HomeMy WebLinkAbout4.7 - 1417 Dublin Blvd Rule 20A
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STAFF REPORT
CITY COUNCIL
DATE: May 2, 2017
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Award of Contract to St. Francis Electric, LLC, Waive Minor Bid
Irregularity, and Approve a Memorandum of Understanding with the City of
Vallejo for Purchase of Rule 20A Credits for the Dublin Boulevard Rule
20A Underground Utility District 2013-1 “Sierra Court to Dublin Court”,
Project No. ST1012
Prepared by: Michael Boitnott, Capital Improvement Program Manager
EXECUTIVE SUMMARY:
The City Council will consider awarding a construction contract to St. Francis Electric,
LLC, for the Dublin Boulevard Rule 20A Underground Utility District 2013 -1 “Sierra
Court to Dublin Court”, Project No. ST1012. Additionally, the City Council will consider
approving a Memorandum of Understanding with the City of Vallejo for the acquisition of
Rule 20A Credits for the construction of this project. The Underground Utility District
project is the first phase of construction for the widening of Dublin Boulevard to six lanes
and provides for the utility undergrounding of electric, cable TV, and communication
lines and the removal of overhead poles along Dublin Boulevard from Sierra Court to
Dublin Court.
STAFF RECOMMENDATION:
Adopt the Resolution Authorizing the City Manager to Execute the Memorandum of
Understanding with the City of Vallejo for the Acquisition of Rule 20A Credits, Waiving a
Minor Bid Irregularity; adopt the Resolution Awarding a Contract for Project No.
ST1012 to St. Francis Electric, LLC, for the Dublin Boulevard Rule 20A Underground
Utility District 2013-1 “Sierra Court to Dublin Court”; and, approve the budget change.
FINANCIAL IMPACT:
The Capital Improvement Program (CIP) budget for the entire project (Phases 1 and 2)
is $6,931,034 and includes $1.0 million in PG&E Rule 20A funds specifically for Phase 1
(utility undergrounding) of the project. In advance of the project’s construction, Staff
proposes to amend the project budget to account for anticipated contributions and
credits from the various related utility companies and to specify funding sources for this
phase of the project.
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As the table below shows, the total cost of the undergrounding phase (Phase 1) is
$3,350,000, which will be covered by existing project budget, reimbursements from the
utility companies, and credits purchased via the proposed Memorandum of
Understanding (MOU) with the City of Vallejo. Incorporating these funding sources into
the project requires an amendment to the project budget, as noted in the table.
Total Undergrounding Cost Estimate (Phase 1)3,350,000$
Funding Sources, Phase 1
Current Rule 20A Credits 1,000,000$ available in project budget
Additional Rule 20A Credits Available 288,000$ to be added to project budget
PG&E Credit (In-Lieu of Pole Relocation)441,000$ to be added to project budget
Direct Reimbursements (Comcast, AT&T)930,000$ to be added to project budget
Use of EDTIF II Funds to purchase credits from Vallejo 276,400$ available in project budget
Discount for credit purchase (40 cents on the dollar)414,600$ via MOU with Vallejo
Total Funding Sources, Phase 1 3,350,000$
The proposed contract with St. Francis Electric, LLC to construct the Phase 1
undergrounding work totals $1,499,956.75. Staff is also requesting a budget set aside
for a 10 percent contingency under the City Manager’s aut hority. With City Council
approval of the budget change, there will be sufficient budget to cover the cost of the
improvements.
DESCRIPTION:
On July 26, 2013, the City Council held a Public Hearing establishing Underground
Utility District 2013-1 on Dublin Boulevard - Civic Plaza/Sierra Court to Dublin Court.
The District was established to underground existing overhead utilities along Dublin
Boulevard as part of a Dublin Boulevard improvement project. In addition to removing
the existing overhead utilities, the project will widen Dublin Boulevard from 2 lanes to 3
lanes, in the westbound direction, and will add bike lanes in both directions. The
undergrounding portion of project will be funded with California Public Utilities
Commission Rule 20A funds.
