HomeMy WebLinkAboutItem 08 - Award Contract for Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation Project
Department Name: Public Works
Cost Center: 6004
For Agenda of: December 8, 2020
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Shelsie Kloepper, Engineer III
SUBJECT: AWARD CONTRACT FOR THE TERRACE HILL PIPELINE AND
PRESSURE REDUCING VALVE REHABILITATION PROJECT,
SPECIFICATION NO. 91425
RECOMMENDATION
1. Award a Construction Contract (Attachment A) to Raminha Construction, Inc. in the amount
of $585,660 for the Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation Project
and authorize the Mayor to execute the Contract; and
2. Approve the transfer of $74,000 from the Water Distribution Fund Undesignated Capital
Account to the project account (91425) to fund this project.
DISCUSSION
Background
On March 5, 2019, the City Council authorized inviting bids (Attachment B) for the Terrace Hill
Pipeline and Pressure Reducing Valve Rehabilitation Project (Project), which is intended to
replace an existing waterline and pressure reducing valve. Project advertisement for construction
was delayed by newly discovered utility conflicts with the proposed design that necessitated
additional field verification and design adjustments to piping alignments and associated
improvements. Though these modifications delayed the overall project, this design refinement
was essential for minimizing cost increases and delays during the construction process.
The project originally went out to bid in September 2020, with a bid opening on October 1, 2020.
During the first advertising period, five bids were received and publicly opened. Due to
complications with the bidding results, the City rejected all bids and readvertised the project
(Attachment C – City Manager Report).
During the second advertising period, three bids were received and publicly opened on
November 6, 2020 (Attachment D). All the bids were over the Engineer’s Estimate of $420,000.
This increase in cost may be attributed to competitive bidding and high demand for contractor
work. The table on the following page summarizes the bid results.
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Engineer’s
Estimate
Raminha Construction
Inc.
Specialty Construction
Inc.
HPS Mechanical
Inc.
$420,000 $585,660 $626,873 $650,145
Award Recommendation
Of the three bids received, Raminha Construction (Raminha) was the apparent low bidder with a
bid of $585,660. Staff reviewed Raminha’a bid proposal and determined that the bid was non-
responsive because one of their completed project references did not meet the minimum
Contractor Qualifications required by the Notice to Bidders (Attachment E). Specifically,
Raminha’s bid proposal included a project reference 11 years old, whereas all referenced projects
must have been completed within the last five years from this project’s bid opening date.
Raminha was informed of the City’s determination and provided an opportunity to respond. On
November 13th, Raminha provided a response/protest letter to appeal the determination of non-
responsiveness (Attachment F). In the letter, Raminha stated that the company possesses the
experience needed to undertake and complete this project, and provided supporting information
with additional project references demonstrating similar project experience, including waterline
installations.
Raminha has requested that the City waive their original out-of-date project reference as an
informality, as allowed by the Notice to Bidders. As stated in the Notice to Bidders, the City
“reserves the right to accept or reject any or all bids or waive any informality in a bid.” With
the additional information provided in Raminha’s response letter, Staff agree and recommend
that the minor irregularity in the bid reference should be waived as a bid informality and the
contract awarded to Raminha.
Raminha’s additional references, license, and registration with the Department of Industrial
Relations have been verified. Staff therefore recommends awarding a construction contract to
Raminha Construction, Inc.
Previous Council or Advisory Body Action
This project was approved by Council on March 5, 2019 and authorized for advertising.
Policy Context
Per the City council report on March 5, 2019, the Project must be awarded by Council if the
construction contract is higher than the Engineer’s Estimate of $420,000.
Public Engagement
Public engagement was done during the initial identification of this Project to be included in the
2015-17 Financial Plan.
