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RESOLUTION NO. 2016-167 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; AWARDING A CONTRACT FOR THE “MAX FIELD PUMP STATION RECONSTRUCTION PROJECT (CIP NO. SW278)” TO JUST CONSTRUCTION, INC. IN THE AMOUNT OF $398,631; APPROPRIATING $320,000 FROM THE SEWER FACILITY REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROJECT SW278; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $60,000 (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
recommended action
Council adopt the resolution.
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SUMMARY
On June 29, 2016, the Director of Public Works received seven (7) sealed bids for the “Max Field Pump Station Reconstruction (CIP No.SW278)” project. The project consists of the replacement of an existing sewage pump station and the installation of a dual force main and gravity main sewer.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and/or Section 15303 Class 3 (New Construction or Conversion of Small Structures).
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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 Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and/or Section 15303 Class 3 (New Construction or Conversion of Small Structures). Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Max Field Pump Station currently serves Max Field/ Rienstra Park Little League baseball field and is in need of replacement and upsizing. The existing pump station was built during the 1970’s and does not meet the current standard. The existing pump easily clogs and the existing 2-inch ABS force main that crosses an environmental sensitive area has failed several times endangering accidental discharge to this sensitive area. This Reconstruction Project involves the removal and disposal of the existing sewage pump station, abandonment of the existing force main, construction of new sewage pump station including a chain link fence enclosure, and the installation of a dual force main and gravity main sewer. Engineering staff prepared the contract documents and advertised the project on June 3, 2016.
On June 29, 2016, the Director of Public Works received seven (7) sealed bids as follows:
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Contractor |
Bid Amount |
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Just Construction, Inc. - San Diego, California |
$398,631.00 |
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Willkom Inc. - National City, California |
$476,562.00* |
|
Mode Engineering - Laguna Niguel, California |
$478,650.00 |
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A.B. Hashmi, Inc. - San Diego, California |
$479,475.00 |
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Blue Pacific Engineering & Construction - San Diego, California |
$497,100.00 |
|
Charles King Company, Inc. - Signal Hill, California |
$597,275.00 |
|
NEWest Construction Company, Inc. |
$663,239.00 |
*The second bid proposal contained a mathematical error and incomplete documents. Corrections of bid totals did not change the outcome and ranking of the bids.
The low bid submitted by Just Construction, Inc. is above the Engineer’s estimate of $393,500 by $5,131 (approximately 1.30%).
Just Construction, Inc. is currently an active licensed Class A, General Engineering Contractor (License No. 968910) and has performed similar work in the City with satisfactory performance. Staff has reviewed Just Construction, Inc. bid and determined it to be responsive. In addition, all companies associated with this contract are registered as public works contractors with the California Department of Industrial Relations. Therefore, staff recommends awarding the SW278 project contract to Just Construction, 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 $30,904.17. Approval of the resolution would increase the Director of Public Works authority to approve change orders, as necessary, up to contingency amount of $60,000.00 (approximately 15% of contract), an increase of $29,095.83 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 1 is a copy of the Contractor’s Disclosure Statement.
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 properties, which are the subject of these actions. 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 Max Field Pump Station Reconstruction project supports the Healthy Community and Strong and Secure Neighborhoods Strategic Goal as it improves safety and health to the residents as well as creates appealing communities to live, work and play.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will award a contract for the Max Field Pump Station Reconstruction Project and appropriate $320,000 from Sewer Facility Replacement Funds to SW278. Sufficient Sewer Facility Replacement Funds are available for said appropriation. The table below summarizes the anticipated project costs and the funding sources:
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FUNDS REQUIRED FOR CONSTRUCTION |
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A. Contract Amount |
$398,631.00 |
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B. Contingency (Approximately 15% of contract) |
$60,000.00 |
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C. Construction Inspection, Design and Land Survey Staff Costs |
$100,000.00 |
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D. Material Testing |
$12,716.00 |
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TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$571,347.00 |
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Funding Source |
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Sewer Facility Replacement Fund |
$251,347.00 |
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Sewer Facility Replacement Fund (Appropriation) |
$320,000.00 |
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Total Funding |
$571,347.00 |
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require routine City maintenance.
ATTACHMENTS
1. Contractor’s Disclosure Statement
Staff Contact: Patrick C. Moneda, Senior Civil Engineer