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Home My WebLink About03-03-2015 C6 Monterey Street Water Main Replacement March 3, 2015 C6 City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM : Daryl R. Grigsby, Director of Public Works Prepared By: Manny Guzman, Engineer III SUBJECT: MONTEREY STREET WATER MAINREPLACEMENT, SPEC. NO. 91284 RECOMMENDATION 1.Award a contract to Whitaker Construction Group, Inc. in the amount of $388,334.00 for the “Monterey StreetWater Main Replacement, Specification No. 91284”. 2.Approve the fund transfer amountof $77,570 fromthe water fund Completed Projects account to the Monterey Street Water Main Replacement project’s construction phaseand $60,000 from the Water Enterprise Fund’s General Carryoveraccountto the Monterey StreetWater Main Replacementproject’s construction management phase. DISCUSSION On December 10, 2013, the City Council authorized the invitation of bids for the Monterey Street Water MainReplacementproject, Specification No. 91284(Attachment 1).However, because of design issues the project was not advertiseduntil January 17, 2015with the bid opening occurring on February 4, 2015. A total of eight bids were received and opened, all of which exceeded the Engineer’s estimate of $336,000 (Attachment 2). High bids for the Monterey Street Water Main project could be attributed to the work items added as the design progressed. Approval to advertise was requested a year before design was completed. The initial cost estimate was generated before staff was aware the project could encounter contaminated soil and cultural resources. Staff Determination of Award Recommendation After sealed bids werepublicly opened, all bidswereinitially reviewed for mathematical errors and rankedfrom the lowest cost bid tothe highest cost bid. During this initial review two bidders, Pacific Coast Excavation Inc. (PCE) and Crandall Construction (CC) were determined to have committed arithmetic errors and their calculated bids are higher than their written bid total indicated, taking them both out of the lowest bid position. The issue with PCEand CC bidsubmittalswas that in both cases arithmetic discrepancies existed between item prices and total prices. When this situation occurs, per the City’s specifications for bidding, the bid totalis calculated by the Cityusing item prices. PCEsubmitted a written protest, clarifying their bid intentions; however, this newly supplied information cannot be used because of the unfair advantage that it would give PCE over other contractors who followed the bidding instructions in their original sealed bid document (Attachment 3). C6-1 Monterey StreetWatermain Replacement, Spec. No. 91284Page 2 The third lowest bidder, Whitaker Construction Group, Inc.submitted a complete and responsive bid package. Whitaker Construction possesses a valid contractor’s license and has completed like projects in the past. FISCAL IMPACT There is currently $391,430 available in the Monterey Street Water MainReplacement construction phase account. The additional funding of $60,000 needed for construction management services will be transferred from general carryover which currently has a balance of $228,400. The remaining $77,570 needed will be transferred from completed projects which has an available balance of $90,033. Monterey St. Watermain Replacement, Spec. No. 91284 Construction Cost:$388,334 Contingencies:$50,166 Construction Management Services:$60,000 Cultural Resources Monitoring:$25,000 Materials Testing:$5,000 Printing:$500 Total Project Cost$529,000 ALTERNATIVE Reject all bids, and re-advertise the project. The City Council could choose to reject all bids and direct staff to re-advertise the project. Staff does not recommend this alternative because this will delay the project without any guarantee of reduced bid amounts. Also the existing water main could experience another failure which could cause traffic and water service disruptions to the community. A delay in the start of construction could also cause traffic conflicts with another City Project, the Johnson Waterline project that is scheduled to start construction in early June and is adjacent to this project. Coordinating traffic control