HomeMy WebLinkAbout07.Review draft Position Paper to rescind prior award to Breneman, Inc.; award contract in the amount of $119,601 to Morgan-Bonanno Development, Inc. for District-Wide Patch Paving; and authorize extension of the contract up to a total of five years for 7■
Central San
BOARD OF DIRECTORS
......Will
POSITION PAPER
Board Meeting Date: May 18, 2017
subject: RESCIND AWARD TO BRENEMAN, INC., AWARD A CONSTRUCTION
CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE
CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS
WITH THE SECOND BIDDER MORGAN-BONANNO DEVELOPMENT, INC.
FOR DISTRICT-WIDE PATCH PAVING
Submitted By: Initiating Dept./Div.:
Amanda Schmidt Engineering and Technical
Associate Engineer Services/Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
S. Mestetsky—Senior Engineer
E. Lopez—Capital Projects Division Manager Kenton L.Alm Roger S.Bailey
JM. Petit— Director of Engineering and Technical Services Counsel for the District General Manager
ISSUE: The Board of Directors (Board) must determine whether to award to the second
lowest and responsible bidder, Morgan Bonanno Development, Inc. (Bonanno), and
authorize the General Manager to execute the Contract Documents subject to submittal
requirements. Approval by the Board is required to release the bid security provided by the
lowest bidder Breneman, Inc. (Breneman).
BACKGROUND: On February 2, 2017, the Board awarded the District-Wide Patch Paving
project to Breneman and authorized the General Manager to execute the Contract
Documents subject to submittal requirements. On March 27, 2017, Breneman informed
Central San they are unable to obtain the Performance and Labor and Material Bonds and
thus are not able to execute the Contract. In the March 27, 2017 letter, Breneman stated a
false claim was made on their bond from a 2013 project. Brenemanp rovided an
explanation for the claim on their bond. When the awarded contractor cannot execute the
contract, Central San has the right to Obtain or release the bid security. The bid security is
$11 ,725.
Bonanno was the second low responsive and responsible bidder, with a bid amount of
$119,600.75 from the three sealed bids opened on December 20, 2016. Bonanno has
indicated in writing that they will honor the bid prices until May 30, 2017. A summary of the
bids received is shown in Attachment 1.
Central San will have the option to extend the contract up to four additional one-year
periods. In addition, the contract also includes the option to increase the bid item prices in
accordance with the percentage annual change of the Consumer Price Index (CPI) on a
yearly basis, if needed.
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POSITION
PAPER
Board Meeting Date; May 18, 2017
subject: RESCIND AWARD TO iBRENEMAN, INC., AND AWARD A
CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL
MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO
SUBMITTAL REQUIREMENTS WITH THE SECOND BIDDER MORGAN-
BONAN NO DEVELOPMENT, INC. FOR DISTRICT-WIDE PATCH PAVING
CEQA: On February 2, 2017, the Board found that this project is exempt from California
Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section 15301 b
since it involves minor alterations to existing, publicly owned streets or right-of-ways.
FINANCIAL IMPACTS: Approximately $119,601 per year with the option to extend for four
additional one-year periods, totaling $598,004 for five years (not including CPI
adjustments). Of the $119,601 per year, approximately 86-percent of the contract is
anticipated to be paid under the Collection System Operations Department's Operations &
Maintenance budget and the remaining 14-percent by projects within the Capital
Improvements Budget.
ALTER NATIVESICONSIDERATIONS: Alternatives include: reject the second low bidder
and rebid the contract; and attempt to obtain the bid security from Breneman, neither of
which are recommended. The two decisions are independent on each other.
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this subject at the meeting on May 9, 2017, and recommended Board approval.
RECOMMENDED BOARD ACTION: Staff recommends the following:
1. Rescind award to Breneman, Inc.
2. Authorize the release of the bid security provided by Breneman, Inc.
3. Award a contract in the amount of $119,601 for District-Wide Patch Paving to
Morgan-Bonanno Development, Inc., the second low responsive and responsible
bidder;
4. Authorize the General Manager to execute the Contract Documents subject to
submittal requirements; and
5. Authorize the General Manager to extend the contract up to a total of five years
for the amount of $598,004 (not including CPI adjustments).
Attached Supporting Document
1. Summary of Bids
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ATTACHMENT 1
DISTRICT-WIDE PATCH PAVING
DISTRICT PROJECT 2016-02
SUMMARY OF BIDS
PROJECT NO.: 2016-02 DATE: DECEMBER 20, 2016
PROJECT NAME: DISTRICT-WIDE PATCH PAVING
PROJECT LOCATION: VARIOUS LOCATIONS IN CENTRAL SAN SERVICE AREA
NO. OF ADDENDA: 0 ENGINEER'S ESTIMATE: $150,000/YEAR
NO. BIDDER BID PRICE
Breneman, Inc.
1 $1173250.00
Concord, CA 94522
Morgan-Bonanno Development, Inc.
2 $1197600.75
Alamo, CA 94507
BB�M Builders, Inc.
� $706,550.00
Rancho Cordova, CA 94742
BIDS OPENED BY: Elaine R. Boehme CMC DATE: December 20 2016
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