HomeMy WebLinkAbout05 - City Radio Tower Rehabilitation — Award of Contract No. 7094-1July 26, 2016
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Ben Davis, Associate Civil Engineer, bdavis@newportbeachca.gov
PHONE: 949-644-3317
TITLE: City Radio Tower Rehabilitation — Award of Contract No. 7094-1
ABSTRACT:
Staff has now received construction bids for the City Radio Tower Rehabilitation project
and requests City Council's approval to award the construction contract to Petroleum
Telcom, Inc. dba Telcom, Inc.
RECOMMENDATION:
a) Staff recommends the City finds this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c) (reconstruction of
existing facility involving negligible or no expansion of capacity) of the CEQA
Guidelines, because it has no potential to have a significant effect on the
environment;
b) Approve the project drawings and specifications;
c) Award Contract No. 7094-1 to Telcom, Inc. for the total bid price of $425,458.00, and
authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $42,500 (approximately 10 percent) to cover the cost of
unforeseen work not included in the original contract;
e) Authorize City Manager to execute a Reimbursement Agreement with the County of
Orange for its contribution to the project on a form approved by the City Attorney;
and
f) Approve Budget Amendment No. 17BA-004 appropriating $184,000.00 from
800MhZ Equipment unappropriated balance to Account No. 75401-980000-16M13;
$34,500 from Water Enterprise unappropriated balance to Account No. 70101-
980000-16M13; $11,500 from Wastewater Enterprise unappropriated balance to
Account No. 71101-980000-16M13; and $25,000 from IT Equipment unappropriated
balance to Account No. 76501-980000-16M13 for City Radio Tower Rehabilitation
Project.
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City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 2
FUNDING REQUIREMENTS:
Upon adoption of the budget amendment, sufficient funding for this project is in the
budget to complete the work. The following funds will be expensed:
Account Description
IT Replacement (temp. cable)
Water Enterprise (15%)
Wastewater Enterprise (5%)
800 MhZ Equipment (80%)
Proposed uses are as follows:
Vanrinr
Telcom, Inc.
Telcom, Inc.
Alltech Communications, LLC
On-call geotechnical
Various
Time Warner Cable, Inc.
Account Number
Amount
76501-980000-16M13
$
425,458.00
$
25,000.00
70101-980000-16M13
Temporary Utility Tower
$
$
75,180.00
71101-980000-16M13
16,210.00
Printing & Incidentals
$
25,060.00
75401-980000-16M13
$
25,000.00
$
400,960.00
526,200.00
Total:
$
526,200.00
Purpose
Amount
Construction Contract
$
425,458.00
Construction Contingency
$
42,500.00
Temporary Utility Tower
$
15,000.00
Special Inspections
$
16,210.00
Printing & Incidentals
$
2,032.00
Temporary IT Connection
$
25,000.00
Total:
$
526,200.00
City Council authorized a preliminary budget of $400,000 for the City Radio Tower
Rehabilitation project for the design and fabrication of tower parts at its September 8,
2015 meeting. Design as well as the manufacturing of new tower segments, galvanizing
and painting has been completed. Funding sources included the City's 800 MhZ
Equipment Fund, Water Enterprise Fund and Sewer Enterprise Fund with an 80-15-5
percent split ratio based on uses and connections to/from the tower. Savings from the
design portion are being applied to the construction budget. Funding for the construction
portion of the tower maintains the same 80-15-5 percent ratio. Additional expenses for
temporary cabling will be paid from the IT Equipment Fund.
DISCUSSION:
The City owns and operates a 320 -foot radio communications tower located at the City
Utilities Yard in West Newport. The tower is a critical communications link used by the
City for routine and emergency communication as well as by surrounding public safety
agencies, for emergency communications. The tower also provides a crucial
communication link between many of the City's facilities. This tower is approximately 50
years old and has undergone recent inspections that revealed a need of rehabilitation.
At 10 a.m. on July 7, 2016, the City Clerk opened and read the following bid for this
project:
BIDDER TOTAL BID AMOUNT
Low Petroleum Telcom, Inc. $425,458.00
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City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 3
The City received only one bid on this project and the low bid amount is 22 percent
above the engineer's estimate of $350,000.00. There are many factors for the
increased cost and lack of bidders. Our research prior to the bid and after the receipt of
the bid, confirmed that the radio tower industry is extremely busy and the work is highly
specialized. There are only a few California contractors that are licensed and qualified
to work towers above 300 -feet. Also, the City's requirement for minimal downtime on
the Public Safety communications during the City's Radio Tower rehabilitation is very
stringent. These factors appear to have added to the increased cost. Staff spoke with
other potential bidders and they all indicated that due to a heavy industry work load,
they could not complete the City project in a timely manner. There is urgency to this
project as last year's inspection has raised concerns about the tower integrity and some
needed antenna maintenance can't be performed with the tower in its current condition.
