DATE:
January 17, 2023
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Dani Fox, Deputy Director of Development Services
David Burkett, Project Construction Manager
SUBJECT:
Award Contract for I-15 Corridor Utility Improvements – Phase II
RECOMMENDED ACTION
It is recommended that the City Council award a contract for the I-15 Corridor Utility Improvements – Phase II to Pyramid Building & Engineering, Inc., for the adjusted bid amount of $2,989,957; approve an additional 10% contingency in the amount of $298,996 for a total construction budget of $3,288,953; approve the design of the project represented by the plans and specifications; and authorize the City Manager to execute the contract.
BACKGROUND
In 2014 the City annexed the I-15 freeway corridor south from Highway 395 to the summit at Oak Hills. As part of this annexation, the City is required to construct the water and wastewater infrastructure to serve the corridor. The improvements under Phase I included construction of new water and wastewater pipelines in Mariposa Road and Caliente Road from approximately the I-15 & 395 junction to the Ranchero Road interchange. Phase II of the project includes construction of a new wastewater lift station, proposed near the Union Pacific Railroad tracks off Caliente Road. Phase III of the project includes the construction of a new water pump station to be located at the existing Plant 30 site and will be designed and constructed in the future. The annexation agreement included a requirement that all improvements were to be completed in three years; however, budget constraints have prevented this work from proceeding on the timeline originally proposed.
ISSUES/ANALYSIS
This project was advertised for bids beginning on September 29, 2022. More than 3,000 contractors were notified about the project through Public Purchase, the City’s online bidding platform. Bids were received, opened, and publicly read on November 8, 2022.
The City received the following five bids, which were utilized to determine the lowest responsible/responsive bidder:
Pyramid Building & Engineering, Inc.
Hesperia, CA
$2,989,957
MLC Constructors, Inc.
Corona, CA
3,034,197
R.I.C. Construction Company, Inc.
Hesperia, CA
3,160,096
R.E. Chaffee Construction, Inc.
Wrightwood, CA
3,280,020
Caliagua, Inc.
Anaheim, CA
3,437,084
After review of the submitted bids, staff has determined that Pyramid Building & Engineering, Inc. (PB&E) is the lowest responsive/responsible bidder. PB&E has been in the construction industry since 1991 and has demonstrated experience in construction of lift stations and other sewer projects. After completing due diligence staff believes PB&E has a reputation of professionalism and reliability and will meet the construction needs of this project. Therefore, staff is recommending that the Council award a contract to PB&E for construction of the I-15 Corridor Utility Improvements – Phase II, C.O. No. 9021.
It should be noted that two of the contractors filed a bid protest with the City related to mathematical errors in PB&E’s bid, which were corrected by staff. Both bid protests were rejected by the City. One of the contractors has indicated they will appeal the City’s decision to reject their protests, regarding award of this contract to PB&E to the City Council.
FISCAL IMPACT
On June 21, 2022 the City Council adopted the Fiscal Year (FY) 2022-23 Capital Improvement Program (CIP) Budget that included the I-15 Corridor Utility Improvements – Phase II project under Construction Order No. 9021. The current adopted budget for this project is $1,840,000; however, staff anticipates including the balance of funding in the FY 2023-24 Capital Improvement Budget subsequent to award of contract. The estimated costs for this project are as follows:
Construction
$2,989,957
Construction Contingency
298,996
Engineering Design & Construction Engineering
438,000
Project Administrative Costs1
23,047
Total =
$3,750,000
1Project administrative costs include items such as legal advertising, copying services, postage, etc.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Award Contract for I-15 Corridor Utility Improvements – Phase II January 17, 2023