (#1718) and Approval of Reimbursement Resolution
Recent discussions with the Design Engineer have brought into question the
award of the additive bid item on Bid Schedule B, Granular Activated Carbon
{GAC) media in the filters. Staff's recommendation is to award the contract
at the Base Bid amount with authority to enter into a change order at a later
date for the Additive Bid Item at the quoted price of $210,000. The City's
Consultant Engineer will be performing additional analysis to determine the
technical appropriateness of installing the GAC media prior to promulgation of
more stringent regulations expected after the year 2003.
EN~VIRON-ME1N~t"Aj~p~-~qET~
No additional environmental review is necessary.
No additional fiscal impact.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENC~
None.
,ACTION:
I of 2 APR ! 8 1995 ffEM
Agenda Report - Revision to Award of Bid for Water Treatment Plant Upgrade (1718)
Apdl 18, 1995 . -
Page 2
RECOMMENDATION
It is recommended that the Redevelopment Agency award the Lester J. Berglund