HomeMy WebLinkAbout12-039 Awarding Ash Loop Water System BidResolution 12 -039
Ash Loop Water line
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RESOLUTION NO. 12 -039
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON AWARDING THE ASH LOOP WATER SYSTEM IMPROVEMENTS
CONSTRUCTION BID TO SETON CONSTRUCTION AS A SOLE SOURCE BID AND
DIRECTING STAFF TO FINALIZE AN EASEMENT.
WHEREAS, City's purchasing ordinance requires that public works projects of more
than $40,000 with more than one trade be competitively bid (for the state per RCW 35.23.352(1)
this amount is now $65,000); and
WHEREAS, the City desires to construct a new water line in the county in an area
served by the City water system that would eliminate an existing pump station and small ground
water treatment system in the Ash Loop system, and
WHEREAS, the current groundwater treatment system serves approximately 12
customers, requires ongoing maintenance, testing and reporting to the state; and
WHEREAS, the shortest, and least expensive, route for the new water line connection is
across property owned by Bruce Seton Jr.; and
WHEREAS, Seton has agreed to convey the easement to the city at no cost on condition
that his company, Seton Construction, is awarded the construction contract for the water line
connection work; and
WHEREAS, in connection with negotiating with Seton for the easement, the City has
negotiated a construction bid amount with Seton Construction in the amount of $62,341.46. This
amount is below the engineer's estimate $67,184.33 and is well within the range of costs
expected in a bid process based on Public Works' review of the engineer's estimate and its own
estimate of the cost of the project; and
WHEREAS, without Seton's cooperation to voluntarily convey the easement, the city
would have to acquire an easement from Seton through condemnation (or re -route the line to a
different location as additional expense). The acquisition process involves obtaining an appraisal
(potentially at a cost of a thousand dollars or more) and potentially involves condemnation of the
easement (potentially at a cost of ten thousand dollars including staff resources). In addition, the
city would have to acquire the easement at the appraised value. To acquire the easement through
negotiation thus has value to the city by saving the city considerable cost, including the avoided
cost of proceeding through appraisal and condemnation proceedings, and the cost of the
easement itself, and
WHEREAS, were the city to locate the line other than through Seton's property, it would
lengthen the line and Public Works estimates this would increase the cost of the construction by
approximately $20,000 or more; and
Resolution 12 -039
Ash Loop Water line
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WHEREAS, RCW 35.23.352(9) authorizes exemptions from competitive bidding
requirements for a public work in certain circumstances specified in RCW 39.04.280, including:
contracts involving special facilities or market conditions. The Council determines that
obtaining the easement without cost for the easement itself, and without transaction costs
(appraisal and potentially condemnation), in return for having Seton Construction perform the
work at a cost that is less than the engineer's estimate and the likely cost if the project were bid,
takes advantage of an opportunity to save the city money, makes business sense, and is justified
based on special facilities and market conditions. The proposed exchange avoids the cost of
appraisals, possible condemnation proceedings and other costs involved with property and
easement acquisition, or relocation the line to another route at additional cost, thereby reducing
overall total project costs; and
WHEREAS, the statute requires a resolution by Council declaring an exemption from
bidding under these provisions; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend as follows:
1. The City Council declares the Ash Loop waterline project exempt from bidding
requirements for the reasons stated above.
2. City Manager is authorized (1) to award the construction contract to Seton Construction
for the Ash Loop project, and (2) to execute necessary documents to obtain an easement
from Seton for the land that the new water line traverses.
ADOPTED by the City Council of the City of Port To end at a regular meeting
thereof, held this fourth day of September 2012. , /) /
Attest* fJ
Z
Pamela Kolacy, MMC
City Clerk
King,
Approved as to form:
John Watts
City Attorney