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Home My WebLink About2013/04/23 Item 08CITY COUNCIL ~I~ AGENDA STATEMENT ~~~ CITY OF ~'~~ CHULAVISTA 4/23/2013, Item ITEM TITLE: PUBLIC HEARING TO CONSIDER WAIVING A MINOR MATHEMATICAL ERROR IN THE BID RECEIVED FOR THE "MOSS STREET SEWER IMPROVEMENTS AT RAILROAD CROSSING (SW272)" PROJECT 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 "MOSS STREET SEWER IMPROVEMENTS AT RAILROAD CROSSING (SW272)" PROJECT TO RMV CONSTRUCTION INC. IN THE AMOUNT OF $224,400, WAIVING CITY COUNCIL POLICY 574-01 AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FIN AN AMOUNT NOT TO EXCEED $60,000 SUBMITTED BY: DIRECTOR OF PUBLIC WORK `` ~~ ASSISTANT DIREC OF ENGINEERING ~~V ~..~ REVIEWED BY: SUMMARY CITY MANA ASSISTANT CITY ANAGER ~~ 4/STHS VOTE: YES ^ NO On April 3, 2013, the Director of Public Works received nine (9) sealed bids for the "Moss Street Sewer Improvements at Railroad Crossing (SW272)" Project. The work to be done consists of the replacement of approximately 265 feet of 10-inch vitrified clay pipe (VCP) with 12-inch PVC sewer pipe within Moss Street and Industrial Boulevazd. The proposed resolution, if approved, would: (a) waive a minor mathematical error; (b) awazd a public works contract to RMV Construction, Inc. in the amount of $224,400; (c) waive Council Policy 574-01; and, (d) authorize the Director of Public Works to approve change orders up to the contingency amount of $60,000. 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 2 (c) categorical exemption pursuant to Section 15302 (Replacement or Reconstruction) of the State CEQA Guidelines because the project consists of replacement of an undersized 10-inch sewer line with atwelve-inch sewer line. The existing ten-inch sewer line is presently fed by a 12 inch sewer line and connects downstream to a 15-inch sewer line. Therefore, no increase in sewer capacity is proposed. Thus, no further environmental review is required. 8-1 4/23/2013, Item_~ Page 2 of 4 RECOMMENDATION Council conduct the public hearing and adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The "Moss Street Sewer Improvements at Railroad Crossing (SW272)" Project consists of the replacement of approximately 265 feet of 10-inch vitrified clay pipe (VCP) with 12-inch PVC sewer pipe within Moss Street and Industrial Boulevard. The work includes open-trench construction, jack-and-bore construction below existing railway, sewer line and manhole improvements, asphalt concrete pavement, removal and disposal of existing improvements, traffic control, other miscellaneous work, and all labor, material, equipment, and transportation necessary for the project, and as described in the contract documents. On April 3, 2013, the Director of Public Works received a total of nine (9) bids for the project. The following table summarizes the bids received: CONTRACTOR TOTAL SUBMITTED BID 1 RMV Construction, Inc. -San Diego, CA $224,400* ($230,400 on final bid ro osal 2 Grfco Inc. -Moreno Valley, CA $242,450 3 MJC Construction, Ina -Bonita, CA $280,200 4 Piperin Corporation -San Marcos, CA $289,800 5 Just Construction -San Diego, CA $295,000 6 Blue Pacific Engineering & Construction- San Diego, CA $309,100 7 Transtar Pipeline Inc. -San Diego, CA $354,200 8 El Cajon Grading & Engineering Co. -Lakeside, CA $367,510 9 Schilling Paradise Inc. - El Cajon, CA $384,5 ] 0 *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 $230,400 submitted by RMV Construction Inc. During review of the RMV Construction bid proposal, staff found the contractor made a mathematical error that did not affect the unit price, but affected the total bid amount. The corrected grand total bid amount is $224,400, which is $6,000 less than the total listed by the contractor in his original proposal. RMV Construction Inc. has submitted a letter dated Apri14, 2013 (Attachment 1) acknowledging their mathematical error and agreeing to the lower corrected total bid of $224,400. The low bid submitted by RMV Construction Inc. is below the Engineer's estimate of $290,000 by $65,600, or approximately 23%. RMV Construction, Inc. has satisfactorily performed 8-2 4/23/2013, Item 2 Page 3 of 4 construction projects of similar scope for the City in the past. RMV Construction, Inc. is a licensed General Engineering Contractor. Their License No. 892389 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, staff recommends waiving the minor mathematical error and awarding a contract in the amount of $224,400 to RMV Construction, Inc. 