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RESOLUTION NO. 2015-007 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, AWARDING THE CONTRACT FOR THE "STORM DRAIN REHABILITATION FY 2013/2014 AT VARIOUS LOCATIONS IN THE CITY OF CHULA VISTA (DR193/DR196)" PROJECT TO TC CONSTRUCTION CO., IN THE AMOUNT OF $795,373, WAIVING CITY COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $80,000
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On December 3, 2014, the Director of Public Works received nine (9) sealed bids for the "Storm Drain Rehabilitation FY 2013/2014 at various locations in the City of Chula Vista (DR193/DR196)" project. The project will rehabilitate portions of the City's storm drain system. The project includes the replacement and lining of existing corrugated metal pipe (CMP), installation of new drainage inlet frames and grates, and repair of an existing box culvert at various locations.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 (c) categorical exemption pursuant to Section 15301 [Existing Facilities] of the State CEQA Guidelines because the project consists of the removal and replacement or rehabilitation of existing corrugated storm drain pipes at various locations in the City of Chula Vista involving negligible or no expansion of an existing use. Ancillary work will include replacement of asphalt surfaces, curbs and gutters as may be needed. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Based on the results of inspections, including those performed with a closed circuit television camera, a number of existing corrugated metal pipes (CMP) conveying storm water runoff have been identified by the Public Works Department as requiring replacement and/or rehabilitation. These pipes are deteriorated and need to be either replaced or relined to contain and convey storm water runoff and to prevent structural failure of the pipe and sinkholes. The project also repairs a portion of an existing damaged box culvert and replaces storm drain cleanouts, drainage inlet frames, and grates.
The Contractor will be allowed to perform work at night to reduce traffic congestion within business areas of the City during the day. Night work within residential neighborhoods will not be allowed.
On December 3, 2014, Public Works staff advertised the annual "Storm Drain Rehabilitation FY 13/14 at Various Locations in the City of Chula Vista (DR193/DR196)" project. The apparent low bidders were contingent upon a grand total base bid of all proposed locations. The bids from the nine (9) Contractors are as follows:
NO. |
CONTRACTOR |
BID |
1 |
TC Construction Co. - Santee, CA |
$795,373.00 |
2 |
Just Construction - San Diego, CA |
$843,706.30 |
3 |
Palm Engineering - San Diego, CA |
$880,909.00 |
4 |
Ramona Paving & Construction Corp. - Ramona, CA |
$892,506.00 |
5 |
New Century Construction, Inc. - Lakeside, CA |
$919,127.00 |
6 |
GRFCO, Inc. - Brea, CA |
$957,641.50 |
7 |
Burtech Pipeline, Inc. - Encinitas, CA |
$996,975.50 |
8 |
PAL General Engineering - San Diego, CA |
$1,072,186.00 |
9 |
Weir Construction Corporation - Escondido, CA |
$1,052,104.00 |
The low bid submitted by TC Construction Co. is below the Engineer's estimate of $819,600 by $24,227, or approximately 3%. TC Construction Co.'s performance on several other capital improvement projects within the City has been satisfactory. Staff reviewed the low bid and determined that the bid package is complete, with no errors or omissions. Therefore, staff recommends awarding the contract to TC Construction Co. in the amount of $795,373. TC Construction Co. is a licensed General Engineering Contractor (License No. 402459). Their license status is current and active per the Department of Consumer Affairs Contractor State License Board.
The proposed resolution would also authorize the Director of Public Works to approve change orders over and above existing policy limits. Under City Council Policy No. 574-01, if an individual change order causes the cumulative increase in change orders to exceed the Director's authority ("Maximum Aggregate Increase in Change Orders"), then City Council approval is required. The corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-01 is $58,676. Approval of the resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $80,000, an increase of $21,324 over Policy No. 574-01. Increasing the contingency funds will allow staff to continue the project without delay should unforeseen circumstances resulting in increased project costs arise during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not used, then they will be returned to the project fund balance.
Disclosure Statement
Attachment 1 is a copy of the Contractor's Disclosure Statement.
Wage Statement
Pursuant to California Labor Code section 1782(f)(2), the Contractor that is awarded the contract and its subcontractors are not required to pay prevailing wages to persons employed by them for work under this Contract, as the project was advertised prior to January 1, 2015.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The "Storm Drain Rehabilitation FY 2013/2014 at various locations in the City of Chula Vista (DR193/DR196)" project supports the "Strong & Secure Neighborhoods" goal as it will ensure the successful conveyance of storm water runoff into and through the City's storm drain system, to designated outlet points. Proper management of storm water runoff preserves private and public properties from flood damage, thus preserving the quality of life for residents and creating an appealing community for the residents to live, work, and play.
CURRENT YEAR FISCAL IMPACT
Sufficient TransNet funds are available in DR187, DR193, and DR196 to complete the project. Therefore, there is no additional impact to the TransNet Fund. The following table summarizes the project construction costs.
FUNDS REQUIRED FOR CONSTRUCTION |
A. Contract Amount |
$795,373 |
B. Contract Contingency |
$ 80,000 |
C. Construction Inspection Staff Cost |
$ 75,000 |
D. Design & Survey Support, Geotechnical |
$ 50,000 |
TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$1,000,373 |
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ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require routine maintenance.
ATTACHMENTS
Attachment 1 - Contractor's Disclosure Statement
Staff Contact: Alan Reyes, Associate Civil Engineer