Staff Report/Resolution Awarding Construction Contract to Shannon Pump Company, Merced, California

STAFF REPORT

AGENDA ITEM: Resolution Awarding Construction Contract to Shannon Pump Company, Merced, California, Approving the Expenditure of Construction Funds for the Energy Efficiency and Conservation Block Grant (EECBG) – Replacement of Motors at Water Wells 8,9,11 and 13 – Grant No. CBG-09-093 and Authorizing the Interim City Manager to Execute a Construction Contract and Any Change Orders Thereto with Shannon Pump Company.

MEETING DATE: July 19, 2011

PREPARED BY: Nanda K. Gottiparthy, City Engineer

REVIEWED BY: Victoria Lewis, Interim City Manager

RECOMMENDATION:

Council adopt a Resolution awarding a construction contract to Shannon Pump Company, Merced, California, approving the expenditure of construction funds for the Energy Efficiency and Conservation Block Grant (EECBG) – Replacement of Motors at Water Wells 8,9,1 1 and 13 – Grant No. CBG-09-093 and authorizing the Interim City Manager to execute a construction contract, in a form approved by the City Attorney, and any change orders thereto which fall within the total amount of EECBG monies awarded to the City.

BACKGROUND:

In July 2010, the City was awarded $77,464.00 under the Energy Efficiency and Conservation Block Grant (EECBG) for Replacement of Motors at Water Wells 8,9,11 and 13.

The project generally consists of replacement of motors and/or installation of soft-start at Wells 8,9,11 and 13. The Project was advertised for bid on March 2, 2011 and March 12, 2011 in the Modesto Bee, and on February 26, 2011 and March 4, 2011 in the Merced Sun-Star. Bids were opened by the Deputy City Clerk on May 3, 201 1.

DISCUSSION:

A total of six (6) bids were opened and read aloud by the Deputy City Clerk at 2:00 p.m. on May 3, 2011, this being the advertised bid opening date and time. The apparent low bid was submitted by Shannon Pump Company, Merced, California in the amount of $49,921.28. Shannon Pump Company’s bid has been deemed to be responsive. The attached Bid Summary shows the bid details.

The second lowest bidder, Martech, submitted a bid protest by letter dated May 9, 2011. City Attorney reviewed the bid protest and determined the protest to be invalid. Martech’s letter and City’s response to Martech’s letter are included as attachments.

Staff of Energy Commission has reviewed the items in Martech’s protest letter, and has indicated acceptance for substitution of product for Soft Starter that would comply with the "Buy American" requirement. The contract with Shannon Pump Company will require compliance with the "Buy American" requirement. Energy Commission staff is reviewing status of Shannon Pump Company’s registration with the Central Contractors’ Registry, and will provide direction prior to the City Council meeting date. Based on the direction, staff will provide the information to the City Council at the meeting and recommend any changes to the report if necessary.

City staff has determined that the bid submitted by Shannon Pump Company falls within the approved funding sources provided for this project. The construction contract amount with Shannon Pump Company will be for the amount of the bid of $49,921.28. City’s construction engineering and project management costs are estimated at $7,578.72 for a total cost of $57,500.00. With the total project grant amount of $77,464.00, change orders, if required, will be eligible to be applied against the grant amount with a not-to-exceed amount of $19,964.00.

FISCAL IMPACT:

The total project construction costs for the project including construction and construction engineering in the amount of $57,500.00, and the cost of any change orders will be funded from the Energy Efficiency and Conservation Block Grant (EECBG). There is no impact to the General Fund.

ATTACHMENTS:

1. Resolution No. 2011-

2. Bid Summary

3. Martech’s Protest Letter

4. City’s Response to Martech’s Letter

2

RESOLUTION NO. 2011-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON

AWARDING CONSTRUCTION CONTRACT TO SHANNON PUMP COMPANY,
MERCED, CALIFORNIA, APPROVING THE EXPENDITURE OF
CONSTRUCTION FUNDS FOR THE ENERGY EFFICIENCY AND
CONSERVATION BLOCK GRANT (EECBG) – REPLACEMENT OF MOTORS AT
WATER WELLS 8,9,11 AND 13 – GRANT NO. CBG-09-093 AND AUTHORIZING
THE INTERIM CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT
AND ANY CHANGE ORDERS THERETO WITH SHANNON PUMP COMPANY

WHEREAS, in July 2010, the City was awarded $77,464.00 under the Energy Efficiency and Conservation Block Grant (EECBG) for Replacement of Motors at Water Wells 8,9,11 and 13; and

WHEREAS, the Project was advertised for bid on March 2, 2011 and March 12, 2011 in the Modesto Bee, and on February 26, 2011 and March 4, 2011 in the Merced Sun-Star. Bids were opened by the Deputy City Clerk on May 3, 2011; and

WHEREAS, a total of six (6) bids were opened and read aloud by the Deputy City Clerk at 2:00 p.m. on May 3, 2011, this being the advertised bid opening date and time; and

WHEREAS, the apparent low bid was submitted by Shannon Pump Company, Merced, California in the amount of $49,921.28; and

WHEREAS, City staff has reviewed the submitted bids and recommends the award of a construction contract to Shannon Pump Company, Merced, California; and

WHEREAS, the project construction costs for the project including construction and City’s construction engineering in the amount of $57,500.00, and the cost of any change orders will be funded from the Energy Efficiency and Conservation Block Grant (EECBG).

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:

1. Adopts a Resolution awarding a construction contract to Shannon Pump Company, Merced, California, approving the expenditure of construction funds from the Energy Efficiency and Conservation Block Grant (EECBG) for Replacement of Motors at Water Wells 8,9,11 and 13.

2. Approves the expenditure of construction funds in the amount of $57,500.00 for the construction and construction engineering, and any change orders which fall within the total amount of EECBG monies awarded to the City.

3. Authorizes the Interim City Manager to execute a construction contract with Shannon Pump Company in the amount of $49,921.28, in a form approved by the City Attorney, and any change orders thereto, which fall within the total amount of EECBG monies awarded to the City.

Passed and adopted this 19th day of July, 2011, by the following vote:

AYES:

NOES:

ABSENT:

Rodrigo Espinoza, Mayor
of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 19th day of July, 2011.

Antonio Silva, City Clerk

of the City of Livingston

Bid summary Protest 1Protest 2Protest 3Protest 4Protest 5Protest 6Protest 7Protest 8Protest 9Protest 10Protest 11Protest 12Protest 13Protest 14Protest 15Protest 16Protest 17Protest 18Protest 19Protest 20

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