HomeMy WebLinkAbout10-17-2017 Item 07 - Margarita Lift Station Replacement Project Award, Specificatioon No. 91214A
Meeting Date: 10/17/2017
FROM: Carrie Mattingly, Director of Utilities
Prepared By: Jennifer Metz, Utilities Project Manager
SUBJECT: MARGARITA LIFT STATION REPLACEMENT PROJECT AWARD,
SPECIFICATION NO. 91214A
RECOMMENDATIONS
Award a contract to Specialty Construction, Inc. in the amount of $1,290,215 for the Margarita
Lift Station Replacement Project, Specification No. 91214A.
DISCUSSION
The Margarita Lift Station Replacement project, Specification No. 91214A, includes the
replacement of an existing lift station and sewer force main originally installed in 1971 that is
operating beyond its life expectancy. On July 18, 2017, the City Council authorized invitations
for construction bids for the replacement and authorized the City Manager to execute a contract
for construction if the lowest responsible bid was within the Engineer’s Estimate (Attachment A)
of $903,000.
Six general contractors attended the mandatory pre-bid conference on August 15, 2017. Three bids
were received and opened on September 14, 2017. All bids were over the engineer’s estimate of
$903,000 which requires Council approval to award the contract. As shown in the Bid Summary
(Attachment B) Specialty Construction, Inc. was the low bidder at $1,290,215. Completion of
this project is critical because of the condition of the lift station.
This is the second time the City has received bids for the construction of the Margarita Lift Station
Replacement Project. On September 30, 2016, the City received two bids, both exceeding the
engineer’s estimate by more than $600,000. On October 26, 2016, the City Manager rejected both
of the bids. Although the City received more bids than when this project was bid in 2016, the City
encounters a limited pool of interested and qualified contractors likely due to the current
construction climate and the expertise required for sewer lift station projects. Since this is the
second time the project has been out for construction bids, staff does not believe that a third time
will yield a low bid within the original engineer’s estimate.
FISCAL IMPACT
The current available budget for this project is $1,755,256. The revised project cost considering the
low bid from Specialty Construction, Inc. is $1,601,215. There is adequate budget in the project
account to fund the lift station replacement.
Packet Pg 197
7
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act pursuant to
CEQA Guidelines section 15302 (Replacement or Reconstruction of existing structures and
facilities).
CONCURRENCES
The Public Works Department will provide construction management oversight to contract
inspection services by Filippin Engineering for the proposed lift station replacement project and
concurs with the recommendations in this report.
ALTERNATIVES
1. Reject all bids and direct staff to re-advertise the project. The City Council may choose to
reject all bids and direct staff to re-bid the project. If Council elects to defer the project,
Utilities would continue to maintain the station in operable condition. Efforts already made to
prolong the life of the station include repairs to the floor of the sump pump due to leaks in
1995; cathodic protection to extend the life of the structure in 1996; additional leaks were
repaired on the floor and walls in 2010. If the station is run to failure requiring emergency
replacement, emergency construction costs and impacts to the adjacent housing and the
environment would be significant.
Attachments:
a - July 18, 2017 Council Agenda Report to Advertise
b - Specification 91214A, Bid Summary
c - Contract Agreement, Specialty Construction, Inc
Margarita Lift Station
Replacement, Specification No.
91214A
Prior
Estimated
Project Cost
Revised Project
Cost per low
bid
Construction Services:
Construction $903,000 $1,290,215
Materials Testing $5,000 $5,000
Printing and Miscellaneous $1,000 $1,000
Construction Inspection Services 124,316 124,316
Construction Contingencies: $180,000 $180,000
Total Construction Services $1,214,000 $1,601,215
Packet Pg 198
7
Meeting Date: 7/18/2017
FROM: Carrie Mattingly, Utilities Director
Prepared By: Jennifer Metz, Utilities Project Manager
SUBJECT: MARGARITA LIFT STATION REPLACEMENT, SPECIFICATION NO.
91214A
RECOMMENDATION
1. Approve plans and specifications for the Margarita Lift Station Replacement, Specification
No. 91214A and authorize staff to advertise for bids; and
2. Authorize the City Manager to award the contract if the lowest responsible bid is within the
Engineer's estimate of $903,000.
DISCUSSION
Background
The Margarita Lift Station, and its associated 230 feet of six-inch cast iron force main, serves
properties east of South Higuera Street adjacent to Margarita Avenue and was put into service in
1971. At 46 years old, it is operating beyond its useful life. Due to the age and condition of the
lift station, budget for the design of a replacement station was identified in the 2013-15 Financial
Plan, Capital Improvement Plan. The City Council authorized a request for proposals and the
City Manager awarded a contract for design services to replace the lift station in November 2013
and March 2014 respectively. Construction funding for the project was identified in the 2015 -17
Financial Plan, Capital Improvement Plan.
