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Home My WebLink About2012/09/11 Item 10CITY COUNCIL ~~ AGENDA STATEMENT ~`~~ CITY OF CHUTA VISTA 9/11/12, Item ITEM TITLE: PUBLIC HEARING TO CONSIDER WAIVING A MINOR MATHEMATICAL ERROR IN THE BID RECEIVED FOR THE "SEWER REHABILITATION WITHIN 'C' STREET AND NORTH FIFTH AVENUE PROJECT (SW252/SW257)", PER CITY CHARTER SECTION 1009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR, ACCEPTING BIDS, AND AWARDING A CONTRACT FOR THE "SEWER REHABILITATION WITHIN 'C' STREET AND NORTH FIFTH AVENUE (SW252/SW257)" PROJECT TO SOUTHWEST PIPELINE & TRENCHLESS CORP. IN THE AMOUNT OF $183,035, WAIVING CITY COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITU~R~E OF ALL AVAILABLE CONTINGENCY FUNDS IN AN ~OUNT NOT TO EXCEED $30,000 ~_ ~fbj~ SUBMITTED BY: DIRECTOR OF PUBLIC WO , ~(~' , / ASSISTANT DIRECTOR OF E GIN G ~ J,~~(.{/ REVIEWED BY: CITY MANAGER ST~- ~S ASSISTANT CITY MANAGER~j7~ 4/STHS VOTE: YES ^ NO SUMMARY On August 1, 2012, the Director of Public Works received three (3) sealed bids for the "Sewer Rehabilitation Project within 'C' Street and North Fifth Avenue in the City of Chula Vista, CA (SW252/SW257)" Project. The project will rehabilitate existing broken sewer main and laterals, repair cracked sewer lines, and rehabilitate existing manholes. The proposed action would: (a) waive a minor mathematical error; (b) awazd a public works contract to Southwest Pipeline & Trenchless Corp. in the amount of $183,035; (c) waive Council Policy 574-01; and, (d) authorize the Director of Public Works to approve change orders up to the contingency amount of $30,000. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 (b) categorical exemption pursuant to Section 15301 [Existing Facilities] of the State 10-1 9/11/12, Item /O Page 2 of 4 CEQA Guidelines because the proposed action consists of waiving minor mathematical errors in a bid received and accepting the bid to perform work consisting of replacement and/or repair of existing sewer line facilities resulting in no increase in wastewater capacity. Thus, no further environmental review is required. RECOMMENDATION Council adopt resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The "Sewer Rehabilitation Project within 'C' Street and North Fifth Avenue (SW252/SW257)" Project consists of the replacement of existing broken sewer mains and laterals, the installation of pipe lining to repair cracked sewer lines, the replacement of sewer access holes, trenching,. and asphalt concrete pavement and miscellaneous improvements, as necessary, to complete the Project. The locations and types of work to be done aze detailed in the location plats (Attachment 1). On August 1, 2012, the Director of Public Works received a total of three (3) bids for the project. The following table summazizes the bids received: CONTRACTOR TOTAL SUBMITTED BID 1 Southwest Pipeline &Trenchless Corp. - Torrance, CA $183,035* ($183,635 bid opening total) 2 Repipe California, Inc. -Ontario, CA $184,410 3 Burtech Pipeline, Inc. -Encinitas, CA $235,040 *The submitted bid proposal contained mathematical errors that did not affect the unit price, but affected the total bid amount. Correction of bid totals did not change the outcome and ranking of the bids. Staff reviewed the apparent low bid proposal in the amount of $183,635 submitted by Southwest Pipeline &Trenchless Corp. During review of Southwest Pipeline &Trenchless' bid proposal, staff found that the contractor had made a mathematical error that did not affect the unit price, but affected the total bid amount. The corrected grand total bid amount is $183,035, which is $6001ess than the total listed by the contractor for purposes of the bid opening. Southwest Pipeline &Trenchless Corp. has submitted a letter dated August 3, 2012 (Attachment 2) acknowledging their mathematical error and agreeing to the corrected total bid of $183,035. The low bid submitted by Southwest Pipeline &Trenchless Corp. is below the Engineer's estimate of $230,000 by about $46,965, or approximately 20%. Staff conducted a detailed check of references provided by the contractor and determined that the contractor has performed their work satisfactorily for those agencies referenced. The Contractor's License No. 773862 is current and active. Staff reviewed the low bid and determined the bid package is complete, with no errors or omissions, other than the above-mentioned minor mathematical error. Therefore, 10-2 9/11/12, Item /~°J Page 3 of 4 staff recommends waiving the minor mathematical error and awarding a contract in the amount of $183,035 to Southwest Pipeline & Trenchless Corp. 