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Agenda Item 28.
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| City Council Meeting |
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| Subject: |
| Contract with GRFCO, Inc. for Randolph Avenue Sewer Replacement, Project 7621, in the amount of $724,650.00 |
| RECOMMENDATION |
| Receive bids, award contract to GRFCO, Inc. in the amount of $724,650.00 and authorize the Public Works Director or his designee to issue Contract Change Orders up to a “not to exceed” amount of 15% of the contract price $111,093.00. |
| BACKGROUND/DISCUSSION |
On June 1, 2004, the City Council adopted the Sewer Master Plan Update ("Master Plan") which identified deficiencies in the City’s sewer system. These deficiencies were listed by priority, and as a result, the highest priorities have been included in past and current Capital Improvement Programs (CIP). Phases 1 to 6 installed approximately 10,200 linear feet of new sewer mains in various locations in the City. Additionally, on May 16, 2017, the City Council adopted Resolution 2017-032 approving the City's Sewer System Management Plan, which included a list of priority sewer capacity improvements. The Randolph Avenue Sewer Replacement Project, CIP 7621 ("Project") will be the seventh phase of priority sewer improvements that are required to mitigate the current capacity deficiencies in the Rolling Hills drainage area per the Master Plan.
This Project will replace approximately 1,500 linear feet of undersized sewer mains on Randolph Avenue from approximately 200-feet north of Imperial Hwy, through the Randolph Creek section, and connect to the sewer main on State College Boulevard at Craig Regional Park entrance. Refer to Exhibit "A" for the project location.
On June 20, 2017, City Council approved the plans and specifications and authorized staff to advertise and receive bids for construction. On September 21, 2017, five bids were received with the following results:
| 1. |
GRFCO, Inc. |
$724,650.00 |
| 2. |
MNR Construction, Inc. |
$838,380.00 |
| 3. |
Lucas Builders, Inc. |
$851,395.00 |
| 4. |
VASILJ, Inc. |
$1,109,600.00 |
| 5. |
Ramona, Inc. |
$1,488,000.00 |
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Engineer's Estimate |
$591,155.00 |
The lowest responsive bidder was GRFCO, Inc., in the amount of $740,650.00. The company has a valid contractor’s license and has been in the construction business since 1974. GRFCO, Inc. has successfully completed sewer projects for the City of Alhambra, Home Gardens Sanitary District and City of Compton. The responses from the reference calls made on these projects were satisfactory and above satisfactory. Additionally, City of Compton, City of El Cajon and Home Gardens Sanitary District provided letter of reference with positive remarks for the work performed by GRFCO, Inc.
Pipe bursting method is being utilized to replace the sewer pipes lines in this project. Therefore, a qualified pipe bursting subcontractor is as critical to this project as the general contractor. Mocon Corporation is the listed subcontractor to perform the pipe bursting operation. This subcontractor meets the requirement set forth in the project specification of performing a minimum of 10,000 feet of pipe bursting work with a minimum three years of experience. Additionally, Mocon Corporation is listed as the pipe bursting subcontractor for all bidders, which indicates that it is one of the few experienced contractors that meets the project requirement.
If awarded, the Project is anticipated to start in January 2018 and expected to be completed in June 2018. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee reviewed staff’s recommendation at their October 31, 2017 meeting and recommended to proceed. |
| FISCAL IMPACT/SUMMARY |
The total overall budget was originally estimated at $1,249,641 including design, construction, and construction engineering in FY 2017/2018 CIP budget. The source of funding is from Fund 430 (Sewer) and there is no General Fund impact. Based on the detailed budget summary below, there are sufficient funds to fully fund the Project.
| Construction Expenditures |
Amount |
| Design |
$110,300 |
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| Construction Contract |
$724,650 |
| Contingency (15%) |
$110,093 |
| Sub-Total |
$850,743 |
| Construction Engineering |
$210,220 |
| Total Estimated Construction Cost |
$1,060,963 |
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| Total Estimated Project Cost |
$1,171,263 |
| Allocated Budget |
$1,249,641 |
| Probable Funding Balance |
$78,378 |
This Project is included in the City's Sewer Master Plan and Sewer System Management Plan, which will replace approximately 1,500 linear feet of existing sewer main. Staff is requesting that City Council award a contract to GRFCO, Inc. in the amount of $724,650 for the construction of the Project and authorize the Public Works Director or his designee to issue Contract Change Orders up to a “not to exceed” amount of 15% of the Contract amount |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Hsing Chao, Associate Engineer
Concurrence: Steve Kooyman, P.E. City Engineer; Tony Olmos, P.E. Public Works Director |
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