HomeMy WebLinkAbout2008/05/27 Item 5
CITY COUNCIL
AGENDA STATEMENT
~(If:.. CITY OF
~CHUlA VISTA
5/27/08, Item2
ITEM TITLE:
PUBLIC HEARING TO CONSIDER WAIVING IRREGULARITIES
IN THE BID RECEIVED FOR THE EASTLAKE PARKWAY
SEWER CONNECTION PROJECT (KY -709) PER CITY CHARTER
SECTION 1009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA WAIVING IRREGULARlTIES, ACCEPTING BIDS, A.t'ID
AWARDING THE CONTRACT FOR THE EASTLAKE P ARKW A Y
SEWER CONNECTION PROJECT (KY-709) TO TC
CONSTRUCTION COMPA.l'N IN THE A1VIOlJNT OF $569,977
AND AUTHORIZING EXPENDITURE OF ALL AVAILABLE
FUNDS IN THE PROJECT
DIRECTOR OF ENGINEERING AND GENERAL SERVICES~..w
CITY MANAGER
ASSIST ANT CITY MANAGER ';> r
4/5THS VOTE: YES [g] NO D
SUBMITTED BY:
REVIEWED BY:
SUMMARY
This project involves the installation of approximately 350 lineal feet of 12-inch sewer pipe by
means of tunneling lmder several large diameter water aqueducts and other utilities. This project
will connect a gravity sewer that serves a substantial portion of the Eastlake Greens development to
the Poggi Canyon Trunk Sewer, which, in turn, will allow the temporary Eastlake Parkway Sewage
Lift Station to be decommissioned and removed upon completion of the gravity connection.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator 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 (c) (Existing Facilities) categorical exemption pursuant to Section 15301 of the
State CEQA Guidelines. Thus, no further environmental review is necessary.
RECOMMENDATION
Council conduct the public hearing and adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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5/27/08, Item~
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DISCUSSION
In order to remove the temporary Eastlake Parkway Sewage Lift Station, which is located within
an easement granted to the City south of Eastlake High School along EastLake Parkway,
approximately 350 lineal feet of 12-inch sewer pipe needs to be installed by means of hmneling
under several large diameter San Diego County Water Authority (SDCW A) aqueducts and other
utilities. This project will complete a gravity connection between a sewer that serves a
substantial portion of the EastLake Greens development and the Poggi Canyon Trunk Sewer.
At the request of the City, the EastIake Company analyzed several alternatives to determine the
best method for providing a gravity sewer line for the southerly portion of the Eastlake Greens
project, which is currently served by a temporary sewage lift station (Eastlake Parkway Sewage
Lift Station). Based on limitations imposed by existing improvements and topography, the best
alternative required construction of the Poggi Canyon Trunk Sewer Extension, a deep gravity
sewer line ranging in depth from 20 to 60 feet. The alignment of this new sewer line follows
Eastlake Parkway southward, past the existing SDCWA aqueduct (Reach I), and then crosses the
Commercial Land Swap parcels (Reach 2), where it connects to the Poggi Canyon Trunk Sewer
at Olympic Parkway (see Attachment I). The City had originally entered into reimbursement!
financing agreements with Eastlake Development in 2004 to facilitate the construction of the
Poggi Canyon Trunk Sewer Extension since Eastlake was in the process of developing the Land
Swap parcels (current location of Home Depot, Wal-Mart, etc.), where this pipeline was being
constmcted. Since then, Eastlake completed the construction of all the other segments of the
pipeline with the exception of the 350 ft. section that crosses the SDCW A right-of-way. This
segment presented unique challenges in obtaining SDCW A's permission to construct the sewer
and in assuring the SDCW A that a qualified contractor would perform the sensitive tunneling
work under the aqueducts, which supply water to the whole of the City's Eastern Territory.
Eastlake reached a recent understanding with the City to facilitate the construction of this
remaining section. This trunk line needs to be constmcted because it is a required regional
facility and its construction will allow the temporary Eastlake Parkway Sewage Lift Station to be
decommissioned and removed. The decommissioning is necessary for the following reasons:
I. Lack of safetv features. The Eastlake Parkway Sewage Lift Station was constructed as a
temporary pump station in conjunction with the Eastlake Greens development without
provisions for various safety feahlres, such as redundancy and overflow storage that are
now typically incorporated into permanent pump stations. The station would have
needed a prohibitively expensive retrofitting to convert it to a permanent pump station.
2. Siting criteria. The Eastlake Parkway Sewage Lift Station is unsuitably located adjacent
to a high school and other residential facilities.
3. Long-term cost of maintenance. The City has been obligated to maintain the sewage lift
station at a cost to the Sewer Service Revenue Fund of approximately $25,000/year.
With completion of this project, wastewater will be conveyed by means of gravity to the
Poggi Canyon Trunk Sewer and there will be no further need to pump wastewater to the
Telegraph Canyon Trunk Sewer.
With completion of this project (Poggi Canyon Trunk Sewer Extension, Reach I), the obsolete
Eastlake Parkway Sewage Lift Station will be decommissioned and removed under separate
contract.
