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Home My WebLink About2013/09/10 Item 07 �;; ��.r.�� CITY COUNCIL � -��.�- AGENDA STATEMENT _ :.�;�-.-��.�. � �`�,�;� CITY Of CHULAVISTA 9/10/13, Item� ITE17 TITLE: RESOLUTION OF THE CITY COiJNCIL OF THE CITY OF CHULA VISTA REJECTII�'G BIDS FOR THE �`SE��'ER REHABILITATION PROGRAA4 FY11/12 AT VARIOUS LOCATIONS (S�b'271) ` AI�TD D CTI?�iG STAFF TO READVERTISE THE PROJECT SliBD1ITTED BY: DIRECTOR OF PUBLIC \0'ORKS ASSIST.Ai\T DIRECTOR OF ENGII�TEERiI�'G REVIE��'ED Bl': CITY MANAGER ��d,/��OS ASSISTA�\iT CITY D4ANAGER 4hTHS VOTE: 1'ES � NO � SUD71�R1' On Aueust 14, 2013; the Director of Public «�orks received fi��e (�) sealed bids for the "Se�ver Rehabilitation Proeram FYll/12 at Various Locations (S��271)". Upon revie�3Rng bids; staff determined that four out of fi��e bids did not meet all the qualifications contained in the specifications. It is recorrunended that Council reject all bids and direct staff to re-advertise both projects. ENVIRO\1��NTAL REVIE�V The Director of Development Services has re��iewed the proposed project for compliance �vith the Califomia Environmentai Quality Act (CEQA) and has determined that the projects qualify for Class 1(b) and Class 1(c) cateeorical exemptions pursuant to Section 1�30L Eaisting Facilities, of the State CEQA Guidelines because the project consists of replacement and/or repair of existing se«�er infrastructure resultine in no increase in �vastewater capacity. Thus; no funher en��ironmental revie�v is required. REC0�4MENDATION Council adopt the resolution. BOARDS/C01414ISSION REC01411ENDATION Not applicable. 7-1 9/10/13, Item� Page 2 of 3 DISCUSSION The Public \T�%orks Department recently ad��ertised and opened bids for "Sewer Rehabilitation Program FY11/12 at Various Locations" (SW271). Sewer Project SW271 includes the replacement of existing broken sewer mains and laterals, the installation of lining to repair cracked sewer lines and lateral connections and the replacement or lining of sewer manholes. Special Provisions of the Contract SpeciScation for this project incozporates the Standazd Specifications for Public Works Construction ("Greenbook"). Sectiou 2-3.2 Self Performance states, "The Contractor shall perform, with its own organization, Contract work amounting to at ]east 50 percent of the Contract Price except that any designated "Specialty Items' may be performed by subcontract and the amount of any such "Specialty Items" so performed ��ill be deducted from the Contract Price before computing the amount required to be performed by the Contractor with its o��n organization." The 50 percent requirement is also stated in Pan 2, Section 2-3 Subcontractors of the City's specifications. On August 14, 2013, the Director of Public Works received five (5) bids for the "Sewer Rehabilitation Project FY 11/12 at Various Locations". The following bids were received: CONTRACTOR % PRIME $ID CONTRACTOR � Blue Pacific Engineering & Construction— San 3731% g�g6;350.00 Diego, CA Z South��est Pipeline and Trenchless Corp— 4637% $431,160.00 Torrance, CA 3 Repipe California LP —Riverside, CA 42•6z% $470,649.90 4 Piperin Corporation— San Marcos, CA 4�•62% $479,990.00 5 Burtech Pipeline Incorporated—Encinitas, CA 79.16% , $482;815.00 Four of the five contractors appear to be performing less than 50 percent of the work. All the bids are below the Engineer's Estimate of$588,170. However, there is a gap of almost $100;000 (25%) between tlie apparent low bidder and the fifth bidder, which is the only bidder performing more than 50 percent of the work. The Proposal Requirements and Conditions, N�hich is included in the contract documenfs, states that the City reserves the right to reject any and all proposals. This language is also in the City Charter. It is reeommended that staff re-bid both