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Home My WebLink About10 - Via Lido Soud and Nord Water Main Replacement — Award of Contract No. 7645-2 (20W12)Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report October 13, 2020 Agenda Item No. 10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Via Lido Soud and Nord Water Main Replacement — Award of Contract No. 7645-2 (20W12) ABSTRACT: Construction bids have now been received for the Via Lido Soud and Nord Water Main Replacement project. Staff request City Council's approval to award the construction contract to T.E. Roberts, Inc. of Orange, California. The Via Lido Soud and Nord Water Main Replacement project replaces older cast iron water mains identified in the Water Master Plan for Lido Isle. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302(c) (replacement of existing public facilities involving negligible or no expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 7645-2 to T.E. Roberts, Inc. for the bid amount of $3,787,401 for the Via Lido Soud and Nord Water Main Replacement project and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $378,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract; and e) Approve Budget Amendment No. 21-017 appropriating $1,347,500 in increased expenditures in Account No. 70201931-980000-20W12 from the Water Enterprise Fund unappropriated fund balance. 10-1 Via Lido Soud and Nord Water Main Replacement — Award of Contract No. 7645-2 (20W12) October 13, 2020 Page 2 FUNDING REQUIREMENTS: Upon approval of the proposed budget amendment, sufficient funding is available within the current Capital Improvement Program budget for award of this contract. The budget amendment appropriates $1,347,500 in increased expenditures in Water Capital Distribution & Piping Account No. 70201931-980000-20W12. The Via Lido Soud and Nord Water Main Replacement project replaces older cast iron water mains identified in the Water Master Plan for Lido Isle. The following funds will be expensed: Account Description Account Number Amount Water Capital Distribution & Piping 70201931-980000-20W12 $ 4,167,901 Total: $ 4,167,901 The Via Lido Soud and Nord water mains are older, deteriorated water mains installed in the 1930's that have outlived their design life and are now due to be replaced. The City Council adopted Water Master Plan identified $8,400,000 of water main replacement funding for Lido Isle. The funding was split into three phases, as constructing all of the improvements at once would be too large a project to complete in one contract without impacting the summer season on the Island. Only the first phase of the funding was programmed in the adopted FY 2020-21 Capital Improvement Program budget for Lido Isle. With the completion of the final design and cost estimate in September of this year, the complete scope and cost was developed, which now includes portions of future phases due to the many connections and reconstruction of waterlines on the connecting side streets. The Budget Amendment appropriates the remaining necessary funds for the expanded scope of work contemplated by the proposed final design. The remaining phases of the Lido Isle water main replacement that have not been accelerated are scheduled for later years (approximately 2030-31) in the Master Plan. Staff recommends establishing $378,000 (approximately ten percent) for contingency purposes to cover the cost of unforeseen conditions associated with construction. Proposed fund uses are as follows Vendor Purpose Amount T.E. Roberts, Inc. Construction Contract $ 3,787,401 T.E. Roberts, Inc. Construction Contingency $ 378,000 Various Printing & Incidentals $ 2,500 Total: $ 4,167,901 DISCUSSION: At 10 a.m. on September 22, 2020, the City Clerk opened and read the following bids for this project - 10 -2 Via Lido Soud and Nord Water Main Replacement — Award of Contract No. 7645-2 (20W12) October 13, 2020 Page 3 The low bid amount is 21 percent below the Engineer's Estimate of $4,800,000. The bids are competitive and the disparity between the engineer's estimate and the low bid is in line with recent favorable bids for water main construction. T.E. Roberts, Inc. submitted all the necessary forms and possesses a California State Contractors License Classification "A" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for the City of Newport Beach and other public agencies. T.E. Roberts, Inc. recently successfully completed the Transmission Main Valve Replacement project for the City of Newport Beach. After the bid opening, staff received a bid protest letter from the fourth bidder (Attachment C), Teichert Energy & Utility Group claiming the top three low bidders were all non-responsive. T.E. Roberts submitted a response to the bid protest (Attachment D). Staff has reviewed the response and determined that T.E. complies with the bidding specification requirements and is fully qualified to complete this project. Staff recommends the City Council declare T.E. Roberts as the lowest responsive bidder. Work necessary to complete this contract consists of removing existing deteriorated cast iron water mains and installing new PVC pipe, valves, fire hydrants, water services, pavement restoration, traffic control and appurtenant work as required by the contract. Project phasing has been developed to maintain water service to the project area as much as possible and minimize impacts to the residents. For example, the contractor will not be allowed to open more than 1,000 linear feet of water main trench at any time. A sequencing plan will be coordinated with City staff a minimum of seven calendar days prior to beginning any connections or shutdowns of existing water mains and services. Additionally, a detailed schedule will be prepared by the contractor following award, which can be adjusted to address resident concerns in the project area. Pursuant to the Contract Specifications, Contractor will have 205 consecutive working days to complete the work. Work for this construction contract is scheduled to begin in mid-October. 