On August 16, 2016, the City Council approved the advertisement of the Margarita Lift Station
Replacement project with a total project budget of $1,102,000 including construction,
construction management, and construction contingencies. Seven general contractors attended a
mandatory pre-bid conference on September 14, 2016. On September 30, 2016, the City received
two bids, both exceeding the engineer’s estimate. On October 26, 2017, the City Manager rejected
all bids. In the 2017-19 Financial Plan, additional funding was added to support the construction
of the project.
The existing Margarita Lift Station is located along the Margarita Avenue street frontage
adjacent to the Margarita Apartments which are owned and managed by the San Luis Obispo
Housing Authority (HASLO). The new Margarita Lift Station will be located on an easement
obtained by the City from HASLO. The City and HASLO collaborated on the project’s fencing,
lighting, sound attenuation, service access, and the connection of recycled water for irrigation on
the property. The old station will be abandoned and the property upon which it was located will
become part of the Margarita Apartments landscaping.
The City acquired temporary construction easements from HASLO for the original construction
schedule of the project with a termination date of December 31, 2017. The City is working with
HASLO to extend the temporary easements to respond to the updated construction schedule.
Packet Pg 199
7
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act pursuant to
CEQA Guidelines section 15302 (Replacement or Reconstruction of existing structures and
facilities).
CONCURRENCES
The Public Works Department reviewed the revised plans and special provisions for the
Margarita Lift Station Replacement, Specification No. 91214A and provided comments that have
been incorporated; Community Development concurs with the environmental review findings.
FISCAL IMPACT
Adequate funding is available in the Sewer Fund to support the project’s construction, including
a 20 percent contingency. The project budget is provided below.
Construction Estimate $903,000
Construction Contingencies $180,000
Construction Management $125,000
Materials Testing $5,000
Printing and Miscellaneous $1,000
Project Budget $1,214,000
ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval
to advertise this project. If Council elects to defer the project, Utilities would continue to work to
maintain the station in operable condition. Efforts already made to prolong the life of the station
include repairs to the floor of the sump pump due to leaks in 1995; cathodic protection to extend
the life of the structure in 1996; additional leaks were repaired on the floor and walls in 2010. If
the station is run to failure requiring emergency replacement, emergency construction costs and
impacts to the adjacent housing and the environment would be significant.
Attachments:
a - Council Reading File - Special Provisions for Specification 91214A
b - Council Reading File - Planset for Specification 91214A
Packet Pg 200
7
Item # Item DescriptionQuantity Unit of Measure Unit Price Item Total Unit Price Item Total Unit Price Item Total1 MOBILIZATION1 LS$42,000.00 $42,000.00 $60,000.00 $60,000.00 $75,000.00 $75,000.00 2 RESIDENTIAL LATERAL CONNECTION 1 LS$27,000.00 $27,000.00 $25,950.00 $25,950.00 $10,000.00 $10,000.00 3 SHORING 1 LS$140,000.00 $140,000.00 $500.00 $500.00 $90,000.00 $90,000.00 4 DEWATERING 1 LS$88,000.00 $88,000.00 $50,600.00 $50,600.00 $90,000.00 $90,000.00 5 LIFT STATION 1 LS$455,000.00 $455,000.00 $586,500.00 $586,500.00 $800,000.00 $800,000.00 6 ELECTRICAL, CONTROLS, AND GENERATOR 1 LS$221,000.00 $221,000.00 $223,490.00 $223,490.00 $240,000.00 $240,000.00 7 LIFT STATION STARTUP AND 1 LS$24,000.00 $24,000.00 $17,325.00 $17,325.00 $30,000.00 $30,000.00 8 DEMOLITION 1 LS$36,000.00 $36,000.00 $46,900.00 $46,900.00 $30,000.00 $30,000.00 9 3‐INCH AC REPLACEMENT AND STRIPING 3782 SF$11.00 $41,602.00 $11.00 $41,602.00 $11.00 $41,602.00 10 THICKENED AC SECTION 877 SF$18.00 $15,786.00 $18.00 $15,786.00 $12.00 $10,524.00 11 6‐INCH HDPE FORCE MAIN 264 LF$328.00 $86,592.00 $315.00 $83,160.00 $300.00 $79,200.00 12 POTHOLING 8 EA$1,970.00 $15,760.00 $7,500.00 $60,000.00 $1,000.00 $8,000.00 13 TRAFFIC CONTROL1LS$16,000.00 $16,000.00 $72,000.00 $72,000.00 $25,000.00 $25,000.00 14 RECYCLED WATER SERVICE 75 LF$245.00 $18,375.00 $375.00 $28,125.00 $150.00 $11,250.00 15 NATURAL GAS SERVICE 80 LF$20.00 $1,600.00 $107.00 $8,560.00 $100.00 $8,000.00 16 LANDSCAPING 1 LS$47,000.00 $47,000.00 $39,000.00 $39,000.00 $25,000.00 $25,000.00 17 OSHA COMPLIANCE 1 LS$14,500.00 $14,500.00 $500.00 $500.00 $15,000.00 $15,000.00 $1,290,215.00 $1,359,998.00 $1,588,576.00 Total Bid AmountMargarita Lift Station Replacement, Specification No. 91214ABid Opening: 09/14/17* marks an allowanceSpecialty Construction, Inc. Cushman Contracting Raminha Construction Inc.Packet Pg 2017
1 of 3
AGREEMENT
THIS AGREEMENT, made on this ______ day of ___________, 20__, by and between the City of San Luis
Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the
Owner) and SPECIALTY CONSTRUCTION, INC. (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
MARGARITA LIFT STATION REPLACEMENT, SPECIFICATION NO. 91214 A
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:
Item Item Unit of Estimated Item Price Total
No. Description Measure Quantity (in figures) (in figures)
1 MOBILIZATION LS 1 $42,000.00 $42,000.00
2 RESIDENTIAL LATERAL
CONNECTION LS 1 $27,000.00 $27,000.00
3 SHORING LS 1 $140,000.00 $140,000.00
4 DEWATERING LS 1 $88,000.00 $88,000.00
5 LIFT STATION LS 1 $455,000.00 $455,000.00
6 ELECTRICAL, CONTROLS,
AND GENERATOR LS 1 $221,000.00 $221,000.00
7 LIFT STATION STARTUP AND
COMMISSIONING LS 1 $24,000.00 $24,000.00
8 DEMOLITION LS 1 $36,000.00 $36,000.00
9 3-INCH AC REPLACEMENT
AND STRIPING SF 3782 $11.00 $41,602.00
10 THICKENED AC SECTION SF 877 $18.00 $15,786.00
11 6-INCH HDPE FORCE MAIN LF 264 $328.00 $86,592.00
12 POTHOLING EA 8 $1,970.00 $15,760.00
13 TRAFFIC CONTROL LS 1 $16,000.00 $16,000.00
14 RECYCLED WATER SERVICE LF 75 $245.00 $18,375.00
15 NATURAL GAS SERVICE LF 80 $20.00 $1,600.00
Packet Pg 202
7
2 of 3
Item Item Unit of Estimated Item Price Total
No. Description Measure Quantity (in figures) (in figures)
16 LANDSCAPING LS 1 $47,000.00 $47,000.00
17 OSHA COMPLIANCE LS 1 $14,500.00 $14,500.00
BID TOTAL: $1,290,215.00
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.
3. Plans.
4. Caltrans Standard Specifications and Standard Plans 2010
5. Accepted Bid.
6. List of Subcontractors.
7. Public Contract Code Sections 10285.1 Statement.
8. Public Contract Code Section 10162 Questionnaire.
9. Public Contract Code Section 10232 Statement.
10. Labor Code Section 1725.5 Statements.
11. Bidder Acknowledgements.
12. Qualifications.
13. Attach Bidders Bond to Accompany Bid.
14. Non-collusion Declaration.
15. Agreement and Bonds.
16. Insurance Requirements and Forms.
ARTICLE IV INDEMNIFICATION: Hold Harmless and Indemnification. The Contractor agrees to defend,
indemnify, protect and hold the City and its agents, officers and employees harmless from and against any
and all claims asserted or liability established for damages or injuries to any person or property, including
injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or
claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in
performing the work or services herein, and all expenses of investigating and defending against same;
provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or
liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or
employees. In the event of conflict with any other indemnification or hold harmless provisions of this
Agreement, the provision that provides the most protection to the City shall apply.
ARTICLE V. 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.
Packet Pg 203
7
3 of 3
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first
above written.
ATTEST: CITY OF SAN LUIS OBISPO
__________________________ By:_________________________
Carrie Gallagher Heidi Harmon
City Clerk Mayor
APPROVED AS TO FORM: CONTRACTOR:
Specialty Construction, Inc.
By: __________________________
J. Christine Dietrick Rudolph C. Bachmann
City Attorney Its: President/Secretary
Rev. 12-28-09
Packet Pg 204
7