The Dublin Boulevard Rule 20A Underground Utility District 2013 -1 “Sierra Court to
Dublin Court” project consists of undergrounding existing overhead utilities for Pacific
Gas & Electric (PG&E), Comcast, AT&T and Sprint. This portion of work is the first
phase and needs to be completed in advance of the widening of Dublin Boulevard from
Sierra Court to Dublin Court. The improvements will include eliminating overhead utility
lines on wooden poles on both sides of Dublin Boulevard between Sierra Court and
Dublin Court, installing the utilities underground, and reconnecting overhead services to
customers with new underground service connections. As part of this project, the
surface improvements (curb, gutter, sidewalk, driveways, and trench restoration are as)
will be temporally restored until the ultimate improvements are installed in the second
phase widening project. The undergrounding improvements will be paid with California
Public Utilities Commission Rule 20A funds.
Rule 20A Funds and Utility Underground Districts:
Rule 20A is an electrical tariff program by the California Public Utilities Commission
which requires a portion of new electrical services to contribute towards the
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undergrounding of existing overhead lines. Local governing agencies rece ive a
prorated portion of funds collected throughout the state to be used within the agency
limits for these type projects. In our area, PG&E holds the agencies’ Rule 20A
allotments and is required to oversee the program. As part of this program, PG&E wi ll
also allow cities to borrow up to five years of future credits to be used to construct a
Rule 20A project. Currently the City has approximately $1,288,000 in credits including
the five-year borrow and will receive an additional $441,000 credit in lieu of requiring the
poles to be relocated as part of the widening project. The 2016 -2020 Capital
Improvement Program (CIP) currently recognizes only $1,000,000 in credits, and
therefore should be amended (via approval of the attached Budget Change) to reflec t
the additional $288,000 and $441,000 credits available for the undergrounding work. All
totaled, the project will have $1,729,000 in Rule 20A credits to be used for Phase 1.
Additionally, the construction of Phase 1 includes burying AT&T and Comcast
infrastructure within the PG&E joint trench. These costs will be directly reimbursed by
AT&T and Comcast to the City through the Rule 20A process, in which each party
agrees to pay for their respective project costs. AT&T and Comcast portions of these
costs are approximately $530,000 and $400,000 respectively (total $930,000).
The total cost of the Phase 1 utility undergrounding work is estimated at $3,350,000.
After accounting for the Rule 20A funds (existing and borrowed), and the contributions
from AT&T and Comcast, Staff identified a funding gap of $691,000. To address that
gap, Staff negotiated with the City of Vallejo to acquire PG&E credits at a reduced rate.
The Rule 20A program allows for agencies to purchase or trade credits with other
agencies. City of Vallejo staff and Dublin staff discussed the transfer of Rule 20A
credits and drafted a memorandum of understanding (MOU) to allow Dublin to purchase
up to $750,000 of Vallejo’s unused PG&E Rule 20A Credits. Vallejo has requested a
price of $0.40 for every $1.00 of PG&E Rule 20A Credit. The MOU allows the City of
Dublin to purchase up to $750,000 in credits depending on the actual amount of credits
that will be required once the project is fully constructed. This month, Vallejo staff will
recommend that the City of Vallejo City Council approve and execute the MOU for the
sale of PG&E Rule 20A credits to the City of Dublin.
Bid Results and Construction:
The City of Dublin issued the bid package on January 20, 2017 with a construction
estimate of $1,300,000. A total of two (2) sealed bids were received on February 16,
2017. The bids were $1,499,956.75 and $1,693,797.00. A summary of the bids is
provided as Attachment 1. The construction estimate for this work was $1,300,000 and
the low bid is approximately $200,000 above the estimate; however, with approval of
the amendments shown in this Staff Report, there will be sufficient funds in the overall
project budget to cover this additional cost. The low bid of $1,499,956.75 was submitted
by St. Francis Electric, LLC, and the bid contained an arithmetic error between an item
unit cost and its mathematical sum which subsequently adjusted the total base bid price
by $4. The Public Contract Code and the City’s bid documents define this as a “minor
bid irregularity,” and authorize the City to “waive” this irregularity and proceed with the
award of the contract.
Staff has reviewed the bid results, checked references and necessary licenses, and
recommends that the City Council adopt a resolution (Attachment 2) to award the
contract to St. Francis Electric, LLC as the lowest responsive bidder. The Resolution will
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also waive the bid irregularity, and allow the City Manager to authorize contract changes
up to $150,000.