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Because City staff did not have the necessary tunneling experience to prepare the design plans
and sp'ecifications and to perform tunneling inspection services, on September 11, 2007, City
Council approved Resolution No. 2007-230 awarding a contract to REF Consulting to provide
these specialized services.
Bid Acceptance
On April 29, 2008, Engineering and General Services' staff received and opened bids from four
(4) contractors as follows:
CONTRACTOR BID AMOUNT
L TC Construction Company - Santee, CA $569,977.00
2. CASS Construction, Inc.- El Cajon, CA $630,275.00
3. Garcia Juarez Construction, Inc. -:Brea, CA $870,350.00
4. Zondiros Corporation - San Marcos, CA $909,775.00
After reviewing the bid documents, staff discovered a discrepancy with TC Construction's grand
total bid amount. The amount submitted was $570,777.00. When staff reviewed all bid items,
the corrected grand total was $569,977 a reduction of $800.00. This base bid is $60,298 less
than the second lowest bidder. In consultation with the City Attorney's office, staff determined
that the irregularity was minor and that the City could proceed with the award process to TC
Construction based on the City Charter Section 1009 that states, "The City Council may waive
any defects in any bid to the extent it finds at a public hearing held for that purpose that it is
necessary to do so for the benefit of the public." The public hearing for these items was held this
evening and staff believes that this action would benefit the City in the form of saving the City
over $60,000.
The irregularity was not an error in the Contractor's calculation, rather an irregularity by the
person transcribing the total to the bid schedule. The low bid from TC Constmction is below the
Engineer's estimate of $900,000 by $330,023 or approximately 36%. While it is unusual that a
bid comes in 36% lower than the Engineer's estimate, the construction environment has been
unpredictable for the past six months. Staff believes that the low price is consistent with the
slowdown in new development. A larger number of contractors are now bidding on a smaller
number of projects. The Engineer's estimate was prepared by REF Consulting and was based on
average unit prices for similar types of work completed recently.
Engineering and General Services' staff checked the references that the Contractor submitted.
This Contractor has previously done work for the City, including tunneling work, and all work
was found to be satisfactory. All references checked were verified and those references
confirmed that the Contractor's work has been satisfactory.
Approval of tonight's resolution will authorize City staff to expend all available funds and
increase the value of the contract as necessary due to unforeseen circumstances that could arise
during tunneling operations. Unforeseen circumstances (i.e., differing soil conditions, unknown
utilities, etc.) could potentially result in an increase in quantities beyond what was anticipated
during the preparation of the project specifications. Therefore, because of this potential for
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unknowns, a contingency amount has been set aside for emergency use during the construction
of this project. According to City Council Policy No. 574-01, if a change order exceeds the
Director of Public Works' cumulative contract change order authority, then City Council
approval is required. However, approval of tonight's resolution will increase the Director of
Public Works' authority to approve change orders as necessary up to the total of the base
construction bid plus construction contingencies.
Under Policy 574-01, the Director of Public Works would be authorized to expend $42,898.39
for change orders regarding this project. At this time, staff is recommending that the Director of
Public Works approvallirnit be increased to the full extend of the contingency amount $114,000,
or approximately 20% of the base construction bid.
Contract Amount Revision
The contract documents allow the City to decrease or increase the unit quantity for the
rehabilitation of additional pipes without a change in the contract unit price bid by the
Contractor.
Disclosure Statement
Attached is a copy of the Contractor's Disclosure Statement (Attachment 2).
Staff Costs
In addition to Consultant construction activities, $80,000 is estimated for City staff to provide the
necessary oversight and technical support and to manage the contract with the Consultant.
Proiect Construction & Financin?
In April 2004, Council approved agreements with Eastlake Development for the construction of
this facility (Resolution 2004-129). As previously mentioned, this project was split into two
construction reaches - 1 & 2. Reach I was to be funded as part of Community Facilities District
(CFD)-06I, since the facility was included in the list of project improvements. Reach 2 was
funded and constructed with Trunk Sewer Capital Reserve Funds.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the property, which are the subject action.
FISCAL IMPACT
The funding source for this project will be provided for by the Community Facilities District 06-1
(Series B Bond Proceeds), therefore there is no impact to the General Fund. Upon completion of
the project, the improvements will require only routine City sewer maintenance, which is funded
by the Sewer Service Fee.
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5/27/08, Item2-
Page 5 of 5
FUNDS REQuiRED FOR CONSTRUCTION
A. Contract Amount $569,977
B. Contingencies (20% of contract) $114,000
C. StatI Time Cost
Design/Project Management $30,000
Construction Inspection $50,000
TOTAL $763,977
:1
] A.
!
