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    8.    
Finance Committee
Meeting Date: 12/08/2020  
FROM: Bill Gallardo

Subject:
Approve Plans and Specifications, Receive Bids, and Award Contract with All Cities Engineering, Inc. for the Brea Water Main Replacement Steele Drive Tract and Pleasant Hills Tract, CIP No’s. 7453 and 7457 (“Project”)
RECOMMENDATION
  1. Approve the Plans and Specifications;
  2. Receive bids;
  3. Award Contract to the lowest responsive and responsible bidder, All Cities Engineering, Inc., in the amount of $3,916,292.65; 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 Steele Drive Tract and Pleasant Hills Tract Water Improvements, CIP No. 7453 and CIP No. 7457 respectively, are programmed within the FY 2020-21 CIP.  The projects were combined within one bid document entitled “Brea Water Main Replacement Steele Drive Tract and Pleasant Hills Tract, CIP No. 7453 and 7457” (“Project”). The Project is located within the Steele Drive and Pleasant Hills Tract Subdivisions located East of Puente Drive, south of Northwood Avenue, and north of Central Avenue, which includes Steele Drive, Wardman Drive, and several streets east of Wardman Drive (Attachment A).  The Project will include the required work for replacement and upgrade of existing water mains and appurtenances, as well as street resurfacing throughout the two Tracts.

On October 15, 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 November 5, 2020, 14 days prior to bid opening.  A hard copy of the Bid Documents are available at the City Clerk’s office for review.  There were no addenda to the Plans and Specifications.  Therefore, staff recommends City Council approve the Plans and Specifications as bid.    

On November 18, 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 $3,916,292.65 from All Cities Engineering, Inc. (“All Cities”) from Jurupa Valley, CA (Attachment B). Their bid proposal depicted a total bid amount of $3,915,052.65.  The difference was attributed to a minor math error on one of the bid items.  However, this error did not result in a unfair bid advantage and their bid as tabulated remains as the lowest apparent bid.  Additionally, based on the review of all bidders’ proposals, staff determined that the Bid Proposal from Williams Pipeline Contactor was deemed non-responsive due to the bidder’s failure to properly complete the bid proposal form in accordance with the Bid Document requirements.  Therefore, their proposed amount is not listed in the following table.

Table 1 provides the results of 14 responsive bids received.

Table 1 – Total Bid Summary
 
Bidder
Number
Bidder Amount Bid
1 All Cities Engineering, Inc. $ 3,916,292.65
2 TE Roberts, Inc. $ 3,979,542.97
3 Sully-Miller Contracting Co. $ 4,021,000.00
4 Vasili, Inc. $ 4,034,065.69
5 Big Ben, Inc. $ 4,037,925.53
6 Kana Pipeline, Inc. $ 4,057,541.45
7 Stephen Doreck Equipment Rentals, Inc. $ 4,135,912.75
8 Hardy & Harper, Inc. $ 4,200,000.00
9 Ferriera Construction $ 4,248,857.62
10 Christensen Brothers $ 4,454,690.55
11 Griffith Company $ 4,274,532.30
12 MNR Construction, Inc. $ 4,695,618.40
13 Excel Paving Co. $ 4,713,686.00
14 Lonerock, Inc. $ 5,180,460.20
  Engineer's Estimate $ 3,900,000.00

As depicted within Table 1, the three lowest bids were very competitive with the apparent lowest bid price from All Cities coming in greater than the Engineer’s Estimate (EE) by approximately $16,000, or about 0.5%.    
 
All Cities has been in the construction business for 5 years and has completed construction of similar water and roadway improvement projects for the cities of Downey and Santa Ana.  Their California Contractor’s license 1009171 – A (General Engineering) and Department of Industrial Relations registration number (1000044815), has been verified by staff and their bid package has met the City requirements.  In addition, staff contacted the cities of Downey and Santa Ana, where the contractor has received a favorable review. Based on the aforementioned bid review, staff has determined All Cities 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, All Cities, in the amount of $ 3,916,292.65 (Attachment C).
SUMMARY/FISCAL IMPACT
The Project budget is programmed in the FY 2020-2021 CIP with a budget amount of $6,322,066. Of this amount, approximately $1,600,000 is programmed for the Gemini Avenue/Titan way Project (part of CIP 7453) which is currently under construction.  Therefore, the total Project budget programmed for the Steele Drive and Pleasant Hills Tract improvements is $4,722,066. The total updated cost for the Project going into construction is estimated at $4,656,722 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), Measure M (260), and Gas Tax (220).  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 Steele Drive and Pleasant Hills Tract Subdivisions.  If City Council approves staff recommendations, the Project is anticipated to start construction in February 2021 in coordination with the work within the North Hills East project (7460), which is currently in construction and anticipated to be completed by September 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
All Cities Engineering, Inc. Proposal
Construction Contract Agreement

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