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HomeMy WebLinkAbout04.n. Award contract for Cathodic Protection, Phase 1, District Project 8425Central Contra Costa Sanitary District • /�. BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 4, 2014 Subject: WAIVE A NON - MATERIAL OMISSION; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CORRPRO COMPANIES, INC. FOR THE CONSTRUCTION OF THE CATHODIC PROTECTION, PHASE 1, DISTRICT PROJECT 8425 Submitted By: Michael Penny, Associate Engineer Initiating Dept. /Div.: Engineering /Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. Mestetsky — Senior Engineer I w E. Lopez — Prov. Capital Projects Division Manager K. Alm Roger S. Baile J -M Petit — Director of Engineering Counsel for the District General Manager ISSUE: On August 18, 2014, four sealed bids were received and opened for the construction of the Cathodic Protection, Phase 1, District Project 8425. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. RECOMMENDATION: Waive a non - material omission; find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract, and authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS). FINANCIAL IMPACTS: Approximately $629,000, including design, bid price, contingency, and construction management. This amount is shown and budgeted through the Fiscal Year (FY) 2014 -2015 Capital Improvement Budget (CIB) under the Cathodic Protection Systems Replacement Program and Cathodic Protection, Phase 1, and also includes carry-over from previous allocations. No additional allocation is required at this time. ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. BACKGROUND: A comprehensive cathodic protection survey of the collection system, pumping stations, and treatment plant was prepared in 2008, and was updated in 2012. Based on the results of the survey, the Cathodic Protection System Replacement Program project developed the scope, initial design concepts, and final design for this project. A map is provided as Attachment 1. Page 1 of 7 POSITION PAPER Board Meeting Date: September 4, 2014 Subject: WAIVE A NON - MATERIAL OMISSION; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CORRPRO COMPANIES, INC. FOR THE CONSTRUCTION OF THE CATHODIC PROTECTION, PHASE 1, DISTRICT PROJECT 8425 This project includes required improvements, replacement, and /or addition of cathodic protection systems to those sites identified as high or moderate priority in the 2012 survey update. Work includes installation of new anode beds, vent piping, test stations, and impressed current cathodic protection systems on the treatment plant site, at six pumping stations, and on five force mains. Miscellaneous corrosion - related improvements are also included in the scope of this project. The Cathodic Protection, Phase 1 project was developed and designed under the Collection System Cathodic Protection System Replacement Program, DP 8410. District staff and JDH Corrosion Consultants, Inc. prepared the plans and specifications for the project. The Engineer's estimate for construction of the Cathodic Protection, Phase 1, District Project 8425, is $455,000. This project was advertised on July 14 and again July 21, 2014. Four sealed bids ranging from $396,246 to $760,011 were received and publicly opened on August 18, 2014. The Engineering Department conducted a technical and commercial review of the bids and determined that Corrpro Companies, Inc. (Corrpro) is the lowest responsive bidder with a bid amount of $396,246. This conclusion came after staff, in consultation with District Counsel, determined that Corrpro made a non - material omission in its bid; namely, that Corrpro used the original Schedule of Bid form instead of one included in Addenda No. 2. Corrpro did execute the appropriate Bid Form acknowledging receipt, understanding, and full consideration of the Addenda. Because the omission does not change the amount of the bid, nor alter in any material way the other terms of the bid, nor provide the bidder an unfair competitive advantage, the omissions are not material, and should, therefore, be waived. A summary of bids received is shown in Attachment 2. On August 19, 2014, the second lowest bidder, Farwest Corrosion Control Company ( Farwest), submitted a timely bid protest claiming that the bid submitted by Corrpro contained material defects by not listing any work performed by subcontractors. The District's bid documents, pursuant to the Public Contract Code, require the prime contractor to list any subcontractor work in the amount in excess of one -half of one percent of the total bid total. On August 21, 2014, Farwest formally withdrew its protest after learning that Corrpro would self - perform the work, as allowed by law. Therefore, staff has determined that Corrpro is the lowest responsive and responsible bidder with a bid amount of $396,246. The District will administer the construction contract and will provide contract administration, inspection, survey, office engineering, and submittal review. Page 2 of 7 POSITION PAPER Board Meeting Date: September 4, 2014 