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CONSIDERATION OF WAIVING IRREGULARITIES IN THE BID RECEIVED FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (SW297)” PROJECT PER CITY CHARTER SECTION 1009 (This item was continued from 5/23/17.)
RESOLUTION NO. 2017-087 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; WAIVING MINOR BID IRREGULARITIES; AWARDING A CONTRACT FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (CIP# SW297)” PROJECT TO SANCON ENGINEERING, INC. IN THE AMOUNT OF $226,067.07; APPROPRIATING $130,000 FROM THE AVAILABLE BALANCE OF THE SEWER FACILITY REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROJECT SW297; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council conduct the public hearing and adopt the resolution.
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SUMMARY
On April 5, 2017, the Director of Public Works received two (2) sealed bids for “Manhole Rehabilitation Program, Fiscal Year 2015/16 (CIP No. SW297)” project at various locations. The project consists of the rehabilitation and repair of various sewer mains and manholes and the replacement of various sewer manholes citywide.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.
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Environmental Determination
The Director of Development Services 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 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Based on field investigations, a number of sewer manholes have been identified by the Public Works Department as requiring rehabilitation. The general scope of the “Manhole Rehabilitation Program Fiscal Year 2015/16 (CIP No. SW297)” project consists of installing epoxy liners in existing sewer manholes, the installation of epoxy liners in sewer mains, and the removal and replacement of sewer manholes. The locations of work to be done are identified in the attached project Location Summary Map (Attachment 1).
On April 5, 2017, the Director of Public Works received two (2) sealed bids as follows:
The apparent low bid by Sancon Engineering, Inc. of $226,067.07 is $36,067.07 (approximately 19%) above the Engineer's estimate of $190,000.
The Sancon Engineering, Inc. original sealed bid proposal contained minor irregularities by not including a signed Affidavit form and by submitting a bid with a minor mathematical error. The Affidavit form was received a few days after bids were opened. The signed Affidavit clearly demonstrates that the form was made and signed on April 5, 2017, along with the submitted bid proposal documents, as evidenced under the official seal of a California Notary Public.
The original bid proposal listed a grand total of $226,068.57. After updating the total due to a minor mathematical error, the new grand total is $226,067.07. Corrections to the bid total did not change the outcome and ranking of the bids (see Attachment 2). Given that there is no specific provision under Section 1009 of the Chula Vista Charter requiring the submission of an Affidavit, and given that the mathematical error resulted in a minor change in the bid proposal grand total, staff requests for these minor irregularities to be waived by the City Council.
Sancon Engineering, Inc. is currently an active licensed Class “A”, General Engineering Contractor (License No. 731797) and has performed similar work in the region with satisfactory performance. Staff has reviewed Sancon Engineering, Inc. references and bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding SW297 to Sancon Engineering, Inc.
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”), 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 $18,824. Approval of the resolution would increase the Director of Public Works authority to approve change orders, without City Council approval as necessary, up to contingency amount of $34,000 (approximately 15% of the contract), an increase of $15,086 over Policy No. 574-01. Increasing the Director’s authority will allow the project to continue without delay should unforeseen circumstances arise resulting in increased project costs 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, they will be returned to the project fund balance.
Wage Statement
The Contractor and its subcontractors are required by bid specifications to pay prevailing wage (“Prevailing Wage Rates”) to persons employed by them for work under this Contract. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to be done. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California.
Disclosure Statement
Attachment 3 is a copy of the Contractor’s Disclosure Statement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the properties which are the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
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 Manhole Rehabilitation Program Fiscal Year 2015/16 (CIP No. SW297) project supports the Strong and Secure Neighborhoods Strategic Goal as it maintains public infrastructure and promotes sustainable infrastructure vital to the quality of life for residents.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will award a contract for the Manhole Rehabilitation Program Fiscal Year 2015/16 Project and appropriate $130,000 from Sewer Facility Replacement Funds to SW297. Sufficient Sewer Facility Replacement Funds are available for said appropriation. The table below summarizes the anticipated project costs and the funding sources:
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine maintenance of sewer facilities.
ATTACHMENTS
1. Project Location Map
2. Bid Price Adjustment Letter from Sancon Engineering, Inc.
3. Contractor’s Disclosure Statement from Sancon Engineering, Inc.
Staff Contact: Rosina Constanza, Assistant Civil Engineer