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HomeMy WebLinkAboutItem 09b - Sewer Main Replacement ProgramSewer Main Replacement Program March 7, 2023 Page 1 of 3 DATE: March 7, 2023 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Michael Kwok, Associate Civil Engineer SUBJECT: CONTRACT WITH KORDICH CONSTRUCTION, INC. FOR THE SEWER MAIN REPLACEMENT PROGRAM IN THE AMOUNT OF $570,650 CEQA: Exempt Recommendation: Approve SUMMARY The City of Arcadia’s 2022 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 Santa Anita Avenue between Palm Drive and Live Oak Avenue needs to be replaced in order to accommodate peak sewer flows. The Fiscal Year 2022- 23 Capital Improvement Program budget allocates funding to replace the existing 8-inch sewer pipe with a 10-inch sewer pipe at this location to accommodate future sewer demands and alleviate the potential of a sewer backup. To ensure that the City is receiving the most competitive prices and quality service for this work, a formal bid was conducted and Kordich Construction, Inc. submitted the lowest responsive bid. It is recommended that the City Council approve, authorize, and direct the City Manager to execute a Contract with Kordich Construction, Inc. for the Sewer Main Replacement Program in the amount of $570,650, with 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 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. Sewer Main Replacement Program March 7, 2023 Page 2 of 3 The City of Arcadia’s 2022 Sewer Master Plan Study identified sections of sanitary sewer pipe on Santa Anita Avenue as inadequate in accommodating the current high demand flows and at risk of sewer overflows. The existing 8-inch sewer pipe along Santa Anita Avenue between Palm Drive and Live Oak Avenue needs to be replaced with a 10-inch sewer pipe to alleviate the potential of a sewer backup. In-ground pipe bursting will be used to replace the existing 8-inch pipe, which will reduce the excavation required to replace the existing sewer pipe as well as reduce the disruption to traffic along Santa Anita Avenue and Live Oak Avenue. The project also includes repairing the street surface. The work is anticipated to begin in May 2023 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 January 19, 2023, the City Clerk received seven bids with the following results: Bidder Location Bid Amount Kordich Construction Inc. Cypress, CA $ 570,650.00 Bonadiman Water Inc. Riverside, CA $ 619,500.00 Vasilj, Inc. Irwindale, CA $ 625,575.00 GRBCON, Inc. Baldwin Park, CA $ 637,141.00 Tomovich & Associates Pico Rivera, CA $ 727,250.00 MNR Construction, Inc. La Verne, CA $ 773,270.00 Ramona, Inc. Baldwin Park, CA $ 774,000.00 All bid documents were reviewed for content and the contractor’s background was investigated. Based on that review, it has been determined that Kordich Construction, Inc. is the lowest responsive bidder. Kordich Construction, Inc. is qualified to complete the project as defined in the bid documents and has successfully completed similar projects on time and within budget for the Cities of Los Angeles, Garden Grove, and West Hollywood. 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 $750,000 have been budgeted in the FY 2022-23 Capital Improvement Program for the Sewer Main Replacement Program. The total construction Sewer Main Replacement Program March 7, 2023 Page 3 of 3 cost for this project is $570,650. A 10% construction contingency would bring the total cost to $627,715, which is still within the adopted budget. RECOMMENDATION It is recommended that the City Council determine 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”); and approve, authorize, and direct the City Manager to execute a contract with Kordich Construction, Inc. for the Sewer Main Replacement Program in the amount of $570,650, plus a 10% construction contingency. Attachments: Exhibit “A” - Project Location Map Proposed Contract CITY OF ARCADIA SEWER MAIN REPLACEMENT PROGRAM PROJECT NO.: 33861523 BETWEEN CITY OF ARCADIA AND KORDICH CONSTRUCTION, 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 Kordich Construction, 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.: 33861523 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 FIVE HUNDRED SEVENTY THOUSAND, SIX HUNDRED FIFTY DOLLARS AND NO CENTS ($570,650.00). 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 KORDICH CONSTRUCTION, 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