Project 185 - Agenda Staff Report - 2011-06-23 0111117446
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Memorandum
To: Board of Directors
Via: Scott Carroll, General Manage
From: Robin B. Hamers, District Engineer
Date: June 23 2011
Subject: #185 System Wide Sewer Reconstruction — Phase I
Bid Opening & Recommendation for Award of Construction Contract
Summary
The District prepared plans and specifications for the first phase of reconstructing the
Grade 5 deficiencies in the District's sewer system. The results of the bid opening are
shown below with a recommendation for award
Staff Recommendation
That the Board of Directors:
1 Award a contract to the lowest responsible bidder Sancon Engineering, Inc. of
Huntington Beach, in the amount of $455 683.00
2. Approve a 10% contingency budget of$45,568.
Analysis
The District televised its entire sewer system from January 2006 to March 2009 and
found 255 Grade 5 sewer deficiencies. Grade 5 deficiencies require immediate
attention as the risk of failure is high and failures may result in sanitary sewer
overflows (SSOs). The Board of Directors chose to reconstruct these deficiencies in a
four-year period with an approximate $1 million per year construction cost.
(Protecting our community's health and the environment by providing solid waste and sewer collection services.
intimcrosdca.gov
Board of Directors
June 23, 2011
Page 2 of 3
The Engineer's Estimate for the project is $1 038 975 and was based on projecting the
cost for the top 30 Grade 5 deficiencies into an approximate cost for the first 67
locations. Prices were obtained from contractors specializing in cured-in-place-pipe
and short segment excavation and repair The following reasons support the lower
than normal bids by the three bidders:
1 Agency and private work is scarce due to the current economic climate and
contractors are bidding extremely low to obtain work.
2. Pipe repair by the traditional excavation and replace method is costlier than the
no-dig installation of cured-in-place-pipe method and there are only 3 locations
with excavation and replace in the project out of 67 total locations.
3. The project allows economies of scale to prevail as the Engineer's Estimate for
each location represents the cost if only that one section was repaired, such as
if a purchase order was used.
Bids were opened on 5/31/11 and the results are as follows:
Engineer's Estimate $1,038,975.
Sancon Engineering, Inc. $ 455 683
RePipe-California $ 563 583
Southwest Pipeline $ 642,600
Staff checked the licensing requirements and references for the low bidder Sancon
Engineering, and found everything in order therefore, a recommendation to award the
bid is being made
Strategic Plan Element & Goal
This item complies with Strategic Plan Element 1 0 Sewer Infrastructure and Goal No
1 4 System Wide Sewer Replacement and Repair Program. The strategy for this
Strategic Element states:
We will do this be the careful management of the collection infrastructure using
prudent planning and maintenance, with financial strategies to maintain sufficient
capacity and respond to changing regulatory demands.
Legal Review
District counsel has reviewed and updated the 1998 version of the agreement and has
signed the proposed agreement attached hereto
Board of Directors
June 23 2011
Page 3 of 3
Financial Review
The total cost for the construction phase of the project is $501,251 which includes
construction and contingency costs. There is approximately $1 million funded for this
project.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for
the June 23 2011 regular Board of Directors meeting at District Headquarters and on
the District website
Alternative Actions
1 Do not award the project to Sancon Engineering.
2. Refer the matter back to staff for additional information.
Attachment: Contract between Sancon Engineering and CMSD
Reviewed by
Sherry Kallab
Administrative Manager