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HomeMy WebLinkAboutItem 12h - Baldwin Avenue Sewer Capacity Improvement ProjectAward Baldwin Avenue Sewer Capacity Improvement Project July 21, 2020 Page 1 of 3 DATE: July 21, 2020 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Eddie Chan, P.E., Principal Civil Engineer SUBJECT: REJECT LOW BID FROM CEM CONSTRUCTION CORP. AND CONTRACT WITH GRBCON, INC. FOR THE BALDWIN AVENUE SEWER CAPACITY IMPROVEMENT PROJECT IN THE AMOUNT OF $424,465 Recommendation: Approve SUMMARY Based on the City’s Sewer Master Plan, the section of sewer pipe on Baldwin Avenue between Fairview Avenue and Duarte Road needs to be replaced in order to accommodate peak sewer flows. The Fiscal Year 2019-20 Capital Improvement Program budget allocates funding to replace the existing 12-inch sewer pipe with a 16-inch sewer pipe. To ensure that the City is receiving the most competitive price and quality service for this work, a formal bid was conducted and CEM Construction Corp. submitted the lowest bid. During the bid evaluation process, it was discovered that CEM Construction Corp. did not provide evidence of enough experience required to perform the work. As a result, it was determined that CEM Construction Corp. bid was non-responsive. GRBCON, Inc. was the second lowest bid received and their bid was determined to be responsive. It is recommended that the City Council reject the low bid from CEM Construction Corp., and approve, authorize, and direct the City Manager to execute a Contract with GRBCON, Inc. for the Baldwin Avenue Sewer Capacity Improvement Project in the amount of $424,465, including a 10% contingency. BACKGROUND In 2006, the State Water Resources Control Board adopted the Waste Discharge Requirement Program for all publicly-owned sanitary sewer collection systems in California with more than one mile of sewer pipeline. Under this program, the City was Award Baldwin Avenue Sewer Capacity Improvement Project July 21, 2020 Page 2 of 3 required to prepare and implement a Sewer System Management Plan (“SSMP”). The SSMP identifies routine preventative operation and maintenance activities that assist the City in achieving a goal of zero sewer system overflows. This is achieved through annual inspections, routine cleaning of the sewer pipes, repair of broken pipes, and replacement of pipes flowing above their design capacity. The City of Arcadia’s 2006 Sewer Master Plan Update identified sections of sanitary sewer pipe on Baldwin Avenue as inadequate in accommodating the current high demand flows and is at risk of experiencing sewer overflows. The existing 12-inch sewer pipe along Baldwin Avenue between Fairview Avenue and Duarte Road was installed in 1949 and is 71 years old. This section of sewer pipe will be replaced with a 16-inch sewer pipe to alleviate the potential of a sewer back up and overflow. In-ground pipe bursting will be used to replace the existing 12-inch pipe in order to reduce the excavation required to replace the existing sewer pipe as well as to reduce the disruption to traffic along Baldwin Avenue, Duarte Road, Arcadia Avenue, and Fairview Avenue. The work is anticipated to begin in August, and construction will take approximately two months to complete. A copy of the Project Location Map is shown on Exhibit “A”. DISCUSSION A Notice Inviting Bids was published in the City’s adjudicated newspaper, and bid packages were provided to contractors that perform this type of work. On June 2, 2020, the City Clerk received seven bids with the following results: Bidder Location Bid Amount___ CEM Construction Corp. Downey, CA $ 417,650 GRBCON, Inc. Baldwin Park, CA $ 424,465 Mike Prlich & Sons, Inc. Baldwin Park, CA $ 448,420 Kordich Construction, Inc. Cypress, CA $ 550,420 GRFCO, Inc. Brea, CA $ 579,400 MNR Construction, Inc. La Verne, CA $ 686,625 Ramona, Inc. Baldwin Park, CA $ 739,500 All bid documents were reviewed for content. CEM Construction Corp. submitted the lowest bid. Consequently, during the bid evaluation process, it was discovered that their bid did not list any projects which demonstrated that they had the ability and experience to perform the required work. CEM Construction Corp. was contacted after the bid opening and given another opportunity to provide evidence showing that they could perform the work. However, they were still unable to provide the requested evidence and were willing to withdraw their bid. As a result, the second low bidder, GRBCON, Inc. is considered the lowest responsive bidder. The bid submitted by GRBCON, Inc. was reviewed for content, and the Award Baldwin Avenue Sewer Capacity Improvement Project July 21, 2020 Page 3 of 3 contractor’s background was also investigated. Based on this review, it has been determined that GRBCON, Inc. is the lowest responsive bid, and is qualified to complete the project as defined in the bid documents. GRBCON, Inc. has successfully completed similar projects on time and within budget for the Cities of Norwalk, Bradbury, and Los Angeles. ENVIRONMENTAL ANALYSIS This project involves the replacement and minor alteration of an existing utility system with no expansion of the system and, therefore, qualifies as a Class 2 categorical exemption per Section 15302(c) of the California Environmental Quality Act. FISCAL IMPACT Funds in the amount of $750,000 have been budgeted in the Fiscal Year 2019-20 Capital Improvement Program for this project. The total cost for this project is $424,465. With the request of 10% construction contingency, the project cost would be $466,911.50, which is within the adopted budget. RECOMMENDATION It is recommended that the City Council determine the project to be categorically exempt pursuant to the requirements of the California Environmental Quality Act (“CEQA”), reject the low bid from CEM Construction Corp., and approve, authorize, and direct the City Manager to execute a contract with GRBCON, Inc. for the Baldwin Avenue Sewer Capacity Improvement Project in the amount of $424,465, including a 10% contingency. Attachments: Exhibit “A” - Project Location Map Proposed Contract Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of _______, 2020, by and between City of Arcadia, sometimes hereinafter called “City,” and GRBCON, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: Baldwin Avenue Sewer Capacity Improvement Project; Project No.: 33861820 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Four Hundred Twenty-Four Thousand, Four Hundred Sixty-Five Dollars and No Cents, ($424,465.00). Payment shall be made as set forth in the General Conditions. D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Performance Bond Contract - 2 Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Contract - 3 IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA By: ______________________________ Dominic Lazzaretto City Manager GRBCON, INC. By: _______________________________ Signature ________________________________ Print Name and Title Attest: By: ______________________________ City Clerk By: _______________________________ Signature _______________________________ Print Name and Title Approved as to Form: Stephen P. Deitsch City Attorney