10-3 BIDDER TOTAL BID AMOUNT Low T.E. Roberts, Inc. $ 3,787,401.00 2nd Paulus Engineering, Inc. $ 4,099,777.01 3rd All Cities Engineering, Inc. $ 4,195,050.00 4th Teichert Energy & Utility Group, Inc. $ 4,460,000.00 5th MNR Construction Inc. $ 4,575,500.00 6th Colich & Sons L.P. $ 4,980,250.00 7th GRFCO, Inc. $ 5,238,400.00 8th Mladen Buntich Construction Company Inc. $ 5,278,450.00 9th Dominguez General Engineering, Inc. $ 5,323,000.00 10th Lonerock, Inc. $ 5,715,125.00 11th Vido Artukovich & Son Inc. $ 5,718,175.00 The low bid amount is 21 percent below the Engineer's Estimate of $4,800,000. The bids are competitive and the disparity between the engineer's estimate and the low bid is in line with recent favorable bids for water main construction. T.E. Roberts, Inc. submitted all the necessary forms and possesses a California State Contractors License Classification "A" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for the City of Newport Beach and other public agencies. T.E. Roberts, Inc. recently successfully completed the Transmission Main Valve Replacement project for the City of Newport Beach. After the bid opening, staff received a bid protest letter from the fourth bidder (Attachment C), Teichert Energy & Utility Group claiming the top three low bidders were all non-responsive. T.E. Roberts submitted a response to the bid protest (Attachment D). Staff has reviewed the response and determined that T.E. complies with the bidding specification requirements and is fully qualified to complete this project. Staff recommends the City Council declare T.E. Roberts as the lowest responsive bidder. Work necessary to complete this contract consists of removing existing deteriorated cast iron water mains and installing new PVC pipe, valves, fire hydrants, water services, pavement restoration, traffic control and appurtenant work as required by the contract. Project phasing has been developed to maintain water service to the project area as much as possible and minimize impacts to the residents. For example, the contractor will not be allowed to open more than 1,000 linear feet of water main trench at any time. A sequencing plan will be coordinated with City staff a minimum of seven calendar days prior to beginning any connections or shutdowns of existing water mains and services. Additionally, a detailed schedule will be prepared by the contractor following award, which can be adjusted to address resident concerns in the project area. Pursuant to the Contract Specifications, Contractor will have 205 consecutive working days to complete the work. Work for this construction contract is scheduled to begin in mid-October. 10-3 Via Lido Soud and Nord Water Main Replacement — Award of Contract No. 7645-2 (20W12) October 13, 2020 Page 4 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302 (c) (reconstruction of existing public facilities involving negligible or no expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Location Map Attachment B — Budget Amendment Attachment C — Teichert Energy & Utility Group Bid Protest Letter Dated 9/23/2020 Attachment D — T.E. Roberts Response Letter Dated 9/24/2020 10-4 Attachment A WATER MAIN REPLACEMENT LOCATIONS VIA LIDO SOUD & NORD WATER MAIN REPLACEMENT tollI:r�[� CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7645-2 10/13/20 10-5 �_P°RT ATTACHMENT B City of Newport Beach > BUDGET AMENDMENT 2020-21 BA#: 21-017 Department: Public Works ONE TIME: P] Yes ❑ No Requestor: Angela Crespi Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date COUNCIL APPROVAL REQUIRED City Clerk: t� Date EXPLANATION FOR REQUEST: To increase expenditure appropriations from the Water Capital unappropriated fund balance for the award of ❑ from existing budget appropriations Contract 7645-2 to T.E. Roberts, Inc. for the Via Lido Soud and Nord Water Main Replacement. ❑ from additional estimated revenues from unappropriated fund balance REVENUES Fund # Org Object Project Descri tion _ Increase or (Decrease) $ - -----j --- -- -r --- -------------- ------- -- - -- --- r—- ---- - Subtotal _$ EXPENDITURES Fund # Org Object Pro ect -- Description —-------------- ----------------- Increase or (Decrease) $ T 1702 702019311980000 ,20W12 _ D� ISTRIBUTION & PIPING - CIP EXPENDITURES FOR GL 1,347,500.00 -------------I I ; r _. __ ------------ - -...... ........ I - Subtotal'; $ 1,347,500.00 FUND BALANCE FuFund # Object Description __.._ -_ ............... _... Increase or (Decrease) $ _ - - — - 702 ]300000 Water Capital Fund - FUND BALANCE CONTROL (1,347,500.00) _ _......._ _'. .... _._.. .__..._ ......... .._.