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Home My WebLink About03.a. Review draft Position Paper to grant bid relief to Bay Pacific Pipelines Inc.; award a construction contract in the amount of $2,775,589 to Cratus, Inc., the second lowest responsive bidder for the South Orinda Sewer Renovations, Phase 7, District Page 1 of 9 Item 3.a. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: APRIL 16, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO GRANT BID RELIEF TO BAY PACIFIC PIPELINES INC.; AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,775,589 TO CRATUS, INC., THE SECOND LOWEST RESPONSIVE BIDDER FOR THE SOUTH ORINDASEWER RENOVATIONS, PHASE 7, DISTRICT PROJECT 8454; FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE UP TO A 15-PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: WILLIAM GRANT, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE On March 26, 2019, five bids were received for the construction of the South Orinda Sewer Renovations, Phase 7, District Project 8454 (Project). On April 2, 2019, Bay Pacific Pipelines Inc. (Bay Pacific) requested bid relief of their bid. The Board of Directors (Board) must determine whether to grant relief of the bid and to award the construction contract to the second lowest bidder or reject bids within 50 days of the bid opening. Authorization is also required for the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. BACKGROUND The Project is part of the ongoing sewer renovation within the Collection System Program of the Capital Improvement Budget (CI B)to replace or rehabilitate deteriorated sewer infrastructure that is at the end of its useful life and in poor condition. The construction work is coordinated with local jurisdictions, cities, utilities, and private property owners or tenants. The Project will replace or rehabilitate approximately 8,900 feet of sewer mains, primarily 6-inch clay sewers, of which 6,000 feet is related to the City of Orinda's (City) paving program this year. A majority of the Project is in public rights-of-way; however, several easements are included. The Project is located April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 3 of 42 Page 2 of 9 throughout the City in various neighborhoods south of Highway 24, as identified in Attachment 1. Central San staff prepared the plans and specifications for the Project. These plans and specifications were reviewed and coordinated with the City. The Engineer's estimate for construction was $3,300,000. This Project was advertised on March 4 and 11, 2019. Five sealed bids ranging from $2,481,529 to $3,535,736 were received and publicly opened on March 26, 2019.A summary of bids received is shown in Attachment 2. On April 2, 2019, the last business day to request bid relief, Central San staff received a letter from the low bidder, Bay Pacific Pipeline Inc., indicating a clerical mistake had been made in the preparation of their bid. The letter explains that the contractor inadvertently submitted the wrong pricing for a lump-sum bid item to construct a sewer creek crossing. Bay Pacific noted that they failed to include the pricing for drilling and pier installation in which the amount of the bid line item would have been at least four times higher than the $25,000 amount written and submitted. Central San's estimate for the sewer creek crossing was $220,000 and the average of the four other bidders was $185,000. Due to concerns that contract items were unbalanced and the possibility the bid would be recommended for rejection, staff met with Bay Pacific to discuss the creek crossing pricing and other items submitted in their bid. With that error, Bay Pacific has requested relief from their bid and return of the bid security(see Attachment 3). Under the California Public Contract Code Section 5103, a bidder may request relief of bid within five business days after bid opening in the event of a clerical or arithmetic error in preparing the bid proposal. The law is stringent regarding 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)working 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. 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 error. Should the Board accept Bay Pacific's claim for relief, Bay Pacific will be released from all obligations and further requirements, and its bid security will be returned. The Capital Projects Division conducted a technical and commercial review of the other bids and determined that the second lowest bidder, Cratus, Inc. (Cratus), is the next lowest responsive bidder. Cratus has demonstrated on recent similar pipeline projects that it is well qualified to successfully complete this project and its bid price is significantly under the engineering estimate. Staff recommends award to Cratus. Central San will administer the construction contract and provide construction management, resident engineering, inspection, survey, administration, and submittal review. Consultant inspection will be performed by one of Central San's consultant inspection service contracts. CEQA Staff has concluded that this Project is exempt from 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 April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 4 of 42 Page 3 of 9 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. ALTERNATIVES/CONSIDERATIONS Delaying or postponing the sewer replacement work is not recommended since several sites have been coordinated with the public and the City's upcoming 2019 paving plan. An alternative would be to reject all bids, which is not recommended. FINANCIAL IMPACTS The total estimated Project cost is $4,137,000, including planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 4. This Project will span into next Fiscal Year (FY) 2019-20 and is being funded by the Collection System Sewer Renovation-Phase 1, District Project 8451 (DP 8451), included in the FY 2018-19 CI B on page 165. There is adequate funding in DP 8451 for this Project as shown in Attachment 5 (a graph representing the total budget authorized, project commitments, and remaining capacity for sewer renovation projects by fiscal year). Upon award, the budget modifications will be reflected in the upcoming FY 2019-20 C I B. COMMUNITY OUTREACH Central San held a public meeting on January 27, 2019 at the Orinda Community Center to assist with any questions or concerns by the residents along the proposed construction alignments. In addition, staff has notified and met with several easement homeowners or tenants directly to discuss and receive input regarding the upcoming sewer work, construction impacts, and project schedule. