CITY OF GLENDALE, CALIFORNIA REPORT TO THE: AGENDA ITEM Report: Design-Build Contract for the Beaudry Terrace Area Water Main Replacement Project

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1 Joint D City Council [8] CITY OF GLENDALE, CALIFORNIA REPORT TO THE: Housing Authority D Successor Agency D Oversight Board D October 21, 2014 AGENDA ITEM Report: Design-Build Contract for the Beaudry Terrace Area Water Main Replacement Project 1. Resolution dispensing with competitive bidding and authorizing the City Manager, or his designee, to enter into a design-build contract with J. De Sigio Construction Inc. for the design and construction of the Beaudry Terrace Area Water Main Replacement Project in the amount of $1,560,000 with a 15% contingency COUNCIL ACTION Public Hearing D Ordinance D Consent Calendar [8] Action Item D Report Only D Approved for Qcl-. 2.1, U!lt{ calendar ADMINISTRATIVE ACTION Signature Submitted by: Stephen M. Zurn, General Manager - GWP Prepared by: Ramon Z. Abueg, Chief Assistant General Manager Approved by: Scott Ochoa, City Manager Reviewed by: Yasmin K. Beers, Assistant City Manager Michael J. Garcia, City Attorney Robert P. Elliot, Director of Finance CJ J) 1<rc&0{,f t-3 4 C I

2 RECOMMENDATION Glendale Water & Power (GWP) staff respectfully recommends that the City Council dispense with competitive bidding and authorize the City Manager, or his designee, to enter into and execute a Design-Build contract with J. De Sigio Construction Inc. for the Beaudry Terrace Area Water Main Replacement Project, in the amount of $1,560,000 with a 15o/o contingency. BACKGROUND/ANALYSIS GWP intends to establish a design-build contract with an experlenced and prequalified Design Build Entity (DBE) to design and construct the Beaudry Terrace Area Water Main Replacement Project. This project is part of GWP's water main replacement program to replace deteriorated cast-iron water mains. The scope consists of installing approximately 5,900 linear feet of new ductile-iron pipe to upgrade the water distribution system in the Beaudry Terrace neighborhood. The Beaudry Terrace area has cast iron water pipe mains that are over 40 years old. These pipes get subjected to high pressure conditions during pumping operations. The age, pipe material, and pipe conditions in this area have resulted in seven main breaks since The existing 12, eight and six-inch existing water mains are over 40 years old, deteriorated, and are made with unlined cast-iron. As part of GWP's ongoing water main replacement program, through the Bond Financing, this project will replace old water mains with new ductileiron pipes to mitigate main breaks while improving water pressure, fire flow, reliability of service and water quality. The proposed project consists of the construction design and installation of approximately 5,900 linear feet of class 350 ductile-iron water mains, ranging in size from 16 to six-inch in diameter, in six streets in the Beaudry Terrace neighborhood (See Exhibit A). GWP issued a Request of Qualifications (RFQ) in January 2013 to solicit statement of qualifications (SQQ) for design-build services for water main replacement projects. Staff evaluated the SOQs and prequalified five DBEs based on their experience and qualifications: Blois Construction Inc. J. De Sigio Construction Inc. Mike Bubalo Construction Co. Inc. and Lee & Ro Inc. Vida Artukovich & Son Inc. West Valley Construction Inc. In Augusl 2014, GWP issued a Request for Proposals (RFP) to the five qualified DBEs for lhe Design-Build of the Beaudry Terrace Area Water Main Replacement Project. Three proposals were received. Staff evaluated the proposals based on price, experience, project approach and schedule and quality of response. The following is the result in order of their ranking: Design-Build Entities Total Price J. De Siaio Construction, Inc. $1,560,000 Blois Construction, Inc. $2,202,773 Vida Artukovich & Son, Inc. $2,625,000 Since this project contains both a design and a construction component, staff recommends that Council dispense with competitive bidding for the construction component of the project, and award the contract to the highest ranked and lowest price DBE, J. De Sigio Construction Inc. The contract amount is $1,560,000. The Engineer's estimate is $1,600,000. 2

