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Home My WebLink AboutAgenda AGENDA Utilities Committee Regular Meeting 3:30 PM - Thursday, July 13, 2017 Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way 1. Harrington Ave. Stormwater Retrofit Bid Award a) AB - 1950 Utility Systems Division Department reports the results from the June 13, 2017 bid opening for CAG-17-108, Harrington Ave. NE Green Connections Stormwater Retrofit Project; submits the staff recommendation to accept the lowest responsive bid from DPK, Inc., in the amount of $904,036; and requests approval of a budget transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget to be included in the next budget adjustment. 2. Emerging Issues in Utilities AB - 1950 City Council Regular Meeting - 10 Jul 2017 SUBJECT/TITLE: Bid Award for the Harrington Avenue NE Green Connections Stormwater Retrofit Project - Phase II (CAG-17-108) and Budget Transfer Request RECOMMENDED ACTION: Refer to Utilities Committee DEPARTMENT: Utility Systems Division STAFF CONTACT: Beth Tan, Surface Water Civil Engineer III EXT.: 7247 FISCAL IMPACT SUMMARY: The low bid for the project is $904,036 (including sales tax) from DPK, Inc. (Please see summary below for more details) SUMMARY OF ACTION: The bid opening for the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II was held on June 13, 2017. Three bids were received. The low bid for the project was $904, 036 (including sales tax) from DPK, Inc. The engineer’s estimate for the project construction cost was $799,855. The Surface Water Utility reviewed the low bid for completeness, inclusion of all required forms, bid bond, acknowledgements of addenda and mathematical correctness of the bid. All paperwork for the low bid is in order. The engineer’s estimate for the project construction cost was $799,855. The approved 2017 Capital Improvement Program budget for the Harrington Avenue NE Green Connections Stormwater Retrofit Project - Phase II is $943,647, which incorporates a $50,000 transfer that is included in the City’s 2017 2nd Quarter Budget Amendment. The Surface Water Utility is requesting the approval of a budget transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget to the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget. Staff estimates that there will be sufficient remaining funds in the Downtown Project budget to complete the 2017 work plan, and projected 2018 expenses. The additional funding is needed due to the higher than estimated construction costs and to provide a contingency for any change orders that may occur during the project construction. The project will be partially funded (75%) by a Washington State Department of Ecology grant in the amount of $675,000. EXHIBITS: A. Issue Paper B. Vicinity Map C. Department of Ecology Agreement Funding Notice D. Bid Tabulation Sheet STAFF RECOMMENDATION: Award the construction contract to the lowest responsive, responsible bidder, DPK, Inc., for the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II in the amount of $904,036 and approve the transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget to AGENDA ITEM #1. a) the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget. The funding transfer will be included in the next quarterly budget adjustment. AGENDA ITEM #1. a) PUBLIC WORKS DEPARTMENT M E M O R A N D U M DATE:June 27, 2017 TO:Armondo Pavone, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:Gregg Zimmerman, Administrator STAFF CONTACT:Beth Tan, Surface Water Civil Engineer III, ext. 7247 SUBJECT:Bid Award for the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II (CAG-17-108) and Budget Transfer Request ISSUE: Should Council award the construction contract to the lowest responsive, responsible bidder, DPK, Inc., for the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II in the amount of $904,036 and approve the transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget (427.475507) to the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget (427.475500)? RECOMMENDATION: Award the construction contract to the lowest responsive, responsible bidder, DPK, Inc., for the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II in the amount of $904,036 and approve the transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget (427.475507) to the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget (427.475500). The funding transfer will be included in the next quarterly budget adjustment. BACKGROUND: The bid opening for the Harrington Avenue NE Green Connections Stormwater Retrofit Project - Phase II was held on June 13, 2017. Three bids were received. The low bid for the project is $904,036 (including sales tax) from DPK, Inc. The engineer’s estimate for the project construction cost was $799,855. The Surface Water Utility reviewed the low bid for completeness, inclusion of all required forms, bid bond, acknowledgments of addenda, and mathematical correctness of the bid. All paperwork for the low bid is in order. AGENDA ITEM #1. a) Mr. Pavone, Council President Page 2 of 3 June 27, 2017 \BTmc The low bid meets the following conditions for award: 1. The low bid must be within the total project budget. 