BOARD AGENDA MEMORANDUM
SUBJECT:Title
Receive Report of Bids, Ratify Addenda, Waive Minor Irregularities, Approve the Contingency Fund, and Award the Construction Contract for the Calabazas Creek Rehabilitation Project, Project No. 62084001, Contract No. C0683 as part of the Watersheds Asset Rehabilitation Program (WARP) in the sum of $14,892,700 (Cupertino) (District 5).
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RECOMMENDATION:Recommendation
A. Ratify Addenda Nos.1 and 2 to the Contract Documents for the Calabazas Creek Rehabilitation Project;
B. Waive minor irregularities in Granite Construction Company’s Bidder’s Bond;
C. Award the Contract No. C0683 (Contract) to Granite Construction Company (Granite Construction), in the sum of $14,892,700; and
D. Approve a contingency sum of $1,489,270 and authorize the Chief Executive Officer (CEO) or designee to approve individual change orders up to the designated amount.
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SUMMARY:
The objective of the Calabazas Creek Rehabilitation Project (Project) is to restore the existing channel to as-built natural conditions, minimize future bank failures, minimize impacts to water quality and riparian habitat associated with bank erosion, remove non-native vegetation, add additional native vegetation and native trees, reduce the need for on-going maintenance, and continue to provide existing flood protection level of service to the community.
Project Background
During past inspections performed by Watersheds Operations and Maintenance staff, deficiencies with respect to current level of service were observed along the creek between Miller Avenue and Bollinger Road, including erosion, bank failures, and surfaces lacking adequate vegetation cover. These deficiencies were exacerbated as a result of 2016/2017 winter storm events.
The Project is being undertaken as part of the Watersheds Asset Rehabilitation Program (WARP). The Project scope of work entails repairing and stabilizing channel banks at 10 locations.
Addenda Ratification
Two (2) Addenda (Attachments 1 and 2) were issued during the bid period to clarify the Project Contract Documents and answer bidders’ questions. Staff recommends the Board ratify the addenda to formally incorporate the changes into the Project Contract Documents.
Virtual Bid Opening
Three bids were received electronically through PlanetBids on May 4, 2022, by 2:00 p.m. and virtually opened to the public at 2:30 p.m. Staff reported the original Bidder’s Bond from the bidder submitting the lowest bid, Granite Construction, and Thompson Builders was not received. However, it was discovered later that bidder’s bond for Thompson Builders was delivered before the bid opening.
Prior to the opening of bids, Santa Clara Valley Water District (Valley Water) staff received an email on May 4, 2022, from Granite Construction at 1:23 p.m. informing staff of delivery issue with FedEx due the receiving location being closed for lunch hours. Granite Construction’s original Bidder’s Bond package was delivered later the same day at 4:46 p.m.
Bid Evaluation and Protests
Per Section 17, Bidder’s Security of the Project’s Notice to Bidders, “Original Bidder’s Bond documents with embossed seal from the Surety must be received by Valley Water before the latest date/time for submitting Bid Proposals. The original Bidder’s Bond documents must be sent to the Winfield Warehouse or hand delivered to the Administration Building. Non-compliance will result in a Bid Proposal being determined non-responsive.”
On May 10, 2022, based on the documents received and in accordance with the instructions in the Project’s Notice to Bidders, Valley Water staff notified the bidder submitting the lowest bid, Granite Construction, that their bid was deemed non-responsive and may not be accepted by Valley Water. Since Granite Construction’s original bidder’s bond was received after the bid submission time deadline, a Scheduled Notice of Award was sent to Granite Rock Construction informing them of intent to recommend to the Board of Directors that the contract be awarded to Granite Rock Construction, the responsible bidder submitting the lowest responsive bid.
