Public Works Agency
https://www.santa-ana.org/pw
Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 7, 2023
TOPIC: North East Annexation Water & Sewer Main Improvements
AGENDA TITLE
Award a Construction Contract to Dominguez General Engineering, Inc. in the Amount of $2,133,362 for the North East Annexation Water & Sewer Main Improvements, with an Estimated Project Delivery Cost of $2,986,706 (Project Nos. 21-6453, 21-6619 & 24- 6710) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing prior year fund balance of $711,814 in the Select Street Construction, Prior Year Carry Forward revenue account and appropriating the same amount to the Select Street Construction, Improvements Other Than Building expenditure account for current year expenditures. (Requires five affirmative votes)
2. Approve an appropriation adjustment accepting California State Water Resources Control Board’s Drinking Water State Revolving Fund loan funds in the amount of $1,529,220 into the Sanitary Sewer Capital Recovery Charges, Financing Proceeds revenue account and appropriate the same amount to the Sanitary Sewer Capital Recovery Charges, Improvements Other Than Building expenditure account for current year expenditures. (Requires five affirmative votes)
3. Approve an amendment to the FY 2023-24 Capital Improvement Program to include $711,814 and $1,529,220 in construction funds for the North East Annexation Water & Sewer Main Improvements Project.
4. Award a construction contract to Dominguez General Engineering, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $2,133,362, subject to change orders (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, for construction of the North East Annexation Water & Sewer Main Improvements Project, for a term beginning November 7, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non- substantive changes approved by the City Manager and the City Attorney.
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5. Approve the Project Cost Analysis for a total estimated construction delivery cost of $2,986,706 which includes $2,133,362 for the construction contract, $320,004 for contract administration, inspection, and testing, and a $533,340 project contingency for unanticipated or unforeseen work.
6. Determine that in accordance with the California Environmental Quality Act (CEQA), a Mitigated Negative Declaration was prepared for the project and was filed with document number 202385000522.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The previously unincorporated area located northeast (annexed area) of the intersection of 17th Street and Tustin Avenue was approved for annexation by City Council at its June 5, 2018 meeting and has since become part of the City of Santa Ana (Exhibit 1).
The Public Works Agency Water Resources Division currently provides sanitary sewer service to some of the parcels with the annexed area, but many of the parcels are on septic systems. Additionally, the City of Tustin provides water to all the parcels on the annexed area.
This project will expand the water and sewer system in the public right of way to provide Santa Ana water and sewer services to the annexed area. The improvements include a new polyvinyl chloride (PVC) water main, fire hydrants, water services, new PVC sewer main, sewer laterals, appurtenances, asphalt concrete pavement, street lights, speed cushions, and sidewalk improvements.
Project Funding
As part of a continual effort to maintain fiscal responsibility, staff has sought additional funding sources to complete the project. In 2023, the City entered into a low-interest loan agreement with the California State Water Resources Control Board under their Drinking Water State Revolving Fund for $1,529,220 of additional funds.
Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on June 10, and June 16, 2023.
The project was also advertised on PlanetBids, and were received electronically on August 8, 2023.
The City notified a total of 90 regional vendors via PlanetBids, five (5) of which are Santa Ana based. Eighty-six (86) vendors requested bidding documents. A total of eleven (11) bids were received. However, no bids were received from Santa Ana contractors.
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Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID
1 Dominguez General Engineering Inc. Pomona, CA $2,133,362 2 CEM Construction Corp Montebello, CA $2,166,879
3 Big Ben Inc. Irvine, CA $2,490,807
4 Vasilij Inc. Irwindale, CA $2,497,508
5 Ramona Inc. Arcadia, CA $2,887,829
6 Colich & Sons L.P. Gardena, CA $3,356,288
7 Kordich Construction Inc. Cypress, CA $3,614,148
8 Mike Bubalo Construction Co., Inc. Baldwin Park, CA $4,067,887 9 Griffith Company Brea, CA $4,161,671
10 Excel Paving Co. Long Beach, CA $4,254,341
11 SRK Engineering Escondido, CA $4,691,667
Dominguez General Engineering, Inc. submitted the lowest responsive base bid, in the amount of $2,133,362 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to Dominguez General Engineering, Inc., in the amount of the base bid totaling $2,133,362 (Exhibit 3).
Dominguez General Engineering, Inc. has not performed as a prime contractor in the City of Santa Ana within the past five years. A reference check was made and good reviews were received from other public agencies regarding quality of work performed by Dominguez General Engineering, Inc.
Project Delivery
To deliver a complete project, in addition to the construction contract bid amount, the estimated total project delivery cost includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $2,986,706.
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Project Item Total
Construction Contract Bid Amount $2,133,362
Construction Administration, Inspection, Testing $320,004 Contract Contingencies $533,340
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $2,986,706
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, a Mitigated Negative Declaration was prepared for the project and was filed with the document number 202385000522.
FISCAL IMPACT
Project Nos. 21-6453, 21-6619, and 24-6710 are the numbers assigned to the funding for tracking of all expenditures to deliver the construction of this project. As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $2,986,706 which includes the construction contract, contract administration, inspection, testing, and project contingency.
The proposed contract enables staff to authorize a change order (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, if necessary, for contingencies. Staff expects to utilize other available Public Works appropriations if a contingency becomes necessary to complete the project. If there are no other available appropriations, then Staff will return to City Council with a project update and recommendations.
The approval of the requested appropriation adjustments will complete the funding needed to deliver the project.
1. Approve an appropriation adjustment recognizing prior year fund balance of $711,814 in the Select Street Construction, Prior Year Carry Forward revenue account (No. 05917002-50001) and appropriating the same amount to the Select Street Construction, Improvements Other Than Building expenditure account (No. 05917660-66220).
2. Approve an appropriation adjustment accepting California State Water Resources Control Board’s Drinking Water State Revolving Fund loan funds in the amount of $1,529,220 into the Sanitary Sewer Capital Recovery Charges, Financing Proceeds revenue account (No. 05417002-59301) and appropriating the same amount to the Sanitary Sewer Capital Recovery Charges, Improvements Other Than Building expenditure account (No. 05417647-66220) (Exhibit 5).
The following table summarizes the funds budgeted and available in current FY 23-24 for expenditure to deliver construction of this project. Any remaining balances not North East Annexation Water & Sewer Improvements
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expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 24-25.
Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit -
Account No.
Description
Amount
Appropriation Adjustment
2023-24 05917660-66220
(24-6710)
Select Street
Construction
Select Street
Construction,
Improvements Other
Than Buildings
$711,814
2023-24 05417647-66220
(21-6619)
Sanitary
Sewer
Capital
Sewer Connection
Projects, Improvements
Other Than Buildings
$1,529,220
Existing Project Budget
2023-24 06617647-66301
(21-6453)
Acquisition &
Construction
Water Utility Capital
Projects, Water Capital
Project
$745,672
Total $2,986,706
EXHIBIT(S)
1. Location Map
2. Bid Proposal
3. Construction Contract
4. Cost Analysis
5. CIP Project Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Steven A. Mendoza, Acting City Manager