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HomeMy WebLinkAbout07-02-2019 Item 04 - Award Sewer Lining Project 2019 - Spec no 91641 Department Name: Public Works Cost Center: 6102 For Agenda of: July 02, 2019 Placement: Consent Estimated Time: N/A FROM: Daryl Grigsby, Public Works Director Prepared By: Hai Nguyen, Engineer III SUBJECT: AWARD SEWER LINING PROJECT 2019, SPECIFICATION NO. 91641 RECOMMENDATION Award a contract to Sancon Technologies, Inc. in the amount of $182,209 for the Sewer Lining Project 2019. DISCUSSION On April 16, 2019 the City Council authorized inviting bids for the Sewer Lining Project 2019, Specification Number 91641. One bid was received and opened on May 30, 2019 and Sancon Technologies, Inc. (Sancon) was the only responsible bidder with a bid of $182,209 (Attachment A - Bid Results). This bid is higher than the Engineer’s Estimate of $180,000 by $2,209. This increase in costs may be attributed to the overall increase in construction materials, activity, and high demands for contract work during the peak summer season. The Contractor’s references, license, and registration with the Department of Industrial Relations have been verified. Sancon has proven to be a capable sewer lining contractor based on work completed in 2018 for Jennifer Street Sewer Line Replacement, Specification 91185. The contractor is currently performing work on Benton, Meinecke, Broad, Chorro and Mission for the current Sewer Lining Project 2016, Specification 91421. Furthermore, Sancon is the sewer lining subcontractor for the recently awarded Stafford/Kentucky Sewer Line Replacement Project, Specification 91265. Although only one bid was received, it came from a capable and knowledgeable sewer lining contractor. Therefore, staff is recommending that the project be awarded to Sancon Technologies, Inc. (Attachment B- Contract). Previous Council or Advisory Body Action This project was identified in the City Council approved 2017-19 Financial Plan, Capital Improvement Plan. Policy Context The City Council approved the Wastewater Collection System Infrastructure Renewal Strategy in January 2016. The plan identified a strategy for prioritizing pipeline replacement/rehabilitation efforts in the wastewater collection system to serve existing customers and future development in the City. Packet Pg. 59 Item 4 Per Exhibit 202-A of the October 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was done during the initial identification of this project to be included in the 2017-19 Financial Plan. This is an important public infrastructure project and is necessary for the general health and welfare of the public. CONCURRENCE The Utilities Department is familiar with the contractor’s experience in similar types of work related to sewer liner projects successfully completed within the City, and concurs with the determination of the lowest responsive and responsible bidder. Although a minimum of three bids are recommended to evaluate the bidding process, it is in the best interest of the public to select the lowest bid received, which is 2% over the Engineer’s Cost Estimate. Advertising the project again could create delays in the construction schedule and extend work into the rainy season. ENVIRONMENTAL REVIEW This project is categorically exempt from environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption has been filed through the Community Development Department. FISCAL IMPACT Budgeted: Yes Budget Year: 2017-19 Funding Identified: Yes Fiscal Analysis: The estimated total project cost is $227,709. The Council Agenda Report (Attachment C) authorizing the advertisement of this project identifies the Project Account (91641) to support this project. The Project Account (91641) has a balance of $245,327 which is sufficient to support this request. Construction Estimate:$182,209 Contingencies (22%):$40,000 Material Testing:$5,000 Printing:$500 Total for Project:$227,709 Total funding available (91641)$245,327 Remaining Balance $17,618 Sewer Lining Project 2019 (91641) Packet Pg. 60 Item 4 ALTERNATIVES Deny award of the contract. The City Council may choose not to award the contract, reject the bid and direct staff to re-advertise the project. Staff does not recommend this alternative. Further delay of rehabilitating these segments of wastewater collection sewer pipe will only increase the costs associated with the maintenance, emergency repair after complete failure, and construction phase of work. Staff does not recommend re-advertisement of the project which could potentially experience an increase in costs due to low availability of contractors during the summer season. Attachments: a - 91641 Bid Results b - 91641 Contract c - 91641 Copy of original report authorizing advertising Packet Pg. 61 Item 4 SEWER LINING PROJECT 2019, SPECIFICATIONS NO. 91641Bid Opening: 5/30/19UNITTOTALUNITTOTALNo. ITEM UNITQUAN PRICEPRICEPRICEPRICE1(S) Furnish (N) CIPP (Cure‐In‐Place Pipe) Liner and Install for (E) 6" Sewer Pipe LF 1120 $100$112,000.00$92.00 $103,040.002 Clean (E) Sewer LineLS 1 $10,000$10,000.00 $15,800.00 $15,800.003 Furnish and Implement Health and Safety Plans (HSP)LS 1 $2,000$2,000.00 $1,500.00 $1,500.004 Comply with APCD and Air MonitoringLS 1 $5,000$5,000.00 $3,300.00 $3,300.005 Comply with OSHALS 1 $5,000$5,000.00 $3,500.00 $3,500.006 Traffic ControlLS 1 $5,000$5,000.00 $5,000.00 $5,000.007 Install Polymer cover and frameEA 3 $5,000$15,000.00 $4,115.00 $12,345.008 Clean and Rehabilitate (E) Sewer ManholeEA 4 $5,500$22,000.00 $8,431.00 $33,724.009 Remove and Replace Cleanout K06‐13EA 1 $4,000$4,000.00 $4,000.00 $4,000.00$180,000.00$182,209.00TOTAL PROJECT BIDBASE BIDEngineer's EstimateSANCONPacket Pg. 62Item 4 AGREEMENT THIS AGREEMENT, made on this ______, 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 SANCON TECHNOLOGIES, 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 SEWER LINING PROJECT 2019, SPEC NO. 91641 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. SS(1) Description Measure Quantity (in figures) (in figures) 1 77 (S) Furnish (N) CIPP (Cure-In- Place Pipe) Liner and Install for (E) 6" Sewer Pipe LF 1120 $92.00 $103,040.00 2 77 Clean (E) Sewer Line LS 1 -------------- $15,800.00 3 14 Furnish and Implement Health and Safety Plans (HSP)LS 1 -------------- $1,500.00 4 14 Comply with APCD and Air Monitoring LS 1 -------------- $3,300.00 5 7 Comply with OSHA LS 1 -------------- $3,500.00 6 12 Traffic Control LS 1 -------------- $5,000.00 7 77 Install Polymer cover and frame EA 3 $4,115.00 $12,345.00 8 77 Clean and Rehabilitate (E) Sewer Manhole EA 4 $8,431 $33,724.00 9 77 Remove and Replace Cleanout K06-13 EA 1 -------------- $4,000.00 BID TOTAL: $182,209.00 Packet Pg. 63 Item 4 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 and Engineering Standards 3. Special Provisions, any Addenda, Plans and Contract Change Orders 4. Caltrans Standard Specifications and Standard Plans 2015 5. Accepted Bid and Bid Bond 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. Non-collusion Declaration 14. Agreement and Bonds 15. Insurance Requirements and Forms ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Packet Pg. 64 Item 4 The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of AGENCY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City. 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. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation __________________________________ Derek Johnson, City Manager APPROVED AS TO FORM CONTRACTOR: SANCON TECHNOLOGIES, INC. ________________________________ By:________________________________ J. Christine Dietrick City Attorney CHUCK PARSONS Its: President By:________________________________ GARY DREW Its: Vice President / Secretary Packet Pg. 65 Item 4 Department Name: Public Works Cost Center: 6102 For Agenda of: April 16, 2019 Placement: Consent Estimated Time: N/A FROM: Daryl Grigsby, Public Works Director Prepared By: Hai Nguyen, Engineer III SUBJECT: ADVERTISE SEWER LINING PROJECT 2019, SPECIFICATION NO. 91641 RECOMMENDATION 1. Approve the project plans (Attachment A) and specifications (Attachment B) for the Sewer Lining Project 2019, Specification Number 91641; and 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 $180,000. DISCUSSION Background Replacement or repair of aging, deteriorating, or deficient wastewater collection pipelines is part of an ongoing sewer infrastructure maintenance program. This program has several objectives including providing uninterrupted sewage flow, eliminating potential health hazards and/or effluent leakage, reducing the need for emergency repairs, and reducing maintenance requirements. Furthermore, repairing defective components of the City’s wastewater collection systems will reduce the infiltration/inflow of groundwater and surface runoff into the collection system thereby reducing operational costs and the potential for overflows. The Sewer Lining Project 2019 will accomplish these objectives for part of the City’s wastewater collection system. Project The Project proposes rehabilitation of 1,120 feet of existing vitrified clay sewer pipe installed in the mid to late 1950s in an easement area adjacent to Albert Drive (Attachment C). The existing pipelines have severe root intrusion requiring annual maintenance and the easement area has limited access. The existing pipelines were video inspected and confirmed to be excellent candidates for the cure-in-place pipe (CIPP) polyester lining. CIPP is a trenchless rehabilitation method used to repair and extend the useful life of pipes. The CIPP process consists of inserting a resin-saturated tube into the pipeline. The resin hardens and creates a new pipe within the existing pipe, with sufficient capacity to handle projected flowrates. There are many advantages of using the CIPP method in lieu of traditional open trench replacement methods. CIPP lining of the existing pipe will result in a reduced construction period as compared to traditional open trench replacement construction, and it will be less disruptive to traffic and the community. Packet Pg. 66 Item 4 Previous Council or Advisory Body Action This project was identified in the 2017-19 Financial Plan that was approved by Council. Policy Context The City Council approved the Wastewater Collection System Infrastructure Renewal Strategy in January 2016. The plan identified a strategy for prioritizing pipeline replacement/rehabilitation efforts in the wastewater collection system to serve existing customers and future development in the City. Additionally, per the October 2018 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was done during the initial identification of this project to be included in the 2017-19 Financial Plan. This an important public infrastructure project and is necessary for the general health and welfare of the public. CONCURRENCE There is concurrence from the Utilities Department through their review of the project plans and special provisions. ENVIRONMENTAL REVIEW This project is categorically exempt from environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption has been filed through the Community Development Department. Packet Pg. 67 Item 4 FISCAL IMPACT Budgeted: Yes Budget Year: 2017-19 Funding Identified: Yes Fiscal Analysis: The 2017-2019 Financial Plan, pages E2-142, allocated $456,000 for this Project Account (91641) which has a current balance of $660,000 and is sufficient to support this request of $221,500. Remaining funds are planned to be utilized for upcoming sewer pipe rehabilitation projects on Walnut, Morro, and Slack Streets. ALTERNATIVES Deny authorization to advertise. The City Council may choose not to authorize project advertisement. Staff does not recommend this alternative. Further delay of rehabilitating these segments of wastewater collection sewer pipe will only increase the costs associated with the maintenance, emergency repair after complete failure, and construction phase of work. Attachments: a - Council Reading File - 91641 Plans b - Council Reading File - 91641 Specifications c - Project Vicinity Map Construction Estimate:$180,000 Contingencies (20%):$36,000 Material Testing:$5,000 Printing:$500 Total for Project:$221,500 Total funding available (91641)$660,000 Remaining Balance $438,500 Sewer Lining Project 2019 (91641) Packet Pg. 68 Item 4