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Home My WebLink About05.Review draft Position Paper to grant bid relief to Bay Pacific Pipelines, Inc.; award a construction contract in the amount of $3,018,040 for construction of the Martinez Sewer Renovations, Phase 5, District Project 8437, to K.J. Woods Construction, I 5■ Central San BOARD OF DIRECTORSOD POS17NP jii!IPER Board Meeting Date: May 18, 2017 Subject: CONSIDER BID RELIEF TO BAY PACIFIC PIPELINES INC.; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH K.J. WOODS CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE MARTINEZ SEWER RENOVATIONS, PHASE 5, DISTRICT PROJECT 8437 Submitted By: Initiating Dept./Div.: Mark Wenslawski, Associate Engineer Engineering and Technical Services/Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. Mestetsky—Senior Engineer E. Lopez—Capital Projects Division Manager Kenton L.Alm JM. Petit— Director of Engineering and Technical SiRogers. Bailey Services Counsel for the District General Manager ISSUE: On May 2, 2017, three (3) bids were received for the construction of the Martinez Sewer Renovations, Phase 5, District Project 8437 (Project). On May 3, 2017, Bay Pacific Pipelines Inc. (Bay Pacific) requested bid relief from their bid and bid security. The Board must determine whether to grant relief of the bid and to award the construction contract to the second low bidder or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the Contract Documents subject to submittal requirements. BACKGROUND: The Project is part of the ongoing sewer renovation within the Collection System Program of the Capital Improvements Budget to replace or rehabilitate aging sewer infrastructure that is in poor condition. This Project aligns with Central San's Strategic Plan, specifically the following: • Goal No. 1 , Provide exceptional customer service • Goal No. 2 — Strive to meet regulatory requirements • Goal No. 5 -- Maintain a reliable wastewater infrastructure The Project is primarily located in the downtown area between Pacheco Boulevard and Alhambra Avenue, between G and H Streets, and other locations in Martinez. The scope of work consists of replacement or rehabilitation of approximately 8,700 lineal feet of small diameter sewer mains, construction of manholes, and Other related work within public rights-of-way, easements, and near creeks. The project location map is identified in Attachment 1. Page 1 of 9 POSITION P Board Meeting Date: May 181 2017 subject CONSIDER BID RELIEF TO BAY PACIFIC PIPELINES INC.; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH K.J. WOODS CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE MARTINEZ SEWER RENOVATIONS, PHASE 5, DISTRICT PROJECT 8437 Central San staff prepared the plans and specifications for the Project. The Engineer's estimate for construction is $3,100,000. This project was advertised on April 10 and April 141 2017. Three (3) sealed bids ranging from $2,774,040 to $3,937,293 were received and publicly opened on May 2, 2017. A summary of bids received is shown in Attachment 2. On May 3, 2017, within five (5) business days of the bid opening, Central San staff received a letter from Eugene Carew of Bay Pacific indicating a mistake was made in preparing their bid, therefore, requesting relief from their bid and return of their bid security (see Attachment 3). The letter explains that the Contractor inadvertently submitted the wrong unit cost for bid item No. 10. The unit cost submitted was at $4.00 per lineal feet (LF) for installing 8-inch sewers by open trench, but the unit cost should have been $400 per LF. The error results in a difference of $964,260. A copy of Bay Pacific's bid is shown in Attachment 4. Under the California Public Contract Code Section 5103, a bidder may request relief of bid within five (5) business days after bid opening in the event of a clerical or arithmetic error in preparing the bid proposal. The law is stringent with regard to relief from