BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Report of Bids Received and Award of Construction Contract to Granite Construction Company for Construction of Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin, Project No. 26244001, Contract No. C0617 (Cupertino) (District 5). (Continued from October 4, 2016).
End
RECOMMENDATION:
Recommendation
A. Consider the Second Addendum to the Final Subsequent Environmental Impact Report (Final Subsequent EIR) for the Permanente Creek Flood Protection Project;
B. Ratify Addenda No. 1 through No. 7 to the Contract Documents for the Permanente Creek Flood Protection Project - Rancho San Antonio Detention Basin Project;
C. Waive minor irregularities in Granite Construction Company’s bid;Award the Construction Contract to Granite Construction Company in the sum of $14,432,479.45; and
D. Approve a contingency sum of $1,444,000 and authorize the Interim Chief Executive Officer or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
The Permanente Creek Flood Protection Project (Project) is part of the Safe, Clean Water Program. This Project protects approximately 2,200 parcels by implementing flood detention and channel improvement works. The Project utilizes two flood detention areas located strategically in the watershed to maximize flood protection benefits at an acceptable cost. The Project will be constructed through three separately bid sub-projects: Rancho San Antonio Detention Basin; McKelvey Park Detention Basin; and the Permanente Creek Channel Improvements.
The Permanente Creek Flood Protection Project will begin with construction of a detention basin at Rancho San Antonio County Park, located at Cristo Rey Drive, Cupertino. An approximately 8-acre detention basin (referred to as the north basin) on the east side of Permanente Creek and another 2-acre basin (referred to as the south basin) on the west side of the Creek will be constructed in Rancho San Antonio County Park. The new basins will be approximately 8 to 15 feet deep, with gently sloped sides contoured for a natural appearance. Short berms up to 5 feet high with similarly natural slopes will fill in the low areas around the basins. An inlet structure, which will replace an existing stream crossing, will be constructed between the two basins. Flows in excess of the design flow will spill into the structure and be transmitted to the basins through inlet pipes. Outlets from each basin will return temporarily detained water back to the creek. An existing parking lot will be replaced and new restroom facilities will also be installed in conjunction with the parking lot. Other activities also include a well relocation, trail construction, and site restoration including re-vegetation.
On June 28, 2016, the Board adopted final plans and specifications for the Project and authorized staff to advertise for construction bids. Staff is recommending that the Board award the construction contract to Granite Construction Company (Granite) for $14,432,479.45. This construction work will create or sustain approximately 150 to 300 jobs in the community.
Second Addendum to the Final Subsequent EIR
Design of the Rancho San Antonio County Park basins has been updated from the version approved by the Board in November 2012, necessitating Board consideration before taking any further action on the Project. Based on revised construction estimates clarified through further design of the Project, new information from soil sampling, and natural resource agency input obtained through the permitting process, construction scheduling, hauling assumptions, and soil management practices at the Rancho San Antonio County Park site have been modified since previous Board action. Mitigation measures have also been modified to align with regulatory requirements secured through the permitting process.
Staff has prepared a Second Addendum to the certified Subsequent EIR (Attachment 1) to evaluate the environmental impacts associated with the above described Project changes. The Second Addendum describes changes to the Project, evaluates the potential impacts, and concludes that the proposed Project modifications would not result in any new significant environmental impacts or substantially increase the severity of significant impacts beyond that identified in the certified Final Subsequent EIR.
Addenda Ratification
7 addenda (Attachment 2) were issued during the bid period to clarify the Project Contract Documents. To formally incorporate the addenda into the Project Contract Documents, staff recommends that the Board ratify the addenda.
Contract Award
A report of bids received at the bid opening for the Project on September 14, 2016 is summarized in Table 1. The Apparent Low Bid was submitted by Granite Construction Company of Santa Clara, California. In accordance with the Bid Documents, all bids submitted will expire forty-five (45) days after the public bid opening.
Waiver of Minor Irregularities in Granite Construction’s Bid
Per the Notice to Bidders, Errors or Discrepancies in the Bids, paragraph #14, the District reserves its right to reject any and all bid proposals and to waive minor defects and irregularities in any submitted Bid form(s). Granite’s Bid contained an immaterial error.
The Total Bid price was listed incorrectly by Granite on Bid Form No. 1, Proposal and Bid Items. It did not include the amount for the Supplemental Bid Items as required in the Notice to Bidders, Estimated Price, paragraph #6. However, Granite provided a total price for the Supplemental Bid Items on Bid Form No. 1; they just failed to add this number to their Total Bid price on page one of the Form. After adding the two figures together, Granite’s price for the base bid items plus the Supplemental Bid Items, they were still the firm submitting the lowest responsive bid and therefore eligible for contract award.
