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HomeMy WebLinkAbout12-039 Awarding Ash Loop Water System BidResolution 12 -039 Ash Loop Water line Page 1 of 2 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 Page 2 of 2 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