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HomeMy WebLinkAboutStaff Report 4.D 03/20/2017DATE: March 20, 2017 Agenda Item #4.D TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities Kent Carothers, P.E. — Operations Manager SUBJECT: Resolution Authorizing Award of Contract for the Sewer Main Replacement 2016 -2017 Project to D'Arcy & Harty Construction, Inc. RECOMMENDATION It is recommended that the City Council approve the Resolution Authorizing the Award of Contract for the Sewer Main Replacement 2016 -2017 Project to D'Arcy & Harty Construction, Inc. BACKGROUND To maintain and improve the condition of the City's water and wastewater systems, the Department of Public Works and Utilities annually replaces or rehabilitates deteriorating water and sanitary sewer mains throughout the City. City staff has developed a 5 7year priority list of water and sewer lines needing replacement. These projects are cross - referenced with the City's street maintenance program, development projects, and proposed PG &E work to endeavor to assure that new or nearly new pavement will not be impacted. The sewer rehabilitation projects include backyard pipe bursting at LaCresta Drive, BelleView Avenue, Haven Drive, Pierce Street, Hill Drive, and Scenic Way. This includes approximately 3,000 linear feet of pipe replacement. Pipe bursting is a process requiring less excavation where a new pipe is threaded through an old pipe, bursting the old pipe as it goes so the new pipe can be the same diameter as the old pipe. The private sewer laterals will be reconnected at the mains within the existing easements. This sewer rehabilitation portion of the project includes backyard pipe bursting and will address identified locations of occasional sanitary sewer overflows. Sewer manholes will be rehabilitated with the mains. The sewer mains in portions of 7th Street and 8th Streets are old, undersized, deteriorating and in need of replacement. These are also areas of identified occasional sanitary sewer overflows. The removal and replacement includes approximately 400 linear feet of 8 -inch sewer main. The project also includes removal and replacement of sewer manholes along the entire length of the proj ect. This project will improve service, reduce maintenance costs and significantly reduce inflow and infiltration. The project location is shown on Attachment 2. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits." DISCUSSION The project was designed and contract documents compiled in -house by City staff. A Notice Inviting Bids was advertised on January 19, 2017 and six (6) bids were received as follows: Name of Bidder Bid Total D'Arcy & Harty $ 630,612 Construction, Inc. Team Ghilotti Inc. $ 748,944 Cratus, Inc. $ 799,885 K.J. Woods $ 988,000 Construction W.R. Forde Associates $ 1,014,221 Roto- Rooter $ 1,144,224 Engineer's Estimate $ 750,000 Lowest Responsible Bidder The lowest responsible and responsive bidder, D'Arcy & Harty Construction, Inc., has performed similar sewer projects throughout the Bay Area. Staff verified that D'Arcy & Harty Construction, Inc. possesses a valid Class A California Contractor's License, number 474146, which qualifies Darcy & Harty Construction, Inc. to perform the work. The attached formal protest letter dated February 24, 2017 was received from Team Ghilotti Inc. The basis of their protest is that D'Arcy & Harty Construction, Inc. did not list a subcontractor for Closed Circuit TV work. D'Arcy & Harty's attached response letter, dated February 28, 2017, indicates that they will self - perform a portion the CCTV scope and have independent inspection per the specifications at a cost less than one -half of one percent of the contract value. This protest letter has been reviewed by staff and has been found not to have merit; therefore, staff recommends the protest be rejected. Construction is scheduled to begin in April 2017 and to be completed by June 2017. Construction management and inspection services will be conducted by City staff with assistance by an outside consultant for geotechnical and material testing. FINANCIAL IMPACTS The total projects budget for the Sewer Main Replacement and Rehabilitation 2016/2017 Project (C66401626) is $2,847,000. This project was reduced in size to focus on pressing sanitary sewer overflows and address pipe bursting in backyards. The following is a breakdown of the budget for the reduced project: 2 Construction Contract (low bid) $ 630,612 Design (City Staff) $ 52,000 Administration $ 4,000 Construction Management & Inspection $ 52,000 CIP Overheads $ 3,000 Contingency $ 125,000 TOTAL: $ 866.612 It is not anticipated that the contingency will be entirely spent and the remaining contingency funds will be proportionally