05-07-2019 - Item 05 - Consideration of Award of Contract For the Construction of Azusa Avenue Sewer Lift station Upgrades - Project no. U-17022AGENDA ITEM NO. 5
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE:May 7, 2019
TO:Mayor and City Council
FROM:David Carmany
Interim City Manager
SUBJECT:CONSIDERATION OF AWARD OF CONTRACT FOR THE CONSTRUCTION OF AZUSA
AVENUE SEWER LIFT STATION UPGRADES - PROJECT NO. U-17022
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Authorize the Interim City Manager to negotiate and execute a contract service agreement with Pyramid
Building & Engineering, Inc. of Hesperia, California, in the amount of $2,239,700 for the construction of the
Azusa Avenue Sewer Lift Station Upgrades, Project U-17022;
1.
Authorize the Interim City Manager to negotiate and execute a professional services agreement with GK &
Associates of Diamond Bar, California, in the amount of $118,110 for construction management and
inspection services; and
2.
Adopt the following resolution:3.
RESOLUTION NO. 2019-30 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR
COMMENCING JULY 1, 2018, AND ENDING JUNE 30, 2019(Azusa Sewer Lift Station)
BACKGROUND:
The Azusa Avenue Sewer Lift Station, located at 2700 S. Azusa Avenue, is identified as one of the high-priority
Capital Improvement Program (CIP) projects in the City’s Sewer System Management Plan (SSMP) Update. The
project will upgrade the Azusa Avenue Sewer Lift Station, including replacement of the existing sewer pumps,
equipment, controls, conduits, wiring, and appurtenances in order to comply with the Statewide General Waste
Discharge Requirements for Sanitary Sewer Systems (Order No. 2006-0003). The project will also provide
sufficient storage capacity during emergencies and/or power outages, provide back-up/emergency power to mitigate
potential risk of sanitary sewer overflows and install a Supervisory Control and Data Acquisition (SCADA)
monitoring system that will provide feedback of pump disposition (on/off), fluid levels, air system, and alarms 24
hours a day, seven days a week. The current pump system does not have these functions and is manually operated.
DISCUSSION:
This project was previously advertised on March 6, 2018, and the City received the following bids:
No.Contractor City Bid Amount
1.Environmental Construction, Inc.Woodland Hills, CA $1,938,081
2.Pyramid Building and Engineering Hesperia, CA $2,635,500
Upon review of the bids, a mistake in the calculation of the total bid amount from the apparent low bidder was
found. Subsequently, Environmental Construction, Inc. requested to withdraw its bid. On May 1, 2018, the City
Council rejected all bids and directed staff to re-advertise this project.
A Notice Inviting Bids for this project was published in the San Gabriel Valley Tribune on May 25, and June 6,
2018. In addition, the notice was posted on Planetbids.com. On June 19, 2018, the City received the following bids:
No.Contractor City Bid
Amount
1.Environmental Construction, Inc. Woodland Hills,
CA $2,140,654
2.Pyramid Building and Engineering Hesperia, CA $2,239,700
3.Mlanden Buntick Construction, Inc.Upland, CA $2,346,500
4.United Engineering and
Construction, Inc. Glendale, CA $2,409,850
5.MMC, Inc.La Palma, CA $2,579,000
On June 28, 2018, Pyramid Building and Engineering (Pyramid) submitted a formal protest. After the City
Attorney's review of the protest, it was determined that Environmental Construction, Inc. (ECI) bid was
non-responsive based on the following reasons:
ECI is barred from further bidding on the project pursuant to Public Contracts Code Section 5105; and1.
ECI failed to provide a list of suppliers pursuant to Section 01 33 000 Submittal Procedures of the Technical
Specifications.
2.
Therefore, the lowest responsible bid in the amount of $2,239,700 is from Pyramid. The Engineer's estimate was
$1,600,000, which is less than the responsible bid; however, based on the number of bids received, the lowest
responsible bid is deemed appropriate. Pyramid has a valid contractor’s license and has completed similar projects
for the Cities of Carlsbad and Irwindale as well as for Jurupa Community Services District. Construction is
tentatively scheduled to commence beginning of November 2019, after procuring equipment and material, with an
estimated completion by the end of March 2020.
The City also issued a Request for Proposals (RFP) for Construction Management and Inspection Services for the
Azusa Avenue Sewer Lift Station Upgrade project on April 4, 2018. The RFP was advertised on Plantbids.com and
the City's website. Five proposals were received on April 26, 2018. Engineering staff reviewed and evaluated the
proposals and determined that GK & Associates submitted the most comprehensive and cost-effective proposal.
GK & Associates has extensive experience for construction management and inspection services with several
municipalities in Southern California, including the Cities of Brea, Colton, Inland Empire Utilities Agency, South
Pasadena, Norwalk, and Park Water Company. Their references have been checked and were satisfactory.
OPTIONS:
The City Council has the following options:
Approve Staff’s recommendation; or1.
Provide alternative direction.2.
ENVIRONMENTAL REVIEW:
Pursuant to Section 15302 of the California Environmental Quality Act (CEQA), the proposed project is considered
to be Categorically Exempt (Class 2, Replacement or reconstruction of existing utility systems) in that it consists of
a replacement and reconstruction of an existing sewer facility located on the same site and will have substantially
the same purpose as the facility replaced.
Fiscal Impact
FISCAL IMPACT:
The total estimated project cost is as follows:
No. Item Amount
1 Design and Staff Oversight $111,049
2 Construction Contract 2,239,700
3 Contingencies (10%)223,970
4 Southern California Edison new service connection 25,000
5 Construction Management and Inspection 118,110
6 Staff Project Administration 68,571
7 Temporary Odor Control during Construction 25,000
Project Total $2,811,400
The funds available for this project ar as follows:
Project No.Funds Project Account No.Amount
U-17022 Sewer Fund (189)17022.189.7300 $2,740,000
Sewer Fund (189)17022.189.7300 71,400
Total $2,811,400
Staff is requesting that the City Council appropriate an additional $71,329 from the Sewer Fund unencumbered
fund balance to cover the shortfall in funding. There are sufficient funds available in the Sewer Fund balance to
cover the $71,329 amount. In the event the project requires unforeseen design changes, staff will return to the City
Council for additional funding. There is no impact to the General Fund.
Attachments
Attachment No. 1 - Pyramid Contract Service Agreement
Attachment No. 2 - GK & Associates PSA
Attachment No. 3 - Resolution No. 2019-30
Exhibit No. 1 - Budget Amendment