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this Project at the meeting on April 16, 2019 and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1. Grant bid relief to Bay Pacific Pipelines I nc. and direct staff to return its bid security bond; 2. Find that the Project is exempt from CEQA; 3. Award a construction contract in the amount of $2,775,589 for the construction of the South Orinda Sewer Renovations, Phase 7, District Project 8454, to Cratus, Inc., the next lowest responsive bidder; and 4. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 5 of 42 Page 4 of 9 ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Bay Pacific letter dated April 2, 2019 4. Post Bid/P reconstruction Estimate 5. Sewer Renovations Budget Commitments and Capacity Graph April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 6 of 42 Page 5 of 9 24 ® Project Area Q P Lafayette Reservoir O J e ,410 M [ G 4 c� 0 2,000 o. Feet+ , South Orinda Sewer Renovations Phase 7 Attachment CENTRAL SAN District Project 8454 1 • Project Location April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 7 of 42 Page 6 of 9 ATTACHMENT 2 SOUTH ORINDA SEWER RENOVATIONS, PHASE 7 DISTRICT PROJECT 8454 SUMMARY OF BIDS PROJECT NO.: 8454 NO. OF ADDENDA: 0 DATE/TIME: MARCH 26, 2019/2:00 PM PROJECT NAME: SOUTH ORINDA SEWER RENOVATIONS, PHASE 7 PROJECT MANAGER: WILLIAM GRANT PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $3,300,000 NO. BIDDER BID PRICE 1 Bay Pacific Pipelines, Inc. $2,481 529 Novato, California ' 2 Cratus, Inc. $2,775,589 San Francisco, California 3 K.J. Woods Construction, Inc. $2,978,000 San Francisco, California 4 Precision Engineering, Inc. $3,171'176 San Francisco, California 5 California Trenchless, Inc. $3,535,736 Hayward, California BIDS OPENED BY /s/Katie Young DATE: March 26, 2019 April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 8 of 42 Page 7 of 9 ATTACHMENT 3 BAY PACIFIC PIPELINES INC. P.O. Box 1162,Novato, CA 94948-1162 Ph:415 897-6958 Faz:415 897-1409 E-mail:baypaepipelines@yahoo.com April 2, 2019 Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA Attn: Edgar Lopez, Capital Projects Division Manager Ref. South Orinda Sewer Renovations, Phase 7 District Project 8454 Dear Mr. Lopez: This letter constitutes Bay Pacific Pipelines Inc.'s request to be relieved of its bid on the subject project submitted on March 26, 2019. The reason for this request is that an inadvertent clerical mistake resulted in Bay Pacific submitting a mistaken bid. Basically, during the hectic last minutes closing out the bid and dealing with multiple supplier and sub phone calls,we inadvertently failed to include the pricing for drilling and pouring of piles (as depicted on Sheet S-3)in Item 18 of the bid sheet. Our pricing for that item should have been $100,000.00 not the $25,000.00 shown. The error was obviously in Item 18 and our total bid should have been$75,000.00 more than what we submitted. We respectfully ask that we be relieved from our bid due to the circumstances presented above and we sincerely apologize for any inconvenience caused. Sincerely, Catherine Carew, President Bay Pacific Pipelines Inc. April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 9 of 42 Page 8 of 9 ATTACHMENT 4 SOUTH ORINDA SEWER RENOVATIONS, PHASE 7 DISTRICT PROJECT 8454 POST-BID/PRECONSTRUCTION ESTIMATE % of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $2,775,589 b. 15% Contingency $416,411 c. Permits (CalTrans, Bart, etc.) $35,000 SUBTOTAL - CONSTRUCTION COST $3,227,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $190,000 - Operations (CSO) $20,000 - Public Relations/Right of Way $25,000 b. Consultants - Material Testing/Arborist/Others $45,000 - Inspection $160,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $440,000 14% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $470,000 SUBTOTAL - PREBID EXPENDITURES $470,000 15% 4. TOTAL ESTIMATED PROJECT COST $4,137,000 April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 10 of 42 Page 9 of 9 Attachment 5 Collection System Sewer Renovation-Phase 1, District Project (DP) 8451 Budget Commitments and Capacity $25 $ in millions $25 $20 $20 18.2 $15 7.2 $15 $10 $10 $5 $5 2.6 Lq�mwwo $0 $0 Fiscal Year 2018-19 2019-20 ®Approved (CY) and Projected Budgets for DP 8451 D Remaining Capacity for DP 8451 ■ Current Commitments (1 contract submitted this meeting*) Other Commitments (3 projects**) * So.Orinda Sewer Renovations-Phase 7,DP 8454 ** Danville Sewer Renovations-Phase 3,DP 8456; Lafayette Sewer Renovations-Phase 13, DP 8452;and Walnut Creek Sewer Renovations-Phase 13, DP 8455 The Collection System Sewer Renovation-Phase 1, District Project 8451 is a program budget to fund several projects aimed to replace sewers to Fiscal Year 2021-22. The current contracts will only affect the two fiscal years shown above. April 16, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 11 of 42