returned to their funding source. ATTACHMENTS Resolution Location Map TGI Bid Protest Letter, City Response, and D'Arcy & Harty Response. Attachment 1 RESOLUTION AUTHORIZING THE AWARD OF CONTRACT FOR THE SEWER MAIN REPLACEMENT 2016 -2017 PROJECT TO WARCY & HARTY CONSTRUCTION, INC. WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code, California Public Contract Code Section 20162 and other applicable law, City staff prepared construction bid documents and solicited bids for the Project; and WHEREAS, the project was bid on January 19, 2017, and six (6) bids were received and opened on February 22, 2017 in accordance with applicable law; and WHEREAS, the lowest responsible bid for the Project was submitted by D'Arcy & Harty Construction, Inc., from San Francisco, CA for $630,612; and WHEREAS, a bid protest by Team Ghilotti, Inc. is rejected and it is confirmed by D'Arcy & Harty Construction, Inc. that subcontractor work is not above one -half of one percent of contract value; and WHEREAS, staff has determined that the D'Arcy and Harty Construction, Inc., bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that D'Arcy & Harty Construction, Inc., possesses a valid California Contractor's License, Class A, number 474146 that qualifies D'Arcy & Harty Construction, Inc. to perform the Project; and WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act ( "CEQA ") and Title 14, the California Code of Regulations ( "CEQA Guidelines "), Section 15301, because the project consists of repair and maintenance to an existing public street. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: In accordance with the City of Petaluma Charter and Municipal Code, California Public Contract Code Section 20162 and other applicable law, waives any and all non- conformance in the bid of D'Arcy & Harty Construction, Inc. for the Sewer Main Replacement 2016 -2017, Project No. C66401626, finds the bid of $630,612 to be the lowest, responsive bid and further finds that D'Arcy & Harty Construction, Inc., is the lowest responsible bidder. 3. Awards the contract for the main Replacement 2016 -2007, Project No. C66401626 to D'Arcy & Harty Construction, Inc., in the amount of $630,612, the amount of the lowest responsive bid, conditioned on Darcy & Harty Construction, Inc.'s timely executing the project contract and submitting all required documents, including but not limited to, executed bonds, certificates of insurance, and endorsements, in accordance with the project bid documents. 4 4. Directs staff to issue a notice of award to D'Arcy & Harty Construction, Inc. 5. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by D'Arcy & Harty Construction, Inc., of the signed project contract and all other required document, including but not limited to, executed bonds, certificates of insurance, and endorsements, in accordance with the project bid documents. SEWER MAIN REPLACEMENT 2016 -2017 PROJECT NO. C66401626 LOCATION MAP PROJECT Attachment 2 �S C 107 Date: MARCH 20, 2017 ,c o f City of Petaluma Public Works and Utilities Department X85`' Al Attachment 3 February 24,, 2017 City of Petaluma Department of Public Works & Utilities Attn: John C. Brown, City Manager 11 English St. Petaluma, CA 94952 Reference: Sewer Main Replacement 2016 — 2017 City Project Number C66401626 Subject: Protest of Bid Submitted by Darcy Harty Construction Dear Mr. John C. Brown, In accordance with the construction documents, this letter is to notify the City of Petaluma that we are protesting the apparent low bid of Darcy Harty Construction for the project referenced above. Our protest is based on the requirements specified in the bid proposal documents "List of Subcontractors" and Technical Specifications Section 610 Sewer Mains 6101).11 Closed Circuit Television (CCTV) Inspections: `In accordance with the provisions of Section 4102 and 4108, inclusive, of the Government Code of the State of California, each bidder shall list below the name and location of place of business of each subcontractor who will perform a portion of the contract work in excess of one -half of one percent of the total contract price.' At one -half of one percent, Darcy Harty was required to list all subcontractors whose contract value for performing such work would have exceeded $3,153.06. At the time of bid, Darcy Harty listed no subcontractors. Given the nature and scope of the work as described in the contract documents, the CCTV operations would exceed $3,153.06 for contract work performed. Section 61 OD, 11 Closed Circuit Television (CCTV) Inspections states "The contractor shall hire an independent television inspection service to perform a closed - circuit television inspection of all newly constructed sewers including laterals from the main to the cleanout, ... Inspection of pipelines shall be performed by experienced personnel trained in locating sewer defects by closed- circuit television. [bold added]" Darcy Hardy Construction's LIST OF SUBCONTRACTORS listed no subcontractors for the project (Attachment A). By not listing required subcontractors Darcy Harty's bid is nonresponsive. 