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    6.    
Finance Committee
Meeting Date: 12/08/2020  
FROM: Bill Gallardo

Subject:
Approve Plans and Specifications, Receive Bids, and Award Contract with Sully-Miller Contracting Company for the Napoli Tract Water Improvements, CIP No. 7458 (“Project”)
RECOMMENDATION
  1. Approve the Plans and Specifications,
  2. Receive bids,
  3. Award Contract to the lowest responsive and responsible bidder, Sully-Miller Contracting Company, in the amount of $1,323,100, and
  4. Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.
BACKGROUND/DISCUSSION
The Napoli Tract Water Improvements, CIP 7458 (“Project”) is programmed within the FY 2020-21 CIP.  The Project is located within the Napoli Tract Subdivision located south of Lambert Road and west of Brea Boulevard, which includes Napoli Drive, Delphia Avenue and St. Crispen Avenue (Attachment A).  The Project will include the work required for replacement and upgrade of existing water mains and appurtenances, as well as street resurfacing throughout the Tract.

On October 12, 2020, the Final Plans and Specifications (“Bid Documents”) were accepted by staff, and the Project was advertised for bids on the CIPlist.com website and subsequently published in the Star Progress paper on October 29, 2020, 20 days prior to bid opening.  A hard copy of the Bid Documents are available at the City Clerk’s office for review.  There was one addendum to the Specifications, which changed the non-mandatory pre-bid meeting date from November 3, 2020, at 10:30 am, to October 29, 2020, at 11:30 am, via Zoom.  Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.

On November 17, 2020, staff received a total of 18 bid proposals. Soon thereafter, staff tabulated the bid proposals and determined that the apparent low bid amount was $1,323,100 from Sully-Miller Contracting Company. (“Sully-Miller”) from Brea, CA (Attachment B).  
   
Table 1 provides the results of th 18 bids received.

 
Table 1 – Total Bid Summary

 
Bidder
Number
Bidder Amount Bid
1 Sully-Miller Contracting Co. $1,323,100.00
2 Stephan Doreck Equipment Rentals, Inc. #1,358,002.00
3 All Cities Engineering $1,404,048.40
4 Hardy & Harper, Inc. $1,445,000.00
5 Cedro Construction, Inc. $1,474,627.00
6 Big Ben, Inc. $1,477,058.00
7 Kay Construction $1,526,282.00
8 Ferriera Construction Co. $1,550,486.00
9 Gentry Brothers, Inc. $1,560,673.54
10 TE Roberts, Inc. $1,585.042.00
11 Colich and Sons, L.P. $1,591,396.00
12 GRFCO, Inc. $1,625,760.00
13 Excel Paving Co. $1,636,858.00
14 Kana Pipeline, Co. $1,687,000.00
15 CHI Construciton $1,807,990.00
16 Lonerock, Inc. $2,090,046.00
17 Christensen Brothers $2,252,259.00
18 All Builders, Inc. $2,286,392.00
  Engineer's Estimate $1,700,000.00
 

As depicted within Table 1, the three lowest bids were very competitive with the apparent lowest bid price from Sully-Miller coming in less than the Engineer’s Estimate (EE) by approximately $376,900, or about 22%.

Sully-Milller has been in the construction business for 97 years and has completed construction of similar water and roadway improvement projects for various cities such as the cities of Fullerton, Santa Monica, Riverside, and Brea.  Their California Contractor’s license 747612 – A (General Engineering) and Department of Industrial Relations registration number 100003664 has been verified by staff and their bid package has met the City requirements.  In addition, staff contacted the cities of Fullerton, Santa Monica, and Riverside, where the contractor has received a favorable review. Additionally, Sully-Miller recently completed the Cliffwood Tract Water Improvement Project (CIP 7461) for Brea, with an overall good performance. Based on the aforementioned bid review, staff has determined Sully-Miller 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, Sully-Miller in the amount of $1,323,100.00 (Attachment C).
SUMMARY/FISCAL IMPACT
The Project budget is programmed in the FY 2020-2021 CIP and was updated as part of the 1st quarterly FY 2020-21 budget update to a revised budget amount of $2,185,033. The total updated cost for the Project going into construction is estimated at $1,645,000 based on the apparent low bid amount, a 10% contingency, and construction engineering costs. The sources of funds within the approved budget are from the Water Fund (540) and Measure M Fund (260).  Therefore, there are sufficient funds in the budget for the Project.  Upon completion of the Project, the remaining fund balance within each fund will be de-obligated and transferred back into the respective funds.  There is no impact to the General Fund from this Project.
 
The Project will install a new water main with water appurtenances and complete street pavement rehabilitation within the Napoli Tract Subdivision.  If City Council approves staff recommendations, the Project is anticipated to start construction in mid-January 2021 and be completed by July 2021.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by:  Michael Ho, P.E., Deputy Director of Public Works / City Engineer
Concurrence: Tony Olmos, P.E., Director of Public Works
Attachments
Location Map
Sully-MillerContracting Co. Proposal
Construction Contract Agreement

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