for adjacent projects is complicated and it causes traffic delays, especially when dealing with arterial streets such as Monterey and California. ATTACHMENTS 1.Copy of original report authorizing advertising 2.Bid Summary 3.Pacific Coast Excavation Inc. protest letter 4.Contract with Whitaker Construction Group, Inc. t:\council agenda reports\2015\2015-03-03\c6-award monterey st. watermain repl., spec. 91284 (grigsby-guzman)\91284 award - monterey watermain repl..docx C6-2 ATTACHMENT1PG1 Dec. 10 2013 , FROM : Carrie Mattingly, Utilities Director Prepared By: Jennifer Lawrence, Project Manager SUBJECT: MONTEREY STREET WATERLINE REPLACEMENT, SPECIFICATION NO. 91284 RECOMMENDATION 1.Authorize the City Manager to award a contract to Cannon in the amount of $59,840 for design services for the “Monterey Street Waterline Replacement.” 2.Approve a Budget Amendment Request to transfer $59,840 from Water Completed Projects to the design phase of the project. 3.Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $336,026. DISCUSSION In the past year the ten-inch waterline on Monterey Street between California and Pepper has broken twice. Businesses in the area were without water and traffic was diverted around this section of Monterey Street while crews spent several hours repairing the break. An analysis of the risk and benefit of replacing the waterline was completed after the second break. It is recommended, although the project is not currently on the list of scheduled waterline replacements, that, due to age and condition of the existing pipeline, the entire section of pipe on Monterey between California and Johnson be replaced as soon as possible. There are two 16” water transmission line replacement projects (Phase I and Phase II) that will be constructed in the area of this proposed project (see the 2013-15 Financial Plan, Capital Improvement Plan, page 3-117). These projects are currently in the design stage with Phase I scheduled for construction in April 2014. Phase II, which includes the intersection of California and Monterey is scheduled for construction starting in July of 2014. Design and construction of this proposed waterline replacement on Monterey would be scheduled concurrently with Phase II of the 16” water transmission line replacement to reduce costs and minimize traffic and service impacts. CONCURRENCES The Community Development Department has granted a Notice of Exemption for the proposed project since minimal environmental impacts are anticipated. FISCAL IMPACT Staff has received a proposal for design from Cannon, one of the City’s on-call consultants approved for engineering services (Attachment 1). Funding for the design and construction support C6-3 ATTACHMENT1PG2 Monterey Street Waterline Replacement Page 2 portion of the project is available in the Water Completed Projects Account which has a current available balance of $130,553. The construction services portion of the project will begin in fiscal year 2014-15. Funding will be provided during the 2014-15 budget supplement process from the Water Fund’s working capital. The project costs are estimated as shown below. A Budget Amendment Request will be processed to transfer funding from the Completed Projects account to the project’s design. Monterey Street Waterline Replacement Design Engineering and Construction Support Design Services$34,540 Potholing$25,300 Total$59,840 Construction Services Engineer's Estimate$336,026 Contingencies (15%)$50,404 Printing and Miscellaneous$5,000 Total$391,430 Total Project Cost$451,270 ALTERNATIVE Council could choose to deny funding for this project and pursue construction and design services at a later date. This option is not recommended due to the two recent breaks in this pipe segment. Without replacement, this section of pipeline is expected to fail and again cause traffic and water service disruptions to the community. ATTACHMENT 1.Engineer’s Design and Construction Budget Estimates 2.Budget Amendment Request ..