of these projects. This project is atypical in that it has two large bid items that are customarily performed in separate contracts. These items are installation of sewer laterals and connections and sewer main lining. In order to minimize the possibility of a reoccurrence of a similar bid result, the City will designate certain items as Specialty Items. Specialty Items are commonly done by a subcontractor and do not count against the �0 percent requirement. The City may also include a requirement in certain specifications that will require tlle Prime Contractor to perform less than 50 percent of the work. 7-2 9110/13, Item � Paae 3 of 3 DECISION n7A�'ER CONFLICT Staff has revieti�ed the propertv holdinas of the City Council and has found no propem holdings ti�ithin �00 feet of the boundaries of the properties ��hich are the subject of this action. Staff is not independently awaze, nor has staff been informed b}� any City Council member, of an�� other fact that ma�� constitute a basis for a decision maker conflict of interest in this matter. CIIRRENT PEAR FISCAL IAZPACT There is no direct fiscal impact to the General Fund associated ��ith this action. Fiscal impact associated with the project will be addressed �vhen the contract is awazded. ONGOING FISCAL INIPACT Afrer the project has been a�i�arded and completed; the improvements will require only routine Cirv street maintenance. ATTACIII�ZENTS None. Prepared by: Eli-abeth M Chopp, Project d�anager, Public �f'orks Departmen7 J:�EneineerlAGEA'DA\CAS2013\09-10-I 3�REPORT-PR'-S�1'271 RE V.doc 7-3 RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUI�TCIL OF THE CITI' OF CHULA VISTA REJECTII�'G BIDS FOR THE `SEWER REHABILITATION PROGRAM FYlI/12 AT VARIOUS LOCATIONS (SV1271) AND DIRECTING STAFF TO READVERTISE THE PROJECT WHEREAS, City staff prepared specifications for the "Sewer Rehabilitation Prosram FY11/12 at Various Locations (SR�271)" and advertised the project on July 26, 201.i; and � ��HEREAS; in accordance witb tbe Standard Specifications for Public R'orks , Construction (`Greenbook") and Part 2, Section 2-3 of the specifications, the Contractor shall perform, ti�ith its o�n organization, Contract work amounting to at least 50 percent of the contract price; and WHEREAS, on August 14, 2013, the Director of Public Works received five (5) sealed � bids for the "Sewer Rehabilitation Program FY11/12 at Various Locations (SW271)", as shown in the table belo«�: and CONTRACTOR % P�ME BID CONTRACTOR 1 Blue Pacific En�ineering & Construction— San ��1% �3g6350.00 Dieeo; CA Southwest Pipeline and Trenchless Corp— 4637% 2 Torrance, CA �431;160.00 3 Repipe California LP —Riverside, CA 42.62% $470,649.90 4 Piperin Corporation— San Mazcos, CA 47•6�% $479;990.00 5 Burtech Pipeline Incorporated—Encinitas, CA 79.1�6% � �482,515.00 WHEREAS, the top four bids are unresponsive because less than 50 percent of the ��ork based on the contract price is proposed to be done by the prime contractor; and c WHEREAS, althoueh all bids are below the Engineer's Estimate of $588,170, the only responsive bid (the hiehest) is almost $100;000 (25.0%) above the apparent low bidder; and WHEREAS, based on the above, staff is recommending that the City Council reject all bids and readvertise the project because this would be in the best interest of the City; and WHEREAS, City Council has this authority in ifs discretion under the City Chaner, Section 1009. � � 7-4 ?vOV�'; THEREFORE, BE IT RESOLVED, based on the facts and authoriq� set fonh above; that the Citv Council of the Cin� of Chula Vista does herebv reject bids for the "SeN�er Rehabilitation Program FY11/12 at Various Locations (SV1217)" and duect staffto readvertise the project. Presented bv: .Approved as to form b�: � Richard A. Hopkins Glen Goo�ins Director of Public «'orks �n� Att �ey 7-5 � I