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Home My WebLink About2011/12/13 Item 11 CITY CDU NCI L AGENDA STATEMENT _~~ ~,~. ~~ ,..~~ ~ CITY OF CHULA VISTA 12/13/11, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "SEWER REHABILITATION PROGRAM, FY 09/10 AND FY 10/11 AT VARIOUS LOCATIONS (SW260/SW268)" PROJECT TO BURTECH PIPELINE, INC. IN THE AMOUNT OF $728,014 AND .AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO APPROVE CHANGE ORDERS UP TO THE CONTINGE OUNT OF $85,000 SUBMITTED BY: DIRECTOR OF PUBLIC WO ASSISTANT DIRECTOR OF ENGINE REVIEWED BY: CITY MANAGER ,~ ASSISTANT CITY ANAGER ~ 4/STHS VOTE: YES ^ NO SUMMARY On November 16, 2011, the Director of Public Works received two (2) sealed bids for the "Sewer Rehabilitation Program, FY 09/10 and FY 10/11 at various locations (SW260/SW268)" project. The project will replace existing broken sewer mains and laterals, repair cracked sewer lines and lateral connections via lining, replace and/or line sewer manholes, and replace asphalt concrete pavement at various locations throughout the City. The proposed action, if approved, would award a public works contract to Burtech Pipeline, Inc. and authorize the Director of Public Works to approve change orders up to the contingency amount of $85,000. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed sewer rehabilitation program for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project qualifies for a Class 1 [b] categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the project proposal consists of replacement or rehabilitation of existing deteriorated and damaged sewer mains, laterals and appurtenances with similar size and capacity sewer mains and laterals resulting in no increase in wastewater capacity .Thus, no further CEQA environmental review is necessary. 1 1-1 12/13/11, Item l Page 2 of 4 RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Based on the results of compiled data inspections, including those performed with a closed circuit television camera, a number of manholes and sewer mains have been identified by the Public Works Department as requiring replacement and/or rehabilitation. Some sections of pipe are cracked and need to be replaced, repaired, or relined to prevent groundwater infiltration or the leaching of raw sewage into the ground. The general scope of the project involves the replacement of existing broken sewer mains and laterals, the installation of pipe liner to repair cracked sewer lines and lateral connections and the replacement of and/or the lining of sewer manholes. The locations and types of work to be preformed are detailed in Plats 1 through 20 (Attachment 1). The method used for the rehabilitation of the City's sewer mains and laterals employs an industry standard practice known as cured-in-place pipe (CIPP) liner. This rehabilitation process restores the integrity of the sewer main and prevents the infiltration of ground water and/or ex-filtration of raw sewage into surrounding soils. The method of rehabilitation utilized also prevents roots from penetrating the sewer main, which can damage the sewer pipe, as well as block sewage flow. While the CIPP liner is referred to as a trenchless method of rehabilitation, digging into the pavement within certain areas of the City cannot be entirely avoided. It may become necessary for the Contractor to open the street and trench down to perform "point" repairs at specific locations prior to installation of the CIPP liner. This project includes rehabilitation of sewer mains within both residential and non-residential streets. Under this contract, the Contractor will be allowed to perform work at night to reduce traffic congestion within business areas of City during the day, and night work within residential neighborhoods will not be allowed. On November 16, 2011, the Director of Public Works received the following bids: CONTRACTOR BID AMOUNT 1. Burtech Pipeline, Inc. -Encinitas, CA $728,014 2. Charles King Company, Inc. -Signal Hills, CA $739,809 The low bid by Burtech Pipeline, Inc. of $728,014 is $165,975 (19%} below the Engineer's estimate of $893,989. The Engineer's estimate was based on average prices for similar types of work completed during the last two years. Burtech Pipeline, Inc. has completed several capital improvement projects in the City and their work record has been satisfactory. Burtech Pipeline, Inc.'s Contractor's License No. 718202 is 11-2 12/13/11, Item Page 3 of 4 current and active. After reviewing the low bid, staff recommends awarding a contract to Burtech Pipeline, Inc. in the amount of $728,014. The proposed resolution would also authorize the Director of Public Works to approve change orders over and above existing policy limits. Under City Council Policy No. 574-01, if an individual change order causes the cumulative increase in change orders to exceed the Director's authority ("Maximum Aggregate Increase in Change Orders"), then City Council approval is required. The corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-O1 is $53,961. Approval of the proposed resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $85,000, an increase of $31,039 over that specified authorized amount in Policy No. 574-01. Increasing the Director of Public Works authority will allow staff to continue the project without delay should unforeseen circumstances resulting in increased project costs arise during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not used, then they will be returned to the project fund balance. Wage Statement The contractors who bid on this project were not required to pay prevailing wages to persons employed by them for the work performed under this project. No special minority or women- owned business requirements were necessary as part of the bid. However, a "Notice