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 $18,708, based upon the base contract amount of $224,400. 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 $60,000, which is an increase of $41,292 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. Wade 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 2). 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 subject of this action. Staff is not independently aware, nor has staff been informed by any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT A breakdown of the project construction costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION CONTRACT A. Base Contract Amount $224,400 B. Contract Contingencies $ 60,000 C. Construction Inspections Staff Costs $ 40,000 D. Desi n Su por[/Survey/Monument Preservation $ 10,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT $334,400 8-3 4/23/2013, Item ~L' Page 4 of 4 Sufficient funds aze available in CIP project account SW272 to complete the Moss Street Sewer Improvements at Railroad Crossing Project. There is no direct fiscal impact to the General Fund as the Sewer Facility Replacement Fund provides funding for this project. 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 aze no ongoing impacts to the General Fund. ATTACHMENTS 1. Bid Correction Letter from RMV Construction, Inc. dated Apri14, 2013 2. Disclosure Statement from RMV Construction, Inc. Prepared by: Boushra Salem, Senior Civil Engineer, Public Works Department -Engineering J: IEngineerlAGENDAICAS2073104-23-131SW272 Award CASdocz 8-4 ATTACHMENT ~ ~~a~2 ®, RMVCONSTRUCTIbN 0 Data-04! 04/ 2013 Project Number• SW272 Project Name- Moss St. Sewer Improvements Mr, William Valle, RMV Construction Inc, acknowledges the bid discrepancy on item #2 of the submitted bid. We agree with the $20 per LF inr shoring, and agree to the lower grand total of $224,400.00. We would like to proceed with the award process. Thanks for your cooperation and we look forward to working. with you. If you have any questions or concerns please feel free to give ma a call. Sincerely, Mike Vasil President/CEO X r 4079 HuerFano Ave, Suite 118 • San Diego California 92117 858-581-3488 PHONE * 858-769-0272 FAX California license #892389 8-5 Specs.pdf http://onlineplanservice. com/bidding/SDDT263 59/Specs/Spec s, pdf ATTACHMENT "a `t 5'~a~-2 CITY OF CIiULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-O1, prior to any action upon matters That will require discretionary action by the CouncIl, Planning Conunission and all other o#Iicial bodies of the City, a statement of aiscloswe of certain ownership or financial interests, payments, or campaign contributions for a Gity of Chula Vista election nxust be filed. The following information must be disclosed: 1. List the names of alt 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 suppltcr. /~ /A 2. if any person"` identified pursuant to (I} above is a corporation or partnership, list the names of all indi~~duals with a $2000 investment in the business {corporation/partnership} entity. Nan 3. if any person" identified pursuant to {1}above is anon-profit organization or trust, list the names of any person serving as director of tlxe non-profit organization or as trustee or beneficiary or irustor of the trust. ~ { gd I"1 r` _ 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. ~/~ 5. Acs any person'" associated with this contract had any financial dealings widx an official** of the City of Chula Vi/s~ta as it relates to this contract within the past 12 months? Yes_ No~ 33 Qi\Hngine¢ing\All Proj~roslSN'1Sw372 p~luss St ~ RR CrossinglContract S Spces\SN272 Finnl Contmct.doc 8_6 21 of 205 3/28/2013 4:05 PM Specs.pdf http: //onlineplans ervice. com/bidding/SDDT263 59/Specs/Specs.pdf if Yes, briefly describe rite nature of dte fmanciat interest the official"* may have in this contract. 