RESOLUTION NO. 24-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AWARDING A CONSTRUCTION CONTRACT FOR THE PROJECT TO THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, APPROVING SUPPLEMENTAL APPROPRIATIONS FROM THE STORM DRAIN FUND DEPRECIATION RESERVE, THE SEWER FUND CONNECTION FEE RESERVE AND THE SEWER FUND DEPRECIATION RESERVE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT WHEREAS, the existing sewer lift station and storm drain system have been compromised due to the coastal bluff movement at Cyprus Shore beginning in fall 2021 and are in need of repairs to continue providing services; and WHEREAS, on September 20, 2021, City staff installed a temporary emergency sewer bypass pump system adjacent to the Cyprus Shore Clubhouse near the intersection of Calle Ariana and Avenue de las Palmeras to prevent and mitigate impairment to property and public services; and WHEREAS, in the fall of 2023, City staff connected a temporary motor control center to operate the pump station in its existing location and eliminate the need for expensive pump watch. Additionally, a temporary above ground storm drain system was installed to direct storm flows through the homeowner association park to minimize disruption to the community; and WHEREAS, the City considered several design alternatives, but decided to replace facilities relatively close to the existing infrastructure due to a slope stabilization project by the Orange County Transportation Authority (OCTA) consisting of a series of tiebacks and grade beams; and WHEREAS, with the stabilization of the area, the City changed the project to become more comprehensive and received approval for a Coastal Development Permit on February 9, 2024 to relocate the wet well away from the original landslide, grading for access to the existing electrical equipment building, and replacement of the storm drain and sewer forcemain; and WHEREAS, AKM Consulting Engineers and Kreuzer Consulting Group designed and prepared a bid package to replace the sewer lift station, restore the storm drainage while enhancing the drainage system by installing new catch basins; and WHEREAS, the City conducted formal competitive bidding for the Cyprus Shore Grading, Storm Drain and Sewer Lift Station Improvements, Project Nos. 12004 & 12210 (Project); and WHEREAS, on April 23, 2024, the city received three (3) bids ranging from $4,145,075 to $5,227,738 for the Project; and WHEREAS, the lowest responsive and responsible bidder was GMZ Engineering, Inc. of Westlake Village, California, in the amount of $4,145,075, based on the low base bid and the alternate bid item; and WHEREAS, upon the bid opening, the second lowest bidder, Kay Construction Company, Inc. submitted a bid protest letter regarding a minor irregularity in GMZ Engineering’s bid documents; and WHEREAS, there was a bid irregularity from GMZ Engineering, Inc., the contractor entered “100%” and “90%” on a table in the bid forms for using subcontractors (i.e., Hardy & Harper, National Coasting & Lining and Tesco Controls) for the project; and WHEREAS, GMZ Engineering, Inc. has submitted documentation demonstrating that the subcontractors only perform a total of 20.07% of the Base Bid, under the allowed 49%, which could have been estimated based on the scope of work; and WHEREAS, GMZ Engineering, Inc. was bound by the bid that it submitted; and WHEREAS, a city generally has the discretion to determine bid responsiveness and may either demand strict compliance with the bid specifications or can choose to waive a defect that is inconsequential or is an immaterial deviation; and WHEREAS, waiving strict compliance with the bid documents for this project is in the best interests of the City and the public and would not create a competitive advantage or benefit.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and incorporated fully herein.
SECTION 2. That the City Council finds that the irregularity in GMZ Engineering’s bid is an inconsequential and immaterial bid defect. The irregularity did not affect the amount of the bid, make the bid materially different than intended, or give GMZ Engineering an unfair competitive advantage or benefit over the other bidders. Strict compliance with the bid documents for this deviation is hereby waived and the bid protest filed by Kay Construction Company, Inc. is hereby denied.
SECTION 3. That the City Council finds that GMZ Engineering, Inc. is the lowest responsive and responsible bidder, and the construction contract for the Cyprus Shore Grading, Storm Drain and Sewer Lift Station Improvements, Project No. 12004 & 12210, is hereby awarded to GMZ Engineering, Inc.
SECTION 4. That the City Manager is authorized and directed to execute a construction contract for the Cyprus Shore Grading, Storm Drain and Sewer Lift Station Improvements, CIP Project No. 12004 & 12210 with GMZ Engineering, Inc. in an amount of $4,145,075, in a form substantially similar to that presented to City Council on May 21, 2024.
SECTION 5. That a 19% project contingency of $787,500 for CIP Project No. 12004 & 12210 is hereby approved. The City Manager is authorized to utilize the project contingency to the extent necessary and proper.
SECTION 6. That a supplemental appropriation in the amount of $735,479 to account #059-553-45300-000-12004 from the Storm Drain Fund Depreciation Reserve and a supplementation appropriation of $2,619,657 to account #054-477-45300-000-12210 with $300,000 from the Sewer Fund Connection Fee Reserve and $2,319,657 from the Sewer Fund Depreciation Reserve is hereby approved.
SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of May, 2024.
ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-72 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of May, 2024, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of May, 2024. _______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
4882-9904-3949 v1
4882-9904-3949 v1
Resolution No. 24-72 Page 3
Attachment 1