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. 574-01 is $13,712, based upon the base contract amount of $183,035. 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 $30,000, which is an increase of $18,712 over the limits set by Policy No. 574-01. Increasing the contingency amount would 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 are not required to pay prevailing wages to persons employed by them for the work performed under this project. 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 3). DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the properties which are the subj ect of this action. CURRENT YEAR FISCAL IMPACT A breakdown of the project construction costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION CONTRACT A. Base Contract Amount $183,035 B. Contract Contingencies $ 30,000 C. Construction Inspections Staff Costs $ 40,000 D. Design Su ort/Survey/Monument Preservation $ 15,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT $268,035 Sufficient funds are available in CIP project accounts SW252 and SW257 to complete the sewer rehabilitation projects. There is no direct fiscal impact to the General Fund as the Sewer Facility Replacement Fund provides funding for this project. 10-3 9/11/12, Item / C Page 4 of 4 ONGOING FISCAL IMPACT Upon completion of the project, the improvements will require only routine City sewer maintenance, which aze funded through the Sewer Service Fund; therefore, there are no ongoing impacts to the General Fund. ATTACHMENTS 1. Locations of Work Plats 2. Bid Correction Letter from Southwest Pipeline & Trenchless Corp. dated August 3, 2012 3. Disclosure Statement from Southwest Pipeline & Trenchless Corp Prepared by.' Baushra Salem, Senior Civil Engineer, Public Works-Engineering Department J: IEngineerlAGENDAICAS2012109-11-12VSW252-257Award Contract.doc 10-4 f 0 562-323-30 ~IAI.- T D1ZIV~ AY 491 C STREET ATTACF~Ni~NT I . _ _ . - y p 0 h Q ~ ~ ~~ I, V pdH~ 883 AJ?F~' 81~~ ~ AdH 985 ~ ~ - 562-324-20 75 BROADWAY liT ~~ ® ~ O °o ~.m cro FIFTH eQ VLc ItiH~, ~ i i26 ~ . _ .. , .. 142 ~w ti - ~ - ~- - - - ABANDONED MH ~ ~- 4 - ~ _ - - ( (FIFTH A l/E i y in m _-_ \ MH# lii9 q a o I ~ ° w ~ U 562-324-20 ~ 562-350-10 ~: 75 BROADWAY _ 501 C STREET ~ j / ~V ~"r~ PLAT 1 FfORg TO BB DONE: - APPR03i19.4TR t2-INC8 SR7IN2 MAdN L9IdBR = 109b L~ ®!y Q¢ - I1itl3 7 MANBOLE9 Q~'j~j~Q NORTB C+iPI'H AY&NOR BSRRR RBRABDTI'ATiON BEffTn'EPi °C° Sd'RBBT AND AAL-MART DRIV&BAY //SW257 J Q7 425 C STREET 562-323-13 TARGET SHOPPING CENTER ~ ~ HH~ 1047 li .STREET CVO 1007 &IH~ 986 .,m - - ~ e i '" ~ EXISTING 6 SEWER 2 J m S m m ~ COA9MUNlTY PARK 47 FIFTH AuE. EUCALYPTU 565-120-03 . j 491 C STREET 562-323-30 TARGET SHOPPING CENTER ~ j - r ,as C ST 4 T ~ i MHO 1119 i EE _, I arm My ~_ T '® -_ p ~ ®~ ~ ~ ~~ EUCALYPTUS COMII~UNITY PARK y ~I I 565-120-03 47 FIFTH A~/E. N U ~ j ~1 I 1 ~ $ ~`t/~ woRa 'ro as aoNE: ~. - APPROXffiATR LINIIR 1296 LP 10-RYCH SERER MAIN - SPOT RBPAHt AT MH g988 - MB p1007 PROM 6'-16' & Ia0'-150' ~ ~ A /\ Cdry~ -SPOT REPAIR AT ASH 01007 - MH X1047 PROM 6'-A5' L ~ ~~ - LINB 7 LATBliAi. CONNBCNON - 1 IdTRtt®L AYR-TEE coNNECf[oN - LINE 5 HANHOLES °C° 9TREBl' SEWER REHAHHITATION CIP SW252 BETWEEN FOURTH AVE AND FD7'N AVE # t Southwest E~pelane and Trenctaiens, Corp. 22118 South Bermont Ave. 'Il'orrance, CA 90502 Office: (310) 329.8717 Kirk P. Ammerman, PE Principal Civit Engineer City of Chula Vista Public Work -Engineering, 276 Fourth Avenue, BLDG #200 Chula Vista, CA 91910 Subject: Sewer Rehabiliwtion Project within C Street and North Fifth ltE: Final Bid Price Correction Dear Mr. Ammerman, Stit~;~S~~s~/.~ s ~ Fax: (310)329.0981 8/03/12 Southwest Pipetine and Trenchless Corp. is aware of the mistake in the Total Bid Price. Southwest will perform the project at the Unit Prices stated on the submitted bid, specifically Bid Item 5 Unit Price is $54i .00, which brings the Total Bid Price to $183,035.00. If you need anything else ptease let us know. Thank you d we look forwazd to working with the City. ~- Regazd ustin Duchaineau President 10-7 arrAC~~v-r- 3 CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all 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 nmst be disclosed: List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. NoN'= 2, ff any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. N I~ 3. If any person* identified pursuant to (1) above is a non-profit organization or tnut, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. Nowi= 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. NO1V ~. 