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Agenda Item 15.
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| City Council Meeting |
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| Subject: |
| Approve Plans and Specifications, Receive Bids, Adopt Resolution, and Award Contract with T.E. Roberts, Inc. for Eagle Hills Tract Water Improvement, CIP No. 7467, (“Project”) |
| RECOMMENDATION |
- Approve the Plans and Specifications; and,
- Receive bids; and,
- Adopt Resolution to appropriate an additional $1,790,000 from the Water Fund (420) and $100,000 from Measure M (260) to the Project; and,
- Award Contract to the lowest responsive and responsible bidder, T.E Roberts, Inc. in the amount of $2,753,508.95; and,
- Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.
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| BACKGROUND/DISCUSSION |
The Eagle Hills Tract Water Main Replacement, CIP No. 7467 was programmed within the Fiscal Year (FY) 2018-2019 and FY 2019-20 Capital Improvement Program (CIP). The title of the project was updated during the Plans, Specifications, and Estimate (PS&E) Phase to “Eagle Hills Tract Water Improvements, CIP 7467” (“Project”), which appropriately reflects the scope of work within the bid documents. The Project is located in the Eagle Hills Tract Subdivision (see Attachment A). The scope of work for the Project includes, but is not limited to; installation of 8-inch and 10-inch water mains and fittings, water services connections, cap/plug old water main, grinding AC pavement, removing AC pavement, placement of AC pavement, slurry seal, re-striping, update ADA ramps, and adjusting water valve and utility manholes as required within Project boundary.
The Final Plans and Specifications (“Bid Documents”) were accepted by staff on February 21, 2020, and the Project was advertised for bids on the CIPlist.com website and subsequently published in the Star Progress paper on March 5, 2020 and again on March 12, 2020, 20 days prior to bid opening (Attachment B - Plans and Attachment C - Specifications). Furthermore, the hard copy of the Bid Documents are available at the City Clerk’s office for review. There was one addendum to the Specifications, which provided centerline monument tie records within the subdivision (see Attachment D). Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.
On March 24, 2020, staff received a total of 15 bid proposals. Soon thereafter, staff tabulated the bid proposals and determined that the apparent low bid amount was $2,753,508.95 from T.E. Roberts, Inc. (“TE Roberts”) from Orange, California (see Attachment E).
Below are the results of the 15 bids received within Table 1:
Table 1 – Total Bid Summary
Bidder
Number
|
Bidder |
Amount Bid |
| 1 |
T.E. Roberts, Inc. |
$ 2,753,508.95 |
| 2 |
Sully Miller Contracting Company |
$2,854,000.00 |
| 3 |
Stephen Doreck Equipment Rentals, Inc. |
$2,872,083.90 |
| 4 |
Hana Pipeline, Inc. |
$2,913,000.00 |
| 5 |
Big Ben, Inc. |
$2,924,818.95 |
| 6 |
Lucas Builders, Inc. |
$3,062,690.08 |
| 7 |
Boudreau Pipeline |
$ 3,149,073.64 |
| 8 |
Griffith Company |
$ 3,153,204.29 |
| 9 |
Mamco, Inc. Dba Alabbasi |
$ 3,153,204.29 |
| 10 |
JA Salazar Construction & Supply Corp. |
$ 3,640,831.11 |
| 11 |
Ferrieira Construction Co., Inc. Dba |
$ 3,699,400.37 |
| 12 |
C.P. Construction Co., Inc. |
$ 3,894,154.82 |
| 13 |
Christensen Brothers General Engineering, Inc. |
$ 3,903,992.69 |
| 14 |
Colich & Sons L.P. |
$ 4,052,921.10 |
| 15 |
Nationwide Contracting Services, Inc. Dba |
$ 4,098,902.75 |
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Engineers Estimate |
$ 3,254,000.00 |
As depicted within Table 1, the apparent lowest bid price from T.E. Roberts was less than the Engineer’s Estimate (EE) by approximately $500,000. Based on the other bid amounts, the EE was within the middle range of bids and the bids were very competitive.
