DATE: January 7, 2025
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Award Contract 24-15-C CSA 1 Tamarack Water Infrastructure Replacement
RECOMMENDED ACTION(S):
TITLE
1. Adopt plans and specifications for Contract 24-15-C CSA 1 Tamarack Water Infrastructure Replacement, Department of Water Resources Project No. 4600015689 and award to the lowest bidder DG Construction, Inc., in the total amount of $1,712,241 for the base bid and Additive 2; and
2. Authorize the Chairman to issue a change order to add the bid amount for Additive 1 of $510,388 if funding from the Department of Water Resources is approved.
REPORT
Approval of the first recommended action will authorize the award the base bid and Additive 2 of a State of California Department of Water Resources (DWR) grant funded water infrastructure replacement project.
Approval of the second recommended action will authorize the Chairman to award Additive 1 of the project pending approval of additional funds from DWR.
This item pertains to a location in District 5.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the project will be delayed or will not be constructed.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. This project is 100% funded through the Small Community Drought Relief Program grant received through DWR and accepted by your Board on June 20, 2023. The maximum amount of the grant is $2,098,240. The anticipated construction cost for the project is $1,835,872, comprised of the low bid’s base bid and Additive 2 totaling $1,712,241, plus the Director’s allowance for change orders of $123,631. Should the additional funds be authorized by DWR, the anticipated construction cost for the project is $2,346,260, based on the initial award of $1,835,872, the Chairman’s change order of $510,338 for Additive 1, plus the Director’s allowance for change orders of $123,631. Sufficient appropriations and estimated revenues are included in the Department of Public Works and Planning - Special Districts Administration Org 9141 FY 2024-25 Adopted Budget, which were increased per a Board-approved Budget Resolution on March 14, 2023, to account for anticipated revenues and expenditures related to the DWR grant funding.
DISCUSSION:
CSA 1 was formed in 1962 and is located east of Tollhouse Road (SR 168) at Flintridge Drive, approximately nine miles south of Huntington Lake. There are 45 parcels within CSA 1, which currently includes 38 developed parcels, six undeveloped parcels, and a parcel which contains a 10-unit motel. CSA 1 provides water and wastewater services to the residents of the Tamarack Estates tract. The aging water infrastructure causes CSA 1 to incur frequent emergency water system repairs. Aging infrastructure issues include deteriorating asbestos cement pipe and a rusted water storage tank that needs to be replaced. Replacement of the aging water system infrastructure with the grant funding will allow CSA 1 to conserve the current water sources and stop leaking water due to water line breaks and constant repairs.
A prior bid opening was held for this project on May 2, 2024 and only one bid in the amount $2,695,928 was received. The bid was $957,726, or 55% higher, than the engineer’s original estimate of $1,738,202 and the maximum funding amount of the DWR grant is $2,098,240, which was not enough to cover the amount of the bid received. The bid was rejected by your Board on July 9, 2024 and a Notice to Bidders was re-issued on October 22, 2024.
The work to be done consists of installing approximately 3,900 feet of High-Density Polyethylene (HDPE) water main, replacing the function of the existing asbestos cement pipelines. The project also includes installing approximately 45 service connections with meters and meter boxes and installing five fire hydrants. This project contains additives including removing the existing storage tank, installing a new storage tank, and installing pavement overlays in the project area.
A bid opening was held on November 21,2024. Four bids were received. The low bid of $2,222,629, from DG Construction, Inc., was $497,843.50 or 28.86% higher than the engineer’s revised estimate of $1,724,785.50. A list of bidders and their respective bid amounts is shown below:
Bidder Bid Amount
DG Construction, Inc. $2,222,629
Agee Construction Corporation $2,480,960
West Valley Construction Company $2,693,716
Walsh Montgomery Construction, Inc. $2,888,071
Staff are currently reaching out to DWR to request additional funding for Additive 1 of the project and, while waiting for the determination, construction will begin on the base bid and Additive 2 portions of work for the project. If the second recommended action is approved, construction of Additive 1 will commence once funding is secured.
Plans and Specifications were prepared by Department staff and are on file with the Department. Department staff has determined that the CSA 1 Tamarack Water Infrastructure Replacement project is categorically exempt from the provisions of CEQA under Section 15301(b) - Existing Facilities. It is anticipated that construction will commence in January 2025 and will be completed in April 2025.
OTHER REVIEWING AGENCIES:
State of California Department of Water Resources
REFERENCE MATERIAL:
BAI #33, March 14, 2023
BAI #78, June 20, 2023
BAI #58, July 9, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
Location Map
Bid Summary
CAO ANALYST:
Salvador Espino