2531 Petaluma Blvd South + Petaluma, CA 94952 + FAX: 707 - 763 -8711 + www.TeamGhilotti.com STATE CONTRACTORS LICENSE #895384 CLASS: A 7 By not listing any subcontractors, especially the required CCTV subcontractor Darcy Harty gained unfair advantages. At bid time Darcy Harty gained a competitive advantage of saving time for it to submit its bid that Team Ghilotti did not have. Darcy Harty had a competitive advantage to reduce the amount of time required to complete its proposal. Also, Darcy Harty has gained a time advantage in locating and negotiating its subcontractor work. By not listing any subcontractors Darcy Harty gained the economic advantage of being able to negotiate with subcontractors after the bid. Bid protests assure that public owners are complying with public bidding laws and their purposes, which include fair, competitive bids and to eliminate favoritism, fraud and corruption in the awarding of public contracts (Public Contract Code 100) To achieve this, there must be transparency in the process. Due to the omission of listing a CCTV subcontractor on the bid proposal submitted by Darcy Harty, TGI respectfully requests that the City disqualify their bid as non - responsive and award the contract to Team Ghilotti, Inc. as the low responsive bidder for this project. Team Ghilotti. Inc. is the lowest responsive and responsible bidder for the above - referenced project. Team Ghilotti respectfully protests any award of this contract to Darcy Harty because Darcy Harty's bid is nonresponsive, and the failure to comply with the bidding requirements cannot be waived because it gave Darcy Harty a competitive advantage. Sincerel , J e Moreira General Manager Team Ghilotti, Inc. CC: Darcy Harty Construction Cratus Inc. KJ Woods Construction WR Ford Associates Rotor Rooter ATTACHMENT A LIST OF SUBCONTRACTORS In accordance with the provisions of Section 4102 and 4108, inclusive, of the Government Code of the State of California, each bidder shall list below the name and location of place of business of each subcontractor who will perform a portion of the contract work in an amount in excess of one -half of one percent of the total contract price. In each such instance, the nature and extent of the work to be performed shall be described. If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one -half of one percent of the prime contractor's total bid, the prime contractor agrees that he or she is fully qualified to perform that portion himself or herself, and that the prime contractor shall perform that portion himself or herself. The subcontracting of work for which no subcontractor was designated in the original bid and which is in excess of one -half of one percent of the total contract price, will be allowed only with the written consent of the City. Name Address of Office, Description of Work to be Performed (also show Bid Schedule public Works Contractor of Subcontractor Mill or Shop , Item Number) Registration Number Nnne LIST OF SUBCONTRACTORS 4.15 rn :,,, David Glass Mayor Chris Albertson Teresa Barrett N111ce Healy Gabe Kearney Dave King Kathy Miller Councilmembers Public Worb & Utilities City Engineer 11 English Street Petaluma, CA 94952 Phone (707) 778 -4303 Environmental Services Ellis Creek Water Recycling Facility 3890 Cypress Drive Petaluma, CA 94954 Phase (707) 776 -3777 Fay: (707) 656.4067 Parks & Facility Maintenance 840 Hopper St. Ext. Pelahona, CA 94952 Phone (707) 778 -4303 Far (707) 206 -6065 Transit Division 555 N. McDowell Blvd Petahuna, CA 94954 Phone (707) 778 -4421 Utilities & Field Operations 202 N. McDowell Blvd. Petaluma, CA 94954 Phone (707) 778 -4546 Fay (707) 206 -6034 E- A4ail: publicworks© ct.petahona.ca,tts CITY OF PETALUMA POST OFFICE Box 61 PETALUMA$ CA 94953 -0061 March 2, 2017 Joe Moreira, General Manager Team Ghilotti, Inc, 2531 Petaluma Blvd, South Petaluma, California 94952 Re: 2016 -2017 Sewer Main Replacement Project Bid Protest Submitted by Team Ghilotti Inc. Dated February 24, 2017 Dear Mr. Moreira: This is in response to the bid protest you submitted on behalf of Team Ghilotti Inc. concerning award of the 2016 -2017 Sewer Main Replacement Project ( "Project "). In your letter you object to award of the project to D'Arcy & Harty Construction, Inc., the apparent low bidder, arguing they did not list a subcontractor for performing work in excess of one -half of one percent of