Construction Hours:
This segment of Dublin Boulevard is a critical east/west arterial that carries, on average,
over 32,000 vehicle trips a day, with most trips occurring during the daytime. The utility
undergrounding and road widening phases will require temporary lane closures during
construction. In an effort to minimize traffic congestion, impacts to business, and
impacts to the overall community, the project bid documents require the contractor
construct the improvements at night between the hours of 8:00 pm and 6:00 am Sunday
through Friday, with weekend work by special request requiring Staff approval.
Staff expects the project to begin later this month and anticipates completion of the
majority of the Phase 1 improvements in October 2017.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A copy of this staff report was sent to City of Vallejo and St. Francis Electric, LLC.
ATTACHMENTS:
1. Bid Results
2. Resolution Awarding a Contract for Project No. ST1012 to for the Dublin Boulevard
Rule 20A Underground Utility District 2013-1 “Sierra Court to Dublin Court”
3. Resolution Approving a Memorandum of Understanding with the City of Vallejo for
Purchase of Rule 20A Credits
4. Exhibit A to the Resolution - Memorandum of Understanding between the City of
Vallejo and the City of Dublin to Transfer PG&E Rule 20A Credits
5. Budget Change Form
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2
ATTACHMENT 2
RESOLUTION NO. XX- 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
AWARDING A CONTRACT FOR PROJECT NO. ST1012 TO ST. FRANCIS ELECTRIC, LLC
FOR THE DUBLIN BOULEVARD RULE 20A UNDERGROUND UTILITY DISTRICT 2013-1
“SIERRA COURT TO DUBLIN COURT”
WHEREAS, Staff completed plans and specifications for the Dublin Boulevard Rule 20A
Underground Utility District 2013-1 “Sierra Court to Dublin Court”, Project No. ST1012 (“Project”). The
Project includes eliminating overhead utility lines on wooden poles on both sides of Dublin Boulevard
between Sierra Court and Dublin Court, installing the utilities underground, and reconnecting overhead
services to customers with new underground service connections; and
WHEREAS, the City of Dublin did, on February 16, 2017, publicly open, examine, and declare all
sealed bids for doing the work described in the approved Plans, Specifications for Project No.ST1012,
Dublin Boulevard Rule 20A Project, which Plans, Specifications, and Modifications are hereby expressly
referred to for a description of said work and for all particulars relative to the proceedings under the
request for bids; and
WHEREAS, St. Francis Electric, LLC’s bid contained a minor bid irregularity in that there was a
mathematic error decreasing the proposed contract price by $4.00 (Four Dollars) and the Public
Contract Code and the City’s bid documents authorize the City to waive any minor irregularity and
proceed with the award of the contract; and
WHEREAS, said bids were submitted to the Public Works Director, who has recommended that
the bid hereinafter is the lowest and best bid for doing said work; and
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby
waive the minor bid irregularity since the mathematical error only decreased the lowest responsible bid
by Four Dollars ($4.00).
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby award the
Contract for Project No. ST1012, Dublin Boulevard Rule 20A Project, to the lowest responsible bidder
therefore, to wit, St. Francis Electric, LLC, at a bid of One Million, Four Hundred and Ninety Nine
Thousand, Nine Hundred and Fifty Six Dollars and Seventy-Five Cents ($1,499,956.75), the particulars
of which bid are on file in the office of the Public Works Director.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby authorize
the City Manager or his designee to approve the project Contract Change Orders based on the
appropriated funds designated for Project No. ST1012 up to the contingency amount of $150,000.00.
