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CITY COUNCIL STAFF REPORT
DATE: February 24, 2022 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF 2021 SEWER COLLECTION SYSTEM REPAIRS
PROJECT, CITY PROJECT 21-18
FROM: Justin Clifton, City Manager
BY: Engineering Division
SUMMARY:
Formal City Council acceptance of the 2021 Sewer Collection System Repairs, City
Project No. 21-18, is required to document the completion of the public works
improvements and to allow the City’s filing of a Notice of Completion with the Riverside
County Recorder in accordance with Section 9200 of the California Civil Code.
RECOMMENDATION:
1. Accept the public works improvement identified as 2021 Sewer Collection System
Repairs, City Project No. 21-18 (“Project”), as completed in accordance with the
plans and specifications; and
2. Authorize the City Engineer to execute and file for recordation with the Riverside
County Recorder a Notice of Completion for 2021 Sewer Collection System
Repairs, City Project No, 21-18.
BACKGROUND:
On September 9, 2021, the City Council awarded a Construction Contract in the amount
of $514,818 to Tunnelworks Services, Inc. for 2021 Sewer Collection System Repairs,
City Project 21-18. A copy of the staff report is included as Attachment A.
STAFF ANALYSIS:
Construction on the Project began October 28, 2021 and was determined to be
substantially complete on December 29, 2021. Throughout construction of the Project,
there was a reduction in scope of work. Per Line Item 12, the Contractor was scheduled
to line 277 linear feet of 8-inch diameter pipe. The final footage for Line Item 12 was 260
linear feet. The City is due a credit of $38 per linear foot for a total credit of $646 as
displayed in Change Order 1 Final Balancing, Attachment B.
Item 1J - 1
City Council Staff Report
February 24, 2022 -- Page 2
Acceptance 2021 Sewer Collection System Repairs, CP No. 21-18
As determined by City Staff, Tunnelworks Services, Inc. satisfactorily completed the
Project on December 29, 2021. Staff recommends that the City Council accept the Project
as required by Section 9200 of the California Civil Code and authorize the City Engineer
to file and record a Notice of Completion to be submitted to the County. A copy of the
Notice of Completion is included as Attachment C.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section
15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing public structures, facilities,
mechanical equipment or topographical features involving negligible or no expansion of
existing or former use. Therefore, Staff has determined that 2021 Sewer Collection
System Repairs, City Project No. 21-18, is considered categorically exempt from CEQA.
FISCAL IMPACT:
There is one change order associated with this project. The final construction cost is
$514,172. The City is holding retention funds in the amount of $25,708.60 for
Tunnelworks Services, Inc., pending acceptance of improvements and filing the Notice of
Completion with the County Recorder’s Office. The project account will be closed out
upon final payment to the contractor.
REVIEWED BY:
City Engineer: Joel Montalvo
Deputy City Manager: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:
A. Staff Report – September 9, 2021.
B. Change Order 1 Final Balancing.
C. Notice of Completion.
Item 1J - 2
Attachment A
Item 1J - 3
CITY COUNCIL STAFF REPORT
DATE: September 9, 2021 CONSENT CALENDAR
SUBJECT: AWARD A CONSTRUCTION CONTRACT TO TUNNELWORKS
SERVICES INC., A CALIFORNIA CORPORATION, IN THE AMOUNT OF
$514,818 AND APPROVAL OF A PURCHASE ORDER IN AN AMOUNT
NOT TO EXCEED $124,997 TO VEOLIA WATER WEST OPERATING
SERVICES FOR THE 2021 SEWER COLLECTION SYSTEM REPAIRS,
CITY PROJECT NO. 21-18
FROM: Justin Clifton, City Manager
BY: Development Services Department
SUMMARY:
Award of this contract will allow the City to proceed with repairs of sewer mainlines and
approval of a purchase order with the City’s wastewater treatment plant operator to
provide the City with construction management and inspection services for the 2021
Sewer Collection System Repairs, City Project No. 21-18 (“Project”). This project is fully
funded through the Wastewater Fund.
RECOMMENDATION:
1.Award a construction contract to Tunnelworks Services Inc., a California corporation,
in the amount of $514,818 for 2021 Sewer Collection System Repairs, City Project
No. 21-18; and
2.Authorize a Purchase Order to Veolia Water West Operating Services, Inc., pursuant
to Agreement No. 6804, in an amount not to exceed $124,997 for construction
management, inspection and materials testing services for the 2021 Sewer Collection
System Repairs, City Project No. 21-18; and
3.Authorize the City Manager or his designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
Tunnelworks Services Inc. is a California corporation, and Veolia Water West Operating
Services, Inc. is a Delaware corporation. A Public Integrity Disclosure Form for each
company is included as Attachment A.
1Y-1Item 1J - 4
City Council Staff Report
September 9, 2021 -- Page 2
Award City Project 21-18 – 2021 Sewer Collection System Repairs
BACKGROUND:
On June 10, 2021, the City Council approved the plans, specifications, and engineer’s
estimate for the Project and authorized Staff to advertise and solicit bids. A copy of the
staff report is included as Attachment B.