This minor irregularity is not material; it does not affect the Bid Price, or Granite’s ability to fulfill the contract; or give the firm an unfair advantage in the competitive bidding process for the Project. Staff recommends that the Board waive the minor irregularity.
Staff has reviewed the bid proposals and, for the reasons stated below, recommends the Board award the contract to Granite Construction as the responsible bidder submitting the lowest responsive bid:
1. All bid entries and requirements in the proposal submitted by Granite are in order;
2. Granite’s license is current, active and in good standing;
3. Granite has complied with the District’s Small Business Enterprise (SBE) Outreach program; and
4. Granite is in compliance with the requirements of the California Labor Code §1771.1. Granite and its subcontractors are registered with the California Department of Industrial Relations and qualified to perform public works pursuant to Section 1725.5 of the Labor Code.
Table 1 - Bid Opening Results
|
Company, Location |
Bid Amount |
Award Amount |
|
Granite Construction Company, Santa Clara CA |
$ 14,432,479.45 |
$ 14,432,479.45 |
|
DeSilva Gates Construction, Dublin CA |
$ 16,306,059.00 |
|
|
Sierra Mountain Construction, Sonora CA |
$ 17,767,437.50 |
|
|
Granite Rock Construction, San Jose CA |
$ 18,499,325.70 |
|
|
Teichert Construction, Roseville CA |
$ 19,667,898.73 |
|
|
Gordon N. Ball, Inc., Alamo CA |
$ 56,386,222.00 |
|
|
Engineer’s Estimate: $15,567,368.95 |
Contingency Funds
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, staff recommends the Board approve a total contingency amount of $1,444,000 which amounts to 10% of the contract award amount.
The contingency amount is estimated due to known and unknown risks, such as:
1. Concealed conditions and/or field conditions that may be different from the baseline or as-built information used in preparation of Project Contract Documents; and
2. The limited work window that could be imposed on the Project due to the presence of Red Legged Frog in the Project area.
Approval of individual change orders for the Project will be made up to the designated amounts as follows:
Engineering Unit Manager: $100,000
Deputy Operating Officer: $250,000
CEO: up to the total amount of the contingency
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.
Public Outreach
The district will use a variety of outreach approaches to keep the community informed of the Project progress and important milestones. During the Project’s design phase, outreach tactics included numerous public meetings and mailed notices (<http://www.valleywater.org/services/PermanenteMeetingsandnotices.aspx>) to collect input, a Project website (<http://www.valleywater.org/services/PermanenteCreek.aspx>), Project fact sheets for each work element, and media relations.
During construction, outreach will be targeted to the surrounding neighborhoods and include pre-construction and post-construction public meetings. In addition to the outreach tactics used during the design phase, construction phase outreach will include regular email updates and construction site signage.
Next Steps
If the Board approves the recommendations, staff will proceed with administering construction of the Project. The construction work is anticipated to be completed in December 2018. Project Delivery Process Attachment 3 (Project Delivery Process Schematic) highlights the current Project phase and the staff recommendations before the Board.
FINANCIAL IMPACT:
The total cost for the recommended construction contract of $14,432,479.45, including the change order contingency sum of $1,444,000, is $15,876,480. Funds in the amount of $10 million for the award of a construction contract are included in the Board adopted FY 2017 Budget. The remaining funds of $5,876,480 will be included in the FY 2018 Budget
CEQA:
On June 17, 2010, the Board considered the potential environmental effects of the Project as presented in the Environmental Impact Report (EIR) and adopted Resolution 10-58 certifying the June 2010 Final EIR, Findings of Fact and Statement of Overriding Considerations, and adopting the Mitigation Monitoring and Reporting Program for the Project.
On November 20, 2012, the Board considered the potential environmental effects of the Project as presented in the Final Subsequent EIR and adopted Resolution 12- 76 certifying the Final Subsequent EIR, Findings of Fact and Statement of Overriding Considerations, and adopting the Mitigation Monitoring and Reporting Program for the Project. The Board also approved the Project.
On May 28, 2013, the Board considered the Addendum to the certified Final Subsequent EIR and approved the Project changes relating to the McKelvey Park Detention Basin.
A Second Addendum to the certified Final Subsequent EIR has been prepared and is before the Board for consideration.
All the necessary permits for the Project have been obtained.
ATTACHMENTS:
Attachment 1: Second Addendum to the Final Subsequent EIR
Attachment 2: Addenda Nos. 1 through 7
Attachment 3: Project Delivery Process Chart.
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632