bids and allows relief to be granted by the awarding authority only under specific circumstances. Specifically, the law states that: "The bidder shall establish to the satisfaction of the court that: a. A mistake was made. b. He or she gave the public entity written notice within five (5) days after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred. c. The mistake made the bid materially different than he or she intended it to be. d. The mistake was made in filling out the bid, and not due to error in judgement or to carelessness in inspecting the site of the work, or in reading the plans or specifications." Under the above Public Contract Code, it appears to staff that Bay Pacific made a clerical mistake in filling out the bid, and that relief should be granted to Bay Pacific. The Board must evaluate the information provided, consider other information that may be presented at the Board meeting, and determine whether to grant Bay Pacific relief from the bid due to the mistake. Page 2 of 9 POSITION P Board Meeting Date: May 18, 2017 Subject: CONSIDER BID RELIEF TO BAY PACIFIC PIPELINES INC.; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH K.J. WOODS CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE MARTINEZ SEWER RENOVATIONS, PHASE 5, DISTRICT PROJECT 8437 The Engineering Department conducted a.technical and commercial review of the bids and determined that in the event Bay Pacific is granted relief from its bid, the second low bidder, K.J. Woods Construction, Inc, is the lowest responsive bidder with the bid amount of $3,018,000. Central San will administer the construction contract and provide contract administration, inspection, survey, office engineering, and submittal review. Consultant inspection will be used to supplement staff on an as-needed basis. CEQA: Staff has concluded that this project is exempt from CEQA under District CEQA Guidelines Section 15302, because it involves replacement of existing sewer facilities at substantially the same locations and with the same purpose and level of activity as the facilities being replaced. Any capacity increases are for non-growth inducing, wet weather purposes. 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 Central San's experience with numerous sewer construction projects of this nature, the relatively short distances involved, and Central.San'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 will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALTERNATIVESICONS1DERATIONS: Reject all bids, which is not recommended. FINANCIAL IMPACTS: The total estimated project cost is $4,095,000, including design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 5. This project is included in the upcoming Fiscal Year 2017-18 Capital Improvement Budget with a total estimated project budget of $4,095,000. COMMUNITY OUTREACH: Central San held a public meeting on March 29, 2017, at the Headquarters Office Building in Martinez to assist with any questions or concerns by the residents along the proposed construction alignments. In addition, staff has notified and spoken with several easement homeowners directly to discuss the upcoming sewer work, construction impacts, project schedule, and receive input. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this project at the meeting on May 9, 2017, and recommended ... Page 3 of 9 POSITION PAPER Board Meeting Date: May 18, 2017 sub1ect: CONSIDER BID RELIEF TO BAY PACIFIC PIPELINES INC.; AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH K.J. WOODS CONSTRUCTION, INC. FOR THE CONSTRUCTION OF THE MARTINEZ SEWER RENOVATIONS, PHASE 5, DISTRICT PROJECT 8437 RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Consider Bay Pacific Pipelines Inc.'s request for relief of their bid; 2. Grant bid relief to Bay Pacific Pipelines Inc. and direct staff to return their bid bond; 3. Find that the project is exempt from CEQA; 4. Award a construction contract in the amount of $3,018,040 for the construction of the Martinez Sewer Renovations, Phase 5, District Project 8437, to K.J. Woods Construction, Inc, the next lowest responsive and responsible bidder; and 5. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to 10-percent contingency. Attached Supporting ocuments: 1. Project Location Map 2. Summary of Bids 3. Bay Pacific Pipelines Inc. Letter 4. Bay Pacific Pipelines Inc. Bid Copy 5. Post-Bid/Preconstruction Estimate Page 4 of 9 ATTACHMENT 1 MARTINEZ SEWER RENOVATIONS, PHASE 5 DISTRICT PROJECT 8437 PROJECT LOCATION MAP Suisun Project Areas ,Bay z�� f V1.. _ �• Vii:..: � / k , ECO--r- LU r � 17 } r 4 4 r 1 7 0 3,000 Feet Central Contra Costa Martinez Sewer Renovation Phase 5 Attachment Sanitary District District Project 5437 1 Proftding Public Health and the Environmen Project Location Page 5of9 ATTACHMENT 2 MARTINEZ SEINER RENOVATIONS, PHASE 5 DISTRICT PROJECT 8437 SUMMARY OF BIDS PROJECT NO.: 8437 NO. OF ADDENDA: 0 DATE: MAY 2, 2017 PROJECT NAME: MARTINEZ SEWER „RENOVATIONS, PHASE- 5 PROJECT LOCATION: MARTINEZ, CA ENGINEER'S ESTIMATE: $3,100,000 NO, BIDDER BID PRICE Bay Pacific Pipelines, Inc. 1 $2,774,040 Novato, CA 94947 K.J. Woods Construction, Inc. 2 $3,018,000 San Francisco, CA 94124 Cratus, Inc. 3 X3,937,293 San Francisco, CA 94116 BIDS OPENED BY/s/ Elaine R. Boehme,.CMC DATE: May-2, 2017 Page 6of9 ATTACHMENT 3 BAY PACIFIC PIPELINES INC. P 4 BOX 1162 NOVATO, CA 94948-1162 Tel: 415 897-6958 Fax: 415 897-1409 May 3,2017 Mr.Mark Wenslawski,P.E. Central Contra Costa County Sanitary District 5019 Imhoff Place Martintez,CA 94553 Ref: Martinez Sewer Renovations,Phase 5,District Project No. 8437 Bid Date: May 2,2017 Dear Mark: During the summation of our bid yesterday for the above-referenced project,we inadvertently wrote in$4.00 instead of$400.00 unit price for Bid Item No. 10.This item should have read$974,000.00 and would have brought our bid to$3,738,300.00 which was our intended bid price.Needless to say,pipe cannot be bought for$4.00 per If. Bay Pacific Pipelines respectfully request that our bid be withdrawn and our bid bond returned to us. We deeply regret any inconvenience this may cause you or the district. Thank you. Sin rely„ Eug e Carew,V.P. Bay Pacific Pipelines Inc. ATTACHMENT 4 Modify Manholes for the per-each (EA) price 8 of(WRITTEN IN WORDS) 27 EA u�u.irw -- r.. ■ Install Rodding Inlet for the per-reach (EA) JAJUUWN= W RDS VAdF Installation of 8-inch PVC and 8- and 8-inch VC pipe using open-cut method for the lineal 10 foot (LF) price of(WRITTEN IN WORDS) 21435 LF vT Installation of 8-inch HDPE pipe using • r 11 lineal foot(LF) price of(WRITTEN IN WORDS 6374 LF 3 $ 1.3 1� c' Spot repairs as shown on plans for the lineal 12 foot(LF) price of(WRITTEN IN WORDS) 40 LF ,. Reconnect active house or building laterals for the per-each (EA) price of(WRITTEN IN 13 WORDS) 248 EA Gln Provision and extension of laterals for the lineal foot(LF) price of(WRITTEN IN 14 WORDS) 240 LF $ 5 � ' $ac; +t► .�r Locate and verify active and inactive house or building laterals for the per-each (EA) price of 15 (WRITTEN IN WORDS) 244 EA $ 3� v Re-route lateral at 3500 Alhambra Avenue for the lump-sum (LS) price of(WRITTEN IN 16 WORDS) 1 LS $_35"--0, DP 8437-Volume 1 - Page 24 ATTACHMENT 5 MARTINEZ SEWER RENOVATIONS, PHASE 5 DISTRICT PROJECT 8487 POST-BID 1 PRECONSTRUCTION ESTIMATE No. Item Description Amounts %Total Estimated Project Cost 1. CONSTRUCTION a. Construction Contract $310183040 b. 10% Contingency $300,000 SUBTOTAL- CONSTRUCTION COST $3,318,000 81.03% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, $2405000 Inspection, Survey) $ - Public Relations $30,000 - Right of Way $5,000 b. Consultants - Inspection $70,000 - Material Testing $109000 - Geotechnical and Arborist $5,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $3+601000 8.79% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $417,400 SUBTOTAL - PREBID EXPENDITURES $417,000 10.18% 4. TOTAL ESTIMATED PROJECT COST $4,495,000 1 Page 9of9