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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 Page 2 of 3 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 Page 3 of 3 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