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Home My WebLink AboutCC AG PKT 2009-10-26 #JAGEN®A STAPF REPORT DATE: October 26, 2009 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Vince Mastrosimone, Director of Public Works SUBJECT: REJECT BIDS FOR LAMPSON AVENUE WELL PHASE II - OFFSITE WATER AND SEWER PIPE PROJECT NO. WT0903 SUMMARY OF REQUEST: The City Council is asked to reject all bids for the Lampson Avenue Well Phase II - Offsite Water and Sewer Pipe Project No. WT0903 and authorize staff to re- advertise the project for future bidding: BACI(GROUND: This multi-year project involves construction of a new water well on property north of Lampson Avenue. The project includes several elements such as drilling a pilot hole, casing installation, well development, step drawdown, long term aquifer testing, mechanical, structural, electrical, controls, emergency power, disinfection facilities, and major sewer and water line upgrades in College Park East. This project will add another source of water to the City's system. It will be the only source located north of the 405 Freeway. The City has recently completed construction of the Lampson Avenue Well Phase I Project. This project consisted of drilling the well hole along with development and testing. City Staff decided to break up Phase II into two separate contracts under Project No. WT0903. The first consists of building the housing and on-site work. This includes the building, motors, pumps, electrical system, landscaping and other on-site furnishings. The second project consists of building the water and sewer lines on Lampson Avenue to connect to the City's existing systems. The consulting engineer prepared a bid package to advertise and solicit for bids for Lampson Avenue Well Phase II -Water Transmission Main and Gravity Sewer. Agenda Item J Page 2 To meet financial constraints, some elements of the project need to be deferred. Subsequent phases of the project will include additional pipe lines to inter- connect this well to our Bolsa Chica facility ($440,000). Engineering staff prepared a full bid package to advertise and solicited for bids for the Lampson Avenue Well Phase II - Offsite Water and Sewer Pipe Project. On September 23, 2009 the City Clerk's office received and opened 20 sealed bids with the following results: # COMPANY NAME BID AMOUNT 1 Sully-Miller Contracting Co. $664,000.00 2 Garcia Juarez Construction $755,950.00 3 BNB Engineering, Inc. $764,000.00 4 Kana Pipeline, Inc. $829,900.00 5 GCI Construction, Inc. $831,950.00 6 MMC, Inc. $887,500.00 7 So. Cal. Pipeline Construction $864,750.00 8 Mike Bubalo Construction Co. $880,300.00 9 SRD Engineering, Inc. $883,190.00 10 Boudreau Pipeline $971,200.00 11 Palp Inc. DBA Excel Paving $969,265.00 12 Miramontes Construction Co. $982,100.00 13 MNR Construction $985,800.00 14 Ja Salazar Construction $992,900.00 15 TL Pavlich Construction, Inc. $1,025,000.00 16 VCI Construction $1,029,520.00 17 Steve Bubalo Construction Co. $1,031,800.00 18 Cedro Construction, Inc. $2,133,981.00 19 Paulus Engineering, Inc. $1,144,970.00 20 ARB, Inc. $1,164 090.00 Shortly after the bid opening, staff received notice from the low bidder, Sully- Miller Contracting Co. asking to be relieved of their bid due to bidding mistakes. The second low bidder, Garcia Juarez Construction was deemed non-responsive in their bid package for failure to name a subcontractor to perform required removal and remediation work that the General Contractor is not certified to perform. A letter of protest of the award of this project has been received by the Public Works Department. Page 3 Based upon possible claims and mistakes in bidding, staff recommends rejecting all bids and re-advertising. The new bid opening date will be set for mid- November to allow for award in December and a start of construction at the start of 2010. FINANCIAL IMPACT: The estimated cost for this project, Lampson Well Phase II "offsite" is $1,005,450 which includes construction, inspection and contingencies. The total approximate cost for the "onsite" portion of the Lampson Well Phase II is $2,504,550. This includes construction, inspection and contingencies. The award of construction is on this agenda. The complete combined cost for the on and offsite Lampson Well Phase II is $3,510,000. In the 09/10 Budget, the water capital projects and funding are broken down as follows: Project Carry over 09/10 Water System Infrastructure Repairs $1,150,000 $400,000 Lampson Ave Well Phase 2 $2,000,000 Beverly Manor Station Rehab. $1,500,000 $1,200,000 New 18" Water line in OC Flood Control 500 000 $2,650,000 $4,100,000 TOTAL WATER FUNDS AVAILABLE $6,750,000 In order to fund the on and offsite Lampson Well Phase II project, funds must be reallocated within the fiscal year. In reviewing the scope of work for the Water System Infrastructure Repairs, this project can be reduced down to $700,000. The New 18" Water line in OC Flood Control can be postponed to the following year. The revised FY 09/10 CIP budget for water projects would be as follows: Lampson Well Phase II (on and offsite) $3,510,000 Beverly Manor Station Rehab $2,540,000 Water System Infrastructure Repairs $ 700,000 TOTAL $6,750,000 Page 4 RECOMMENDATION: It is recommended that City Council reject all bids for the Lampson Avenue Well Phase II - Offsite Water and Sewer Pipe Project No. WT0903 and authorize staff to re-advertise the project for future bidding. SUBMITTED BY: ~Vi ce Mastrosimone Director of Public Works Attachments NOTED AND APPROVED: ~-~ David Carmai ,City Manager A. Sully-Miller Contracting Co. withdrawal request B. Garcia Juarez Construction Protest Letter . i SULLY-MILLER CONTRACTING CO. c~a~e ~a~sr2a 1100 E. ORANGETNORPE AVE., STE. 200 o ANAHEIM, CA 92801 e PHONE 714-578-9&00 ; September 24, 2009 City of Seal Beach Department of Public Works , 211 8~' Street Seal Beach, Ca 90740 Attn: Mr. Dave Spitz, Project Manager/Associate Engineer Re: Lampson Avenue Well Phase II, Off-Site and Sewer Pipe Subject: Relief of Bid Gentlemen: Pursuant to California Public Contract Code 5103, Sully-Miller Contracting Company (Sully-Miller) is hereby requesting to be relieved of the above referenced bid, which was opened September 23, 2009 at 10:00 a.m. We have discovered that a mistake was made in our bid as submitted. • A mistake was made when inputting the amount of costs to install and maintain the dewatering for this project. The intended amoun# to do this work was $70,000.00; the amount was keyed in at $7,000.00; resulting in an error of $63,000.00 less than intended. In our request for "Relief of Bid", we have represented the following: • A mistake was made. • The mistake made the bid materially different than we intended it to be. • The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications. We respectfully request to be relieved of this bid and our bid bond be returned. Should you have any questions or require additional information, please contact me at 714-578- 9604. Respectfully, `_~- •-/ Gar~pey, Assis~ nt Secretary/Chi stimator ,~lndracCe & .associates A PROFESSIONAL LAW CORPORATION CONSTRUCT{ON LAWYERS RICHARD B. ANDRADEt tJD/GALIFORNIA LICENSED GENERAL CONI RACTOR 'JD/LICENSED IN NEVADA & CALIFORNIA "'PROFESSIONAL ENGINEER CA CO UT OR WA NM & AZ MISSION RIDGE 27101 PUERTA REAL, SUITE 120 MISSION VIEJO, CA 92691 TELEPHONE (949) 553-1951 FACSIMILE (949) 553-0655 RONALD G HOLBERT" JENNIFER L GORDON KIMBERLY J WIND' TERI Y JEFFRIES OF COUNSEL AZZAM D SAADt"` October 7, 2009 VIA FACSIIi~IIY,E AND U.S. CERTIFIED MAIL, (562) 430-8763 Mr. Michael Ho, P.E., City Engineer City of Seal Beach, Public Works 211 8~' Street Seal Beach, California 90740 ~"~ ~ ~ -~~' Seal Bach irks Department OCT 1 4 2009 RECEIVED Our Client: Garcia Juarez Construction, Inc. Projects: Lampson Avenue Well Phase II, Off-Site Sewer Pipe RE: Bid Protest Dear Mr. Ho: This office is counsel for Garcia Juarez Construction, Inc. (Garcia Juarez) in regards to the above-referenced matter. The purpose of this letter is to protest the award of the contract for the above-mentioned project to anyone other than Garcia Juarez, the lowest responsible bidder for the project. In your October 2, 2009 letter, you indicated that Garcia Juarez's bid for the Lampson Avenue Well Phase II Offsite Water and Sewer Pipe was the lowest bid with the exception of the bid submitted by Sully Miller, who withdrew its bid, thus making Garcia Juarez the lowest bidder. However, you indicate that despite having the lowest bid, the City of Seal Beach is rendering Garcia Juarez's bid as non-responsive and