ATTACHMENT 2
PASSED, APPROVED AND ADOPTED this 2nd day of May, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
Mayor
ATTEST:
_____________________________
City Clerk
ATTACHMENT 3
RESOLUTION NO. XX- 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
APPROVING A MEMORANDUM OF UNDERSTANDING WITH CITY OF VALLEJO FOR THE
PURCHASE OF RULE 20A CREDITS
WHEREAS, Staff completed plans and specifications for the Dublin Boulevard Rule 20A
Underground Utility District 2013-1 “Sierra Court to Dublin Court”, Project No. ST1012 (“Project”). The
Project includes eliminating overhead utility lines on wooden poles on both sides of Dublin Boulevard
between Sierra Court and Dublin Court, installing the utilities underground, and reconnecting overhead
services to customers with new underground service connections; and
WHEREAS,
the total cost of the Phase 1 utility undergrounding work is estimated at $3,350,000. After
accounting for the Rule 20A funds (existing and borrowed), and the contributions from AT&T and
Comcast, Staff identified a funding gap of $691,000; and
WHEREAS, to address that gap, Staff negotiated with the City of Vallejo to acquire PG&E credits
at a reduced rate. The Rule 20A program allows for agencies to purchase or trade credits with other
agencies; and
WHEREAS,
the cCities of Vallejo and Dublin have drafted a Memorandum of Understanding (MOU) for the
City of Dublin to purchase up to 750,000 PG&E Rule 20A credits from the City of Vallejo at a rate of
$0.40 per PG&E Rule 20A credit for use of undergrounding PG&E utilities within District 2013-1.
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Dublin hereby
approves the Memorandum of Understanding with the City of Vallejo for the purchase of Rule 20A
credits.; and
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the MOU with the
City of Vallejo, which is attached hereto as Exhibit A to this Resolution.
PASSED, APPROVED AND ADOPTED this 2nd day of May, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
Mayor
ATTEST:
Formatted: Font: (Default) Arial, 11 pt
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ATTACHMENT 3
_____________________________
City Clerk
1
Attachment 4
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF VALLEJO AND THE CITY OF DUBLIN TO
TRANSFER PG&E RULE 20A CREDITS
This Agreement is made and entered into this day of , 2017, herein
referred to as the "Effective Date" by and between the City of Vallejo, a municipal corporation herein
referred to as "Vallejo" and the City of Dublin, a municipal corporation herein referred to as "Dublin"
and collectively referred to as the "Parties."
RECITALS
WHEREAS, PG&E collects and annually allocates Rule 20A work credits to communities for
the purpose of directing a portion of their anticipated capital budget towards the undergrounding of
electric facilities within an approved Underground Utility District; and
WHEREAS, Dublin is actively planning a project to underground overhead electric facilities
that qualifies for the application of Rule 20A work credits, however, City has encountered a shortfall
in the number of work credits necessary and desires to obtain an additional allocation of Rule
20A work credits to fund their projects; and
WHEREAS, PG&E currently holds an allocation of Rule 20A work credits for the benefit of
Vallejo, a portion of which represents a surplus that is not being utilized; and
WHEREAS, Dublin desires to purchase up to $750,000 from Vallejo surplus Rule 20A work
credit allocation to be used for their undergrounding projects and Vallejo desires to sell Rule 20A work
credits to Dublin in the amount of 40cents per Rule 20A work credit (“Acquisition Price”); and
WHEREAS, the Parties now desire to enter into this Agreement to transfer PG&E Rule 20A
work credits.
AGREEMENT
NOW THEREFORE, the Parties agree as follows:
1. Vallejo agrees to transfer and assign its rights and interest in a portion of its Rule 20A work
credits allocation to Dublin at the Acquisition Price. This Agreement shall be subject to the approval of
the City Council of the City of Vallejo and the City Council of Dublin and shall become effective on the
date when both such approvals have been obtained (the "Effective Date").
2. Within five (5) business days from receipt of payment from Dublin for the Rule 20A
credits, Vallejo shall deliver a written letter to PG&E, with a copy to Dublin, making a formal request
to transfer and assign up to $750,000 of Rule 20A work credits contained in Vallejo’s allocation to and
for the benefit of Dublin, and to provide any additional documentation or information that is reasonably
requested by PG&E to complete the transfer. Dublin is working with PG&E to determine the actual
amount of Rule 20A work credits that the city needs to acquire. It is anticipated that an initial amount
of credits will be acquired by Dublin in May 2017 and a final balancing amount of credits will be in
acquired January 2018. Dublin acknowledges and agrees that it has conducted its own investigation as
to the applicability and transferability of Vallejo’s work credit allocation for use in Dublin’s
2
Attachment 4
proposed projects and that Vallejo has not made any representation or warranty to Dublin with respect
to the same. The actual use of the Vallejo allocation of work credits by City shall be subject to the
rules and procedures adopted by PG&E and such other conditions or requirements set forth in the
Public Utilities Code.