to Contractors" was sent to various trade publications in order to encourage disadvantaged businesses to bid on the project. Disclosure Statement Attached is a copy of the Contractor's Disclosure Statement (Attachment 2). DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that conflicts exist in that Mayor Cox and Council Member Steve Castaneda have property holdings within 500 feet of the boundaries of the properties which are part of this action. CURRENT YEAR FISCAL IMPACT There are sufficient Sewer Facility Replacement funds in the existing SW260 and SW268 CIP Projects as necessary to complete the sewer rehabilitation projects. FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $728,014 B. Contingencies (approximately 10% of Contract Cost) $85,000 C. Construction Inspection Staff Cost $65,000 D. Engineering Design, Survey, Public Works, Traffic Staff Cost $30,000 TOTAL ' $908,014 11-3 12/13/11, Item l ~ Page 4 of 4 ONGOING FISCAL IMPACT Upon completion of the project, the improvements will require only routine City sewer maintenance. ATTACHMENTS 1. Plats of work locations to be done 2. Disclosure Statement from Burtech Pipeline, Inc. 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"' ' I p ..~'' ~..Q- ~` -r H '`--r ~' ~ ~cfi " ~~-r,~c~~T ~ CITY Old CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy ]Ol-O1, prior to any action upon matters that will require discretionary action by the Council, Funning Commission and al! other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application ar the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. OD~nt,~tcp~u~~ec Juli ~ Cju~}~~C~, ?, if any person* identified pursuant to (l) above is a corporation or partnership, list the names of all individuals with a $2000 in__vrrestment in die business (corporation/partnership) entity. Qp'(Y111'Yl G ~ U ~ ~' 8 C~ ~wlt e ~uY ~ec,C. ;. if any person* identified pursuant to (1}above is anon-profit or;anization or trust, list the names of any person servin; as director of the non-profit or;anization or as trustee or beneficiary or trustor of the trust. ~~ 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. flt7tY-1'ftiiC 'gUf}~ec~, 5. Has any person* associated with this contract had any financial dealings with an official** of the City of Chula Vista as it relates to this contract within the past 12 months? Yes No / 17 Q:\Fn_ineering\All Projects\S~'~~1S`'~'3G& Sewer Rehah 10_i t\Contract-Spec1SW263 Sewer Rehab Final.doc 11-25 If Yes, briefly describe the nature of the financial interest the official** may have in this contract. b. Have you made a contribution of more than $254 witltin the past hvelve (12) months to a current member of the Chula Vista City Council? No /Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an ofticial** of the City of Chula Vista in the past hvelve {I Z) months? (This includes being a source of income, money to retire a legal debt, Dirt, loan, etc.) Yes _ No / If Yes, which official** and what vas the nature of item provided? Date: ~ ~ ~ ~ l Sign of Contractor/Applicant 7 c~~iwtG~~td ~~( Frint or type name ofContractor/Applicant * Person is defined as: any individual, firm, ca-partnership, joint venture, association, social club, fratental organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other Droup ar combination acting as a unit. ** Official includes, but is not limited ta: Mayor, Council member, PlanninD Commissioner, Member of a board, commission; or committee of the City, employee, or staff members. i8 Q:1En~ineering\all ProjectslS~1~'tSti~f268 Se„•cr Rehab 1 o_111Contract-Spec\S1v368 Sewer Rehab Final.doc 11-26 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "SEWER REHABILITATION PROGRAM, FY 09/10 AND FY 10/11 AT VARIOUS LOCATIONS (SW260/SW268)" PROJECT TO BURTECH PIPELINE, INC CALIFORNIA IN THE AMOUNT OF $728,014 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO APPROVE CHANGE ORDERS UP TO THE CONTINGENCY AMOUNT OF $85,000 WHEREAS, on November 16, 2011, the Director of Public Works received two (2) sealed bids for the "Sewer Rehabilitation Program, FY 09/10 and FY 10/11 at various locations (SW260/SW268)"; and WHEREAS, the work to be done consists of the replacement of existing broken sewer mains and laterals, the installation of pipe liner to repair cracked sewer lines and lateral connections, the replacement of and/or the lining of sewer manholes, trenching, and asphalt concrete pavement; and WHEREAS, the Director of Public Works received two (2) bids as follows: CONTRACTOR BID AMOUNT Burtech Pipeline, Inc. -Encinitas, CA $728,014 Charles King Company, Inc. -Signal Hills, CA $739,809 WHEREAS, the low bid by Burtech Pipeline, Inc. of $728,014 is $165,975 (19%) below to Engineer's estimate of $893,989; and WHEREAS, Burtech Pipeline, Inc.'s Contractor's License No. 718202 is current and active; and WHEREAS, Burtech Pipeline, Inc. has completed several capital improvement projects in the City and their work has been satisfactory; and WHEREAS, staff has reviewed the low bid and recommends awarding the contract to Burtech Pipeline, Inc. in the amount of $728,014; and WHEREAS, in order to approve change orders as necessary, staff is requesting City Council waive Council Policy No. 574-01. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does award the contract for the "Sewer Rehabilitation Program, FY 09/10 and FY 10/11 at 11-27 Resolution No. Page 2 various locations in the City of Chula Vista, California (SW260/SW268)" project to Burtech Pipeline, Inc., in the amount of $728,014. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby waive Council Policy 574-01 and authorize the Director of Public Works to approve change orders, as necessary, up to the contingency amount of $85,000. Presented by Richard A. Hopkins Director of Public Works 11-28