FUNDS A V AILABLE FOR PROJECT
Community Facilities District 06-1
TOTAL
$763,977
$763,977
ATTACHMENTS
Attachment 1 - Area Plat
Attachment 2 - Contractor Disclosure Statement
Prepared by: Luis A. Labrada, Associate Civil Engineer, Engineering and General Services
M:\General Services\GS Administration\Council Agenda\KY709\Al13 CONSTRUCTION KY709 LAL-REV5.doc
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I ATTACHMENT Q
CITY OF CBULA 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 ovmership or fIDa!J.c1al imerests, payments, or campaign contributions for a City of Chula Vista
election must be fLled. The following information must.be disclosed:
1. List the names of aU persons having a &ancial interest in the property that is the subject of the
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
S~Q. CovPr, .f1-00lrJQnj-
2. If any person:;< identified pursuant to (1) above is a corporation or partnership, list the names of all
individuals with a S2000 investment in the business (corporation/partnership) entity.
~ CoKer) R-Q0\ dert Ul\eK f1-a~, \} Ii of ReJ ~ Cp3_
Aus\lnCam~ ,4 S4L'f!ipY\}
T~J ChmQ.KDr\ , CEb
3. If any person'" identified pursua..,llt to (1) above is a non-profit orga.'l...ization or trust, list the names
of any person serving as director of the non-profit organization or as trustee or beneficiarj or
trustor of the trust.
N/ll.
,
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.
N/A-
.
5.
Has any person~ assoc~ated with thi~ contract b.a~ a~y fInancial dealings with an official*'io of;ae
City afChula VIsta as It relates to this contract wlthm the past 12 months? Yes_ No~
If Yes, briefly describe the nature of the fmancial interest the official"'''' may have in this contract.
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6.
Have you made a contribution of more than $2.}Q within tbe past twelve (12) months to a current
member of the Chula Vista City Council? No ~ Yes _ If yes, which Council member?
7.
Have you provi.ded more than $340 (or an item of equivalent value) to an official:\<* of the City
orChula Visla in the past twelve (12) mOlllhs? (Tills includes being a source or income, money to
retire a legal debt, gift, loan, etc.) Yes _ No "../
If Yes, \vmcb. omcial** and what was the n3lUre or ttem provided?
Date ..q\L~\ d-COi3
I ,
/
~to:~
~~Q, Cn~~, {1-03dp~
p, nt or type naiue of Contractor Applicant
* Person is defrned 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 iimited to: 1vlayor, Council member, PlanuLl1g Commissioner,
1tlernber of a board, commissioll1 or committee of the City, employee, or staff members.
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RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING IRREGULARlTIES, ACCEPTING
BIDS, AND A WARDING THE CONTRACT FOR THE
EASTLAKE PARKWAY SEWER CONNECTION PROJECT
(KY-709) TO TC CONSTRUCTION CONlPAt"lY IN THE
AMOUNT OF $569,977 AND AUTHORIZING EXPENDITURE
OF ALL A V AILABLE FUNDS IN THE PROJECT
WHEREAS, approximately 350 lineal feet of 12-inch sewer pipe needs to be installed by
means of tunneling under several large diameter water aqueducts and other utilities. The section
of pipe will connect the existing sewer pipelines within Eastlake Parkway, under the San Diego
County Water Authority's (SDCW A) aqueducts.
WHEREAS, on April 29, 2008, Engineering and General Services staff received and
opened bids from four contractors as follows:
CONTRACTOR BID AMOUNT
l. TC Construction Company - Santee, CA $569,977.00
2. CASS Construction, Inc.- El Cajon, CA $630,275.00
, Garcia Juarez Construction, Inc. - Brea, CA $870,350.00
).
4. Zondiros Corporation - San Marcos, CA $909,775.00
; and
WHEREAS, the low bid by TC Construction Company of $569,977 is $330,023 (36%)
below the Engineer's estimate of $ 900,000; and
WHEREAS, staff discovered a discrepancy with TC Construction's grand total bid
amount. The corrected grand total was $569,977, a reduction of $800 from the amount
submitted in the bid package; and
WHEREAS, staff determined that the irregularity was minor and that the City Council
could waive said bid irregularity and proceed with the award process to TC Construction based
on the City Charter Section 1009; and
WHEREAS, based on average prices for similar types of work completed during the last
three years, and upon review, staff recommends awarding the contract in the amount of $569,977
to TC Construction Company; and
WHEREAS, references provided by the contractor have been reviewed and their work
record found to be satisfactory and the Contractor's license is current; and .
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WHEREAS, the Environmental Review Coordinator has reviewed the proposed project
for compliance with the California Environmental Quality Act (CEQA) and has determined that
the project qualifies for a Class I (c) (Existing Facilities) categorical exemption pursuant to
Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is
necessary, and
WHEREAS, there are sufficient funds to fully offset all costs associated with the
construction of this project, with no impact to the General Fund, and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby waive irregularities, accept bids, and award the contract for the "Eastlake
Parkway Sewer Connection Project" to TC Construction Company in the amount of $569,977
and authorize expenditure of all available funds in the project.
Presented by
Approved as to form by
, .\\"~. \\
~'\'dW; ~ $\:\~-&,
. Ann Moore
City Attorney
Jack Griffin
Director of Engineering and General Services
K:\ENG fNE ER\RESOS\RESOS2-4\0542 7 .08\K Y709 Resolution ConstructionREV.doc
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