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Home My WebLink About07. Award contract to Lamassu Utility Services, Inc. for Cured-In-Place Pipe Contract 2018-2020, DP 8441 Page 1 of 6 Item 7. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JULY5, 2018 SUBJECT: 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 (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: DAMASI0 ZEPEDA ARAGON, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY 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 Improvement Budget (CI B) July 5, 2018 Regular Board Meeting Agenda Packet- Page 76 of 195 Page 2 of 6 Collection System Program to replace or rehabilitate deteriorated sewer infrastructure that is in poor condition. The construction contract under this Project will provide Central San with a cost-effective and expedient method to get critical sewers rehabilitated by Cl 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 with approximately 2,600 lineal feet of Cl PP lining in 8-to 12-inch diameter sewer main, 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. Central San staff prepared the specifications 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. The minor arithmetic discrepancies were 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 occasions to discuss the bid and contract requirements. Lamassu has indicated that their bid is lower since the company is based 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 written verification that they can meet all the insurance and bonding requirements for the contract. References were provided for Lamassu and staff received satisfactory feedback. 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. CEQA 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, July 5, 2018 Regular Board Meeting Agenda Packet- Page 77 of 195 Page 3 of 6 and regulations.Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS An alternative would be to reject all bids, which is not recommended. 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 Cl 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 Contract 2018-2020, District Project 8441, to Lamassu Utility Services, Inc., the lowest responsive 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. GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships 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 long-term capital renewal and replacement ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate July 5, 2018 Regular Board Meeting Agenda Packet- Page 78 of 195 W;i os�� Ip/II��.;;�; lei g Required Cured-in-Place-Pipe (CIPP) Locations t� MIT n 14.14 U "` , � � '�►��lJ .alp Vr gwk iN 0 v ••• Feet 5CIPP Contract Sewer RenovationsCENTRALSAN District Project 8"l CENTRAL CONTRA COSTA SANITARY DISTRICT Project Location 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 1 Lamassu Utility Services, Inc. $169,981.84 Benicia, California 2 Insituform Technologies, LLC $438,118.00 Chesterfield, Missouri Michels Corporation L3 dba Michels Pipeline Construction $475,766.00 Salem, Oregon BIDS OPENED BY: /s/ Katie Young DATE: May 21, 2018 July 5, 2018 Regular Board Meeting Agenda Packet- Page 80 of 195 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 $169,986 b. 25% Contingency $42,014 c. Permits $10,000 SUBTOTAL— CONSTRUCTION COST $222,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $15,000 (Engineering, Survey) - Public Relations/Right of Way $5,000 b. Consultants - Consultant Inspection $39,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $59,000 26.6% 3. PREBID EXPENDITURES a. Engineering & Public Relations $72,000 SUBTOTAL - PREBID EXPENDITURES $72,000 32.4% 4. TOTAL ESTIMATED PROJECT COST $353,000 July 5, 2018 Regular Board Meeting Agenda Packet- Page 81 of 195