REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: John Dettle, Associate Civil Engineer
Subject:
title
Award and authorize the execution of a construction contract with Big Ben Engineering in the amount of $3,970,850 for the Edinger Avenue Sewer Replacement Project, CC-1662; and, authorize appropriation of funds
body
Statement of Issue:
On September 27, 2023, bids were received for the Edinger Avenue Sewer Replacement Project, CC-1662. City Council action is requested to award the construction contract to Big Ben Engineering, the lowest responsive and responsible bidder.
Financial Impact:
Total project cost, including contingency and supplemental expenses, are estimated at $5,000,000. Funds in the amount of $3,662,675 are available in the Sewer Development Fee Fund account 21089020.82600 ($800,000) and Sewer Service Fund account 51189019.82600 ($2,862,675). Additional funding of $1,337,325 is required for the project. Staff is requesting the budget shortfall to be funded from the PCH Restroom Sewer Lift Station Project Fund account 51189021.82600. This request is made in order to maintain the required minimum reserve balance in the Sewer Service Fund (511). Funding to replenish the PCH Restroom Sewer Lift Station Project budget will be requested as part of the FY 2024/25 Capital Improvement Program budget process.
Recommended Action:
recommendation
A) Approve a budget transfer of $1,337,325 from Account 51189021.82600 (PCH Restroom Sewer Lift Station Project) to Account 51189019.82600 (Edinger Sewer Project) to fully fund the Edinger Sewer Project; and,
B) Accept the lowest responsive and responsible bid submitted by Big Ben Engineering, in the amount of $3,970,850; and,
C) Authorize the Mayor and City Clerk to execute a construction contract with Big Ben Engineering in a form approved by the City Attorney.
end
Alternative Action(s):
Reject all bids, and provide staff with an alternative direction.
Analysis:
The existing 8-inch and 10-inch sewer in Edinger Avenue, from the railroad east of Gothard Street to Beach Boulevard, has a sag in the line east of the railroad tracks that has reduced capacity and caused grease buildup, which further reduces capacity of the system. New developments along Edinger Avenue have increased the sewage flows and thus exasperated the existing lack of capacity. As such, the new developments along Edinger Avenue have contributed financially through impact fees toward this project via the Sewer Development Fee Fund. Had there not been a sag in the sewer line, the existing sewer would have had sufficient capacity. This project will replace the 8 and 10-inch sewers with 8 to 15-inch sewers to eliminate the sag and restore system capacity.
The work in front of the Residences at Bella Terra, from railroad east of Gothard Street to Sher Lane, will be constructed during daytime hours; and the work from Sher Lane to east of Beach Blvd. will be constructed during evenings.
The Geotechnical Report provided for the design of the sewer identified two locations, at Sher Lane and west of Beach Blvd., as having gasoline odors. Staff hired EEC Consultants to perform a Site Assessment and Soil Management Plan. Staff also contacted the OC Health Care Agency, and with their assistance contacted the Legally Responsible Parties, DJM Capital and Chevron. Adjustable bid items were included in the Bid Schedule for disposing of contaminated soils and/or contaminated water. Both Legally Responsible Parties have indicated a willingness to work with the City to reimburse the City for added costs of removal and disposal of contaminated soil or water.
Bids were received electronically on September 27, 2023. The verified bid amounts are listed below:
|
Bidding Contractor |
Bid Amount Submitted |
|
Big Ben Engineering |
$3,970,850 |
|
Ramona Inc. |
$5,228,115 |
|
Nationwide Contracting Services, Inc. |
$5,916,090 |
|
Mike Bubalo Construction Co., Inc. |
$6,376,500 |
|
Colich & Sons |
$6,679,230 |
|
Vido Artukovich & Son Inc./Vidmar Inc. A JV |
$7,098,420 |
The apparent lowest bid was submitted by Big Ben Engineering. Staff has conducted reference checks, which were satisfactory. As such, staff recommends award of a construction contract to Big Ben Engineering in the amount of $3,970,850. If approved, construction will begin in January 2024 and last for approximately 16-20 weeks.
The total estimated construction cost is $5,000,000 which includes the construction contract amount, a 10 percent (10%) contingency, and supplemental expenses that include contracted construction inspection (including night work), materials testing and environmental services for testing and monitoring contaminated soils removal. A majority of project funds are budgeted and available. However, a budget transfer of $1,337,325 from Account 51189021.82600 (PCH Restroom Sewer Lift Station Project) is required to fully fund the project.
The Engineer’s Estimate was $4.25 million, and the low bid was below this estimate. Costs for this project are higher than originally budgeted due to high groundwater levels, premium pay for night work, and inflation.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. PowerPoint Presentation