STAFF ANALYSIS:
On June 15, 2021, Staff advertised the Project to plan rooms1, and through a new
procurement program, PlanetBids™, to allow the submission of bids electronically. On
June 16, 2021, Staff advertised the Project for bids in The Desert Sun. The contract
documents were provided free of charge to prospective bidders.
On July 20, 2021 at 3:00 p.m., the Engineering Division received two bids through
PlanetBids™ from the following contractors:
Company Location Bid Amount
Tunnelworks Services Inc. Whittier, CA $514,818
Southwest Pipeline & Trenchless Corporation Torrance, CA $533,553
Tunnelworks Services Inc. submitted the lowest responsive, responsible bid in the
amount of $514,818. The engineer’s estimate for the Project as reported to the City
Council on June 10, 2021 was $450,000. Costs are significantly higher than the estimate
reflecting the current shortage of construction materials.
Local Business Preference Compliance
Section 7.09.030 of the Palm Springs Municipal Code (“PSMC”), “Local Business
Preference Program”, requires prime contractors to use good faith efforts to sub-contract
the supply of materials and equipment to local business enterprises and to sub-contract
services to businesses whose work force resides within the Coachella Valley.
Tunnelworks Services Inc. is not considered a local business but has demonstrated
sufficient evidence of good faith efforts to subcontract the supply of materials and labor
to local businesses.
Public Works Contractor Registration Law (SB 854)
Under California Labor Code Section 1771.1, as amended by Senate Bill (SB) 854 (2014),
unless registered with the State of California Department of Industrial Relations (DIR), a
contractor may not bid, nor be listed as a subcontractor, for any bid proposal submitted
1 A Plan Room is a “library” where construction professionals may view bidding documents (blueprints and
specifications) for projects seeking price estimates for specific construction products or services. There are
10 various plan rooms in southern California where the City submits its bid documents to ensure all
contractors within the area are aware of the bid solicitation.
1Y-2Item 1J - 5
City Council Staff Report
September 9, 2021 -- Page 3
Award City Project 21-18 – 2021 Sewer Collection System Repairs
for public works projects on or after March 1, 2015. Similarly, a public entity cannot award
a public works contract to a non-registered contractor, effective April 1, 2015. Staff has
reviewed the DIR’s contractor registration database and has confirmed that Tunnelworks
Services Inc. and their listed subcontractors are registered with the DIR and are
appropriately licensed.
Bid Analysis
Staff reviewed all bid documents submitted by the apparent low bidder and determined
that Tunnelworks Services Inc. complies with the instructions to bidders and has
submitted the lowest responsive and responsible bid. Staff recommends that the City
Council approve the bid submitted by Tunnelworks Services Inc. A construction
agreement is included as Attachment C.
Construction Management & Inspection
On November 4, 2015, the City Council approved a Wastewater Services Agreement
(“Agreement”) with Veolia Water West Operating Services, Inc. for the operation and
maintenance of the City’s sewer collection system and the wastewater treatment plant. In
accordance with Section 5.3, “Capital Projects” of the Agreement, Veolia recommended
the City authorize a “Desirable Capital Project” for the 2021 Sewer Collection System
Repairs Project. On February 25, 2020, the City authorized Veolia to proceed with the
preparation of the plans and specifications for the Project. Veolia has submitted a
proposal for construction management and inspection services for the Project. A copy of
the proposal is included as Attachment D. Based on Veolia’s knowledge of the WWTP
and operations, Staff recommends that Veolia’s proposal is accepted for construction
management and inspection services.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section
15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing public structures, facilities,
mechanical equipment, or topographical features involving negligible or no expansion of
existing or former use. Therefore, Staff has determined that the 2021 Sewer Collection
System Repairs, City Project No. 21-18, is considered categorically exempt from CEQA.
FISCAL IMPACT:
Sufficient funds are budgeted and available in the Wastewater Fund. No General Fund
or Measure J Capital Funds are required for capital projects directly related to the City’s
WWTP or sanitary sewer collection system.