-'.._.....; _..._ ......._r.... -._...._.: _. . Subtotal' $_ (1,347,500.00)] Fund Balance Change Required 10-6 A TEICHERT ENERGY & ® ®UTILITIES GROUP, INC. September 23, 2020 Alfred Castanon City of Newport Beach Public Works Department acastanon@newportbeachca.gov 949-644-3314 ATTACHMENT C Teichert Energy & Utilities Group, Inc. 3780 Kilroy Airport Way, Suite# 700 Long Beach, CA 90806 Re: Bid Protest — Via Lido Soud & Nord Water Main Replacement — Invitation # 7645-2 Dear Mr. Castanon, This letter serves as Teichert Energy & Utilities Group, Inc.'s (TEUG) bid protest to TE Roberts Inc., Paulus Engineering, Inc. and All Cities Engineering Inc., bidders 1,2, & 3 respectively for the above referenced contract. TEUG claims the referenced contractor bids are non-responsive and directs the City of Newport Beach (City) to the details set forth below: Bidders TE Roberts Inc., Paulus Engineering, Inc., and All Cities Engineering Inc. failed to list a dewatering subcontractor. Section 7-8.6.4 of the Special Provisions — Dewatering states "Groundwater will be encountered during the excavation of the project. The Contractor will be responsible for providing, installing, maintaining and operating a well point dewatering system in the project area if groundwater is encountered. The Contractor shall demonstrate experience with well point dewatering systems and their in-house capabilities or list a dewatering subcontractor who will perform these services. (emphasis added). The Contractors dewatering operations shall conform with all requirements of the OCSD's Special Purpose Discharge Permit. See Section 7-5, as amended for specific requirements. The elevation of free groundwater may vary depending on tides. Based on previous experience the construction in the area, it was determined that groundwater was entering the trench every time the contractor encountered a cross utility. The existing utility trench was acting as a french drain. For bidding purposes, the Contractor shall assume that free groundwater will be encountered at all excavations over three feet of cover. " TEUG listed a qualified dewatering subcontractor, Rain for Rent. In fact, the amount listed in TEUG's bid for Rain for Rent was $380,000. This sum includes the engineering as required before the dewatering system's field installation activities. This amount excludes the cost for fuel, maintenance and system monitoring. Based on the 3 low bidders subcontracting listings, they failed to list a dewatering subcontractor. This fact raises the specter as to whether the bidders gave proper attention to groundwater conditions 10-7 A TEICHERT ENERGY & ® ®UTILITIES GROUP, INC. Teichert Energy & Utilities Group, Inc. 3780 Kilroy Airport Way, Suite# 700 Long Beach, CA 90806 when generating their proposals or. If these 3 bidders intend to self -perform this specialized work, they are required to provide project specific references which support the dewatering self -perform capabilities at the time of bid. We request the City thoroughly evaluate the references listed. The above noted deficiencies and lack of listing a qualified dewatering subcontractor unfairly affected the price of bids for the 3 referenced contractors and seemingly afforded the respective bidders an advantage not allowed other bidders. TEUG understands the importance of a quality dewatering and groundwater filtration system, especially while working in the City. Therefore, we ask the City to deem TEUG as the lowest responsible and responsive bidder. Sincerely, John Solis, Regional Manager 10-8 ATTACHMENT D Roberts INCORPORATED GENERAL ENGINEERING CONTRACTOR September 24, 2020 Alfred Castanon City of Newport Beach Public Works Department acastanon@newportbeachca.gov 949-644-3314 Dear Mr. Castanon, I am writing in response to the Bid Protest submitted by Teichert Energy and Utilities Group, Inc. dated September 23, 2020 for the Via Lido Soud and Nord Water Main Replacement project that bid on September 22, 2020. T. E. Roberts, Inc was fully aware of groundwater conditions prior to submitting our bid. We plan on self -performing any necessary dewatering for the Via Lido Soud and Nord Water Main Replacement project with our own dewatering equipment that has been used on other projects in Newport Beach. T. E. Roberts anticipates similar ground water intrusion as experienced in projects completed for the City of Newport Beach; Balboa Island Phase 1 Water Main Replacement project, Balboa Island Phase 2 Water Main Replacement project, and the Newport Boulevard Water Main Replacement project. Our Technical Ability and Reference Experience form listed both Balboa Island Water Main Replacement projects as referenced project number 19 and referenced project number 24 in the bid documents. As an On -Call Contractor for the City of Newport Beach we have encountered ground water on many occasions and self -performed dewatering with our own equipment. We have dewatered more than six million gallons within the City of Newport Beach thus demonstrating our knowledge, experience, and capabilities. Our dewatering personnel have not changed. We are a responsive bidder with in-house capabilities to dewater as demonstrated on numerous projects within the City of Newport Beach. Sincerely, 7" L ` A Timothy Roberts President 306 West KotelIn Avenue Unit B Orange, CA 92861 T. 714.669.0074 F. 714.400.0441 License #603008 www.tefobeffs.com 10-9