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SR - AGR-6065 - PIPELINE REPLACEMENT CHAPMAN AVENUE FROM LEMON STREET TO GRAND AVENUE,O cO�: C AGENDA ITEM January 14, 2014 1 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Joe DeFrancesco Public Works D' ector 1. SUBJECT Reviewed/Veri e B City Manager Finance Dire for To Be Presente : Joe DeFrancesco X Cons Calendar City Mgr Rpts Council Rpts Legal Affairs Boards /Crates Public Hrgs Admin Rpts Plan/Environ Award of Contract - Bid No. 134-15; Pipeline Replacement for Chapman Avenue from Lemon Street to Grand Avenue (W -670). 2. SUMMARY Nine (9) bids for the Pipeline Replacement for Chapman Avenue from Lemon Street to Grand Avenue (W -670) were received and opened on January 7, 2014. The apparent low bidder is GRFCO, Inc. for $334,250.00. The apparent low bidder has requested bid relief due to a clerical error with their bid and has requested that their bid be withdrawn for the project. 13. RECOMMENDED ACTION Recommend one of the following actions: Reject request for withdrawal from project, by the lowest apparent bidder, GRFCO, Inc, and award contract to GRFCO, Inc. in the amount of $334,250.00. Authorize the Mayor and City Clerk to execute the necessary documents on behalf of the City. Or, Accept request for withdrawal from lowest bidder (GRFCO), and award contract to second lowest bidder, Atlas- Allied, Inc, in the amount of $411,499.00. Authorize the Mayor and City Clerk to execute the necessary documents on behalf of the City. 14. FISCAL IMPACT Funds are budgeted and are available in the following accounts: 600.8041.56451.18400 ITEM 3 . 1 ( s� 2 Pipeline Renewal Projects $3,137,442.00 1/14/14 5. STRATEGIC PLAN GOAL(S) lb) Provide for a safe community — Provide and maintain infrastructure necessary to ensure the safety of the public. 2d) Be a fiscally healthy community - Effectively manage and develop City assets. 4b) Provide outstanding public service - Provide facilities and services to meet customer expectations. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 6.0: Ensure water, sewer, and storm drain systems that meet the needs of residents and businesses. Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the community. Economic Development Element Goal 6.0: Provide sufficient infrastructure to support anticipated economic development and growth. Policy 6.1: Provide public improvements to support commercial, industrial and institutional uses. 7. DISCUSSION and BACKGROUND The existing water mains in Chapman Avenue from Lemon Street to Grand Street were installed in the early 1960s. These water mains are aging and considered undersized by current water industry standards. The Water Division proposes to replace these water mains ahead of the Public Works Street Improvement Project on Chapman Avenue to take advantage of the pavement savings. The new water mains will provide a more reliable water service and fire protection to the businesses and residents in the area. Construction will be done at night to avoid major impact to traffic. The City Council previously approved advertisement for bids on December 10, 2013. The bids were received and opened on January 7, 2014. Nine (9) bidders responded as follows: CONTRACTOR AMOUNT 1 GRFCO, Inc. $334,250.00 2 Atlas- Allied, Inc. $411,499.00 3 GMZ Engineering, Inc. $422,200.00 4 Lonerock, Inc. $450,300.00 5 Dominguez General Engineering, Inc. $498,500.00 6 Paulus Engineering, Inc. $517,483.00 7 Big Ben, Inc. $677,230.00 8 GCI Construction, Inc. $695,500.00 9 Kana Pipeline, Inc. $854,875.00 ITEM 1/14/14 2 The Engineer's estimate for this project is $327,250 including a 10% contingency. GRFCO, Inc. is the apparent low bidder. Shortly after all bids were opened, the apparent low bidder, GRFCO, Inc., requested bid relief due to a clerical error they claim was made in calculating the bid. They have requested that their bid be withdrawn for this project. While no apparent error is evident, staff is working closely with GRFCO to clarify /substantiate the issue of the clerical error with their bid. Staff has conducted reference checks for the two lowest bidders, GRFCO and Atlas- Allied, and all reference agencies contacted for the respective bidder have provided positive feedback and good reviews. Construction is tentatively scheduled to begin in February 2014 with project completion within ninety (90) calendar days. 18. ATTACHMENTS Bid Results ITEM 1/14/14 3