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Home My WebLink About2023-04-04; City Council; ; Acceptance of bids, finding of non-responsive bid submitted by DB Pipeline, Inc., and award of a contract to CCL Contracting, Inc. for construction of the Kelly Drive SewCA Review GH Meeting Date: April 4, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Dave Padilla, Utilities Engineering Manager dave.padilla@carlsbadca.gov, 442-339-2356 Neil Irani, Utilities Associate Engineer neil.irani@carlsbadca.gov, 442-339-2305 Subject: Acceptance of bids, finding of non-responsive bid submitted by DB Pipeline, Inc., and award of a contract to CCL Contracting, Inc. for construction of the Kelly Drive Sewer Replacement Project District: 1 Recommended Action Adopt a resolution accepting bids, determining the bid submitted by DB Pipeline, Inc. to be non- responsive, and awarding a construction contract to CCL Contracting, Inc. for construction of the Kelly Drive Sewer Replacement Project, Capital Improvement Program Project No. 5548-A, in an amount not to exceed $770,890. Executive Summary This project will replace 650 feet of existing 12-inch diameter sewer pipe with new 15-inch and 12-inch diameter pipe and rehabilitate three sewer access holes along Kelly Drive immediately south of El Camino Real, as shown in Exhibit 2. This action would award a construction contract to the lowest responsive and responsible bidder, CCL Contracting, Inc., in an amount not to exceed $770,890. The City Council’s approval is required under Carlsbad Municipal Code sections 3.28.080(C) and 3.28.080(I)(6), which apply to purchasing for construction contracts when the value exceeds $200,000, as this project does. Explanation & Analysis The city’s 2019 Sewer Master Plan Update identified segments of deficient sewer lines that do not meet engineering design requirements for the projected wastewater flows when the surrounding areas are fully developed. The Kelly Drive Sewer Replacement Project, which was identified as Project C-8 in the Sewer Master Plan, is one of these segments. Nearby developments contribute significant flow to this sewer main, thereby prioritizing its replacement and the rehabilitation of three sewer access holes. Trench work and pavement restoration will occur within the public right-of-way of Kelly Drive and El Camino Real. April 4, 2023 Item #1 Page 1 of 8 The work is scheduled to occur before work starts on the Kelly Drive and Park Drive Complete Street Improvements Project, Capital Improvement Program Project No. 6075 and during the summer of 2023, while Kelly Elementary School is out of session. Construction contract The City Council approved the project’s plans and specifications and authorized staff to seek bids for construction on Dec. 13, 2022. (Resolution No. 2022-285.) Staff advertised the project using the city’s formal bidding procedures. A consulting engineer estimated construction of the project would cost a total of $720,000, which includes a construction contingency of $90,000. Six bids were received on Feb. 15, 2023, ranging from the lowest bid of $703,000 to the highest bid of $1,143,105. Staff have reviewed the bid proposals and recommend that the City Council find the apparent low bid of $703,000 from DB Pipeline, Inc. to be non-responsive. This determination was made in keeping with Section 404 of the City Charter, which states that the “City Council shall have the power to establish standards, procedures, rules or regulations relating to all aspects of the award and performance of contracts, including contracts for the construction of public improvements.” The requirements for technical expertise were adopted by the City Council when it approved the plans, specifications and contract documents.1 Because DB Pipeline, Inc. failed to document that it met the expertise requirements stated in the bid solicitation, its bid should be considered non-responsive. Staff determined the next lowest bid in the amount of $770,890 from CCL Contracting, Inc. to be responsive to the requirements of the bidding documents. CCL Contracting, Inc. is the lowest responsible bidder based on the experience record provided in its bid. Staff recommend the award of a construction contract to CCL Contracting, Inc. Community Engagement Staff will engage a consulting firm to provide community outreach services during construction. The City Manager, or designee, will procure these professional consulting services at a cost to the city of no more than $30,000 per agreement year in accordance with his authority under Carlsbad Municipal Code Section 3.28.060(D)(4). Fiscal Analysis The construction contract cost of $770,890 plus a contingency of $116,000 results in a total construction cost of $886,890. Additional costs include construction management and inspection, community outreach, staff engineering and staff administration for a total estimated project cost of $1,042,890. There are sufficient funds available in the CIP Project No. 5548-A Sewer Line Capacity Improvements fund to complete the project. 