HomeMy WebLinkAbout2021-12-07; City Council; ; Acceptance of bids, award of a contract to Tharsos Inc. for construction of the Villas Lift Station Replacement Project and approval of additional appropriation Meeting Date: Dec. 7, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Dave Padilla, Utilities Engineering Manager
dave.padilla@carlsbadca.gov, 760-438-2722
Sean Diaz, Utilities Senior Engineer
sean.diaz@carlsbadca.gov, 760-603-7350
Subject: Acceptance of bids, award of a contract to Tharsos Inc. for construction
of the Villas Lift Station Replacement Project and approval of additional
appropriation
District: 2
Recommended Action
Adopt a resolution accepting bids and awarding a construction contract to Tharsos Inc., a
California corporation, for construction of the Villas Lift Station Replacement Project, Capital
Improvement Program Project No. 5550, in an amount not to exceed $638,450, and approving
an additional appropriation in an amount of $64,000 from the Sewer Capital Replacement
Fund.
Executive Summary
The project will replace portions of the Villas Sewer Lift Station to improve safety and system
reliability. This action would award the contract for the project to the company that staff
determined to be the lowest responsive and responsible bidder, Tharsos Inc., which provided a
$638,450 bid. It would also make an additional appropriation of $64,000 from the Sewer Capital
Replacement Fund to cover the increased costs of the project explained below.
The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.080, which
requires the approval of the City Council for all formally bid contracts when the value exceeds
$200,000.
Discussion
Overview
The project site is located at the east end of Winthrop Avenue within a city-owned easement
north of Carlsbad Village Drive and west of Tamarack Avenue (Exhibit 2). Construction of the
Villas Lift Station was originally completed in 1987. It serves the residential units in the Villas at
Calavera Hills. The sewer lift station is maintained and operated by the Utilities Department.
Existing gravity-powered sewer mains convey wastewater to the lift station, which moves the
wastewater from a lower elevation to a higher elevation. The sewage ultimately discharges into
the North Agua Hedionda Interceptor pipeline.
Dec. 7, 2021 Item #6 Page 1 of 7
This project will replace the existing pump discharge piping, valves, flow meter and pump
motor electrical controls, construct an underground vault and build a weather canopy over the
electrical equipment. A vinyl access fence and gate will replace the existing wooden fence and
gate. Temporary sewer bypassing will be required during construction to maintain sewer
service to the development, and best management practices will be used to reduce public
access and noise impacts to the residents.
The project is complex and construction space is limited because of the site location. Compact
and limited-access construction equipment will be needed to build the new underground vault
and replace the station’s components. The project also requires continuous monitoring of the
temporary bypass system during construction.
Construction contract
On July 13, 2021, the City Council approved the project’s plans and specifications, and
authorized staff to seek bids for its construction (Resolution No. 2021-165). Staff advertised the
project using the city’s formal bidding procedures.
The engineer’s estimate for construction of the project was $540,000, which included a
construction contingency of $80,000. On Oct. 6, 2021, nine bids were received, all greater than
that estimate. They ranged from the lowest bid of $638,450 to the highest bid of $1,169,810. In
staff’s opinion, the higher-than-expected bids are the result of the project’s complexity and
recent price increases for materials resulting from inflation and the pandemic.
Staff reviewed the bid proposals and determined Tharsos Inc., with its bid of $638,450, was the
lowest responsive and responsible bidder. Given the need to replace the deteriorating
components and the importance of improving the safety and reliability of the lift station, staff
recommend award of a construction contract to Tharsos.
Carlsbad Municipal Code Sections 3.28.080(C) and 3.28.080(I)(6) requires the approval of the
City Council for all formally bid contracts when the value exceeds $200,000. The project is
subject to this requirement.
Professional services
The city will need a consulting firm to provide construction management and inspection
services for the project. Staff plan to issue a task order for these services for an amount not to
exceed $250,000, which is within the City Manager’s delegated authority under the Master
Agreement for As-Needed Horizontal Construction Management and Inspection authorized by
the City Council in 2020 (Resolution No. 2020-173).
The city will also require a consulting firm to provide engineering services during construction.
The City Manager will procure these professional engineering services at a cost to the city of no
more than $100,000 per agreement year in accordance with his authority under Carlsbad
Municipal Code Section 3.28.060(D).