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COVID-19 Considerations
Due to the current economic impacts of COVID-19, the City reevaluated all Capital
Improvement Plan projects with the goal of adjusting Capital Expenditures in response to
projected revenue shortfalls, and aligning the adjusted CIP program with a focus on economic
recovery and fiscal responsibility. With these criteria in mind, this project is recommended to
continue since it addresses a critical infrastructure need. Additionally, this project supports
economic recovery through contracts with local or regional companies that will further retain
employment and long-term viability of the construction industry.
CONCURRENCE
There is concurrence from the Utilities Department through the review of the project plans and
special provisions.
ENVIRONMENTAL REVIEW
This project is exempt from environmental review under Section 15301 Class 1 (Existing
Facilities) of the California Environmental Quality Act (CEQA) Guidelines because the project
proposes minor changes to existing utility infrastructure. The project is consistent with the
applicable general plan policies as well as with applicable City Regulations. A Notice of
Exemption has been filed through the Community Development Department.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2015-2017
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Water Fund $730,000 N/A $730,000
Total $730,000 N/A $730,000
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601
Bid Total:$585,660
Contingencies (20%)$117,000
Total for Construction $702,660
Consutlant Construction Support:$15,000
Materials Testing:$12,200
Printing:$140
Total Project Cost $730,000
Current Project Account Balance:$656,405
Additional Funding (undesignated
capital):$74,000
Post Project Remaining Balance:$405
Terrace Hill Pipeline and Pressure Reducing Valve
Rehabilitation Project, Specification No. 91425
6004 Account (91425)
The Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation project was originally
identified in the 2015-17 Financial Plan, Appendix F – Capital Improvement Plan, pages 3-50
through 3-53. There is currently a balance of $656,405 available to the project in the 91425
account. Staff is requesting an additional $74,000 from the Water Distribution Fund Completed
Projects Undesignated Capital Account (601-9501-71501) to fund this project. This account will
have a balance of $154,469 once the remaining funds from the Casa/Stenner/Murray Waterline
Replacement Project (Specification 91312) are returned to the completed projects account. This
budget transfer will provide the additional funding needed for this project.
ALTERNATIVES
Deny Award and Fund Allocation. The Council could choose to deny approval to award to
Raminha Construction, Inc. and the allocation of additional funds needed. This is not
recommended because this project is critical to provide upgrades to utility infrastructure.
Attachments:
a - Proposed Construction Contract with Raminha Construction
b - Council Agenda Report dated March 5, 2019
c - City Managers Report dated October 13, 2020
d - Bid Results Summary
e - Non-Responsive Bid Letter dated November 10, 2020
f - Raminha Appeal Letter dated November 13, 2020
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Department Name: Public Works
Cost Center: 6004
For Agenda of: March 5, 2019
Placement: Consent
Estimated Time: N/A
FROM: Daryl Grigsby, Public Works Director
Prepared By: Shelsie Kloepper, Engineer II
SUBJECT: TERRACE HILL PIPELINE AND PRESSURE REGULATING VALVE
REHABILITATION PROJECT, SPECIFICATION NO. 91425
RECOMMENDATION
1. Approve the Project Plans (Attachment A) and Special Provisions (Attachment B) for the
Terrace Hill Pipeline and Pressure Regulating Valve Rehabilitation Project, Specification
Number 91425;
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the construction contract for the bid total if the lowest
responsible bid is within the Engineer’s Estimate of $420,000.
DISCUSSION
Background
The City has over 180 miles of pipeline providing potable water to the community. These
pipelines are connected to water storage tanks around the City. The City’s water storage is
provided in 11 tanks and two reservoirs in various locations. The tanks range in size from
40,000 gallons to 7.5 million gallons. The two reservoirs are a combination of above-grade steel
tanks and underground concrete reservoirs with a total combined storage capacity of
approximately 26 million gallons. Regular maintenance of water storage tanks is important for
economic, environmental, and health reasons.
