HomeMy WebLinkAbout03.a. Review draft Position Paper to waive non-material irregularities; award a construction contract in the amount of $169,986 to Lamassu Utility Services, Inc., the lowest responsive bidder for the Cured-In-Place Pipe Contract 2018-2020, DP 8441 Page 1 of 6
Item 3.a.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: JUNE 20, 2018
SUBJECT: REVIEW DRAFT POSITION PAPER TO WAIVE NON-MATERIAL
IRREGULARITIES; AWARD A CONSTRUCTION CONTRACT IN THE
AMOUNT OF $169,986 TO LAMASSU UTILITY SERVICES, INC., THE
LOWEST RESPONSIVE BIDDER FOR THE CURED-IN-PLACE PIPE
CONTRACT 2018-2020, DISTRICT PROJECT 8441;AND CONSIDER
EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT
SUBMITTED BY: INITIATING DEPARTMENT:
DAMASIO ZEPEDAARAGON,ASSOCIATE ENGINEERING AND TECHNICAL SERVICES-
ENGINEER CAPITAL PROJECTS
REVIEWED BY: SASHAMESTETSKY, SENIOR ENGINEER
EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
On May 21, 2018, three sealed bids were received for the construction of the Cured-I n-Place Pipe
(CI PP) Contract 2018-2020, District Project 8441 (Project). The Board of Directors (Board) must award
the contract or reject bids within 50 days of the bid opening.
BACKGROUND
This Project is part of the ongoing sewer renovation within the Capital Improvements Budget(CI B)
Collection System Program aimed to replace or rehabilitate deteriorated sewer infrastructure that is in poor
condition. The construction contract under this Project will provide Central San with acost-effective and
expedient method to get critical sewers rehabilitated by CI PP methods over the next two years.
Construction work will take place within public-right-of-way and in easements. The base work for the
Project includes ten sites, as shown in Attachment 1. Future repair sites will be added on an as-needed
basis as sewer deficiencies are identified by the Collection System Operations and Capital Projects
Divisions. The overall contract including the base work and as-needed work is anticipated to be for up to
two years.
June 20, 2018 Special EOPS Committee Meeting Agenda Packet- Page 3 of 30
Page 2 of 6
Central San staff prepared the specifcations and drawings for the Project. The Engineer's estimate for
construction is $350,000. The Project was advertised on April 25 and May 2, 2018. Three sealed bids
ranging from $169,982 to $475,766 were received and publicly opened on May 21, 2018. A summary of
bids received is shown in Attachment 2. The Capital Projects Division conducted a technical and
commercial review of the bids and determined that Lamassu Utility Services I nc. (Lamassu) is the lowest
responsive bidder with a corrected bid amount of$169,986. This conclusion came after staff, in
consultation with Legal, determined that Lamassu made the following non-material irregularities in its bid:
1. Contract signature page is missing the contractor's seal stamp.
2. The written in words portion of the bid items is grammatically incorrect.
3. The extended price in figures for Bid Items 13 through 17 had minor arithmetic discrepancies.
4. The total bid in figures of$169,982 is incorrect as a result of the minor arithmetic discrepancies in
Bid Items 13 through 17.
Utilizing the process provided for in the Project bid specifications for resolving arithmetic discrepancies
and conflicts, staff computed Lamassu's actual bid to be $169,986. The new computed bid price only
changes the total bid by$4 and makes Lamassu the lowest bidder. The minor arithmetic discrepancies
were due to rounding errors due to the bid containing cents in the extended price. Because the
irregularities do not alter in any way the other terms of the bid, nor provide the bidder an unfair competitive
advantage, the irregularities are not material, and should, therefore, be waived.
Due to the bid being significantly lower than the Engineer's estimate, Staff met with Lamassu on several
occassions to discuss the bid and contract requirements. Lamassu has indicated that their bid is lower due
to the fact that the company is nearby, located in Benicia, with minor mobilization costs and that all work will
be self performed. Lamassu owns and operates all the equipment needed for the Project. In addition,
Lamassu has provided proof that they can meet all the insurance and bonding requirements for the
contract.
Central San will administer the construction contract and provide construction management, resident
engineering, inspection, administration, and submittal review. Consultant inspection may be required to
supplement Central San staff resources.