Options
Staff provide the following options for the City Council’s consideration:
1. Accept bids and award a construction contract to Tharsos in an amount not to exceed
$638,450
Pros:
Dec. 7, 2021 Item #6 Page 2 of 7
• The company was the lowest responsible and responsive bidder
• Improvements can be completed at the earliest opportunity
Cons:
• Requires additional funding because the contract award amount is above
appropriated funds
2. Reject all bids and re-issue the bid solicitation
Pros:
• None identified
Cons:
• Delays start of construction of necessary improvements
• Will likely result in higher bids and increase the cost of the project
• Likely to require additional funding appropriation
Staff recommend Option 1 for City Council’s approval– accept bids and award a construction
contract to Tharsos for the construction of the project in an amount not to exceed $638,450.
Fiscal Analysis
The construction contract cost of $638,450 plus a contingency cost of $95,768 results in a total
construction cost of $734,218. Costs for staff engineering, administration and services for
construction management, inspection, material testing and engineering services during
construction and communications are $307,727, for a total project cost of $1,041,945.
An additional $64,000 appropriation from the Sewer Capital Replacement Fund is required to
complete the project. There are sufficient funds available in the Sewer Capital Replacement
Fund to cover this increase. A summary of the estimated costs and available funds is shown in
the table below:
Villas Lift Station Replacement,
Capital Improvement Program Project No. 5550
Total appropriation to date $1,090,000
Total expenditures and encumbrances to date $111,803
Total available funding $978,197
Construction contract (Tharsos) $638,450
Construction contingency (15%) $95,768
Construction management, inspection, material testing and communications
services (estimated) $250,000
Engineering services during construction $7,727
Staff engineering and administrative costs (estimated) $50,000
Total estimated project costs $1,041,945
Remaining balance ($63,748)
Additional appropriation needed $64,000
Dec. 7, 2021 Item #6 Page 3 of 7
Carlsbad Municipal Code Section 3.28.040(C)(5) authorizes the City Manager or designee to
approve change orders in the amount equal to the contingency set at the time the project is
awarded. That amount is $95,768 for this project.
Next Steps
Once the contract documents are fully executed, staff will issue a purchase order, schedule a
pre-construction meeting with the contractor and issue a notice to proceed for construction of
the project.
Construction is estimated to begin in January 2022. The duration of the construction contract is
130 working days, excluding rain days and change orders that may extend it, with an estimated
completion in July 2022.
Staff will engage the consultant for management of the construction contract and inspection
services for the work upon execution of the agreement for construction management and
inspection services.
Once the project is successfully completed, a notice of completion to release bonds will be
recorded.
Environmental Evaluation
The project classifies as a maintenance project and is exempt from environmental review
according to California Environmental Quality Act Guidelines sections 15302 - Replacement or
reconstruction of existing facilities, and 15303 - New construction or conversion of small
structures. None of the exceptions described in Section 15300.2 are applicable to this project. A
notice of exemption was filed with the San Diego County Clerk on July 20, 2021, in compliance
with Section 21152(b) of Public Resources Code.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and it was available for public
viewing and review at least 72 hours prior to the scheduled meeting date. Before construction
starts, the public will be notified of construction activities through signage, email, the website
and other city communication channels. The construction contractor will also be required to
notify the public of construction activities with signs, door hangers, letters to residents and/or
“NO PARKING” signs, as applicable
Exhibits
1. City Council resolution
2. Location map
Dec. 7, 2021 Item #6 Page 4 of 7
RESOLUTION NO. 2021-263
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING BIDS, AWARDING A CONSTRUCTION CONTRACT
TO THARSOS INC. FOR CONSTRUCTION OF THE VILLAS LIFT STATION
REPLACEMENT PROJECT AND APPROVING ADDITIONAL APPROPRIATION OF
$64,000
EXHIBIT 1
WHEREAS, the City Council has determined it necessary, desirable, and in the public interest tc
replace portions of the Villas Lift Station, Capital Improvement Program (CIP) Project No. 5550; and
WHEREAS, on July 13, 2021, the City Council adopted Resolution No. 2021-165 approving plans
and specifications and authorizing the City Clerk to advertise to receive bids for the project; and
WHEREAS, on Oct. 6, 2021, nine sealed bids were received for construction of the project; and
WHEREAS, the lowest responsive and responsible bid was submitted by Tharsos Inc. in an
amount of $638,450; and
WHEREAS, Carlsbad Municipal Code (CMC) Sections 3.28.080((} and 3.28.080(1)(6) require the
City Council to award all formally bid contracts when the value exceeds $200,000; therefore, the project
is subject to this requirement; and
WHEREAS, CMC Section 3.28.040(()(5) authorizes the City Manager or designee to approve
change orders in the amount equal to the contingency set at the time of project award, which is
$95,768 for the project; and
WHEREAS, appropriation of additional funds from the Sewer Capital Replacement Fund to CIP
Project No. 5550 in an amount of $64,000 is required to complete construction of the project; and
WHEREAS, the City Planner has determined that the project is exempt from the California
Environmental Quality Act (CEQA) per State CEQA Guidelines Sections 15302 (replacement or
reconstruction of existing facilities), and 15303 (new construction or conversion of small structures).