This project will install a new Pressure Regulating Valve (PRV) at the northeast corner of the
Terrace Hill tank site. The PRV will be connected to the existing 16-inch diameter pipe from the
High-Pressure Zone in Bishop Street. A new 16-inch pipe will be constructed to connect the
PRV to the Terrace Hill Zone, traversing Bishop Street and tying into the existing 16-inch
diameter pipe line in Boulevard del Campo. This project will improve water quality in this zone
by providing connectivity.
Previous Council or Advisory Body Action
This project was identified in the 2017-19 Financial Plans that were approved by Council.
Policy Context
Per the October 2018 Financial Management Manual, Council approval is required for Public
Projects that cost over $175,000.
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Public Engagement
Public Engagement for this project was done during the initial identification as part of the 2015-
17 Financial Plan.
CONCURRENCE
There is concurrence from the Utilities Department through the review of the project plans and
special provisions.
ENVIRONMENTAL REVIEW
Staff recommends finding this project is exempt from environmental review under Section 15302
Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA)
Guidelines because the project proposes minor changes to existing utility infrastructure. The
project is consistent with the applicable General Plan policies as well as with applicable City
Regulation. A Notice of Exemption will be filed through the Community Development
Department upon Council approval of the project.
FISCAL IMPACT
Budgeted: Yes Budget Years: 2015-2017
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal
Fees
Other: Water Fund $888,610.65 $510,000 $378,610.65 N/A
Total $888,610.65 $510,000 $378,610.65
Project Cost Estimate
Construction Estimate $420,000
Contingency (20%)$84,000
Materials Testing $6,000
Total for Project $510,000
The Terrace Hill Pipeline and PRV Rehabilitation project was originally identified in the 2015-
17 Financial Plan, Appendix F – Capital Improvements Plan, pages F-3-50 through F-3-53.
The remaining balance of this account (Award 91425) will be used to fund the Wash Water
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Supply Tank Recoating Project that has an estimated project cost of $125,000.
ALTERNATIVE
The Council could choose to deny authorization to advertise this project. This is not
recommended since the project was identified in the 2015-17 Financial Plan and will help
improve the water quality for the community.
Attachments:
a - Council Reading File - Project Plans
b - Council Reading File - Special Provisions
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City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved
ACM Community Services Shelly 10/15/2020
Reviewer Routing List Reviewer Name Date Reviewed
Finance NH 10/15/20
City Attorney MJ 10/13/2020
October 6, 2020
FROM: Matt Horn, Director of Public Works MH 10/13/2020
PREPARED BY: Shelsie Kloepper, Engineer III
SUBJECT: Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation Project
RECOMMENDATION
Reject all bids and authorize staff to re-advertise the Terrace Hill Pipeline and Pressure Reducing
Valve (PRV) Rehabilitation Project for bids.
DISCUSSION
Background
On March 5, 2019, the City Council authorized inviting bids (Attachment A) for the Terrace Hill
Pipeline and Pressure Reducing Valve Rehabilitation Project (Project), which is intended to
replace an existing waterline and pressure reducing valve. Project advertisement for construction
was delayed by newly discovered utility conflicts with the proposed design that necessitated
additional field verification and design adjustments to piping alignments and associated
improvements. Though these modifications delayed the overall project, this design refinement was
essential for minimizing the potential for cost increases and delays during the construction process.
Five bids were received and publicly opened on October 1, 2020 (Attachment B). All the bids were
over the Engineer’s Estimate of $420,000. The table below summarizes the bid results.
* Bids submitted by hand are disqualified. Per Project Specifications bids were to be mailed to the
City.
Engineer’s
Estimate
D-Kal
Engineering,
Inc.
*Kirk
Construction
*Raminha
Construction
Specialty
Construction
Inc.
