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24 - Project #197 - System Wide Sewer Reconstruction Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 27, 2013 Subject: #197 System Wide Sewer Reconstruction – Phase III – Awarding Contract Summary The District prepared plans and specifications for the third 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. This is the third and final phase of repairing the 255 Grade 5 deficiencies. It is noted there are approximately 1,600 line segments with at least one Grade 4 deficiency remaining in the system. Staff Recommendation The Board of Directors: 1. Award a contract to the lowest responsible bidder, Charles King Co., Inc., of Signal Hill, in the amount of $228,700.00. 2. Approve a 10% contingency budget of $22,870. Analysis The District televised its entire sewer system from January 2006 to March 2009 and foun d 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 ITEM NO. 21 Board of Directors June 27, 2013 Page 2 of 3 Board of Directors chose to reconstruct these def iciencies in a four -year pe riod; however, this is Phase III and will be the final phase for repairing the Grade 5 deficiencies. The low bidder is Charles King Co., who was also the Phase II contractor , so the low bid is lower than expected. Bids were opened on 6/4/2013 and the res ults are as follows: Engineer’s Estimate $ 318,000 Charles King Co., Inc. $ 228,700 Lucas Builders, Inc. $ 265,762 Vasilj $ 327,800 Staff checked the licensing requirements and references for the low bidder, Charles King Co., Inc., 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. Legal Review District C ounsel prepared and signed the construction agreement. Financial Review Total cost for this project is $251,570 , which includes a 10% contingency. There is approximately a balance of $618,807 budgeted for this project. Money left over from this project will be transferred to the District’s Asset Management Fund. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 regular Board of Directors meeting at District Headquarters and on the District website. Alternative Actions 1. Do not award the project to Charles King Co, Inc . Board of Directors June 27, 2013 Page 3 of 3 2. Refer the matter back to staff for additional information. Attachment A : Contract between Charles King Co., Inc. and CMSD Reviewed by: Marc Davis Acting Accounting Manager/Treasurer