the contract value that their bid should be rejected as non- responsive and that the contract should be awarded to Team Ghilotti, Inc. as the lowest responsive bidder. As discussed further below, City staff believe the protest submitted on behalf of Ghilotti Bros., Inc. to be without merit, and intend to recommend that the City Council reject the protest and award the Project to D'Arcy & Harty Construction, Inc. as submitter of the lowest, responsive bid for the Project. City staff has concluded that the D'Arcy & Harty Construction, Inc. bid is responsive and the items of Closed Circuit TV (CCTV) is a very minor facet of the proposed scope of the work. The requirement to provide CCTV of the mains does not exceed one -half of one percent of contract value and therefore the D'Arcy and Harty bid is not in violation of California Public Contracting Code Section 4104. There was no unfair advantage provided to Darcy & Harty Construction, Inc. and they were not provided a competitive advantage, as they complied with both the requirements in the notice to bidders provided by City and California state law, The specifications in section 61 OD. 11 require the hiring of an "independent television inspection" of the CCTV . Per the letter from D'Arcy and Harty Construction, Inc, dated February 28th, their intent is to hire NorCal Pipeline Services, Inc. to perform work that is not in excess of the statutorily prescribed limit. Additionally, the scope of Project CCTV is limited to the rehabilitated mains. Though the requirement in 61 OD. 11 mentions laterals, no laterals are actually included in Project and therefore they do not need to be inspected, lessening the Page 1of2 10 complexity of the CCTV requirement. The CCTV item does not include the video assessment included in Video (E) SS line, Locate Lateral, Potholes and Provide Temporary lateral Connection, which is a separate pay item, further simplifying the required CCTV work. Please refer to response letter by D'Arcy & Harty Construction, Inc. for additional ihformation. In addition, of the six bidders, only Team Ghilotti, Inc. listed a subcontractor for CCTV work. Staff intends to recommend that the City Council award the Project contract to D'Arcy & Harty Construction, Inc. at the March 20, 2017 City,Council meeting. Sincerely, Kent Carothers, Operations Manager \\xara4- 6 \pwu \CIP\Projects \Sewer Main Replacement FY 16- 17\Design \440 Bidding\Petaluma Response to TGI Sewer Main Project CAO edits.doc Page 2 of 2 February 28, 2017 Via Electronic Mail to: City of Petaluma Department of Public Works & Utilities Attn: John C. Brown, City Manager 11 English St. Petaluma, CA 94952 Project: Sewer Main Replacement 2016 -2017 Project No. City Project Number C66401626 Subject: Response to Bid Protest by Team Ghilotti Dear Mr, Brown, D'Arcy & Harty Construction, Inc. ( "D'Arcy & Harty ") submitted the lowest responsive bid in connection with the City of Petaluma's Project Number C66401626, for the Sewer Main Replacement 2016 to 2017 project (the "Project "). In accordance with the construction documents, this letter is D'Arcy & Harty's response to the purported bid protest submitted by Team Ghilotti. Team Ghilotti has asserted a speculative, purported protest that alleges, without support, that D'Arcy & Harty intends to use one or more subcontractors whose bid price is more than half of one percent of D'Arcy & Harty's bid. That allegation is unfounded. D'Arcy & Harty in submitting its bid does not anticipate hiring the services of any subcontractor to perform a scope of work with a contract value that will exceed one half of one percent. Indeed, the majority of the work scope on this contract will be self - performed by D'Arcy & Harty Construction Inc. As per the requirements of the construction documents, D'Arcy & Harty will hire NorCal Pipeline Services, Inc. as an independent, experienced CCTV inspection service to perform CCTV inspection of newly constructed sewers only. At bid time, it is not anticipated that the contract value for the scope of work to be performed by NorCal Pipeline Services will exceed one half of one percent of the total Project contract value. There is no basis to disqualify the bid proposal submitted by D'Arcy & Harty on the alleged grounds that a CCTV subcontractor was not listed. D'Arcy & Harty fully complied with bidding requirements. The contract for the Project must be awarded to D'Arcy & Harty, because D'Arcy & Harty submitted the lowest responsive bid and D'Arcy & Harty is a responsible bidder. Sincerel - ---°°� William Tobin Project Manager D'Arcy & Harty Construction Inc CC: Team Ghilotti Construction 1300 Carroll Avenue ® San Francisco, CA 94124 USA w 415/822 -5200 Fax 415/822 -0747 CA License #474146 12