R. Burke
Corporation
$420,000 $459,351 $548,875.10 $587,520 $599,567 $691,994
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Authorization to Re-advertise Terrace Hill Pipeline and PRV Rehabilitation Project Page 2
The apparent low bidder was D-Kal Engineering, with a bid of $459,351. Following the bid
opening, D-Kal requested to withdraw their bid due to discovery of an error in their bid submission,
as evidenced by the large price difference between D-Kal and the other bids. Furthermore, bids
received from Raminha Construction and Kirk Construction were disqualified because the bids
were not mailed to the City. These bids were hand delivered and per the project specifications bids
were to be mailed to the City. Therefore, the next lowest responsible bidder would be well over
the Engineer’s Estimate at $599,567.
Staff believes that it is appropriate to re-bid the project to obtain more competitive bidding. D-Kal
will not be allowed to rebid the project per Public Contract Code 5105. Several other contractors
were interested in bidding the project but were unable to get mailed in bids delivered on time to
be qualified for the project.
COVID-19 Considerations
Due to the current economic impacts of COVID-19, the City reevaluated all Capital Improvement
Plan projects with the goal of adjusting Capital Expenditures in response to projected revenue
shortfalls, and aligning the adjusted CIP program with a focus on economic recovery and fiscal
responsibility. With these criteria in mind, this project is recommended to continue since it
addresses a critical and time dependent infrastructure need. Additionally, this project supports
economic recovery through contracts with local or regional companies that will further retain
employment and long-term viability of construction.
FISCAL IMPACT
There is no direct fiscal impact of the recommended action.
The Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation project was originally
identified in the 2015-17 Financial Plan, Appendix F – Capital Improvement Plan, pages 3-50
through 3-53. There is currently a balance of $656,405.13 available to the project in the 91425
account. Staff would like to re-advertise the project in order to get a lower bid that may work
within the current account balance.
ATTACHMENTS
1. Council Agenda Report Authorizing Advertisement
2. Bid Results Summary
3. D-Kal’s Letter to Withdraw Bid Proposal
ALTERNATIVES
The City Manager could choose to deny approval to re-advertise. This is not recommended since
staff would have to award the project with a bid that is significantly over the engineer’s estimate
and request additional funding to award the project. Staff does not recommend this option as it is
likely that a more reasonable cost can be achieved through re-bidding the project.
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/citymanagersreports/Shared Documents/Public Works/2020/CIP
Engineering/91425 - Terrace Hill Pipeline and PRV Rehabilitation Project/CMR to re-advertise.docx
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Item #Item Description Unit of Measure Estimated Quantity Item Price Total Item Price Total Item Price Total
1 16” Ductile Iron Pressure Reducing Valve Inlet Piping (Bishop Street)LS 1 $60,000.00 $60,000.00 $77,000.00 $77,000.00 $68,800.00 $68,800.00
2 16” Ductile Iron Piping, STA 1+00 to STA 5+20.02 LF 420 $325.00 $136,500.00 $354.00 $148,680.00 $310.00 $130,200.00
3 1” Air Release and Vacuum Valve EA 1 $5,500.00 $5,500.00 $4,800.00 $4,800.00 $8,000.00 $8,000.00
4 Pressure Reducing Valve Station LS 1 $107,000.00 $107,000.00 $109,000.00 $109,000.00 $131,075.00 $131,075.00
5 Pipe & Appurtenances Abandonment LS 1 $10,000.00 $10,000.00 $23,000.00 $23,000.00 $15,000.00 $15,000.00
6 8” and 16” Waterline Connections at Bishop Street LS 1 $40,000.00 $40,000.00 $30,500.00 $30,500.00 $20,000.00 $20,000.00