therefore has rejected it. Your letter states that the specifications require the contractor to remove, transport, treat and dispose of Hazardous Materials. You reason that Garcia Juarez's bid failed to name a subcontractor to perform the required removal and remediation and Garcia Juarez lacks the necessary certification to self-perform the work and therefore the Mr. Michael Ho City of Seal Beach, Public Works October 7, 2009 Page No. 2 bid is non-responsive. Your letter cites to Public Contracts Code Section ~ 4106 as the basis for the rejection of Garcia Juarez's bid. In essence, the City of Seal Beach contends that Garcia Juarez (1) failed to specify a subcontractor; or (2) specified more than one subcontractor for the same portion of the work to be performed under the contract in excess of one-half of one percent of the contractor's (Garcia Juarez) total bid. You seem to argue that under either of these circumstances, Garcia Juarez was then required to agree that it was fully qualified to perform that portion itself and that Garcia Juarez would perform that portion itself. However, Garcia Juarez vehemently disagrees with the City of Seal Beach's conclusion and the rejection of its bid. Pursuant to Public Contract Code Section~4104, a general contractor is required to list any subcontractor who will perform work in an amount in excess of one-half of 1 percent of the prime contractor's total bid. For this project, Garcia Juarez's bid totaled $755,950.00. Half of 1 percent of $755,950.00 equals $3,779.00. Garcia Juarez intends to use Rust and Sons Trucking Co. to haul the contaminated soil at $25.00/ton for a total of $3,70.00. This is clearly less than one-half of 1 percent of the prime contractor's total bid. With respect to Western Environmental, they provide a service to dis ose of contaminated soil at $25.00/ton for a total of $3,750.00. Since, Western Environmental only provides a service; GJC was not required to list them as a subcontractor. It is imuroper for the City of Seal Beach to combine the hauling and disposal of contaminated soil in order to trigger the requirements under California Public Contract Code Section 4106. As such, Garcia Juarez contends that the present circumstances do not trigger the requirement under Public Contract Code Section 4106. In light of the economic downturn and the severe shortage of available funds for Public Works construction, it is not in the District's best interests or the interests of the tax paying public to reject Garcia Juarez's low bid and award the contract to the next highest bidder. At this time, I am formally requesting the City of Seal Beach accept Garcia Juarez's bid. In the alternative, Garcia Juarez requests the City of Seal Beach withdraw its bid procurement for this project and if necessary issue a new one. If the City of Seal Beach is not agreeable to either of these requests, please accent this correspondence as Garcia Juarez's formal protest. Our office will file for injunctive relief to allow for judicial determination on these issues. co+vsiruawn i~~nRs .~, i, 'O u .-, .~ndretde .associates Mr. Michael Ho City of Seal Beach, Public Works October 7, 2009 Page No. 3 I also hereby make a formal request under Government Code, Section 5494.1 for mailed notice of all meetings of the City Counsel at which any issues pertaining to the award of this contract are on the agenda. If there is any fee for this service, please forward that information to me immediately so that I can properly pay your fee. I also request to be advised, by telephone or fax, as soon as there is any staff report or recommendation concerning Garcia Juarez's protest of the award of the contract so I can immediately obtain and inspect copies of those reports or recommendations. Last, I request the right to address the City Council pursuant to Government Code Section 54954.3(a) at the Council meeting at which any of the issues pertaining to this protest are to be considered. Since time is of the essence, your prompt attention and response to this matter would be greatly appreciated. Sincerely, ANDRADE & ASSOCIATES By: ~J7 HARD .ANDRA E J NNIFER L. PATIGLER-GORDON Attorneys for Garcia Juarez Construction, Inc. Cc: Jim Jackson c goat a~aM;. ru.ur~•a+oaa~cay of say ee~chl[ao~p~on a.e weo Pmtat Wur ioA6-09 doe