Subject. WAIVE A NON - MATERIAL OMISSION; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CORRPRO COMPANIES, INC. FOR THE CONSTRUCTION OF THE CATHODIC PROTECTION, PHASE 1, DISTRICT PROJECT 8425 JDH Corrosion Consultants, Inc. will provide specialty corrosion protection system inspection. The Cathodic Protection Systems Replacement projects are included in the FY 2014 -15 CIB on pages CS -8 and CS -9. Additional scope was added to the Phase 1 project, including replacement of a corroded pipe spool at Orinda Cross Roads Pumping Station and work at the treatment plant, which was not identified originally in the CIB project description. However, due to criticality of these components, this work was added to the project. The total Board authorized FY 2014 -15 allocation budgets for the Cathodic Protection Systems Replacement Program and the Cathodic Protection Systems, Phase 1, are $200,000 and $500,000 respectively. No additional allocations are required to fund the project, as shown in Attachment 3. Staff has conducted a cash -flow analysis of the Collection System Program budget and concluded that adequate funds are available for this project, as shown below: FY 2014 -15 Collection System Program Allocation Budget: Authorized Program Allocations $ 17,232,000 Previous FY 14 -15 Allocations to date $ 3,360,000 This Allocation for DP 8425 $ 488,000 ($500,000 budgeted) Remaining Authorization Budget $ 13,384,000 Staff has concluded that this project is exempt from CEQA under CCCSD CEQA Guidelines Section 15302, because it involves replacement of existing cathodic protection systems at substantially the same locations, and with the same purpose and level of activity as the facilities being replaced. This project also is exempt under District CEQA Guidelines Section 15061(b) (3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This certainty is based on the District's past experience with numerous sewer construction projects of this nature, the relatively small excavations involved, and the District's mitigating construction specifications. These specifications are standardized general and special conditions that are made part of the project bid documents to address environmental considerations, such as protecting trees and riparian areas, as well as compliance with applicable federal, state, county, district, municipal, and local laws, ordinances, orders, and regulations. Approval of this project Page 3of7 POSITION PAPER Board Meeting Date: September 4, 2014 subject. WAIVE A NON - MATERIAL OMISSION; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CORRPRO COMPANIES, INC. FOR THE CONSTRUCTION OF THE CATHODIC PROTECTION, PHASE 1, DISTRICT PROJECT 8425 will establish the Board of Directors' independent finding that this project is exempt from CEQA. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee discussed this project at its meeting on August 25, 2014. Due to the bid protest, this position paper was not available at the time of the Committee meeting. RECOMMENDED BOARD ACTION: Staff recommends the following: Find that the project is exempt from CEQA; 2. Waive non - material omission; 3. Award a construction contract in the amount of $396,246 for the construction of the Cathodic Protection, Phase 1, District Project 8425, to Corrpro Companies, Inc., the lowest responsive and responsible bidder, and 4. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. Attached Supporting Documents: 1. Project Location Map 2. Summary of Bids 3. Post -Bid / Preconstruction Estimate Page 4 of 7 ATTACHMENT 1 ® Project Areas 0 District Boundary NOW Page 5 of 7 ATTACHMENT 2 CATHODIC PROTECTION, PHASE 1 DISTRICT PROJECT 8425 SUMMARY OF BIDS PROJECT NO.: 8425 PROJECT NAME: CATHODIC PROTECTION, PHASE 1 DATE: AUGUST 18, 2014 PROJECT LOCATION: TREATMENT PLANT AND VARIOUS LOCATIONS IN CONTRA COSTA COUNTY NO. OF ADDENDA: 2 ENGINEER'S ESTIMATE: $455,000 NO. BIDDER BID PRICE 1 Corrpro Companies, Inc. $396,246 Hayward, CA 94545 2 Farwest Corrosion $440,756 Downey, CA 90241 -5517 3 Exaro Technologies Corporation $622,735 Burlingame, CA 94010 4 American Construction & Supply, Inc. $760,011 Corte Madera, CA 94925 BIDS OPENED BY /s/ Elaine R. Boehme, CIVIC Page 6 of 7 DATE: August 18, 2014 ATTACHMENT 3 CATHODIC PROTECTION, PHASE 1 - DISTRICT PROJECT 8425 POST -BID / PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Construction Cost 1. CONSTRUCTION a. Construction Contract $396,246 b. Contingency at 15% $59,754 c. Permits $5,000 SUBTOTAL - CONSTRUCTION COST $461,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Inspection $45,000 - Construction Management $15,000 - Public Relations/ Operation Support $13,000 b. Consultants - Material Testing $5,000 - JDH Corrosion Consultants, Inc. $20,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $98,000 21% 4. PREBID EXPENDITURES a. Design for DP 8410 $70,000 SUBTOTAL PREBID EXPENDITURES $70,00 15% TOTAL PROJECT COSTS $629,00 5. FUNDS AUTHORIZED TO DATE (Under DP 8410) $141,00 6. FUNDS AUTHORIZED IN FY14 -15 CIB - DP8425 $500,0 0 7. REMAINING FUNDS RETURNED TO PROGRAM $12,00 Page 7 of 7