HomeMy WebLinkAboutAgenda Report - April 18, 2018 C-07CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C-7
TM
AGENDA TITLE: Adopt Resolution Rejecting Protest and Awarding Contract for Wastewater Main
Rehabilitation Program, Project No. 7, to Express Sewer & Drain, Inc., of Rancho
Cordova ($1,885,814)
MEETING DATE: April 18, 2018
PREPARED BY: Public Works Director
RECOMMENDED ACTION:
Adopt resolution rejecting protest and awarding contract for Wastewater
Main Rehabilitation Program, Project No. 7, to Express Sewer & Drain,
Inc., of Rancho Cordova, in the amount of $1,885,814.
BACKGROUND INFORMATION: This project consists of trenchless rehabilitation of approximately
33,300 linear feet of existing 6 -inch, 8 -inch, 12 -inch, 18 -inch, and
21 -inch diameter wastewater pipes, internally reinstating
approximately 600 wastewater laterals and the rehabilitation of 143 wastewater manholes, and other
incidental and related work, all as shown on the plans and specifications for the above project.
Plans and specifications for this project were approved on February 7, 2018. The City received the
following five bids for this project on March 28, 2018:
Bidder
Engineer's Estimate
Express Sewer & Drain, Inc.
Sancon Technologies, Inc.
Southwest Pipeline & Trench
Michels Corporation
Insituform Technologies, LLC
Location Bid Above/(Below)
Estimate
Rancho Cordova
Huntington Beach
Torrance
Salem, OR
Chesterfield, MO
$2,945,345
$1,885,814
$2,686,883
$2,896,533
$3,049,415
$4,701,198
($1,059,531)
($258,462)
($48,812)
$104,070
$1,755,853
On April 2, 2018, Staff received a formal bid protest letter (Exhibit A) from Sancon Technologies, Inc.
The protest provides the following claims:
1. Express Sewer & Drain, Inc.'s bid did not include subcontractor listing for the open cut work as
well as the manhole rehabilitation.
2. Express Sewer & Drain, Inc. is not a certified installer of an approved manhole rehabilitation
technology nor do they have any experience in manhole rehabilitation.
3. Express Sewer & Drain, Inc. unfairly balanced their bid.
Express Sewer & Drain provided a response letter, with supporting documentation, on April 3, 2018
(Exhibit B). The responses to the claims above are as follows:
APPROVED:
as
err+ ,:46�1
:e en - suer, City Manager
K:\WP\PROJECTS\SEWER\WastewaterMainRehabProject7\CAward.doc 4/9/2018
Adopt Resolution Rejecting Protest and Awarding Contract for Wastewater Main Rehabilitation Program, Project No. 7, to Express Sewer & Drain, Inc , of Rancho
Cordova ($1,885,814)
April 18, 2018
Page 2
1. Express Sewer & Drain, Inc. does not plan on subcontracting out any part of this contract. They
have 80 employees, three Vac -Con trucks, six TV inspection trucks, and self -perform all work bid
on this contract, including traffic control, open cut excavations, asphalt replacement, and manhole
rehabilitation.
2. Express Sewer & Drain, Inc. will be the SPRAYROQ Certified Installer for the California and
Nevada market. They are currently completing the certification process through SPRAYROQ and
will be a certified installer of SPRAYROQ prior to performing manhole rehabilitation on this
contract.
3. Express Sewer & Drain, Inc. bid amount for bid item no. 13 covers labor, materials and overhead
to complete the bid item. They believe their lower pricing relates to their company's ability to self -
perform, as well as their efficient work capability.
Also included with the response letter was a letter from SPRAYROQ (an approved manhole lining
manufacturer for this project) supporting the responses made by Express Sewer & Drain, Inc. This letter
also identified an employee of Express Sewer & Drain, Inc. (Cody Aberasturi) who is currently a certified
SPRAYROQ installer. Express Sewer & Drain, Inc. has indicated that Mr. Aderasturi will be the
superintendent for the manhole lining portions of this project. Mr. Aderasturi's certifications were also
included with Express Sewer & Drain, Inc.'s response.
Staff conducted a thorough review of all the protest and protest -response documents and verified
company references for Express Sewer & Drain, Inc. Staff believes that Express Sewer & Drain, Inc.
provided a bid compliant with the Public Contract Code requirements and found no reason to deem it
non-responsive or non -responsible.
For the reasons stated above, Staff recommends rejecting the protest and awarding contract for
Wastewater Main Rehabilitation Program, Project No. 7, to Express Sewer & Drain, Inc., of Rancho
Cordova, in the amount of $1,885,814.