3 Glendale Charter, Article VI, Section 9, allows City Council to dispense with competitive bidding where the City Council determines that dispensing with competitive bidding is in the best interest of the City. Since J. De Sigio Construction Inc. is the lowest priced DBE and the highest ranked, it is respectfully recommended and requested that Council dispense with competitive bidding pursuant to Article VI, Section 9 of the Glendale Charter. Staff is also recommending a reserve of 15% (or $234,000) for contingencies for this project. This amount is based on previous experience and is commensurate with the nature and condition of the project. It will also allow GWP to account for any incidental work or unforeseen field conditions that could be encountered during construction and the resulting field changes that may be necessary. Staff verified with the State of California Contractor's License Board that J. De Sigio Construction, Inc. has a license that is current, active and in good standing. In addition, J. De Sigio Construction, Inc. has satisfactorily performed work on similar projects for GWP. This project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA). FISCAL IMPACT The total contract amount is $1,560,000. Staff is recommending a 15% reserve ($234,000) for contingencies. Funds for this project are available in the Water Bond Funds for Fiscal Year under Account No O (Fund No. 573, Organization 951 ), Project No , and Activity No. UW010. ALTERNATIVES Alternative 1: City Council approves the contract award to J. De Sigio Construction, Inc. as set forth in this Council report. Alternative 2: City Council not approves the contract award to J. De Sigio Construction, Inc. as set forth in this Council report, and direct staff to reissue the RFP. Alternative 3: The City Council may consider any other alternative not proposed by staff. CAMPAIGN DISCLOSURE In accordance with the City Campaign Finance Ordinance No. 5744, the following are the names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than ten percent (interest in the company proposed for contract in this agenda item report: IJ D s. C ons ru ion.inc.: Officers o. e ilc 10 I cf Full Name Title Business Address Citv State Zin Julian De Siaio, Ill CEO/President 5055 Bleecker Street Baldwin Park CA Julian De Sigio, Jr. Secretary/ Treasurer 5055 Bleecker Street Baldwin Park CA Judith R. De Siaio Controller 5055 Bleecker Street Baldwin Park CA D. Scott Walker Vice President 5055 Bleecker Street Baldwin Park CA

4 Subcontractor Tait & Associates Inc.. Full Name Title Business Address Citv State ZiD K. Richard Tait President 701 Park.center Drive Santa Ana CA Thomas F. Tait Chief Executive 701 Park.center Drive Officer Santa Ana CA Jacob Vandervis Chief Operating 701 Parkcenter Drive Officer Santa Ana CA James D. Streitz Chief Financial 701 Parkcenter Drive Officer Santa Ana CA Ownership Interest in more than ten percent in J. De Sioio Construction Inc.: Full Name Tiiie Business Address Ci" State Zin Julian Oe SiQ io, 111 CEO/President 5055 Bleecker Street Baldwin Park CA Julian De Sigio, Jr. Secretary/ Treasurer 5055 Bleecker Street Baldwin Park CA Judith R. De Sioio Controller 5055 Bleecker Street Baldwin Park CA EXHIBITS Exhibit A: Project Location Map 4

5 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA, DISPENSING WITH COMPETITIVE BIDDING AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A DESIGN-BUILD CONTRACT WITH J. DE SIGIO CONSTRUCTION INC. FOR THE DESIGN AND CONSTRUCTION OF THE BEAUDRY TERRACE AREA WATER MAIN REPLACEMENT PROJECT, IN THE AMOUNT OF $1,560,000, WITH A 15% CONTINGENCY WHEREAS, the Beaudry Terrace Area Water Main Replacement Project (Project) consists of the construction design and installation of approximately 5,900 linear feet of ductile-iron water mains, ranging in size from 16 to 6 inch in diameter, in six streets in the Beaudry Terrace neighborhood; and WHEREAS, the Project area has cast iron water pipe mains which are over 40 years old and are subjected to high pressure conditions during pumping operations; and WHEREAS, the age, pipe material and pipe conditions in the Project area have resulted in seven main breaks since 2004; and WHEREAS, as a part of Glendale Water and Power Department's (GWP) ongoing water main replacement program, through bond financing, the Project will replace old water mains with new ductile-iron pipes to mitigate main breaks while improving water pressure, fire flow, reliability of service and water quality; and WHEREAS, in January 2013 a Request for Qualifications (RFQ) was issued by GWP to solicit statement of qualifications for design-build services for water main replacement projects; and WHEREAS, five design-build-entities (DBE) were prequalified by staff, and in August 2014 GWP issued a Request for Proposals (RFP) to the five qualified OBEs for the Project; and WHEREAS, J. De Sigio Construction, Inc. was the lowest priced and highest ranked proposer as described in the Report dated October 21, 2014 by the General Manager of GWP; and WHEREAS, Glendale Charter, Article VI, Section 9, provides an exemption to competitive bidding where the City Council determines it is in the best interests of the City to dispense with competitive bidding; and WHEREAS, since the Project contains both a design and a construction component, it is in the best interests of the City to award the DBE contract to the lowest priced and highest ranked proposer. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA: Pursuant to Glendale Charter, Article VI, Section 9, the City Council hereby dispenses with competitive bidding for the purposes of authorizing the City manager, or his designee, subject to approval by the City Attorney, to enter into and 4 c 1

6 execute a Design Build Contract with J. De Sigio Construction Inc. for the Design and Construction of the Beaudry Terrace Area Water Main Replacement Project, in the amount of $1,560,000 with a fifteen percent (15 /o) contingency, as described in the Report dated October 21, 2014 by the General Manager of Glendale Water and Power Department Adopted by the Council of the City of Glendale on this_ day of, Mayor ATTEST: City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) SS. ) I, Ardashes Kassakhian, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the day of, 2014, and that the same was adopted by the following vote: Ayes: Noes: Absent Abstain: City Clerk Al'\l!lOVlm AS 1:0 FORM =,===- Mm --"/"4-/.i..:.15'+'/1... -

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