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Home My WebLink About23B - PROJ - SANTA CLARA AVE SEWER AND WATER MAINREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 21, 2011 TITLE: CONTRACT AWARD FOR SANTA CLARA AVENUE SEWER AND WATER MAIN IMPROVEMENTS (PROJECT NOS. 106600 & 116409) C/tom CIT MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1 s` Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER 1. Award a contract to Garcia Juarez Construction, Inc., the lowest responsible bidder, in accordance with unit bid prices in the estimated amount of $1,196,325 for construction of Santa Clara Avenue sewer and water main improvements. 2. Approve a funding analysis with a total estimated construction cost of $1,495,400. DISCUSSION This project provides for the replacement of deteriorated and undersized sewer and water pipes (Exhibit 1). The improvements include installation of new sewer and water mains, fire hydrants, main gate valves, and water services. Once completed, water main breaks and leaks associated with the older and deteriorated water mains will be eliminated. In addition, sewer capacity will be increased, and water service capacity and fire protection will be enhanced. The Notice Inviting Bids was advertised on December 13 and 15, 2010, and bids were opened on January 6, 2011. A summary of the bid invitations mailed, the bids received, and the bid results follows. Santa Ana Contractors receiving notices: Contractors requesting bidding documents: Bids received: Bids received from Santa Ana Contractors: 8 28 13 0 23B-1 Contract Award For Santa Clara Avenue Sewer and Water Main Improvements March 21, 2011 Page 2 NAME OF RESPONSIVE BIDDER CITY BID AMOUNT 1. Garcia Juarez Construction, Inc. Brea $1,196 325.00 2. Mike Bubalo Construction Company Baldwin Park , $1,241,900.00 3. Nikola Corporation Irvine $1,311,370.00 4. Dominguez General Engineering, Inc. Rosemead $1,311,645.00 5. Kana Pipeline, Inc. Placentia $1,370,000.00 6. J. De Sigio Construction, Inc. Baldwin Park $1,374,575.00 7. T.E. Roberts, Inc. Tustin $1,404 072.50 8. Vido Artukovich & Son, Inc. S. El Monte , $1,422 800.00 9. T. B. U., Inc. Beaumont , $1,532 985.00 10. MNR Construction, Inc. San Dimas , $1,537 400.00 11. J. A. Salazar Construction & Supply La Habra , $1,594 605.00 12. Savala Construction Irvine , $1,740 692.15 13. Blois Construction, Inc. Oxnard , $1,861,130.00 While the City made outreach efforts to Santa Ana contractors regarding the Notice Inviting Bids, no contractors from Santa Ana submitted bids. The eight Santa Ana contractors did not submit a bid either because they are not capable of performing this type of work, unable to obtain insurance because the project is too large, or they work as a subcontractor only for certain prime contractors. A total of 13 bids were received and all were responsive. The lowest bid was submitted by Garcia Juarez Constriction, Inc., for $1,196,325 which is below the Engineer's estimate of $1,497,500. BID PROTEST The Public Works Agency issued a Notice Inviting Bids for the above project. After bids were opened on January 6, 2011, the City received a bid protest from Mike Bubalo Construction Co., Inc., alleging that the low bidder submitted a late bid, and should have been disqualified. The contractor asserted that the late filing cannot be waived because it is a material irregularity which affects the amount of the bid and/or gives the late bidder an advantage over other bidders. The protesting party has the burden of proof to demonstrate that the staff's determination of proposed low bidder is arbitrary and capricious, or unsupported by substantial evidence in the record. The parties agree to the following facts: The Notice Inviting Bids provides that the City will receive sealed bids "on or before the hour of 2:00 p.m." Additionally, the Instructions to Bidders warns that it is the bidder's responsibility to ensure delivery of the proposal to "...the Public Works Agency, Fourth Floor Receptionist, prior to the bid opening hour stipulated in the Notice Inviting Bids. Late proposals will not be considered." 23B-2 Contract Award For Santa Clara Avenue Sewer and Water Main Improvements March 21, 2011 Page 3 • The low bid, submitted by Garcia Juarez Construction, Inc., was handed to the City at approximately 2:00:10. The envelope was returned to the bidder as it was not properly sealed, whereupon, the low bidder's representative sealed the envelope and returned it to the Public Works representative at 2:00:40. • The bid was accepted by a representative from the Public Works Agency and was eventually determined to be the low bidder. • The second low bidder timely submitted a protest asserting that the delivery of the bid at 2:00:40 did not conform to the bid specifications and the bid should not have been accepted. • Both state law and the City's bid documents and policies prohibit the consideration of late bids. Cal. Government Code §53068, Cal Public Contract Code §10168. The dispute rests on each party's interpretation of "on or before" the hour of 2:00 p.m. The protesting party contends that any bid submitted after 2:00:00 is late. In support of its contention, the protesting party stated that it has submitted bids in many cities and the majority of those cities close their bid at the beginning of the hour. However, some cities utilizing a time clock without a second hand do allow bids until 2:01. Other cities' language regarding bid closure time was not provided. Santa Ana normally utilizes a time stamp that is accurate to the minute. Therefore, City policy has been that any bid submitted until 2:01 will be accepted. At 2:01 p.m., the bid would be deemed late. On the date the subject bid was closed, the time stamp was not working and interested bidders were watching the digital clock located behind the clerk's desk, which registers seconds. In compliance with the City's practice of accepting bids at 2:00, which includes the 59 seconds between 2:00:00 and 2:01, the City accepted bids until the digital clock registered 2:01. The parties agree that if the bid was submitted late, the City could not accept it. However, the protesting party did not demonstrate that the City's policy of including the 59 seconds between 2:00:00 and 2:01:00, in its interpretation of "on or before 2:00 p.m." is arbitrary or capricious. Therefore, the bid submitted by Garcia Juarez Construction, Inc., was determined to be filed on time and should be accepted by the City of Santa Ana. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended action is exempt from further review. Categorical Exemption Environmental Review No. 2011-03 has been filed. 23B-3 Contract Award For Santa Clara Avenue Sewer and Water Main Improvements March 21, 2011 Page 4 FISCAL IMPACT The funding analysis shows a total estimated construction cost of $1,495,400 for the project (Exhibit 2). Funds are available in the Water Utility Capital Projects Fund (accounting unit 06617647-66301) and the Sewer Services Capital Projects Fund (accounting unit 05517660- 66220). Raul Godinez I Executive Director,, Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency RG/WA Exhibit 1: Project Location Map 2: Funding Analysis 23B-4 EXHIBIT 1 VICINITY MAP NOT TO SCALE SANTA ANA r tG? M ¦?? City Council Title: ,oP-- -•._?, P W A ¦ SANTA CLARA AVE Agenda Date SEWER AND WATER MAIN IMPROVEMENTS PUBLIC WORKS AGENCY March 21, 2011 PROJECT NO. 10-6600 AND 11-6409 23B-5 23B-6 FUNDING ANALYSIS PROJECT NOS. 106600 AND 116409 SANTA CLARA AVENUE SEWER AND WATER MAIN IMPROVEMENTS Construction Contract Contract Administration Inspection and Testing Survey Staking Contingencies TOTAL ESTIMATED CONSTRUCTION COSTS Exhibit 2 $1,196,325 $34,443 $90,000 $55,000 $119,632 $1.495,400 23B-7 23B-8