HomeMy WebLinkAbout05.a.Review draft Position Paper to rescind award of a construction contract to Always Paving, Inc. dba General Construction for District-wide Patch Paving; award the construction contract in an amount not to exceed $745,780 for these services to Morgan-Page 1 of 3
Item 5.a.
DCENTRALSAN
MEETING DATE: JANUARY5, 2023
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER TO RESCIND AWARD OF A
CONSTRUCTION CONTRACT TO ALWAYS PAVING, INC. DBA GENERAL
CONSTRUCTION FOR DISTRICT -WIDE PATCH PAVING;AWARD THE
CONSTRUCTION CONTRACT I N AN AMOUNT NOT TO EXCEED $745,780
FOR THESE SERVICES TO MORGAN-BONANNO, INC.; AND AUTHORIZE
UP TO A 30-PERCENT CONTI NGENCY
SUBMITTED BY: INITIATING DEPARTMENT:
JASON DEGROOT, SENIOR ENGINEER OPERATIONS -COLLECTION SYSTEM -FIELD
OPERATIONS
REVIEWED BY: PAUL SEITZ, COLLECTION SYSTEM OPERATIONS DIVISION MANAGER
STEVE MCDONALD, DIRECTOR OF OPERATIONS
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 and include up to a 30-percent contingency.
Approval by the Board is required to release the bid security provided by the lowest bidder, Always Paving,
Inc. dba General Construction (Always Paving).
BACKGROUND
On November 17, 2022, the Board awarded the District -Wide Patch Paving project to Always Paving and
authorized the General Manager to execute the contract documents subject to submittal requirements. On
December 7, 2022, Always Paving informed Central San they would like to withdraw their bid due to a
mistake in the bid prices. Central San has the right to obtain or release the bid security when the awarded
contractor cannot execute the contract. The bid security is $10,268.
Bonanno was the second lowest responsive and responsible bidder, with a bid amount of $149,155.50
from three sealed bids opened on October 13, 2022. Bonanno has indicated in writing that they will honor
the bid prices. A summary of the bids received is shown in Attachment 1. Central San will have the option
to extend the contract for four additional one-year periods.
This matter was reviewed with the District Counsel and he agreed with the staff recommendation.
January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 10 of 34 DRAFT
Page 2 of 3
California Environmental Quality Act (CEQA)
At the November 17, 2022 Board meeting, the Central San Board of Directors independently found that
the Project is exempt from CEQA.
ALTERNATIVES/CONSIDERATIONS
Reject all bids and rebid the contract, which is not recommended.
FINANCIAL IMPACTS
Approximately $149,156 this year with the option to extend for four additional one-year periods totaling a
minimum of $745,780 for five years. In addition, the contract includes provisions to allow for pricing
adjustments based on the Consumer Price I ndex (CPI) or the price of oil or asphalt. Central San can
authorize price adjustments every year or terminate the contract if pricing is not favorable to the District. A
total contingency budget of $223,734, or $44,747 per year will be budgeted to cover additional paving
needs or District authorized pricing adjustments.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its January 5, 2023 meeting and
recommended
RECOMMENDED BOARD ACTION
Staff recommends the following Board actions:
1. Rescind award to Always Paving, I nc. dba General Construction;
2. Authorize the release of the bid security provided by Always Paving, Inc. dba General Construction;
3. Award a Construction Contract in the amount of $745,780 to Morgan-Bonanno Development, Inc.,
the second lowest responsive and responsible bidder for District -Wide Patch Paving;
4. Authorize the General Manager to execute the contract documents subject to submittal
requirements; and
5. Authorize the General Manager to execute the contract documents subject to submittal
requirements, and include up to a 30-percent contingency.
Strategic Plan Tie -In
GOAL SIX: Infrastructure Reliability
Strategy 1 - Manage assets optimally
ATTACHMENTS:
1. Summary of Bids
January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 11 of 34 DRAFT
Page 3 of 3
ATTACHMENT 1
DISTRICT -WIDE PATCH PAVING PROJECT
SUMMARY OF BIDS
PROJECT NO.: N/A NO. OF ADDENDA: 0 DATE/TIME: OCTOBER 13, 2022/1:00 PM
PROJECT NAME: DISTRICT -WIDE PATCH PAVING PROJECT
PROJECT MANAGER: JASON DEGROOT
PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA
ENGINEER'S ESTIMATE: $225,000
NO.
BIDDER
BID PRICE
1
Always Paving, Inc.
$102,675.00
Newark, CA 94560
2
Morgan Bonnano Development, Inc.
$149,155.50
Alamo, CA 94507
3
QA Constructors, Inc.
$188,200.00
San Francisco, CA 94110
BIDS OPENED BY /s/ Katie Young
DATE: 10/13/2022
January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 34 DRAFT