5. Has any person* associated with this contract had any financiat dealines with an official*" of the City of Chula Vista as it relates to this contract within the past 12 months? Yes_ NoX 17 Q:\En~ neeringWll Projects\SV/15w2~7\Specs1SN252-257 Sewer Project 072012.doc ~~-$ If Yes, briefly describe the nature of the financial interest tk~e official** may have in this contract. 6. Have you made a contribution of more titan $250 wittun the past twelve (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 X340 (or an item of equivalent value) to an official*" of the City of Chula Vista in the past twelve {I2) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No ~( If Yes, which official** and what was the nature of item provided? _~^ 2o,Z ~' re of Contractor/Applicant SOUTHWESTP~EUNEAND JUSTn•t o ^UCHAINEAU PRESID:_ • ~ .' %~:aSURERIRMO '~G~CHLESS COAP SOUTH' • +• ~'F~rL~NE ANp print or type name of Contractor/Applicant TREIaCr+[.ES~ CORP. Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. *~ Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committze of the Ciry, employee, or staff mzmbzrs. 18 Q:1En~ineering~A]l ProjectstSAt\SW257~SpecslSW252-257 Sewer Project 07201?.doc X0_9 RESOLUTION NO. 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR, ACCEPTING BIDS, AND AWARDING A CONTRACT FOR THE "SEWER REHABILITATION WITHIN 'C' STREET AND NORTH FIFTH AVENUE (SW252/SW257)" PROJECT TO SOUTHWEST PIPELINE & TRENCHLESS CORP. IN THE AMOUNT OF $183,035, WAIVING CITY COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $30,000 WHEREAS, on August 1, 2012, the Director of Public Works received three (3) sealed bids for the "Sewer Rehabilitation Project within 'C' Street and North Fifth Avenue in the City of Chula Vista, CA (SW252/SW257)" Project; and WHEREAS, the work to be done consists of the replacement of existing broken sewer mains and laterals, the installation of pipe lining to repair cracked sewer lines, the replacement of sewer access holes, trenching, and asphalt concrete pavement and miscellaneous improvements, as necessary, to complete the Project; and WHEREAS, Director of Public Works received a total of three (3) bids as follows: CONTRACTOR TOTAL SUBMITTED BID 1 Southwest Pipeline &Trenchless Corp. - Torrance, CA $183,035* ($183,635 Bid opening total) 2 Repipe California, Inc. -Ontario, CA $184,410 3 Burtech Pipeline, Inc. -Encinitas, CA $235,040 *The submitted bid proposal contained mathematical errors that did not aYYect the unit price, but attected the total bid amount. Correction of bid totals did not change the outcome and ranking of the bids. WHEREAS, staff reviewed the apparent low bid proposal in the amount of $183,635 submitted by Southwest Pipeline &Trenchless Corp. During review of Southwest Pipeline & Trenchless' bid proposal, staff found that the contractor had made a mathematical error that did not affect the unit price, but affected the total bid amount. The corrected grand total bid amount is $183,035, which is $600 less than the total listed by the contractor for purposes of the bid opening; and WHEREAS, Southwest Pipeline &Trenchless Corp, has submitted a letter dated August 03, 2012 acknowledging their mathematical error and agreeing to the corrected total bid of $183,035, and 10-10 Resolution No. Page 2 WHEREAS, the low bid by Southwest Pipeline &Trenchless Corp. of $183,035 is $46,965 (20%) below the Engineer's estimate of $230,000; and WHEREAS, Southwest Pipeline &Trenchless Corp. Contractor's License No. 773862 is current and active; and WHEREAS, Staff conducted a detailed check of references provided by the contractor and determined that the contractor has performed their work satisfactorily for those agencies referenced; and WHEREAS, staff has reviewed the low bid and determined the bid package is complete, with no errors or omissions, other than the above-mentioned minor mathematical error, and recommends awarding the contract to Southwest Pipeline &Trenchless Corp. in the amount of $183,035; and WHEREAS, in order to approve change orders as necessary; staff is requesting City Council waive Council Policy No. 574-O1. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive a minor mathematical error, accept bids, and award a contract for the "Sewer Rehabilitation Project within 'C' Street and North Fifth Avenue in the City of Chula Vista, CA (SW252/SW257)"" project to Southwest Pipeline &Trenchless Corp., in the amount of $183,035. 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 $30,000. Presented by as to Richard A. Hopkins Director of Public Works 10-11