BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Report of Bids Received and Award of Construction Contract to Bosco Constructors, Inc., in the sum of $2,685,250, for Construction of the San Tomas Aquino Creek Erosion Repair, from United States Geological Survey Gage near Williams Road to Virginia Avenue, and Barron Creek Concrete Repair at Bryant Street Project, Project No. 62084001, Task No. 5192 and 5204, Contract No. C0647, (Palo Alto, Campbell, San Jose) (Districts 2, 4, 7).
End
RECOMMENDATION:
Recommendation
A. Ratify Addendum No.1 to the Contract Documents for the San Tomas Aquino Creek Erosion Repair, from United States Geological Survey Gage near Williams Road to Virginia Avenue, and Barron Creek Concrete Repair at Bryant Street Project;
B. Waive a minor irregularity in Bosco Constructors, Inc.’s bid;
C. Award the Construction Contract to Bosco Constructors, Inc., in the sum of $2,685,250; and
D. Approve a contingency sum of $268,525 and authorize the Chief Executive Officer (CEO) or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
Staff has identified a need to proceed with approximately 22 erosion repair and animal damage repair projects under the Watershed Asset Rehabilitation Program (WARP) in the 5-year Capital Improvement Program from FY 2019 to FY 2023.
One of the highest priority projects that needs to be addressed is the erosion of the concrete bed of the San Tomas Aquino Creek from United States Geological Service (USGS) Gage near Williams Road to Virginia Avenue within the City of San Jose and City of Campbell (Project). This Project also includes concrete repair along Barron Creek caused by water line break at Bryant Street within the City of Palo Alto.
The scope of work for this Project includes: A) rehabilitating the damaged concrete channel bed and channel side slopes at San Tomas Aquino Creek from USGS Gage (near Williams Road) to Virginia Avenue for approximately 2.1 miles long; and B) replacing the damaged concrete channel under the Barron Creek Bridge at Bryant Street; as shown in Attachment 1.
The District and the City of Palo Alto (City) are entering into an agreement (Agreement) for cost sharing which is agendized for the City Council’s approval on June 24, 2019. The City agrees to contribute an estimated $243,050 for the planning, design, permits, construction management, and construction costs to perform the Barron Creek Concrete Repair caused by the water line break out at Bryant Street.
This Project will be implemented using the District’s existing Stream Maintenance Program 2 (SMP-2) Permits. Each year, the District submits a list of proposed projects to SMP-2 regulators for their approval of work to be implemented during the summer season (June 15 - October 15). This project consists of creek bed and side slopes
concrete repair work restoring the creek to the as-built condition which does not require formal approval from regulatory agencies under the SMP-2 permits.
Addendum Ratification
One Addendum (Attachment 2) was issued during the bid period to clarify the Project Contract Documents and answer bidders’ questions. To formally incorporate the addendum into the Project Contract Documents, staff recommends that the Board ratify this addendum.
Waiver of Minor Irregularities in Bosco Constructors, Inc.’s Bid
Per the Notice to Bidders, paragraph 14, Errors or Discrepancies in the Bids, the District reserves its right to reject any and all bid proposals and to waive minor defects or irregularities in any submitted Bid Form(s).
The Total Bid price was listed incorrectly by Bosco Constructors, Inc. (Bosco) on Bid Form No. 1, Proposal and Bid Items. Bosco left out the price of one Bid Item when adding the Total Bid Amount. All individual Bid Items included both a unit price and total making the math error correctable and not material. After correcting the math error Bosco was still the firm submitting the lowest responsive bid and therefore eligible for contract award.
This minor irregularity is not material and does not affect Bosco’s ability to perform the work.
The District’s waiver of the minor irregularity does not result in the bid process being unfair or give the firm an unfair advantage over other bidders. The public’s best interest is served by waiving the minor irregularity.
Contract Award
Three bid proposals were received and opened on May 29, 2019. The bid proposals are summarized in Table 1 - Bid Results.
