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HomeMy WebLinkAboutItem 10k - Sewer Main Replacement Program STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: August 19, 2025 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Michael Kwok, Associate Civil Engineer SUBJECT: REJECT LOW BID FROM ALL CITIES ENGINEERING, INC., AND AWARD A CONTRACT TO RAMONA, INC. FOR THE SEWER MAIN REPLACEMENT PROGRAM IN THE AMOUNT OF $865,000, WITH A 10% CONTINGENCY CEQA: Exempt Recommendation: Approve SUMMARY The Fiscal Year 2024-25 Capital Improvement Program Budget allocates funding to replace the existing 10-inch sewer pipe with a 12-inch sewer pipe, on Santa Anita Avenue between Christina Street and Camino Real Avenue, to accommodate future sewer demands and alleviate potential sewer spills. To ensure that the City receives the most competitive price and quality service for this work, a formal bid was conducted, with All Cities Engineering, Inc. submitting the lowest bid. During the bid evaluation process, it was discovered that All Cities Engineering, Inc., did not properly fill out the List of Subcontractors Form or provide evidence of the necessary experience to perform the work. As a result, it was determined that All Cities Engineering, Inc.’s bid is non-responsive and should be rejected. Ramona, Inc. was the second lowest bidder and their bid proposal was determined to be responsive. It is recommended that the City Council reject the low bid from All Cities Engineering, Inc., 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 $865,000, with a 10% contingency. Award Sewer Main Replacement Program August 19, 2025 Page 2 of 4 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. The City of Arcadia’s 2022 Sewer Master Plan (“SMP”) Study identified and prioritized sections of sanitary sewer pipe that are flowing at, or above, design capacity. Sections of sanitary sewer pipe on Santa Anita Avenue were identified as inadequate in accommodating the current high-demand flows. The additional flows generated by the anticipated developments on Santa Anita Avenue will place even more demand in the area, further increasing the risk of sewer spills. The existing 10-inch sewer pipe along Santa Anita Avenue, between Christina Street and Camino Real Avenue, needs to be replaced with a 12-inch sewer pipe to accommodate peak flows and alleviate the potential of a sewer backup. In-ground pipe bursting will be used to replace the existing 10-inch pipe. This process will reduce the excavation required to replace the existing sewer pipe and minimize the disruption to traffic along Santa Anita Avenue. The work is anticipated to begin in October, 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 accordance with City Council Resolution No. 7483, and bid packages were provided to contractors that perform this type of work. On June 10, 2025, the City Clerk received five bids with the following results: Award Sewer Main Replacement Program August 19, 2025 Page 3 of 4 Bidder Location Bid Amount___________ All Cities Engineering, Inc. Riverside, CA $ 769,000.00 Ramona, Inc. Baldwin Park, CA $ 865,000.00 Mike Prlich and Sons, Inc. Baldwin Park, CA $ 945,250.00 Kordich Construction Inc. Cypress, CA $ 1,035,389.00 GRBCON, Inc. Baldwin Park, CA $ 1,045,316.11 All bid documents were reviewed for content and All Cities Engineering, Inc. submitted the lowest bid. During the bid evaluation process, it was discovered that All Cities Engineering, Inc.’s bid did not list any projects that demonstrated their ability and experience to perform the required work. The bid specifications for this project requested a minimum of two comparable projects of similar size and scope, completed within the past three years. All Cities Engineering, Inc., was contacted 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 they also did not list all their subcontractors on the applicable form. Therefore, All Cities Engineering, Inc.’s bid should be considered non-responsive. As a result, the second lowest bidder, Ramona, Inc. is considered the lowest responsive bidder. The bid submitted by Ramona, Inc. was reviewed for content, and the contractor’s background was also investigated. Based on this review, it has been determined that Ramona, Inc. is the lowest responsive bidder and is qualified to complete the project as defined in the bid documents. Ramona, Inc. has successfully completed similar projects on time and within budget for the Cities of Garden Grove, Anaheim, 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 $1,350,000 have been budgeted in the FY 2024-25 Capital Improvement Program for the Sewer Main Replacement Program. The total Award Sewer Main Replacement Program August 19, 2025 Page 4 of 4 construction cost for this project is $865,000. A 10% construction contingency would bring the total cost to $951,500, which is within the adopted budget. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); reject the low bid from All Cities Engineering, Inc.; 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 $865,000, with a 10% contingency. Attachments: Exhibit “A” - Project Location Map Proposed Contract CITY OF ARCADIA SEWER MAIN REPLACEMENT PROGRAM PROJECT NO.: 33861625 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.: 33861625 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 EIGHT HUNDRED SIXTY- FIVE THOUSAND DOLLARS AND NO CENTS ($865,000.00). 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 RAMONA, INC. By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Michael J. Maurer City Attorney