Agenda Item
City Council
Item #: 3.6. 2/27/2024 File #: 24-0085
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 CEM Construction Corporation for the Annual Pipeline Renewal Project; Bid No. 23-24.25.
2. SUMMARY
Seven bids for the Annual Pipeline Renewal Project (W-722) were received and opened on February 1, 2024. The apparent low bidder is CEM Construction Corporation of Downey, CA for $2,547,770.
3. RECOMMENDED ACTION
Approve the contract with CEM Construction Corporation in the total amount of $2,802,547, representing an original bid amount of $2,547,770, plus a 10% contingency of $254,777, for the Annual Pipeline Renewal project; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this contract is $2,802,547 and will be funded through:
600.8041.56451.18400 Water Fund (600) Annual Pipeline Renewal Project
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
Existing water mains on Heim Ave., Torres St., Bourbon St., Sail Ave., and Denise Ave. are scheduled to be replaced as part of the Annual Pipeline Renewal Project. These water mains were constructed between the 1960’sand 1970’sand have reached the end of their useful life. The mains are also undersized per current industry standards.
The new water mains will provide a more reliable water service and fire protection to the residents in the area. Completion of this project also helps with separating existing transmission from distribution mains which will minimize water service interruptions during the rehabilitation of the transmission City of Orange Printed on 2/21/2024Page 1 of 2
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Item #: 3.6. 2/27/2024 File #: 24-0085
mains in the near future.
Plans and Specifications have been prepared to replace these existing water mains. The City Council previously approved advertisement for bids on October 10, 2023.
The bids were received and opened on February 1, 2024. Seven bidders responded as follows:
CONTRACTOR AMOUNT
1. CEM Construction Corporation, Downey, CA $ 2,547,770
2. Dominguez General Engineering, Inc., Pomona, CA $ 2,805,480
3. Big Ben Engineering, Irvine, CA $ 2,956,204
4. TE Roberts Inc., Irvine, CA $ 3,304,124
5. L&S Construction, Inc., Orange, CA $ 3,605,730
6. Teichert Energy & Utilities Group, Inc., Long Beach, CA $ 4,170,885
7. Gentry General Engineering, Inc., Colton, CA $ 5,277,113 CEM Construction Corporation is the apparent responsive low bidder. The low bid is about 18.2% higher than the Engineer’sEstimate of $2,155,450. In the past three years, there has been an escalation of construction costs, and the bids received are reflective of current construction market conditions. Staff checked the references and qualifications for CEM Construction Corporation and found them to be acceptable, with adequate years of experience in completing contracts of a similar nature to this project. The Contractor has completed pipeline replacement projects with many surrounding agencies and performed work for the City of Orange satisfactorily in 2023. Therefore, staff recommends that CEM Construction Corporation be awarded the contract in the amount of $2,547,770, plus a 10% contingency for a total amount of $2,802,547.
Construction is scheduled to begin in April 2024 and is expected to be completed within 210 calendar days.
7. ATTACHMENTS
· Location Map
· Contract with CEM Construction Corporation
· Bid Abstract
City of Orange Printed on 2/21/2024Page 2 of 2
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