\Monterey Street Waterline Replacement C6-4 THIS PAGE IS INTENTIONALLY LEFT BLANK ATTACHMENT3 Pacific Coast Excavation, Inc. 316 N. Pine Street, Santa Maria, CA 93458 P.O. Box 452, Santa Maria, CA 93456 Tel. (805)925-6565 FAX (805)925-8565 www.PacificCoastExcavation.com Manny Guzman, Project Manager City of San Luis Obispo Public Works Dept. 919 Palm Street San Luis Obispo, CA 93401 Monterey St. Watermain Replacement Specification No.91284 Re: BID PROTEST for Dear Mr. Guzman, This letter is a Formal Bid Protest for the Monterey St. Watermain Replacement Specification No.91284 Project that Bid on Wednesday, February 4, 2015. The reason for the protest is due to a clerical error made on Bid Item No. 14 (Contaminated Soil Disposal). The intended amount in the Total column reads $5,000 and is the correct amount for that bid item. In the City Spec Book for the above mentioned project, Notice to Bidders, page iii reads as follows: AWARD The lowest bidder will be determined using the BID TOTAL. This supersedes the City’s Standards as per our telephone conversation earlier this morning. The BID TOTAL for Pacific Coast Excavation, Inc. is $361,380 on page B of the submitted Bid Forms. Pacific Coast Excavation, Inc. is in fact the lowest bidder based on the above, and expects the City of San Luis Obispo to remedy this protest by awarding this project to us as such. Best regards, Carie L. Slosson President/Treasurer Office (805)925-6565 Cell (805)709-3686 Enclosures C6-9 THIS PAGE IS INTENTIONALLY LEFT BLANK ATTACHMENT4PG1 AGREEMENT THIS AGREEMENT , made on this ______ day of ___________, 2015, by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the WHITAKER CONSTRUCTION GROUP, INC. Owner) and (hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of MONTEREY ST. WATERMAIN REPLACEMENT, SPECIFICATION NO. 91284 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: ItemItemUnit of Estimated Item Price Total No. SSDescription Measure Quantity(in figures) (in figures) 1 () $30,000.00$30,000.00 17Traffic Control LS1 $15,000.00$15,000.00 277PotholingLS1 $191.50$196,479.00 37710 Inch PVC Waterline LF1026 $4,500.00$4,500.00 477Abandon Waterline and Facilities LS1 Waterline Tie In and Appurtenances at Johnson and $9,900.00$9,900.00 577MontereyLS1 Waterline Tie In and Appurtenances at California and $14,500.00$14,500.00 677MontereyLS1 Fire Main Connection at Station $3,000.00$3,000.00 7774+01.72LS1 Fire Main Connection at Station $3,300.00$3,300.00 8774+65.70LS1 Fire Main Connection at Station $3,300.00$3,300.00 9775+58.78LS1 Fire Main Connection at Station $5,500.00$5,500.00 10776+55.35LS1 $1,300.00$19,500.00 1177Water Service Tie In EA15 $9,800.00$9,800.00 1277Fire Hydrant EA1 $8.00$4,400.00 1314Contaminated Soil Excavation CF550 $72.00$39,600.00 1414Contaminated Soil Disposal CF550 1 of 3 C6-6 ATTACHMENT4PG2 ItemItemUnit of Estimated Item Price Total No. SSDescription Measure Quantity(in figures) (in figures) 1 () $2,300.00$2,300.00 1515Reset Monument EA1 $25.00$25.00 1685Blue Hydrant Marker EA1 $12.50$150.00 178412 Inch White Stripe LF12 $6.00$270.00 1884Detail 38 Stripe LF45 $13.00$3,276.00 1984Detail 32 Stripe LF252 $6.00$900.00 2084Type IV Arrow SQFT150 $52.00$884.00 2159Bike Lane Coating SQFT17 $6,500.00$6,500.00 2214Comply with APCD Permit LS1 $1,000.00$1,000.00 2314Prepare Health and Safety Plan LS1 Comply with Health and Safety $850.00$4,250.00 2414PlanDAY5 Comply with Mitigation $1,500.00$1,500.00 2514MeasuresLS1 $8,500.00$8,500.00 267Comply with OSHA LS1 BID TOTAL: $388,334.00 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and information for bidders. 2. Standard Specifications, Engineering Standards, Special Provisions, and any Addenda. 2. Accepted Bid. 4. Public Contract code Section 10285.1 Statement and 10162 Questionnaire. 5. Noncollusion Declaration. 6. Plans. 7. List of Subcontractors. 8. Agreement and Bonds. 9. Insurance Requirements and Forms. ARTICLE IV. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. 2 of 3 C6-7 ATTACHMENT4PG3 ATTEST: CITY OF SAN LUIS OBISPO A Municipal Corporation ______________________________ By:_____________________________ Anthony Mejia, City Clerk Jan Howell Marx, City Mayor APPROVED AS TO FORM: CONTRACTOR: Whitaker Construction Group, Inc. _______________________________ By:______________________________ J. Christine Dietrick, City Attorney Matthew Bousman Its: President Rev. 12-28-09 3 of 3 C6-8 THIS PAGE IS INTENTIONALLY LEFT BLANK