Staff met with the low bidder to review costs and potential savings that could be realized
by re -bidding the project, installing a temporary tower and extending the construction
period. After those discussions, it was determined that little, if any, savings could be
realized, and re -bidding the project may result in higher costs and delay of several other
critical maintenance items related to the City's safety communications (Fire, PD and
Lifeguards). Staff recommends moving forward with the award of this contract.
Petroleum Telcom, Inc. possesses a California State Contractors License Classification
"B" as required by project specifications. A check of contractor's references indicates
satisfactory completion of similar projects for other local cities and municipalities.
Pursuant to contract specifications, Contractor will have 50 working days to complete
the work. Construction will begin in mid-August with dismantling of the existing tower
starting in September. Coordination and detailed scheduling efforts are underway to
minimize communication downtime for Public Safety, IT and Utilities. A small temporary
tower for Utilities' communication will be erected and a temporary hard -wire cable TV
connection for the City's IT connection between the two City maintenance yards will be
implemented during construction. Required funding is included in the budget requested.
The County of Orange and its Sheriffs Communication Division is a partnering agency
with the City for the 800MhZ radio communication equipment located on the City's
tower. Although radio tower rehabilitation work was originally envisioned to be funded
solely by the City, staff pursued further discussions with the County and they have
indicated support of the project and are willing to partially fund this work as they have
done in the past. A County Reimbursement Agreement (Agreement) is in progress to
recognize a contribution of approximately one-third of project expenses. The
Agreement is currently being drafted by the County. Since time is of the essence for
project delivery and coordination efforts, staff is requesting authorization for the City
Manager to approve the Agreement upon a final form approved by the City Attorney.
The Agreement with the County will reimburse the City's 800 MhZ Equipment Fund.
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City Radio Tower Rehabilitation — Award of Contract No. 7094-1
July 26, 2016
Page 4
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c) (reconstruction of
existing facility involving negligible or no expansion of capacity) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Budget Amendment
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17TH STREET
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ATTACHMENT A
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CITY RADIO TOWER REHABILITATION CIN OF NEWPORT BEACH
LOCATION MAP PUBLIC WORKS DEPARTMENT
C-7094-1 1 7/26/2016
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ATTACHMENT B
City of Newport Beach
BUDGET AMENDMENT
2016-17
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
NO. BA- 17BA-004
AIVIOUNT:J $255,000.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations for the rehabilitation of the City Radio Tower. 80% will be funded by the
800 MHZ equipment fund, 15% will be funded by the Water fund, and 5% will be funded by the Sewer fund.
Savings from the design portion approved by Council in FY16 will be carried forward. Temporary cabling will be added
from the IT Equipment Fund.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Amount
Fund
Account
Description
Debit Credit
765
300000
IT Equipment Fund - Fund Balance
$25,000.00
754
300000
800 MHZ Radio Fund - Fund Balance
$184,000.00
701
300000
Water Enterprise Fund - Fund Balance
$34,500.00
711
300000
Sewer Enterprise Fund - Fund Balance
$11,500.00
EXPENDITURE APPROPRIATIONS (3603)
Signed:
City Council Approval: City Clerk
Date
W
Description
Org Number
76501
IT Equipment CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$25,000.00
Project String
E-1 6M1 3 -CONSTRUCT -765 -UNASSIGNED
Org Number
75401
800 MHZ CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$184,000.00
Project String
E-1 6M 13 -CONSTRUCT -754 -UNASSIGNED
Org Number
70101
Water Enterprise Fund CIP
Account Number
980000
CIP Expenditures for GL
Project Number
16M13
City Radio Tower Rehabilitation
$34,500.00
Project String
E -16M13 -CONSTRUCT -701 -UNASSIGNED
Org Number
71101
Sewer Enterprise Fund CIP
Account Number
980000
CIP Expenditures for GL
Project Number
161VI13
City Radio Tower Rehabilitation
$11,500.00
Project String
E-1 M13 -CONSTRUCT -711 -UNASSIGNED
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Approva . Finance
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Date
Signed:
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Adminibtr,dve Approval:
City Manager
Date
Signed:
City Council Approval: City Clerk
Date
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