On May 11, 2022, Valley Water received a bid protest from Granite Construction alleging that:
• The Notice to Bidders, Section 17 provided that “THIRD PARTY CARRIER such as: FEDEX, UPS, DHL, CA Overnight, Golden State Overnight, etc. Any bidder's Bond received after the date (emphasis on date only) stated above will not be considered. Late Bidder's Bond submissions will be returned unopened”. Since Granite Construction’s bidder’s bond was delivered on May 4, 2022, at 4:46 p.m. it complies with these instructions.
• Alternatively, to the extent that Valley Water contends there was a bid discrepancy or irregularity (which Granite believes there was none), pursuant to Section 16 of the Notice to Bidders, Errors or Discrepancies in the Bids, "Valley Water's Board of Directors reserves the right... to waive minor defects or irregularities in any submitted Bid Form(s)." Therefore, Valley Water could waive this irregularity to find the bid responsive.
Waiver of Minor Irregularity
After further evaluation, Valley Water staff has concluded that its receipt of Granite Construction’s Bidder’s Bond after the Bid Proposal Submission deadline as stated in the Notice to Bidders may be waived as a minor irregularity.
The Notice to Bidders required delivery of the original Bidder’s Bond either by Third Party Carrier to Valley Water’s Winfield Warehouse location or by Hand Delivery to Valley Water’s Administration Building. On behalf of Granite Construction, an unsuccessful delivery attempt was made by FedEx to deliver a package containing its original Bidder’s Bond at 12:44 p.m., before the Bid Proposal Submission deadline. Security video footage shows the FedEx courier was present from 12:15-12:20 p.m on May 4, 2022. Due to the inadvertent closure of the address designated for Third Party Carrier delivery from noon to 1 p.m. that day, FedEx was unable to deliver the package prior to the Bid Proposal Submission deadline. The FedEx package was successfully delivered that same day, May 4, 2022, at 4:46 p.m.
Since Valley Water’s required Third Party Carrier delivery address closure was beyond the control of Granite Construction and documentation has been received directly from FedEx verifying the factual information recounted above, Valley Water staff believes the late receipt of Granite Construction’s original Bidder’s Bond may be waived as a minor irregularity. Accordingly, Valley Water has cancelled its previously issued Scheduled Notice of Award letter to Granite Rock Company dated May 10, 2022.
Staff is recommending the Board of Directors waive late receipt of Granite Construction’s Bidder’s Bond as a minor irregularity and award a construction contract for the Project to Granite Construction. Furthermore, to avoid this issue in the future, staff has remedied the warehouse closure issues as well as receipt of bid document delivery and is also exploring a process to accept electronic receipt of the bidder's bond.
Contract Award
A report of bids received at the Project’s bid opening on May 4, 2022, is summarized in Table 3. The responsible bidder submitting the lowest responsive bid is Granite Construction, Santa Clara, California. Thompson Builders bid was deemed non-responsive due to non-receipt of the Escrow Bid Documents within three days after the bid opening. The bid submitted by Granite Construction is $14,892,700 and is 9.1% below the Engineer’s estimate of $16,383,750.
Staff has reviewed the bid proposals and has confirmed that:
1. All bid entries and requirements in the proposal submitted by Granite Construction are in order;
2. Granite Construction’s license is current, active and in good standing; and
3. Granite Construction and its subcontractors are in compliance with the requirements of California Labor Code Section 1771.1. Granite Construction 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 Results
|
Company, Location |
Bid Amount |
Award Amount |
|
Granite Construction Santa Clara, California |
$14,892,700 |
$14,892,700 |
|
Granite Rock San Jose, California |
$15,283,865 |
|
|
Thompson Builders Novato, California |
Non-Responsive |
|
|
Engineer’s Estimate: $16,383,750 |
Staff recommends the Board award the construction contract to Granite Construction as the responsible bidder submitting the lowest responsive bid.
Contingency Funds
The proposed Contract award sum for the Project is $14,892,700. 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 encumbering a contingency amount of $1,489,270 which amounts to 10% of the contract amount.