None of the exceptions described in CEQA Section 15300.2 are applicable to this project. A notice of
exemption was filed in the office of the San Diego County Clerk on July 20, 2021, in compliance with
Section 21152 (b) of Public Resources Code (CEQA).
Dec. 7, 2021 Item #6 Page 5 of 7
LOCATION MAP
Sunny Creek RdRancho Pa n c h oPROJECT SITE
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PROJECT NAME
VILLAS LIFT STATION REPLACEMENT
PROJECT
5550
EXHIBIT2NUMBER
Exhibit 2
Dec. 7, 2021 Item #6 Page 7 of 7
Acceptance of Bids and Award of
Contract for the Villas Lift Station
Replacement Project
Dave Padilla, Engineering Manager
Sean Diaz, Senior Engineer
December 7, 2021
{city of
Carlsbad
TODAY’S PRESENTATION
•Project Background
•Summary of Proposed Improvements
•Bid Summary
•Next Steps
•Recommended Action
ITEM 6: Villas Lift Station Replacement Project
{city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Accepting bids and awarding a construction contract to Tharsos Inc.
for the Villas Lift Station Replacement, Capital Improvement
Program Project No. 5550 in an amount not to exceed $638,450
•Approving additional appropriation in an amount of $64,000 from
the Sewer Capital Replacement fund
ITEM 6: Villas Lift Station Replacement Project
{ City of
Carlsbad
•Constructed in 1987
•Located at the Villas at Calavera Hills within a utility easement
•Owned and operated by the city
•Pumps wastewater to the city’s collection system
•Project will improve system reliability and worker safety
ITEM 6: Villas Lift Station Replacement Project
BACKGROUND -SUMMARY
{ City of
Carlsbad
ITEM 7: Villas Lift Station Replacement Project
V LLAS LIFT STATION SITE
•Relocate valves and piping to an underground vault
•Replace electrical and communication controls
•Construct a protective canopy over the electrical controls
•Replace fence and gate
ITEM 6: Villas Lift Station Replacement Project
PROPOSED IMPROVEMENTS
{ City of
Carlsbad
BID SUMMARY
Contractor Bid Price
Bunker Construction, Inc.*$566,986 *
Tharsos, Inc.$638,450
HPS Mechanical, Inc.$780,184
Jon Kay dba Kay Construction Co.$804,905
Downstream Services, Inc.$838,658
LB Civil Construction $885,140
AToM Engineering Construction Inc.$888,398
Ferreira Coastal Construction Company $1,027,730
Blue Pacific Engineering & Construction $1,169,810
* Bid withdrawn, non-responsive
•License status
•DIR registration
•Signatures and notarization
•Bid security or bond
•Experience record and references
•Insurance
•Debarment or discipline record
•Non-collusion declaration
•Discrepancies or errors
ITEM 6: Villas Lift Station Replacement Project
BID EVALUATION
{ City of
Carlsbad
Tharsos, Inc.
•Lowest responsible, responsive bidder
•Positive experience record
•Bid amount: $638,450
ITEM 6: Villas Lift Station Replacement Project
BID EVALUATION
{ City of
Carlsbad
•Execute contract documents
•Contract for construction management and inspection services
•Schedule pre-construction meeting
•Issue a notice to proceed for construction
ITEM 6: Villas Lift Station Replacement Project
NEXT STEPS
{ City of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Accepting bids and awarding a construction contract to Tharsos,
Inc. for the Villas Lift Station Replacement, Capital Improvement
Program Project No. 5550 in an amount not to exceed $638,450.
•Approving additional appropriation in an amount of $64,000 from
the Sewer Capital Replacement fund
ITEM 6: Villas Lift Station Replacement Project
{ City of
Carlsbad
ITEM 6: Villas Lift Station Replacement Project
THANK YOU
{ City of
Carlsbad