FISCAL IMPACT:
Completion of this project will reduce future maintenance costs and
increase the performance and reliability of the wastewater collection
system.
FUNDING AVAILABLE: Budgeted in Fiscal Year 2017/18:
Wastewater Capital (53199000.77020) - $2,000,000
Andrew Keys
Deputy City Manager/Internal Services Director
Charles E. Swimley
Public Works Director
Prepared by Jimi Billigmeier, Associate Civil Engineer
Attachments
cc: Lyman Chang, Deputy Public Works Director/City Engineer
Sean Nathan, Senior Civil Engineer
Lane Roberts, Utilities Manager
Express Sewer & Drain, Inc.
Sancon Technologies, Inc.
K:\WP\PROJECTS\SEWER\WastewaterMainRehabProject7\CAward.doc 4/9/2018
SANCON TECHNOLOGIES, INC.
GENERAL ENGINEERING CONTRACTOR Tel: (714) 891-2323
STATE CONTRACTORS LICENSE #774055 Fax: (714) 891-2524
April 2nd, 2018
ATTN: Ms. Jennifer Ferraiolo, City Clerk
City of Lodi Administration Department
221 West Pine Street (PO Box 3006)
Lodi, CA 95241-1910
Subject: Protest of Express Sewer and Drain, Inc.'s bid for the Wastewater Main Rehabilitation Program Project No. 7
Dear Jennifer M. Ferraiolo,
Please let this letter serve as Sancon Technologies Inc's protest of Express Sewer and Drain, Inc.'s bid for the
Wastewater Main Rehabilitation Program Project No. 7. The protest is based on the following.
1. Express Sewer and Drain, Inc.'s bid does not include subcontractor listing for the open cut dig work as well as the
manhole rehabilitation. Per PCC §4104, and per the City's bid forms, subcontractors shall be listed when their
work is in excess of one half of one percent, or $10,000, whichever is greater. Express Sewer and Drain Inc does
not list any subcontractors on this project.
2. Express Sewer and Drain, Inc.'s is not a certified installer of an approved manhole rehabilitation technology nor do
they have any experience in manhole rehabilitation. As such, they would have been required to subcontract this
scope yet their bid forms do not show a subcontractor listed for this scope.
3. Express Sewer and Drain, Inc.'s unfairly unbalanced their bid. For bid item 13, they are 20% of every other
bidder's price.
Based on the above findings, we request that you reject Express Sewer and Drain, Inc.'s bid and award the contract to
the 2nd lowest bidder, Sancon Technologies Inc., who provided a responsive and responsible bid.
Please let me know if you have any questions or concerns regarding the above. Feel free to call me directly at 714-
891-2323.
Sincerely
D, 7 7 ..f., _ 6 e.., - — -
Gary Drew
Vice President, Sancon Technologies Inc.
Page 1
EXPRESS
SEWER & DRAIN
Phone: (916) 970-1234
Fax: (916) 853-1148
www.ExpressSewer.com
Jimi Billigmeier
Associate Civil Engineer
City of Lodi - Public Works Department.
221 West Pine St.
Lodi, CA 95240
Subject: Protest Response of Sancon Technologies, Inc. bid protest for the Wastewater Main Rehabilitation
Program Project No. 7
Dear Jimi Billigmeier,
Please let this letter serve as Express Sewer and Drain, Inc.'s response to Sancon Technologies Inc's
protest of bid for the Wastewater Main Rehabilitation Program Project No. 7. Their protest listed the
following:
1. Express Sewer and Drain, Inc.'s bid does not include subcontractor listing for the open cut dig work as
well as the manhole rehabilitation. Per PCC §4104, and per the City's bid forms, subcontractors shall be
listed when their work is in excess of one half of one percent, or $10,000, whichever is greater. Express
Sewer and Drain Inc does not list any subcontractors on this project.
RESPONSE — Express Sewer & Drain does not plan on subcontracting out any part of this contract. We
have 80 employees, 3 Vac -Con Trucks, 6 TV inspection Trucks and self -perform all work bid on this contract
including traffic control, open cut excavation's, asphalt replacement and manhole rehabilitation.
2. Express Sewer and Drain, Inc.'s is not a certified installer of an approved manhole rehabilitation
technology nor do they have any experience in manhole rehabilitation. As such, they would have been
required to subcontract this scope yet their bid forms do not show a subcontractor listed for this scope.
RESPONSE — Express Sewer & Drain, Inc. will be the SPRAYROC Certified Installer for California and
Nevada Market. We are currently completing the certification process through SPRAYROC and will be a
certified installer of SPRAYROC prior to performing manhole rehabilitation on this contract.