The above-contingency amount was estimated due to known and unknown risks, such as:
1. Unforeseen conditions and field conditions that may be different from the baseline and as-built information used in preparation of the Project Contract Documents;
2. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
3. Differing site conditions;
4. Coordination issues and risks associated with weather conditions; and
5. Coordination issues with utility owners with existing facilities within the Project limits.
Approval of individual change orders for the Project will be subject to approval at the following designated amounts:
Engineering Unit Manager: $100,000
Deputy Operating Officer: $250,000
Chief Executive Officer: Up to the Total Contingency Amount
Relevant Prior Board Actions
On September 14, 2021, the Board adopted and certified the Final Mitigated Negative Declaration (FMND) for the Project.
On March 22, 2022, the Board adopted the plans and specifications and authorized advertisement for the bids for the Project.
Outreach to Bidders
The Notice to Bidders was sent to certified Small Business Contractors that have the appropriate license. Chambers of Commerce and plan rooms (Builder Exchanges) and the Valley Water’s own website was used to solicit interest in the Project work from prospective Contractors. Contractors were contacted through the Building Construction & Trades Council and using the Valley Water’s own Master Contractor Database.
Public Outreach
Creekside residents were informed of this Project with the Project flyers during the planning and design period. A Project information site was created at Valley Water’s website. The Project information including the Final Mitigated Negative Declaration was posted at the website. Once the Project is awarded, the website’s posting will be updated to reflect current Project information and construction schedule. Prior to construction, a Project flyer will be mailed to the neighborhood community, informing them of Project construction activities. In addition, Project activities, including the staging area for construction, have been coordinated with the City of Cupertino. During construction, steps will be taken to minimize impacts associated with the Project, such as noise, dust, and construction traffic.
Rights-of-Way
Valley Water has obtained all necessary rights-of-way for Project construction.
Regulatory Permits
Valley Water has obtained all necessary regulatory permits for the construction of the Project.
Next Steps
If the Board awards the contract, as recommended, staff will proceed with administrating the Project construction, which is anticipated to begin by mid-June 2022 and be completed by mid-October 2023, followed by a six-year plant establishment period, in compliance with the regulatory permits.
ENVIRONMENTAL JUSTICE IMPACT:
There are no known environmental justice issues in the vicinity of the Project. Completion of this Project would have a positive impact on the local residential community by helping preserve the existing channel to convey all flows.
FINANCIAL IMPACT:
The Calabazas Creek Rehabilitation Project is included in the WARP, Project No. 62084001, which is included in the Five-Year FY2023-27 Capital Improvement Program (CIP) and in the FY2022-23 and 2023-24 Rolling Biennial Budget. The planned expenditures for FY 2023-24, and beyond if applicable, will be included in subsequent budget cycles. The proposed construction contract, including the change order contingency sum of $1,489,270, is $16,381,970. There are adequate funds in the Project’s FY2021-22 budget to encumber the planned expenditures for construction during this fiscal year. The impact of this construction contract does not change the overall total Project cost reflected in the Final FY2023-27 CIP. The Project is funded through the Watershed & Stream Stewardship Fund (Fund 12).
CEQA:
Valley Water is the lead agency under the California Environmental Quality Act for Implementation of the Project.
On September 14, 2021, the Board adopted the Final Mitigated Negative Declaration (FMND) for the Project. Identified impacts and proposed mitigation due to the proposed Project rehabilitation efforts are addressed in the approved FMND.
ATTACHMENTS:
Attachment 1: Addendum No. 1
Attachment 2: Addendum No. 2
Attachment 3: Map
Attachment 4: Project Delivery Process Chart
Attachment 5: Bid Protest, Granite Construction
Attachment 6: SCVWD Response, Granite Const. Bid Protest
Attachment 7: SCVWD Cancellation, Granite Rock
UNCLASSIFIED MANAGER:Manager
Bhavani Yerrapotu, 408-630-2735