A timely bid protest was received on May 31, 2019, from PMK Contractors, LLC., the bidder submitting the second lowest bid. The protest contends Bosco’s bid was non-responsive because it failed to list a subcontractor to conduct the construction surveys that Article 15.04 of the contract specifications requires be performed by an independent surveying firm. Public Contract Code (PCC) Section 4104 requires “The name, the location of the place of business, the California contractor license number, . . in an amount in excess of one-half of 1 percent of the prime contractor’s total bid”. Section 4104 covers general engineering contractors, general building contractors, and specialty contractors. Land surveyors are licensed under Professional Land Surveyors’ Act Business and Professions Code §§ 8700 - 8805 and are not included in the requirements of PCC Section 4100 et. seq. Based on this distinction, the protest was determined to be without merit.
Staff has reviewed the bid proposals and recommends that the construction contract for the Project be awarded to Bosco for the following reasons:
1. All bid entries and requirements in the proposal submitted by Bosco are in order;
2. Bosco’s license is current, active and in good standing;
3. Bosco is in compliance with the requirements of the California Labor Code section 1771.1. Bosco is registered with the California Department of Industrial Relations and qualified to perform public works pursuant to section 1725.5 of the Labor Code; and
4. Bosco is a Department of General Services Small Business.
Table 1 - Bid Results
|
Company, Location |
Bid Amount |
Award Amount |
|
Bosco Constructors, Inc. |
$2,685,250 |
$2,685,250 |
|
PMK Contractors, LLC. |
$2,782,730 |
|
|
Syblon Reid |
$4,080,700 |
|
|
Engineer’s Estimate: $2,383,350 |
Contingency Funds
If the Board awards the contract, staff recommends approval of $268,525 (10% of the contract price) in contingency funds for the Project to allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project.
The contingency amount was estimated due to known and unknown risks, such as:
1. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
2. Differing site conditions;
3. Concealed conditions and/or field conditions that may be different from the baseline or as-built information used in preparation of Project Contract Documents;
4. Coordination issues and risks associated with weather conditions and unplanned water releases into the creek; and
5. Potential delays in utility relocations and shut down by utility companies.
Approval of individual change orders will be made up to the designated amounts as follows:
• Engineering Unit Manager: $100,000.00
• Deputy Operating Officer: Up to the total amount of the contingency
Public Outreach
During construction, steps will be taken to minimize impacts associated with the Project, such as noise and construction traffic. Before beginning the construction, a Project flyer will be mailed to the neighborhood community, informing them of potential issues, as appropriate. Project Contract Documents include requirements and measures to minimize impacts during the construction.
Outreach to Bidders
As part of the District’s customary small and local business outreach, the following routine steps were taken: The Notice to Bidders was sent to 20 Minority business Chambers of Commerce and small business groups. In addition, the Notice was sent to certified small business contractors and local and regional firms that have the appropriate license for this type of work. The Notice was provided to the Santa Clara and San Benito Counties Building and Construction Trades Council, which maintains contacts with at least 500 contractors and 70 union representatives, for distribution to their members.
Cost Share Agreement with City of Palo Alto
The District and City are entering into an agreement (Agreement) for cost sharing. The City agrees to contribute the cost for the planning, design, construction and construction management to perform repair of the Barron Creek at Bryant Street caused by the water line break. The agreement is scheduled to go to the City Council on June 24, 2019 for approval.
Next Steps
If the Board awards the contract, staff will proceed with administrating the Project construction, which is anticipated to begin this mid-June, and to be completed by the end of September 2019.
FINANCIAL IMPACT:
The cost of construction for the Project is $2,953,775 including the recommended contingency funds which is consistent with the FY 2019-23 Capital Improvement Program. There are sufficient funds available in the FY 2019-20 WARP budget to cover this cost. The funding source for the Project is the Watersheds Stream Stewardship Fund 12. A portion of the Project cost will be reimbursed by the City of Palo Alto per the Agreement between District and City of Palo Alto.
CEQA:
The District is the lead agency under the California Environmental Quality Act for this Project.
The Project is covered under the Stream Maintenance Program (SMP-2) Permit, 2014-2023. The Environmental Impact Report for the Stream Maintenance Program was certified by the Board on January 24, 2012.
ATTACHMENTS:
Attachment 1: Map
Attachment 2: Addendum No. 1
Attachment 3: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632