Title
RESOLUTION NO. 2016-079 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; AWARDING A CONTRACT FOR THE “SEWER MANHOLE REHABILITATION PROJECT, FISCAL YEAR 2013/2014 AT VARIOUS LOCATIONS (CIP# SW283) AND SEWER MANHOLE REHABILITATION PROJECT, FISCAL YEAR 2014/2015 AT VARIOUS LOCATIONS (CIP# SW289)” PROJECT TO SOCAL PACIFIC CONSTRUCTION CORP. IN THE AMOUNT OF $431,096; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On March 23, 2016, the Director of Public Works received three (3) sealed bids for the "Sewer Manhole Rehabilitation Project, FY 2013/2014 at various locations (CIP# SW283) and Sewer Manhole Rehabilitation Project, FY 2014/2015 at various locations (CIP# SW289)" project. The project consists of installing epoxy liners in existing sewer manholes to extend the infrastructure service life.
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 "Sewer Manhole Rehabilitation Project, FY 2013/2014 at various locations (CIP# SW283) and Sewer Manhole Rehabilitation Project, FY 2014/2015 at various locations (CIP# SW289)" project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) Thus, no further environmental review is necessary.
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 "Sewer Manhole Rehabilitation Project, FY 2013/2014 at various locations (CIP# SW283) and Sewer Manhole Rehabilitation Project, FY 2014/2015 at various locations (CIP# SW289)" project consists of installing epoxy liners in existing sewer manholes to extend the infrastructure service life. The locations of work to be done are identified in the attached project Location Summary Map (Attachment 1).
On March 23, 2016, the Director of Public Works received three (3) sealed bids as follows:
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CONTRACTOR |
BASE BID AMOUNT |
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1 |
Sancon Engineering, Inc. - Huntington Beach, CA |
$304,625* |
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2 |
SoCal Pacific Construction Corp. dba National Coating & Lining Co. - Murrieta, CA |
$431,096 |
|
3 |
Quality Pipe Services, Inc. - Denver, CO. |
$454,100 |
*Bidder withdrew prior to award.
The apparent low bid by Sancon Engineering, Inc. was retracted based upon an internal mathematical discrepancy made in their bid. The City received a formal withdrawal letter explaining the bidder’s calculation error (Attachment 2). As a result, staff proceeded to examine the second apparent low bid presented by SoCal Pacific Construction Corp. Their bid of $431,096 is $14,096 (approximately 3%) above the Engineer's estimate of $417,000. SoCal Pacific Construction Corp. is currently an active licensed Class “A”, General Engineering Contractor (License No. 443117) and has performed similar work in the region with satisfactory performance. Staff has reviewed SoCal Pacific Construction Corp. references and bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding SW283 and SW289 to SoCal Pacific Construction Corp.
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 $33,177. 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 $64,664 (approximately 15% of the contract), an increase of $31,487 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.
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 that Mayor Mary Casillas Salas and Council Members John McCann and Pamela Bensoussan have property holdings within 500 feet of the boundaries of the property which is the subject of this action. However, the decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(c(1)), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any 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 "Sewer Manhole Rehabilitation Project, FY 2013/2014 at various locations (CIP# SW283) and Sewer Manhole Rehabilitation Project, FY 2014/2015 at various locations (CIP# SW289)" project supports the Strong and Secure Neighborhoods Strategic Goal as it maintains public infrastructure vital to the quality of life for residents.
CURRENT YEAR FISCAL IMPACT
Sufficient sewer funds are available in SW283 and SW289 to complete the project. Therefore, there is no additional impact to the Sewer Facilities Replacement Fund.
The table below summarizes the anticipated project costs.
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FUNDS REQUIRED FOR CONSTRUCTION |
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A. Contract Amount |
$431,096 |
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B. Contingency (Approximately 15% of contract) |
$64,664 |
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C. Construction Inspection Staff Cost |
$65,000 |
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TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$560,760 |
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine maintenance of the sewer facilities.
ATTACHMENTS
1. Project Locations Map
2. Sancon Engineering Inc.’s bid withdrawal letter
3. Contractor’s Disclosure Statement from SoCal Pacific Corp.
Staff Contact: Luis Pelayo, Associate Civil Engineer