Title
RESOLUTION NO. 2017-004 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, AWARDING THE CONTRACT FOR THE “STORM DRAIN REHABILITATION FISCAL YEAR 2016/2017 AT VARIOUS LOCATIONS IN THE CITY OF CHULA VISTA (DR206)” PROJECT, INCLUDING ADDITIVE BID ITEMS, TO SANCON ENGINEERING, INC., IN THE AMOUNT OF $868,229, WAIVING CITY COUNCIL POLICY NO. 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $226,771
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On November 16, 2016, the Director of Public Works received four (4) sealed bids for the "Storm Drain Rehabilitation FY 2016/2017 at various locations in the City of Chula Vista (DR206)" project. The project will rehabilitate portions of the City’s storm drain system in the public street right-of-way. The project includes the replacement and lining of existing corrugated metal pipe (CMP), installation of a new storm drain cleanout, and repair of an existing welded metal debris screen. The proposed resolution, if approved, would accept bids; award the contract for this project to the low bidder SANCON ENGINEERING INC. in the amount of $868,229; waive City Council Policy 574-01; and authorize the expenditure of all available contingency funds in an amount not to exceed $226,771.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for Class 1 and Class 2 Categorical Exemptions pursuant to Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) State Guidelines.
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Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with CEQA and has determined that the project qualifies for Class 1 and Class 2 Categorical Exemptions pursuant to Section 15301(d) (Existing Facilities) and Section 15302(c) (Replacement or Reconstruction) of the CEQA State Guidelines. Consistent with Section 15301(d), the proposed project involves the restoration and rehabilitation of storm drains to meet current standards of public health and safety by lining existing storm drains. Consistent with Section 15302(c), the project involves the removal and replacement of existing storm drains involving negligible or no expansion of capacity. Thus, no further environmental review is necessary.
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 in the public street right-of-way 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 an existing debris screen and constructs a new storm drain cleanout.
The Contractor will be allowed to perform work at night to reduce traffic congestions within business areas of the City during the day. Night work within residential neighborhoods will not be allowed.
On October 28, 2016, Public Work staff advertised the annual “Storm Drain Rehabilitation FY 16/17 at Various Locations in the City of Chula Vista (DR206)” project. The apparent low bidders were contingent upon a base bid total of all proposed locations. The bids from the four (4) Contractors are as follows:
|
NO. |
CONTRACTOR |
BID |
|
1 |
Sancon Engineering - Huntington Beach, CA |
$796,508.00 |
|
2 |
Nu-line Technologies - Encinitas, CA |
$831,000.00 |
|
3 |
Downstream Services - Escondido, CA |
$895,100.00 |
|
4 |
Insituform - Chesterfield, MO |
$958,433.00 |
The low bid submitted by Sancon Engineering Inc. is below the Engineer’s estimate of $1,042,100 by $245,592, or approximately 24%. Staff reviewed the low bid and determined that the bid package is complete, with no errors or omissions.
Additive bid items were also included in the bid proposal for the Project, but were not considered in determining the lowest responsive bidder. The additive bid items include improvements at additional locations and will require a similar rehabilitation strategy as the base bid items. The recommended contract award amount (cumulative total of the base bid and additive bid items amount) is summarized in the table below for each bid proposal (listed in numerical order of responsive base bid amount):
|
|
CONTRACTOR |
BASE BID AMOUNT |
ADDITIVE BID ITEMS |
CONTRACT AWARD AMOUNT |
|
1 |
Sancon Engineering |
$796,508.00 |
$71,721.00 |
$868,229.00 |
|
2 |
Nu-line Technologies |
$831,000.00 |
$107,460.00 |
$938,460.00 |
|
3 |
Downstream Services |
$895,100.00 |
$128,840.00 |
$1,023,940.00 |
|
4 |
Insituform |
$958,433.00 |
$83,827.00 |
$1,042,260.00 |
Staff recommends awarding the contract to Sancon Engineering Inc. in the amount of $868,229. Sancon Engineering Inc. is a licensed General Engineering Contractor (License No. 731797). 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 $63,776. Approval of the resolution would increase the Director of Public Works’ authority to approve change orders, as necessary, up to the contingency amount of $226,771, an increase of $162,995 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
The Contractor that is awarded the contract and its subcontractors are required to pay prevailing wages to persons employed by them for work under this contract. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California.
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 2016/2017 at various locations in the City of Chula Vista (DR206)” 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 protects 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 DR206 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 |
$868,229 |
|
B. Contract Contingency (26%) |
$ 226,771 |
|
C. Construction Inspection Staff Cost |
$ 225,000 |
|
D. Design & Survey Support, Geotechnical |
$ 50,000 |
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TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$1,370,000 |
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require routine maintenance.
ATTACHMENTS
Attachment 1 - Contractor’s Disclosure Statement
Staff Contact: Tim Jones, Assistant Civil Engineer