7 Connection at Boulevard Del Campo LS 1 $13,000.00 $13,000.00 $10,000.00 $10,000.00 $12,500.00 $12,500.00
8 Connection at Sylvia Court LS 1 $14,000.00 $14,000.00 $11,000.00 $11,000.00 $10,000.00 $10,000.00
9 Connection at Helena Street LS 1 $17,000.00 $17,000.00 $16,000.00 $16,000.00 $15,000.00 $15,000.00
10 Pressure Reducing Valve Site Improvements LS 1 $40,000.00 $40,000.00 $11,000.00 $11,000.00 $50,000.00 $50,000.00
11 Rolled Curb, Gutter & Sidewalk LS 1 $16,000.00 $16,000.00 $31,000.00 $31,000.00 $12,000.00 $12,000.00
12 AC Trench Paving – Bishop Street (10” Thick) LF 172 $80.00 $13,760.00 $79.00 $13,588.00 $60.00 $10,320.00
13 AC Trench Paving – Boulevard Del Campo (6” Thick)LF 145 $60.00 $8,700.00 $69.00 $10,005.00 $50.00 $7,250.00
14 Grind and Overlay – Bishop Street SQFT 2070 $10.00 $20,700.00 $10.00 $20,700.00 $10.00 $20,700.00
15 Electrical and Communication Conduits LS 1 $10,000.00 $10,000.00 $19,000.00 $19,000.00 $7,500.00 $7,500.00
16 Excavation in Rock CY 30 $200.00 $6,000.00 $400.00 $12,000.00 $500.00 $15,000.00
17 Retaining Wall LS 1 $38,000.00 $38,000.00 $45,200.00 $45,200.00 $60,000.00 $60,000.00
18 Curb and Gutter per City Engineering Standard 4030 LS 1 $2,000.00 $2,000.00 $1,600.00 $1,600.00 $6,000.00 $6,000.00
19 Curb, Gutter and Sidewalk per City Engineering Standard 4110 LS 1 $2,000.00 $2,000.00 $1,600.00 $1,600.00 $6,000.00 $6,000.00
20 Survey of Pipeline LS 1 $10,000.00 $10,000.00 $4,700.00 $4,700.00 $8,000.00 $8,000.00
21 Temporary and Permanent Erosion Control LS 1 $2,000.00 $2,000.00 $6,800.00 $6,800.00 $5,000.00 $5,000.00
22 New Fire Hydrant @ Station 4+95 LS 1 $7,500.00 $7,500.00 $6,500.00 $6,500.00 $11,800.00 $11,800.00
23 OSHA Compliance LS 1 $2,000.00 $2,000.00 $5,700.00 $5,700.00 $5,000.00 $5,000.00
24 Night Work during Waterline Tie-ins LS 1 $4,000.00 $4,000.00 $7,500.00 $7,500.00 $15,000.00 $15,000.00
$585,660.00 $626,873.00 $650,145.00 Total Bid Amount
Bid Opening: 11/6/20 Raminha Construction, Inc Specialty Construction, Inc HPS Mechaical, Inc
Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation Project, Specification No. 91425
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City of San Luis Obispo, Public Works, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7200, slocity.org
November 10, 2020
Raminha Construction Inc.
David Raminha
11505 Halcon Road
Atascadero, CA 93422
Subject: Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation, Specifications No.
91425
On November 6, 2020, bids were opened for the “Terrace Hill Pipeline and Pressure Reducing Valve
Rehabilitation,” Specification No. 91425 (“Project”). The Project will install a 16” waterline in the
public roadways and the necessary experience is required to minimize adverse impacts to the
community.
Staff reviewed Raminha Construction’s (Raminha) bid proposal and determined that the bid from
Raminha is non-responsive because the references submitted in the bid proposal do not meet the
minimum Contractor Qualifications stated within the Notice to Bidders. Specifically, Raminha’s bid
proposal did not provide sufficient information in response to the following section:
You must have experience construction projects similar to the work specified for
this project. Provide three similar reference projects completed as either the
prime or subcontractor. All referenced projects must have been completed
within the last five years from this project’s bid opening date.
You have an opportunity to comment upon this determination. Raminha may submit written material
to the City explaining why its bid should be considered responsive no later than 5:00 PM, Friday
November 13, 2020. If submitted, the written materials will be evaluated and provided to the City
Council for consideration. The City Council will make the final decision at its regularly scheduled
meeting on December 8, 2020.
Sincerely,
Shelsie Kloepper
Engineer III
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