CE A
Staff has concluded that this Project is exempt from California Environmental Quality Act(CEQA) under
Central San CEQA Guidelines Section 15302, because it involves replacement of existing 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. The Project also is
exempt under Central San 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 distance 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's independent finding that this Project is
exempt from CEQA.
ALT ERNAT IVES/CONSIDERATIONS
An alternative would be to reject all bids, which is not recommended.
June 20, 2018 Special EOPS Committee Meeting Agenda Packet- Page 4 of 30
Page 3 of 6
FINANCIAL IMPACTS
The total estimated Project cost is $353,000 including design, bid price, contingency, and construction
management as detailed in Attachment 3. The Project is included in the Fiscal Year 2017-2018 CI B on
page 134 with a total estimated project budget of$500,000.
COMMUNITY OUTREACH
Central San notified and sent detailed letters informing residents of the upcoming sewer work, construction
impacts, and project schedule.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this Project at the meeting on June 20, 2018 and
recommended approval of the Project.
RECOMMENDED BOARD ACTION
Staff recommends the following:
1. Waive non-material irregularities;
2. Award a construction contract in the amount of$169,986 for the construction of the Cured-I n-Place-
Pipe (Cl PP) Contract 2018-2020, District Project 8441, to Lamassu Utility Services, I nc., the lowest
responsive and responsible bidder;
3. Find that the Project is exempt from CEQA; and
4. Authorize the General Manager to execute the Contract Documents subject to submittal
requirements and include up to a 25-percent contingency.
Strategic Plan Tie-In
GOAL ONE:Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
GOAL TWO: Strive to Meet Regulatory Requirements
Strategy 2- Strive to Minimize the Number of Sanitary Sewer Overflows
GOAL FIVE:Maintain a Reliable Infrastructure
Strategy 2- Facilitate Longterm Capital Renewal and Replacement
ATTACHMENTS:
1. Project Location Map
2. Summary of Bids
3. Post Bid/P reconstruction Estimate
June 20, 2018 Special EOPS Committee Meeting Agenda Packet- Page 5 of 30
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Page 5 of 6
ATTACHMENT 2
CURED-IN-PLACE PIPE (CIPP) CONTRACT 2018-2020
DISTRICT PROJECT 8441
SUMMARY OF BIDS
PROJECT NO.: 8441 NO. OF ADDENDA: 1 DATE/TIME: MAY 21, 2018/2:00 PM
PROJECT NAME: CURED-IN-PLACE PIPE (CIPP) CONTRACT 2018-2020
PROJECT MANAGER: DAMASIO ZEPEDA ARAGON
PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA
ENGINEER'S ESTIMATE: $350,000
NO. BIDDER BID PRICE
Lamassu Utility Services, Inc.
1 $169,981.84
Benicia, California
Insituform Technologies, LLC
2 $438,118.00
Chesterfield, Missouri
Michels Corporation
3 dba Michels Pipeline Construction $475,766.00
Salem, Oregon
BIDS OPENED BY: /s/ Katie Young DATE: May 21, 2018
June 20, 2018 Special EOPS Committee Meeting Agenda Packet- Page 7 of 30
Page 6 of 6
ATTACHMENT 3
CURED-IN-PLACE PIPE CONTRACT 2018-2020
DISTRICT PROJECT 8441
POST-BID/PRECONSTRUCTION ESTIMATE
% of
No. Item Description Amounts Construction
Cost
1. CONSTRUCTION
a. Construction Contract $1691986
b. 25% Contingency $421014
c. Permits $10,000
SUBTOTAL— CONSTRUCTION COST $2221000 100%
2. CONSTRUCTION MANAGEMENT
a. District Forces
- Construction Management $151000
(Engineering, Survey)
- Public Relations/Right of Way $51000
b. Consultants
- Consultant Inspection $39,000
SUBTOTAL - CONSTRUCTION MANAGEMENT $591000 26.6%
3. PREBID EXPENDITURES
a. Engineering & Public Relations $72,000
SUBTOTAL - PREBID EXPENDITURES $72,000 32.4%
4. TOTAL ESTIMATED PROJECT COST $3533000
June 20, 2018 Special EOPS Committee Meeting Agenda Packet- Page 8 of 30