T.E. Roberts has been in the construction business for 20 years and has completed construction of similar pipeline improvement projects for the City of Newport Beach, City of Anaheim, and Coachella Valley Water District. Their California Contractor’s license 603008 – A (General Engineering) with C-34 (Pipeline) and Department of Industrial Relations registration number 1000000280 has been verified by staff and their bid package met the City requirements. In addition, staff contacted the Cities of Newport Beach and City of Anaheim, where the contractor received a favorable review. Based on the aforementioned bid review, staff has determined T.E. Roberts to be a responsive and responsible bidder. Therefore, staff recommends that the City Council consider awarding a Construction Contract to the lowest responsive and responsible bidder, T.E. Roberts, Inc. in the amount of $2,753,508.95 (see Attachment F).
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| COMMISSION/COMMITTEE RECOMMENDATION |
| At the April 28, 2020 Finance Committee meeting, Finance Committee inquired as to the reason for the significant difference between the previously approved budget and the proposed budget needed to fully fund the project. In response, the original project budget was developed approximately 9 years ago when the project first appeared in the 7 year CIP program. Since then, the estimated project budget had not been updated and had been carried over year-after-year in the 7 year CIP until the first year of project funding was approved in FY18-19. Factors including inflation, escalating prevailing wage rates, and good economy increased anticipated costs over the years. Staff had decided to wait until bids were received before reconciling the project budget so the funding appropriation would reflect actual anticipated costs. |
| FISCAL IMPACT/SUMMARY |
The total updated cost for the Project is estimated at $3,465,000 based on the apparent low bid amount of $2,753,508.95, a 10% contingency, design, and construction engineering costs. The approved budget within the CIP FY 2019-20 for the Project is $1,575,000. This budget amount was programmed in FY 2018-19 and carried into the FY 2019-20 CIP budget, but was not updated to reflect the most recent bid prices. The sources of funds within the approved budget are from the Water Fund (420) and Gas Tax (220).
In order to award the Construction Contract to T.E. Roberts, staff is recommending adding additional funds to the Project in the amount of $1,890,000. Therefore, Staff developed a Resolution for the City Council to consider, which will appropriate the necessary funds to the Project (See Attachment G). The sources of added and new funds are from the Water Fund (420) and Measure M (260). The following Table 2 reflects the Project adopted and proposed amended budget summary:
Table 2 – Budget Breakdown
| Expense Category |
FY 2019-20
Adopted
Budget
($) |
FY 2019-20
Proposed
Increase
($) |
FY 2019-20
Proposed Budget
Amendment
($) |
| Design |
80,000 |
30,000 |
110,000 |
Construction including 10%
Contingency |
1,350,000 |
1,680,000 |
3,030,000 |
| Construction Engineering |
145,000 |
180,000 |
325,000 |
| Total |
1,575,000 |
1,890,000 |
3,465,000 |
Funding
Category |
FY
2019-20
Adopted
Budget
($) |
FY 2019-20
Proposed Budget Amendment
($) |
Water
Fund
(420) |
Gas tax
(220) |
Total |
Water
Fund
(420) |
Gas
tax
(220) |
Measure
M
(260) |
Total |
| Design |
80,000 |
|
80,000 |
110,000 |
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110,000 |
Construction
including
10%
Contingency |
1,300,000 |
50,000 |
1,350,000 |
2,880,000 |
50,000 |
100,000 |
3,030,000 |
Construction
Engineering |
145,000 |
|
145,000 |
325,000 |
|
|
325,000 |
| Total |
1,525,000 |
50,000 |
1,575,000 |
3,315,000 |
50,000 |
100,000 |
3,465,000 |
As depicted in Table 2, the Water Fund (420) will be increased from $1,525,000 to $3,315,000 and $100,000 from Measure M (260) will be added to the Project funding, the Gas Tax (220) will remain at $50,000. If the Resolution is adopted by City Council to allocate the additional funds, the Project will be fully funded. Therefore, staff recommends City Council consider adopting the Resolution. There is no impact to the General Fund from this Project.
The Project will replace various water mains with associated water infrastructure and rehabilitate the pavement on various streets within the Eagle Hills Tract Subdivision. If City Council approves staff recommendations, the Project is anticipated to start construction in early- June 2020 and be completed by December 2020.
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Deputy Public Public Works Director / City Engineer
Concurrence: Tony Olmos, P.E., Public Works Director
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