1 As a charter city, Carlsbad has the ability to set out its own procedures in public works contracting (Domar Electric, Inc. v. City of Los Angeles (1994) 9 Cal 4th 161). April 4, 2023 Item #1 Page 2 of 8 Carlsbad Municipal Code Sections 3.28.040(c)(5) and 3.28.090(B) authorize the City Manager, or designee, to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $116,000. Options Staff provide the following options for the City Council’s consideration: 1. Accept bids, determine that the bid submitted by DB Pipeline, Inc. to be non-responsive and award a construction contract to CCL Contracting, Inc. in an amount not to exceed $770,890. Pros: • DB Pipeline, Inc. failed to document that they met the expertise requirements stated in the bid solicitation • CCL Contracting, Inc. was the lowest responsible and responsive bidder • Improvements can be completed at the earliest opportunity Cons: • None identified 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 • Will prevent construction from starting in the summer of 2023, when Kelly Elementary School is not in session, which could further delay this project by a year to the following summer Staff recommend Option 1. Estimated costs and available funds Kelly Drive Sewer Replacement Project Capital Improvement Program Project No. 5548-A Total appropriation to date $1,200,000 Total expenditures and encumbrances to date -$43,000 Total available funding $1,157,000 Construction contract – CCL Contracting, Inc. -$770,890 Construction contingency (15%) -$116,000 Construction management and inspection (estimated) -$116,000 Community outreach during construction (estimated) -$30,000 Staff engineering and administrative costs (estimated) -$10,000 Total estimated project costs -$1,042,890 Remaining balance $114,110 April 4, 2023 Item #1 Page 3 of 8 Next Steps Once the City Council accepts the bids, determines that the bid submitted by DB Pipeline, Inc. to be non-responsive, and awards the construction contract to CCL Contracting, Inc., 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, which is expected to commence in spring 2023. The duration of the construction contract is 120 calendar days, excluding rain days and change orders that may extend it, with an estimated completion in September 2023. Staff will engage the consultants for community outreach, construction management and inspection services upon execution of the agreements for those services. Once the project is completed, a notice of completion to release the bonds issued for the project will be recorded. Environmental Evaluation The City Planner has determined that this project classifies as a maintenance project and is exempt from environmental review according to California Environmental Quality Act Guidelines sections 15302, which applies to the replacement or reconstruction of existing facilities. None of the exceptions described in Section 15300.2 apply to this project. A notice of exemption was filed on Dec. 22, 2022, with the San Diego County Clerk (File #2022-001057) in compliance with Section 21152(b) of the California Public Resources Code. Exhibits 1. City Council resolution 2. Location map April 4, 2023 Item #1 Page 4 of 8 RESOLUTION NO. 2023-097 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS, DETERMINING THE BID SUBMITTED BY DB PIPELINE, INC. TO BE NON-RESPONSIVE, AND AWARDING A CONSTRUCTION CONTRACT TO CCL CONTRACTING, INC. FOR CONSTRUCTION OF THE KELLY DRIVE SEWER REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 5548-A, IN AN AMOUNT NOT TO EXCEED $770,890 WHEREAS, the City Council has determined it necessary, desirable, and in the public interest to construct the Kelly Drive Sewer Replacement Project, Capital Improvement Program, or CIP, Project No. 5548-A; and WHEREAS, on Dec. 13, 2022, the City Council adopted Resolution No. 2022-285, approving plans and specifications that included a Technical Expertise requirement and authorizing the City Clerk to advertise to receive bids for construction of the project; and WHEREAS, Section 404 of the City Charter allows the City Council to set its own bidding requirements in matters that are strictly a municipal affair; and WHEREAS, on Feb. 15, 2023, six bids were received via electronic format for construction of the project; and WHEREAS, the apparent lowest bid submitted by DB Pipeline, Inc. in an amount not to exceed $703,000 did not include sufficient documentation of meeting the Technical Expertise requirement and therefore staff recommend the bid be found non-responsive for failing to document that they met the expertise requirements stated in the bid solicitation; and WHEREAS, CCL Contracting, Inc. submitted the next lowest bid in an amount not to exceed $770,890, and staff determined that the bid is responsive and that CCL Contracting, Inc. is a responsible contractor; and WHEREAS, Carlsbad Municipal Code, or CMC, Sections 3.28.080(C) 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(C)(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 $116,000 for the project; and Exhibit 1 April 4, 2023 Item #1 Page 5 of 8 WHEREAS, the City Planner has determined that the project is exempt from the California Environmental Quality Act, or CEQA, under State CEQA Guidelines Sections 15302 (replacement or reconstruction of existing facilities). 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 in compliance with Section 21152{b) of the Public Resources Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the bid in the amount of $703,000 submitted by DB Pipeline, Inc. is determined to be non-responsive as they failed to document that they met the Technical Expertise requirement. 3.That the bid in the amount of $770,890 submitted by CCL Contracting, Inc. for construction of the Kelly Drive Sewer Replacement Project, CIP Project No. 5548-A, is accepted, and the Mayor is hereby authorized to execute a contract with CCL Contracting, Inc. 4.That the City Manager, or designee, is hereby authorized to approve construction change orders up to $116,000. 5.That the award of this contract is contingent upon CCL Contracting, Inc. executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 calendar days of adoption of this Resolution. The City Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies. April 4, 2023 Item #1 Page 6 of 8 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 4th day of April, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. for KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) April 4, 2023 Item #1 Page 7 of 8 {JV LOCATION MAP Sun n y C r e e k R d Rancho Panc h o PROJECT NAME PROJECT EXHIBIT NUMBER Exhibit 2 -AApril 4, 2023 Item #1 Page 8 of 8 COUNTRY s NOT TO SCALE VICINITY MAP KELLY DRIVE SEWER REPLACEMENT 5548 2