HomeMy WebLinkAboutItem 12e - Sewer Main Replacement ProgramSewer Main Replacement Program
October 19, 2021
Page 1 of 3
DATE: October 19, 2021
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Eddie Chan, P.E., Principal Civil Engineer
SUBJECT: RELIEVE LOW BIDDER OF BID DUE TO ITS CLERICAL ERROR AND
APPROVE CONTRACT WITH SECOND LOW BIDDER ROMONA, INC.
FOR THE SEWER MAIN REPLACEMENT PROGRAM IN THE AMOUNT
OF $958,400, WITH A 10% CONTINGENCY
Recommendation: Approve
SUMMARY
The City of Arcadia’s 2006 Sewer Master Plan study identified and prioritized sections of
sanitary sewer pipe that are flowing at or above design capacity. Based on the study, the
section of sewer pipe on Duarte Road between Baldwin Avenue and the connection point
to the Los Angeles County Sanitation District (“LACSD”) sewer trunk pipe at Holly Avenue
needs to be replaced in order to accommodate future sewer demands. The Sewer Main
Replacement Program, identified as part of Fiscal Year 2021-22 Capital Improvement
Program budget, allocates funding to replace the existing 12-inch sewer pipe with a 16-
inch sewer pipe at this location to accommodate future sewer demands and alleviate the
potential of a sewer back up. To ensure that the City is receiving the most competitive
prices and quality service for this work, a formal bid was conducted and Vasilj, Inc.
submitted the lowest bid. Within three days of the bid opening and within the five working
day statutory limit, Vasilj, Inc. requested that they be relieved of their bid due to a clerical
error on their bid. Ramona, Inc. was the second lowest bid received and their bid was
determined to be responsive.
It is recommended that the City Council grant relief to low bidder Vasilj, Inc., pursuant to
Public Contract Code Section 5100, et seq., and approve, authorize, and direct the City
Manager to execute a Contract with Ramona, Inc. for the Sewer Main Replacement
Program in the amount of $958,400, with a 10% contingency.
BACKGROUND
The City of Arcadia’s 2006 Sewer Master Plan study identified sections of sanitary sewer
pipe on Duarte Road as inadequate in accommodating the current high demand flows
and at risk of experiencing sewer overflows. The existing 12-inch sewer pipe along Duarte
Road between Baldwin Avenue and the connection point to the LACSD sewer trunk pipe
Sewer Main Replacement Program
October 19, 2021
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at Holly Avenue needs to be replaced with a 16-inch sewer pipe to alleviate the potential
of a sewer back up.
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 Duarte Road, Baldwin Avenue, and Holly Avenue. The project
also includes repairing the street surface. The work is anticipated to begin in December
2021, and construction will take approximately three 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 September 8,
2021, the City Clerk received five bids with the following results:
Bidder Location Bid Amount____
Vasilj, Inc. Irwindale, CA $ 812,050
Ramona, Inc. Baldwin Park, CA $ 958,400
GRBCON, Inc. Baldwin Park, CA $ 1,038,602
Aid Builders, Inc. Los Alamitos, CA $ 1,089,500
MNR Construction, Inc. La Verne, CA $ 1,193,880
All bid documents were reviewed for content. Vasilj, Inc. submitted the lowest bid;
however, within three days of the bid opening, and in compliance with the California relief
of bidder statue, Vasilj, Inc. requested their bid to be withdrawn due to a clerical error on
their bid. Pursuant to Public Contract Code Section 5100, et seq., it is recommended that
the City Council grant relief to the low bidder. The City has previously successfully worked
with Vasilj, Inc. on many occassions; therefore, the claim of a simple clerical error seems
reasonable here. Ramona, Inc. was the second lowest bid received and has been
determined to be qualified to perform the work as defined in the bid documents. Ramona,
Inc. has successfully completed similar projects on time and within budget for the Cities
of Garden Grove, Villa Park, and Arcadia.
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(2) of the California Environmental Quality Act (“CEQA”).
FISCAL IMPACT
Funds in the amount of $1,200,000 have been budgeted in the FY 2021-22 Capital
Improvement Program for the Sewer Main Replacement Program. The total construction
Sewer Main Replacement Program
October 19, 2021
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cost for this Project is $958,400. A 10% construction contingency would bring the total
cost to $1,054,240, which is within the adopted budget.
RECOMMENDATION
It is recommended the City Council determine that this project constitutes a minor
alternation to an existing utility system with no expansion of the system and, therefore,
qualifies as a Class 2 categorical exemption under the California Environmental Quality
Act (“CEQA”); relieve low bidder due to its clerical error, and approve, authorize, and
direct the City Manager to execute a contract with Romona, Inc. for the Sewer Main
Replacement Program in the amount of $958,400, with a 10% contingency.
Attachment: Exhibit “A” - Project Location Map
Proposed Contract
CITY OF ARCADIA
SEWER MAIN REPLACEMENT PROGRAM
PROJECT NO.: 33861522
BETWEEN
CITY OF ARCADIA
AND
RAMONA, INC.
CONTRACT
Contract - 1
CONTRACT FOR THE
CITY OF ARCADIA
This CONTRACT, No. ________ is made and entered into this ____ day of _____________,
______, by and between City of Arcadia, sometimes hereinafter called “City,” and Ramona, 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:
Sewer Main Replacement Program
Project No.: 33861522
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 90 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 NINE HUNDRED FIFTY-
EIGHT THOUSAND, FOUR HUNDRED DOLLARS AND NO CENTS ($958,400.00). 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
Contract - 2
Performance Bond
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
RAMONA, 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