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.
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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)
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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
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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
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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.
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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
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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.
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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.
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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)
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