HomeMy WebLinkAboutCC Res 7777 2026-05-11 111 RESOLUTION 7777
RESOLUTION AWARDING A PUBLIC WORKS AGREEMENT
WITH PACIFIC HYDROTECH CONSTRUCTION, AND
AUTHORIZATION TO ENTER INTO A NEW ORANGE COUNTY
WATER DISTRICT PRODUCER WELL CONSTRUCTION LOAN
AGREEMENT, APPROVING BUDGET AMENDMENT BA #26-11-
02; AND AUTHORIZING THEIR EXECUTION BY THE CITY
MANAGER; FOR THE LAMPSON WELL TREATMENT SYSTEM
PROJECT, CIP WT1902
WHEREAS, on March 31, 2026, the City solicited public bids for the Lampson
Well Treatment System Project (Project), CIP WT1902, and received eight(8) bids
in response to the solicitation; and,
WHEREAS, based on the bids opened on March 31, 2026, the apparent low bidder
is RE Chaffee Construction, Inc. (Chaffee) in the amount of 6,488,550; the second
low bidder is Pacific Hydrotech Corporation (Pac Hydro) in the amount of
$6,677,200; and,
WHEREAS, on April 6, 2026, Pac Hydro submitted a bid protest to the City alleging
that the Chaffee bid is non-responsive because Chaffee failed to submit a bid
proposal in compliance with the bid requirements, and further alleged that Chaffee
is not a responsible bidder because Chaffee failed to meet mandatory experience
requirements, including but not limited to, the following:
1. Based on Pac Hydro's review of Chaffee's submitted project references,
none of the listed projects demonstrate experience with any of the required
treatment systems.
2. Additionally, Pac Hydro found that Chaffee's bid proposal has not provided
any project that meets the defined criteria of pressurized water treatment
systems which constitutes a complete failure to comply with a material
requirement of the proposal form.
3. Pac Hydro references that under California law, public agencies are not
permitted to waive material deviation or overlook a bidder's failure to comply
with mandatory requirements (Ghilotti Construction Co. v. City of Richmond
(1996) 45 Cal.App4th 897).
4. Finally, allowing a bidder to proceed without demonstrating the required
experience would undermine the integrity of the competitive bidding
process and violate the requirement that all bidders be evaluated on equal
basis (MCM Construction, Inc. v. City and County of San Francisco (1998)
66 Cal.App.4th 359).
WHEREAS, on April 14, 2026, Chaffee submitted a response letter to the Pac
Hydro bid protest, disputing the claims; and,
WHEREAS, based on the City and its construction manager's independent
detailed bid analysis, review of the Notice Inviting Bids and Instructions to Bidders,
the Bid Specifications, and Addenda No. 1, (collectively "Bid Document") and
consultation with the City Attorney's office, the information provided raised
concerns regarding the apparent low bidder's responsibility and capacity to
complete the project; and,
WHEREAS, on May 6, 2026, a non-responsible due process hearing was held to
provide the apparent low bidder with an opportunity to demonstrate that it is a
responsible bidder, with a representative from the City of Laguna Niguel serving
as the neutral hearing officer; and,
WHEREAS, following consideration of the information presented, the hearing
officer determined Chaffee is not a responsible bidder; and,
WHEREAS, Pac Hydro submitted the second lowest bid in the amount of
$6,677,200 to perform the Project; and,
WHEREAS, upon reviewing the Bid Documents, the bids submitted for the work
to be performed pursuant to the Agreement and the plans and specifications, and
the record and determination on the due process hearing, the City Council finds
that Chaffee's bid was not responsive and that Chaffee is not a responsible bidder
and that its bid should be rejected; and ,
WHEREAS, upon review of Pac Hydro's Bid Proposal and the plans and
specifications, the City Council further finds that Pac Hydro is a responsive and
responsible bidder and a qualified firm to perform the Project; and,
WHEREAS, on March 10, 2025, the City Council adopted Resolution 7623,
approving an Orange County Water District (OCWD) Producer Well Construction
Loan Program in the amount of$4,450,000 for the Project; and,
WHEREAS, due to increased construction costs identified in the Project's bid and
the addition of construction management services, City has requested an update
to the loan amount bringing it to $8,100,000, subject to OCWD Board approval at
a later date; and,
WHEREAS, the FY 2025-2026 CIP WT1902 budget was originally approved at
$4,980,167 and now requires an update to reflect the revised OCWD loan amount,
upon OCWD approval, resulting in a new total of$8,100,000.
NOW, THEREFORE, the Seal Beach City Council does resolve, declare,
determine and order as follows:
SECTION 1. The City Council finds that all Recitals set forth above are true and
correct and incorporates them herein by this reference.
SECTION 2. The City Council hereby approves the plans and specifications for
the Project.
SECTION 3. Based on the City Council's review of the record including the
findings and recommendation of the hearing officer, the City
Council hereby sustains the bid protest filed by Pacific Hydrotech
Construction (Pac Hydro) against the bid of RE Chaffee
Construction, Inc. (Chaffee), deems Chaffee to be a nonresponsive
and non-responsible bidder, and rejects the Chaffee bid.
SECTION 4. Based on the record and recitals set forth above, The City Council
hereby awards a Public Works Agreement to Pac Hydro for the
Project in the not-to-exceed amount of$6,677,200, waives any
irregularities in the bid and rejects all other bids.
SECTION 5. The City Council hereby authorizes and directs the City Manager to
execute the Public Works Agreement with Pac Hydro on behalf of
the City.
SECTION 6. The City Council hereby authorizes the City Manager, or designee,
to approve additional work requests and construction
support/testing/inspection services by Pac Hydro up to $670,000
(approximately 10%), in connection with the Project.
SECTION 7. The City Council hereby authorizes the City Manager to approve
off-site inspection services for work within the public right-of-way up
to $30,000, in connection with the Project.
SECTION 8. Upon approval by OCWD, the City Council hereby authorizes and
directs the City Manager to enter into a new Orange County Water
District Producer Well Construction Loan Agreement reflecting an
updated loan amount of $8,100,000.
SECTION 9. The City Council hereby authorizes the City Manager to accept and
expend the revised Orange County Water District Producer Well
Construction Loan amount.
SECTION 10. The City Council hereby approves Budget Amendment
BA #26-11-02 allocating funds as follows:
Budget Amendment BA#26-11-02
Description Project Account Revised/Adopted Proposed Budget(cliff)
Budget Budget Amendment
Capital Projects WT1902 501-500-0900-55000 $ 4.961,817 00 $8,611.817.00 $3,650.000 00
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 11 t" day of May 2026 by the following vote:
AYES: Council Members Kalmick, Wong, Steele, Landau
NOES: Council Members Senecal
ABSENT: Council Members
ABSTAIN: Council Members
Lisa L au, or
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Gloria D. arper, City Clerk ,,S%, '2-
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7777 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 11 t" day of May 2026.
Gloria . H rper, City Clerk