1Y-3Item 1J - 6
City Council Staff Report
September 9, 2021 -- Page 4
Award City Project 21-18 – 2021 Sewer Collection System Repairs
REVIEWED BY:
Department Director: Flinn Fagg
City Manager: Justin Clifton
ATTACHMENTS:
A. Public Integrity Disclosure Forms
B. Staff Report – June 10, 2021
C. Tunnelworks Services Inc. Agreement
D. Veolia Proposal dated July 27, 2021
1Y-4Item 1J - 7
Attachment B
Item 1J - 8
Item 1J - 9January 12, 2022 CITY OF PALM SPRINGS CONTRACT CHANGE ORDER Project No: 21-18 To: Tunnelworks Services, Inc. 13502H Whittier Blvd. Suite 165 Whittier, CA 90605 Project: 2021 Collection System Repairs Project Change Order No: 01 (One) Agreement No.: A8947 Purchase Order: 22000643 Attn: Jeff Rubio CHANGES IN WORK: This is a final, balancing, change order reflecting final contract quantities following suspension of remaining contract work. This change order is inclusive of all project quantities including full payment of remaining mobilization on bid schedules A as agreed compensation lieu of unit cost escalation due to shortfall of construction quantities. No further payment will be made. Bid Schedule Item Description 12 Sewer Lining -Avenida Palos Verdes (easement) D07107-D07131 (8-inch) SUMMARY OF COSTS: Original Contract Amount: This Change Order: Previous Change Order(s): Revised Contract Amount: $ 514,818.00 $ (-646.00) $ 0.00 $514,172.00 Quantity Unit Price Amount Adjustment (-17) $38.00 -$646.00
Item 1J - 10Contract Change Order No. 01 CP 21-18 Page2 I have received a copy of this Change Order and the above AGREED S are acceptable to Contractor Tunnelworks Services, Inc. City of Palm Springs Recommended By: Attest By: Distribution: Original Conformed Copy: Contractor (1) Citv Clerk (1) Printed Name and Title Joel Montalvo, City Engineer ~~. 2-2-..<_0;2~ Anthony Mejia, City Clerk Date Conformed -File Copy: Engineering Pay File (1) Citv Project File (1) PurchasinQ (1) Finance (1)
Attachment C
Item 1J - 11
Name
Street
Address
City &
State
SPACE ABOVE THIS LINE FOR RECORDERS USE
NOTICE OF COMPLETION
(CA Civil Code §§ 8180-8190, 8100-8118, 9200-9208)
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is an owner of an interest of estate in the hereinafter described real property, the nature of which interest or estate is:
_________________________________________________________________________________ (e.g. fee, leasehold, joint tenancy, etc.)
2. The full name and address of the undersigned owner or reputed owner and of all co-owners or reputed co-owners are:
Name Street and No. City State
__________________________________________________________________________________________________________
3. The name and address of the direct contractor for the work of improvement as a whole is:
__________________________________________________________________________________________________________
4. This notice is given for (check one):
Completion of the work of improvement as a whole.
Completion of a contract for a particular portion of the work of improvement (per CA Civ. Code § 8186).
5. If this notice is given only of completion of a contract for a particular portion of the work of improvement (as provided in CA Civ. Code
§8186), the name and address of the direct contractor under that contract is:
___________________________________________________________________________________________________________
6. The name and address of the construction lender, if any, is:
___________________________________________________________________________________________________________
7. On the ____________ day of ___________, 20___, there was completed upon the herein described property a work of improvement as a
whole (or a particular portion of the work of improvement as provided in CA Civ. Code § 8186) a general description of the work provided:
___________________________________________________________________________________________________________
8. The real property herein referred to is situated in the City of __________________________, County of ________________________
State of California, and is described as follows:
___________________________________________________________________________________________________________
9. The street address of said property is:
___________________________________________________________________________________________________________
10. If this Notice of Completion is signed by the owner’s successor in interest, the name and address of the successor’s transferor is:
___________________________________________________________________________________________________________
I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date: _______________________________________ By: ________________________________________________________
Signature of Owner oU Owner’s Authorized Agent
&LW\RI3DOP6SULQJV
Page 1 of 2
Recording Requested By:
When Recorded Mail To:
City of Palm Springs
Anthony J. Mejia, City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Fee
City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs CA 92262
Tunnelworks Services, Inc. 13502-H Whitter Blvd, Whitter CA 90605
✔
Not Applicable
Not Applicable
29 December 21
rehabilitate main line sewer by 10 point repairs, 16 Cured-In-Place Pipe Lining sewer segments, and 4 combination repairs of point repair/CIPP
Palm Springs Riverside
City Project 21-18 Sewer Repairs Project
various locations throughout the City of Palm Springs
Not applicable
Joel Montalvo/City Engineer
Item 1J - 12
• •
Page 2 of 2
VERIFICATION
I, _______________________________________________, state: I am the __________________________________ (“Owner”, “President”,
“Authorized Agent”, “Partner”, etc.) of the Owner identified in the foregoing Notice of Completion. I have read said Notice of Completion and know the
contents thereof; the same is true of my own knowledge.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on _______________________, _______ (date), at _____________________________________________________ (City), ________ (State).
______________________________________________________
Signature of Owner or Owner’s Authorized Agen-RHO0RQWDOYR&LW\(QJLQHHU
&LW\RI3DOP6SULQJV
PROOF OF SERVICE DECLARATION
a.
b.
c.
_____________________________________________________________
(Signature of Person Making Service)
STATE OF CALIFORNIA
COUNTY OF ______________________________________
On _________________________________________, ________ (date), before
me, ____________________________________________, Notary Public (name and title of
officer) personally appeared __________________________________________who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PURJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
Witness my hand and official seal.
_____________________________________________
Signature
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this
certificate is attached, and not the truthfulness, accuracy, or validity of that document.
Joel Montalvo City Engineer
Palm Springs CA
Item 1J - 13