2. There must be more than one bidder. 3. The lowest, responsible, responsive bid contains no significant irregularities. The approved 2017 Capital Improvement Program budget for the Harrington Avenue NE Green Connections Stormwater Retrofit Project - Phase II budget (427.475500) is $943,647, which incorporates a $50,000 transfer that is included in the City’s 2017 2nd Quarter Budget Amendment. The Surface Water Utility is requesting the approval of a transfer of $170,000 from the approved 2017 Downtown Storm System Improvement Project budget (427.475507) to the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget (427.475500). The additional funding is needed due to the higher than estimated construction costs and to provide a contingency for any change orders that may occur during project construction. The approved 2017 Downtown Storm System Improvement Project budget (427.475507) is $1,999,854. There is sufficient funding remaining in the budget to complete the planned 2017 project work, which includes conceptual analysis and design to identify the extent of infrastructure improvement needed, and project design to start in 2018. An additional $5,000,000 is programmed for the project in the approved 2018 Capital Improvement Project budget for construction. The design work will offer an updated cost estimate to determine if additional funding is needed for project construction, which if necessary, would be requested as part of the 2019 budget process. The Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II is located along Harrington Avenue NE between NE 7th Street and NE 8th Place (vicinity map attached). The project constructs storm system improvements and adds low impact development (LID) improvements, which includes 995 linear feet of new storm pipe system, three bioretention facilities to provide water quality treatment to the stormwater runoff from the roadway and 650 linear feet of porous concrete sidewalks that reduce the quantity of stormwater runoff by infiltrating runoff, which will also improve pedestrian access. This LID project will provide water quality treatment and infiltrate the runoff, thereby reducing runoff to Johns Creek, which drains into Lake Washington through Gene Coulon Memorial Park. The project was identified in the Sunset Area Surface Water Master Plan developed as part of the approved Sunset Community Planned Action EIS. The Harrington Avenue NE Green Connections Stormwater Retrofit Project - Phase II received a Washington State Department of Ecology (Ecology) grant in 2016 (WQC- 2016-Renton-00129) in the amount of $675,000 for design, construction and project management. This grant provides 75% of the funding for the project. The cost for AGENDA ITEM #1. a) Mr. Pavone, Council President Page 3 of 3 June 27, 2017 \BTmc construction is now higher than originally estimated. The Surface Water Utility will request additional grant funding from Ecology for the project. Washington State Department of Ecology may be able to provide additional funding if there are unused grant funds within their grant program from completed projects, or from grants that were declined by other jurisdictions. However, Ecology will not know if there will be funding available until later this year, which has prompted this request for approval of the funding transfer so that the contract can be awarded. Additionally, the City received a letter dated June 2, 2017, from Washington State Department of Ecology (attached) regarding the grant agreement for the project. It states that if the Washington State Legislature does not pass a budget by midnight on June 30, 2017, the grant agreement will be suspended and we are to cease incurring any further expenditures related to the grant agreement until the state budget is approved. If the Legislature has not passed a state budget, and the grant agreement is suspended at the time of the Council meeting for approval of the bid award and budget transfer for the project, City staff will be