3. All notices pursuant to this Agreement shall be delivered by First Class Mail to the
attention of the Parties set forth below. Notice shall be effective upon receipt. Notice may also be
given by electronic means, provided that such notice shall not be deemed effective unless it is
acknowledged by the recipient.
City of Vallejo
555 Santa Clara Street
Vallejo, CA 94590
Attn: Jill Mercurio, Interim Director
of Public Works
jill.mercurio@cityofvallejo.net
(707) 648-4301
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attn: Gary Huisingh, Director of
Public Works
gary.huisingh@dublin.ca.gov
(925) 833-6630
4. Term of Agreement: This Agreement shall commence as of the Effective Date and
shall terminate on June 30, 2018.
5. Vallejo and Dublin are separate subdivisions of the State of California and are
independent contractors with respect to each other. This Agreement is not intended to, and shall not
be construed to, create the relationship of agent, servant, employee, partnership, joint venture, or any
other similar association. Nothing in this Agreement shall be construed to create an employment
relationship between Vallejo and any employee of Dublin or between Dublin and any employee of
Vallejo. Each party shall be solely responsible for the acts or omissions of its officers, agents,
employees, and subcontractors. Neither party's employees shall be entitled to any employee benefits
from the other party.
6. Each agency shall hold harmless, defend, and indemnify the other agency and its
governing body, officers, employees, agents and volunteers from and against any and all liability, loss.
damage, expense and costs (including without limitation costs and fees of litigation) of every nature
arising out of or in connection with the performance of the terms hereunder, or failure to comply with
any of the obligations in this Agreement, except such loss or damage caused by sole negligence or
willful misconduct.
7. This Agreement shall constitute the entire agreement between the Parties relating to the
subject matter of this Agreement, and shall supersede any previous agreements, promises,
representations, understanding and negotiation, whether oral or written, concerning the same subject
matter. Any and all acts which may have already been consummated pursuant to the terms which are
embodied in this Agreement are hereby ratified.
8. No addition to, or alteration of, the terms of this Agreement shall be valid unless made in
writing and signed by the Parties.
3
Attachment 4
9. This Agreement shall be governed and construed in accordance with the laws of the State
of California. Any dispute arising hereunder or relating to this Agreement shall be litigated in the
County of Alameda and the prevailing party will be entitled to reasonable attorney's fees, which may be
set by the court in the same action or in a separate action brought for that purpose, in addition to any
other relief to which the party may be entitled.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.
CITY OF VALLEJO CITY OF DUBLIN
By: By:
Daniel E. Keen Christopher L. Foss
City Manager City Manager
Attest: Attest:
By: By:
Dawn Abrahamson Caroline Soto
City Clerk City Clerk
Approved as to form:
By: By:
Claudia Quintana John Bakker
City Attorney City Attorney
Budget Change Reference #:
From Un-Appropriated Reserves Budget Transfer Between Funds
From Designated Reserves Other X
Account Amount Account Amount
Additional Rule20A City credits $288,000.00 Project ST1012 - Construction $1,659,000.00
PG&E pole relocation in-lieu credit $441,000.00
Reimbursement from AT&T, Comcast $930,000.00
5/2/2017
Posted By:Date:
As Presented at the City Council Meeting
**********Finance Use Only**********
CITY OF DUBLIN
To incorporate external funding sources fro the undergrounding utilities work realted to the Dublin Blvd. Widening Project,
Undergrounding Utility District 2013-1 “Sierra Court to Dublin Court”, Project No. ST1012.
REASON FOR BUDGET CHANGE
FISCAL YEAR 2016-17
BUDGET CHANGE FORM
INCREASE BUDGET AMOUNT INCREASE BUDGET AMOUNT
CIP ST1012 - New Expenditures through Rule 20ACIP ST1012 - New Funding Sources
City Council's Approval Required
G:\Budget Changes\9_2016-17\CC Approval\15_st1012.Rule 20A.5.2.17 15_st1012.Rule 20A.5.2.17