Agenda Item
City Council
Item #: 3.12. 4/11/2023 File #: 23-0218
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to Ramona, Inc. for the Annual Sewer Replacement/Maintenance Fiscal Year 2022 -2023 Project, Bid No. 22-23.20; and finding of CEQA exemption.
2. SUMMARY
Bids for the Annual Sewer Replacement/Maintenance Fiscal Year 2022-2023 (S-247) were received and opened on March 2, 2023. Seven bidders responded to the notice inviting bids. The apparent low bidder is, Ramona, Inc. of Baldwin Park, CA in the amount of $2,747,450. Due to budget constraints, Public Works staff removed three bid items from the scope of work to reduce the cost of the project.
The adjusted cost of the bid by Ramona, Inc. is $2,487,250.
3. RECOMMENDED ACTION
1. Authorize the transfer of $400,000 from 220.5011.56340.30166 Cambridge St Infrastructure Improvement to expenditure account number 220.5011.56200.15508, Sewer Line Maintenance/Replacement.
2. Award the contract to Ramona, Inc. in the amount of $2,487,250, for Annual Sewer Replacement/Maintenance Fiscal Year 2022-2023 and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this contract is $2,487,250 and will be funded through Sewer Line Maintenance/Replacement (15508):
Sewer Construction (520) $2,212,000
Sanitation & Sewer (220) 400,000
Total: $2,612,000
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations
6. DISCUSSION AND BACKGROUND
The Annual Sewer Replacement/Maintenance Fiscal Year 2022-2023 is designed to upgrade the City’saging sewer infrastructure by replacing pipes that are structurally deficient, improving pipeline City of Orange Printed on 4/5/2023Page 1 of 2
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Item #: 3.12. 4/11/2023 File #: 23-0218
City’saging sewer infrastructure by replacing pipes that are structurally deficient, improving pipeline capacity, and minimizing maintenance issues. This project will consist of sewer line maintenance funded by the Sewer Construction Fund.
This project will replace/upsize approximately 6,550 linear feet of existing 6”vitrified clay pipe (VCP) with 8” VCP.
The City Council previously approved advertisement for bids on January 10, 2023. The bid solicitation was advertised on February 2, 2023 for a period of four weeks and bids were opened on March 2, 2023. Seven bids were received as follows:
1. Ramona, Inc., Baldwin Park $2,747,450
2. Big Ben Engineering, Inc., Irvine $2,828,300
3. PAPP, Inc. dba Excel Paving, Long Beach $2,865,950
4. Clarke Contracting Corporation, Lawndale $2,892,450
5. Bonadiman Water, Inc., Riverside $2,939,900
6. MNR Construction, Inc., La Verne $4,430,650
7. L&S Construction, Inc., Orange $5,768,450
The low bid is about 13.6% higher than the Engineer’sEstimate. Construction costs have continued the upward trend this year which may account for the higher than estimated construction costs. To keep the project within budget, Public Works staff has negotiated with Ramona, Inc. to remove three bid items from the scope of work that account for $260,000. After award, the remaining project budget will be used for construction management cost.
Staff checked the references and qualifications for Ramona, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar size and scope to this project.
Therefore, staff recommends that Ramona, Inc. be awarded the contract in the amount of $2,487,250 for the Annual Sewer Replacement/Maintenance project, Fiscal Year 2022-2023.
Construction is scheduled to begin June 2022 and is expected to be completed within 120 calendar days.
7. ENVIRONMENTAL REVIEW
Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1 (b)) because the project involves the upgrade and/or replacement of existing sewer lines to address an existing capacity deficiency that is identified in the City’sapproved Sewer Master Plan. No public review is required. The Notice of Exemption has been filed with the County Recorder’s Office.
8. ATTACHMENTS
· Bid Abstract
· Contract Agreement
City of Orange Printed on 4/5/2023Page 2 of 2
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