required to change our recommendation to reject all bids and not approve the budget transfer due to suspension of the grant agreement and uncertainty surrounding state grant funding for the project. City staff anticipates the state budget will pass before the June 30 deadline, or at least before the July 10 Council meeting. The City has 45-days following a bid opening to award the construction contract; the project bid opening date was June 13, 2017, which puts the 45-days at July 28, 2017. Attached for reference is the bid tabulation sheet showing the engineer's estimate, the low bid, and the other submitted bids. We are returning all bid envelopes and bid documents from the other bidders to the City Clerk for their files. CONCLUSION: The Surface Water Utility requests that Council award the construction contract to DPK, Inc., to construct the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II in the amount of $904,036 and further requests that Council authorize a transfer of $170,000 from the 2017 Downtown Storm System Improvement Project budget (427.475507) to the Harrington Avenue NE Green Connections Stormwater Retrofit Project – Phase II budget (427.475500) to fully fund the project. Attachments cc: Lys Hornsby, Utility Systems Director Ron Straka, Surface Water Utility Engineering Manager Hai Nguyen, ASD Sr. Finance Analyst Kristin Trivelas, ASD Sr. Finance Analyst Teresa Phelan, Utility Systems Sr. Program Specialist Melissa Crawford, Utility Systems Administrative Secretary I AGENDA ITEM #1. a) Harrington Ave NE Green Connections Stormwater Retrofit Phase II Project Harrington Ave NE Green Connections Project NE 7th St to NE 8th Pl –Phase II Proposed Project Vicinity Map AGENDA ITEM #1. a) STATEOFWASHINGTONDEPARTMENTOFECOLOGYP0Box47600.Olympia,WA98504-7600•360-407-6000771forWashingtonRelayService•Personswithaspeechdisabilitycancall277-833-6347June2,2017RENTONCITYOFRENTONCITYHALL,5THFLOOR,1055SGRADYWAYRENTONWA92057-3232AgreementfundingNotice:PleaseForwardThistoYourOrganization’sContactforEcologyAgreementWQC-2016-Renton-00129.Thisletterprovidesnoticeofapossibleimpacttoyourcontract,grant,loan,orinterlocalagreement(“agreement”)withtheDepartmentofEcology.Asofthisletter’sdate,theWashingtonStateLegislaturehasnotyetenactedastatebudgettoappropriatefundstostateagenciesfortheupcomingbiennium.Theappropriationssetforthinthestate’scurrentbudgetexpireattheendofthedayonJune30,2017.Asageneralrule,theWashingtonStateConstitution(Article2,Section4)andstatelaw(RCW43.28.130andRCW43.22.290)prohibitexpendituresorcommitmentsofstatefundsintheabsenceofappropriationsofsuchfundsbytheLegislature.Withoutabudgetappropriation,agenciescanneitherexpendfundsnorincurliabilitiesafterJune30,2017.IfastatebudgetisenactedbymidnightonJune30,2017,orappropriationsareotherwiseauthorizedatthattime,thenyouragreementshallcontinuewithoutanyeffect.However,intheeventthebudgetisnotenactedintolawbythedeadlineofmidnightonJune30,2017,thisnoticewillsuspendyouragreementeffectiveattheendofthedayonJune30,2017.OncetheLegislaturesubsequentlypassesthebudgetanditissignedintolaw,youragreementwouldautomaticallybeactiveandallofthetermswithinwouldremaininfullforceandeffect.Pursuanttothiscontingentsuspensionortermination,ifastatebudgetisnotenactedbyJuly1,2017,thenEcologydirectsyoutoceaseorrefrainfromanyactivitiesthatincurexpensetothestateunderyouragreement.Thisfinancialrestrictionappliestoallsubcontractorstowhichyouhaveawardedworkunderyouragreement.WeexpectyoutonotifyyoursubcontractorsofthissituationandinstructthemtopreparetoceaseorrefrainfromanyactivitieseffectiveJuly1,2017.CostsincurredpriortoJuly1,2017arecoveredunderthecurrentbudgetandwillnotbeimpactedbythissuspension.AGENDA ITEM #1. a) RentoncityofPage2June2,2017Oncethelegislatureenactsabudgetandprovidesappropriationtotheagencyfortheupcomingbiennium,wewillsendawrittennoticecancelingthesuspension.Weunderstandthatthisuncertaintyisconcerningtoourpartners,andweappreciateyourpatienceasweallawaitenactmentofastatebudgetorotherappropriations.PleasedirectallquestionstoJeffNejedly,(360)407-6572,whowillactasyourpointofcontactforthisissue.Thankyou,\\ErikFairchildChiefFinancialOfficerAGENDA ITEM #1. a) CITYOFRENTONBIDTABULATIONSHEETProject:HarringtonAvNEGreenConnectionStormwaterRetrofitProject-PhaseII-CAG-17-108Date:June13,20171of1FORMSBidTotalfromBidderProposalBidDept.AddendaSubcontractorsScheduleofPrices&Aff.BondL&IAck.List*lncludesSalesTaxDPK,Inc/7829S.206thStreet1Kentjo4O?WA98032Jansen,IncVV/1215W.HollyStreet2Bellingham,2.7WA98225/RoadConstructionNorthwest,IncV‘‘PCBox2228V3RentonWA9805642Engineer’sEstimate$799,855.00AGENDA ITEM #1. a)