3. Express Sewer and Drain, Inc.'s unfairly unbalanced their bid. For bid item 13, they are 20% of every
other bidder's price.
RESPONSE — Express Sewer & Drain, Inc. bid for item #13 covers our labor, materials and overhead to
complete the bid item. We believe we our lower pricing relates to our company's ability to self -perform as
well as our crew's efficient work capability. NOTE — Sancon Technologies, Inc bid for item #11, they are 8%
of the bid average for this item.
Based on our response and the information submitted, we request that you award the contract to Express
Sewer and Drain, Inc. as we are the lowest responsive and responsible bid.
Thank you,
illiam Heinselman
President
Express Sewer & Drain, Inc.
3300 Fitzgerald Road • Rancho Cordova, CA 95742 • CA License # 882660
...the gold standard
SPRWROU
,,,• Protective Lining Systems
April 3, 2018
Jimi Billigmeier
Associate Civil Engineer
City of Lodi - Public Works Dept.
221 West Pine St.
Lodi, CA 95240
Re: Wastewater Main Rehabilitation Program Project No. 7 Bid Submitted by Express Sewer and Drain
DearJimi Billigmeier,
Regarding the bid submitted Express Sewer and Drain, Inc., Sprayroq would like to provide the
information requested in Item B of the Submittals Section as well as Item A listed in the Requirements
Section. The following is our response to these items:
1) Submittals Section -Item B- "A list of locations and references for other projects in which the
products were used shall be furnished to the Engineer prior to commencing work." Enclosed
with this letter you will find a list of references for SprayWall applications both in the Western
U.S. and across the nation. Sprayroq has been in business since 1990 and all of our materials are
3rd Party Tested by ASTM -approved laboratories. In addition, 3rd Party Test Reports and Case
Histories are listed on our website (www.spravroq.com).
2) Requirements Section -Item A- "The installer's personnel shall be adequately trained in
maintenance and operation of the required installation equipment, as certified by the lining
manufacturer." Express Sewer and Drain has been in negotiations with Sprayroq since April 26,
2017 and will be the Sprayroq Certified Installer for California. Currently, Express Sewer and
Drain is in the process of becoming certified. Furthermore, Express Sewer and Drain has an
employee who is a certified Sprayroq installer and who has considerable experience in manhole
rehabilitation as well as in applying Sprayroq products. With that in mind, Express Sewer and
Drain will be self -performing the work and as such they have no reason to list a subcontractor.
Should you have questions or concerns, please contact Sprayroq at 205-957-0020. We look forward to
working with you on this project and future projects.
Kindest regards,
Jeremy Huckaby
Director, Business Development
Sprayroq, Inc.
Sprayroq, Inc. • 4766 Grantswood Road Suite 150 • Irondale, AL 35210 USA
toll free (USA) 800.634.0504 • local 205.957.0020 • fax 205.957.0021. www.sprayroq.com
National Association of Sewer Service Companies
P4ASSCO, Inc_
THIS CERTIFICATE IS AWARDED TO
Cody Aberasturi
IN RECOGNITION OF THE COMPLETION OF THE
INSPECIsORTRAINING & CERTIFICATION PRO RAMC POR MANHOLE REHABILITATION.
INSPECTOR NUMBER:
ITCP-MR Course Date:
MR -0517-0100446
05/24/2017
Signature Theodore A Deboda, PEE, Executive °Erecmr
mow eels 14113TANIMPLOIMACZNEDEPAKEW11.07NASSIZO. 1781 INSPEEDIULACDIDIPLIDDIEI AND ANACD rHAT )
mos HarAHEM= Ca.COK7UOLTKI DC= artontatrauscoRuumLlaorBH➢LIEACeEDILI! lDa.ANYAcT! naarossDa6 caimuciNSFECML
CODY BERASTURI
PIPELINE INSPECTION SERVICES
HAS SUCCESSFULLY COMPLETED THE REQUIRED COURSE
OF STUDIES AND PRACTICE TO BE QUALIFIED AS A
SPRAYROQ CERTIFIED APPLICATOR
GIVEN THIS 8TH DAY OF OCTOBER, 2012
WASTEWATER MAIN REHABILITATION PROGRAM
PROJECT NO. 7 CONTRACT
CITY OF LODI, CALIFORNIA
THIS CONTRACT made by and between the CITY OF LODI, State of California, herein
referred to as the "City," and EXPRESS SEWER & DRAIN, INC., a California
corporation, herein referred to as the "Contractor."
