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HomeMy WebLinkAboutAgenda Statement 1981/03/10 Item 7 . . COUNCIL AGENDA STATEMENT Item .7, Meeting Date 3-10-81 Resolution ;tJ,tf11 Accepting bids and awarding contract for Construction of Otay Valley Road Trunk Sewer Modifications at Melrose Avenue and Palm Avenue and appropriating funds / City Engineer ~ SUBMITTED BY: 1/ At 2:00 p.m. on February 11, 1981 in Conference Room 1 in the Public Services Building, the City Engineer received sealed bids for "Construction of Otay Valley Road Trunk Sewer Modifications at Melrose Avenue and Palm Avenue, Chula Vista, Cal ifornia". The scope of the project involves installation of 8-inch and 10-inch sewer main, one manhole, and modifying three existing manholes along Melrose Avenue, Otay Valley Road and Palm Avenue. It is my ITEM TITLE: (4/5ths Vote: Yes~ No___) RECOMMENDATION: That Council: 1. Appropriate $19,100 from the unappropriated balance in the sewer income fund and transfer to Account No. 600-6000-SI05. 2. Authorize expenditure of $30,100 from budgeted project, Otay Valley Road Sewer Modifications at Melrose and Palm, Account No. 600-6000- SI05. 3. Accept bids and award contract to Dietrich Corporation, Lakeside, Calif.; in the amount of $27,355.58. BOARD/COMMISSION RECOMMENDATION: Not applicable DISCUSSION: Bids were received from 5 contractors as follows: l. 2. 3. 4. 5. Dietrich Corporation - Lakeside M. Arrieta & Sons, Inc. - El Cajon Thibodo Construction Co., Inc. - Vista E.J. Pestana Construction Co. - Imperial Beach Virgil Woolard & R.G. Butterfield, Joint Venture - La Mesa $27,355.58 29,534.90 30,180.00 36,690.00 37,560.00 The low bid submitted by Dietrich Corporation is above the Engineer's estimate of $19,600 by $7,755.58 or 40 percent. This was a particularly difficult project for the Engineering staff to estimate prior to bidding due to its small size and complexities of construction (i.e., traffic flow, maintaining sewage flow, etc.). This project includes remodeling and revising our existing system to provide added capacity. The final design requires construction of 312' of sewer pipe instead of 237 as originally planned. The extra work coupled with higher unit prices than anticipated resulted in a project considerably more expensive than budgeted. Five bid,s were received and. they appear to be v,?ry competitive in nature. We do not believe that much savings, if any, " IIY1 il Form A-113 (Rev. 11/79) Continued EXHIBITS Agreement_____ Resolution~ Ordinance_____ Plat~ Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on Page 2, Item ~1eeti ng Date: 7 3-10-81 would result by rejecting the bids and readvertising. The sewer system in this area is overloaded and the present development in the area will worsen the condition. Even with the greatly increased cost over the original estimate, the benefit received, I believe, is well worth the cost and I therefore recommend acceptance of the bids and award of the contract. The connection in Palm Avenue is outside the corporate limits of the City. Growth upstream which is overloading the present sewer is entirely within the City of Chula Vista. All growth which will be adding additional flow is also in the City. The original agreement for construction of the Date Faivre trunk (1968) contemplated the need for construction of by-passes from the Main Street line. This is one of those by-passes. Even though the sewer is in the County, it entirely benefits the City and therefore, will be paid for by the Ci ty. . A slide is available for Council viewing showing the location of the proposed construction. FINANCIAL STATEMENT: construction of this additional funds. A Inadequate funds are currently budgeted for project. It will be necessary to appropriate summary of the funding is as follows: Contract Amount Contingencies (approx. 10%) Total funds required to construct project Funds available to construct proj ect Additional funds required $ 27,355.58 2,744.42 30,100.00 11,000.00 19,100.00 Adequate funds are available in the unappropriated reserve of the Sewer Income Fund. I recommend the appropriation of the additional $19,100 to construct this project be from this fund and placed in Account No. 600- 6000-SI05. FISCAL IMPACT: Upon completion of the project, the City will maintain the sewer in Melrose Avenue and the County will maintain the sewer in Palm Avenue. This project was approved in the C.I.P. for FY81. SLH: fpw/ ! 01/ ! I at/~ by the City COLlncil of Chula Vista, California C~h~._~.-~_~- i?'