6. Have you made a contribution of more than S2~d within the past twelve {l2) months to a cursent member of the Chula Vista Ci[y Council? No .Yes _ If yes, which Council member? 7. Have you provided more than 530 (or azt item of equivalent value) to an official** of the City of Chula Vista ut the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gifr, loan, etc.) Yes _ No if Yes, which official*' and what was the nature of item provided? Date:~~ _ Signature name Person is defined as: any individual, firm, co-parmership, 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 committee of the City, employee, or staff members. 35 Q:\.Gngineering'v~.11 Projects\S}MSW272 Moss St l4' RP. CrossingiContract & Specs\SlY2i2 Final Caotract.doc 8-7 22 of 205 3/28/2013 4:05 PM RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUNCIL. OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR, ACCEPTING BIDS, AND AWARDING A CONTRACT FOR THE "MOSS STREET SEWER IMPROVEMENTS AT RAILROAD CROSSING (SW272)" PROJECT TO RMV CONSTRUCTION INC. IN THE AMOUNT OF $224,400, WAIVING CITY COUNCIL POLICY 574-O1 AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $60,000 WHEREAS, on April 3, 2013, the Director of Public Works received nine (9) sealed bids for the "Moss Street Sewer Improvements at Railroad Crossing (SW272)" Project; and WHEREAS, the work to be done consists of the replacement of approximately 265 feet of 10-inch vitrified clay pipe (VCP) with 12-inch PVC sewer pipe within Moss Street and Industrial Boulevard; and WHEREAS, the Director of Public Works received nine (9) sealed bids as follow: CONTRACTOR TOTAL SUBMITTED BID 1 RMV Construction, Inc. -San Diego, CA $224,400* ($230,400 on final bid ro osal) 2 Grfco Inc. -Moreno Valle CA y, 242 450 $ , 3 MJC Construction, Inc: -Bonita, CA $280,200 4 Piperin Corporation -San Marcos, CA $289,800 5 Just Construction -San Diego, CA $295,000 6 Blue Pacific Engineering & Construction- San Diego, CA $309,1.00 7 Transtar Pipeline Inc. -San Diego, CA $354,200 8 EI Cajon Grading & Engineering Co. -Lakeside, CA $367,510 9 Schilling Paradise Inc. - EI Cajon, CA $384,510 *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. WHEREAS, staff reviewed the apparent low bid proposal in the amount of $230,400 submitted by RMV Construction Inc. During review of the RMV Construction bid proposal, staff found the contractor made a mathematical error that did not affect the unit price, but affected the total bid amount. The corrected grand total bid amount is $224,400, which is $6,000 less than the total listed by the contractor in his original proposal; and a-a Resolution No. Page 2 WHEREAS, RMV Construction Inc. has submitted a letter dated April 4, 2013 (Attachment 1) acknowledging their mathematical error and agreeing to the lower corrected total bid of $224,400; and WHEREAS, the low bid submitted by RMV Construction, Inc. is below the Engineer's estimate of $290,000 by $65,600 (23% lower); and WHEREAS, RMV Construction, Inc. has satisfactorily performed construction projects of similar scope for the City in the past; and WHEREAS, staff has reviewed the low bid and recommends awarding the contract to RMV Construction, Inc. of San Diego, California. 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 hereby waive minor mathematical error, accepts bids; awards the contract for the "Moss Street Sewer Improvements at Railroad Crossing (SW272)" Project, to RMV Construction, Inc. in the amount of $ 224,400. 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 $60,000 and expend all available funds in the project. /// Presented by as to Richard A. Hopkins + ~Cr n R. Goog Director of Public Works / C ty Attorney 8-9