WITNESSETH
That the parties hereto have mutually covenanted and agreed, and by these presents do
covenant and agree with each other, as follows:
The complete Contract consists of the following documents which are incorporated
herein by this reference, to -wit:
Notice Inviting Bids
Information to Bidders
General Provisions
Special Provisions
Bid Proposal
Contract
Contract Bonds
Plans
The July 1992 Edition,
Standard Specifications,
State of California,
Business and Transportation Agency,
Department of Transportation
All of the above documents, sometimes hereinafter referred to as the "Contract
Documents," are intended to cooperate so that any work called for in one and not
mentioned in the other is to be executed the same as if mentioned in all said
documents.
ARTICLE I - That for and in consideration of the payments and agreements hereinafter
mentioned, to be made and performed by the City and under the condition expressed in
the two bonds bearing even date with these presents and hereunto annexed, the
Contractor agrees with the City, at Contractor's cost and expense, to do all the work and
furnish all the materials except such as are mentioned in the specifications to be
furnished by the City, necessary to construct and complete in a good workmanlike and
substantial manner and to the satisfaction of the City the proposed improvements as
shown and described in the Contract Documents which are hereby made a part of the
Contract.
ARTICLE II - The City hereby promises and agrees with the Contractor to employ, and
does hereby employ, the Contractor to provide all materials and services not supplied by
the City and to do the work according to the terms and conditions for the price herein,
and hereby contracts to pay the same as set forth in Section 5.600, "Measurement,
Acceptance and Payment," of the General Provisions, in the manner and upon the
conditions above set forth; and the said parties for themselves, their heirs, executors,
administrators, successors and assigns, do hereby agree to the full performance of the
covenants herein contained.
ARTICLE III - The Contractor agrees to conform to the provisions of Chapter 1, Part 7,
Division 2 of the Labor Code. The Contractor and any Subcontractor will pay the
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general prevailing wage rate and other employer payments for health and welfare,
pension, vacation, travel time, and subsistence pay, apprenticeship or other training
programs. The responsibility for compliance with these Labor Code requirements is on
the prime contractor.
ARTICLE IV - And the Contractor agrees to receive and accept the following prices as
full compensation for furnishing all materials and for doing all the work contemplated
and embraced in this agreement; also for all loss or damage arising out of the nature of
the work aforesaid or from the action of the elements, or from any unforeseen difficulties
or obstructions which may arise or be encountered in the prosecution of the work until
its acceptance by the City, and for all risks of every description connected with the work;
also for all expenses incurred by or in consequence of the suspension or discontinuance
of work and for well and faithfully completing the work, and the whole thereof, in the
manner and according to the Plans and Contract Documents and the requirements of
the Engineer under them, to -wit:
Perform the work necessary to rehabilitate approximately 33,300 linear feet of existing 6 -
inch, 8-inch,12-inch, 18 -inch and 21 -inch diameter wastewater pipes; internally reinstate
approximately 600 wastewater laterals and rehabilitate of 143 wastewater manholes and
other incidental and related work, all as shown on the plans and specifications for the above
project.
See Section 6-07 "Description of Bid Items" for additional information.
BID ITEMS
Item
No.
Item Description
Unit
Qty
Unit Price
Total
1
Mobilization
LS
1
$10,000
$ 10,000
2
Traffic Control
LS
1
$40,000
$ 40,000
3
Construction Notification
LS
1
$1,500
$ 1,500
4
Storm Water Pollution Control
LS
1
$ 2,000
$ 2,000
5
Rehabilitate 6" Wastewater Pipe
LF
26,268
$ 36
$ 945,648
6
Rehabilitate 8" Wastewater Pipe
LF
4,782
$ 33
$ 157,806
7
Rehabilitate 12" Wastewater Pipe
LF
1,346
$ 55
$ 74,030
8
Rehabilitate 18" Wastewater Pipe
LF
548
$ 85
$ 46,580
9
Rehabilitate 21" Wastewater Pipe
LF
273
$ 100
$ 27,300
10
Lateral Protrusion Cutting
EA
10
$ 500
$ 5,000
11
Internal Lateral Reinstatement
EA
590
$ 185
$ 109,150
12
Ham Lane Lateral Reinstatement
Open Cut)
EA
1
$ 5,000
$ 5,000
13
Local Lateral Reinstatement (Open
EA
70
$ 1,000
$ 70,000
14
Ham Lane -Point Repair (Open Cut)
EA
6
$ 7,000
$ 42,000
15
Local Point Repair (Open Cut)
EA
20
$ 3,500
$ 70,000
16
Standard Manhole Rehabilitation
EA
119
$ 1,800
$ 214,200
17
Deep Manhole Rehabilitation
EA
24
$ 2,500
$ 60,000
18
Install 24" Riser
EA
2
$ 2,800
$ 5,600
4.2
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03/28/18
TOTAL $1,885,814.00
ARTICLE V - By my signature hereunder, as Contractor, I certify that I am aware of the
provisions of Section 3700 of the Labor Code, which requires every employer to be
insured against liability for workers' compensation or to undertake self-insurance in
accordance with the provisions of that code, and I will comply with such provisions
before commencing the performance of the work of this contract.
ARTICLE VI - It is further expressly agreed by and between the parties hereto that,
should there be any conflict between the terms of this instrument and the Bid Proposal
of the Contractor, then this instrument shall control and nothing herein shall be
considered as an acceptance of the said terms of said proposal conflicting herewith.
ARTICLE VII - The City is to furnish the necessary rights-of-way and easements and to
establish lines and grades for the work as specified under the Special Provisions. All
labor or materials not mentioned specifically as being done by the City will be supplied
by the Contractor to accomplish the work as outlined in the specifications.
ARTICLE VIII - The Contractor agrees to commence work pursuant to this contract
within 15 calendar days after the City Manager has executed the contract and to
diligently prosecute to completion within 180 CALENDAR DAYS.
ARTICLE IX - State of California Senate Bill 854 requires the following
• No contractor or subcontractor may be listed on a bid proposal for a public works
project unless registered with the Department of Industrial Relations pursuant to
Labor Code section 1725.5 [with limited exceptions from this requirement for bid
purposes only under Labor Code section 1771.1(a)].
• No contractor or subcontractor may be awarded a contract for public work on a
public works project unless registered with the Department of Industrial Relations
pursuant to Labor Code section 1725.5.
• This project is subject to compliance monitoring and enforcement by the
Department of Industrial Relations.
4.3
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03/28/18
WHEN SIGNING THIS CONTRACT, THE CONTRACTOR AGREES THAT THE TIME
OF COMPLETION FOR THIS CONTRACT IS REASONABLE AND THE
CONTRACTOR AGREES TO PAY THE CITY LIQUIDATED DAMAGES AS SET
FORTH IN SECTION 6-04.03 OF THE SPECIAL PROVISIONS. CONTRACTOR
AGREES THAT THIS AMOUNT MAY BE DEDUCTED FROM THE AMOUNT DUE THE
CONTRACTOR UNDER THE CONTRACT.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands
the year and date written below.
CONTRACTOR: CITY OF LODI, a municipal corporation
By
STEPHEN SCHWABAUER
City Manager
By: Date:
Attest:
Title
JENNIFER M. FERRAIOLO
City Clerk
(CORPORATE SEAL) Approved As To Form:
JANICE D. MAGDICH
City Attorney
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03/28/18
RESOLUTION NO. 2018-60
A RESOLUTION OF THE LODI CITY COUNCIL REJECTING
PROTEST AND AWARDING CONTRACT FOR WASTEWATER
MAIN REHABILITATION PROGRAM, PROJECT NO. 7, TO
EXPRESS SEWER & DRAIN, INC., OF RANCHO CORDOVA
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on March 28, 2018, at
11:00 a.m., for the Wastewater Main Rehabilitation Program, Project No. 7, described in the
plans and specifications therefore approved by the City Council on February 7, 2018; and
WHEREAS, said bids have been checked and tabulated and a report thereof filed with
the City Manager as follows:
Bidder Bid Above/(Below)
Estimate
Express Sewer & Drain, Inc. $1,885,814 ($1,059,531)
Sancon Technologies, Inc. $2,686,883 ($258,462)
Southwest Pipeline & Trench $2,896,533 ($48,812)
Michels Corporation $3,049,415 $104,070
Insituform Technologies, LLC $4,701,198 $1,755,853
WHEREAS, staff recommends that the City Council reject Sancon Technologies, Inc.'s
bid protest; and
WHEREAS, staff also recommends that the City Council award the contract for
Wastewater Main Rehabilitation Program, Project No. 7, to Express Sewer & Drain, Inc,, of
Rancho Cordova, in the amount of $1,885,814.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby reject
the bid protest of Sancon Technologies, Inc., of Huntington Beach, California; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby award the contract
for Wastewater Main Rehabilitation Program, Project No. 7, to Express Sewer & Drain, Inc., of
Rancho Cordova, California, in the amount of $1,885,814; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the
contract on behalf of the City of Lodi.
Dated: April 18, 2018
I hereby certify that Resolution No. 2018-60 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 18, 2018 by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, and Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Kuehne
ABSTAIN: COUNCIL MEMBERS — None
4
NIFER . FERRAIOLO
CI y Clerk
2018-60