DATE: January 19, 2021
SUBJECT:
Title
RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AWARDING CONTRACT NO. 2020-04 TO SIERRA PACIFIC WEST, INC. IN THE AMOUNT OF $886,616.33 FOR THE SITE H-23 PHASE 2 GRADING PROJECT, A COMPONENT OF THE SOUTH CAMPUS PAVEMENT AND DEMOLITION PROJECT IN THE CHULA VISTA BAYFRONT, AS AUTHORIZED BY THE BOARD IN THE FY 2019-2023 CAPITAL IMPROVEMENT PROGRAM, CONDITIONED ON FUTURE EXECUTION OF AN EASEMENT AGREEMENT WITH PACIFICA COMPANIES
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EXECUTIVE SUMMARY:
The Site H-23 Phase 2 Grading project is part of final phase of the CIP South Campus Pavement and Demolition Project at Chula Vista Bayfront project and is needed to complete the final phase of the demolition of the South Campus.
Bids for the Site H-23 Phase 2 Grading project were advertised on November 10, 2020. On December 10, 2020, the District received seven (7) bids ranging from $886,616.33 to $5,841,635.00. The lowest and only responsive and responsible bid was submitted by Sierra Pacific West, Inc. in the amount of $886,616.33.
To complete the final phase of the demolition of the South campus staff recommends authorization to approve the plans and specifications and award of the project to Sierra Pacific West, Inc. in the amount of $886,616.33 for the Site H-23 Phase 2 Grading project, Chula Vista, California.
An easement agreement with Pacifica Companies is required for a portion of the Site H-23 Project work, which is located on Pacifica Companies’ adjacent parcel. Staff recommends authorization of the award to Sierra Pacific West, Inc. be conditioned on the future execution of an easement agreement with Pacifica Companies.
RECOMMENDATION:
Recommendation
Adopt a resolution approving plans and specifications and awarding Contract No. 2020-04 to Sierra Pacific West, Inc. in the amount of $886,616.33 for the construction of the Site H-23 Phase 2 Grading Project, as authorized by the Board in the FY 2019-2023 Capital Improvement Program, conditioned on future execution of an easement agreement with Pacifica Companies.
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FISCAL IMPACT:
This project is included in the FY 2019-2023 CIP for the South Campus Pavement and Foundation Demolition Project (P0040) at a total project budget of $25,387,687.27 of which $1,700,000.00 remains for FY 2021 and $348,917.39 for FY 2022 for a total remaining budget of $2,048,917.39. Approval of this agenda will authorize the expenditure of $886,616.33 from the Capital Improvement Program project budget with no fiscal impact to the District.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a healthy and sustainable bay and its environment.
DISCUSSION:
In 1999 the District entered into a Relocation Agreement with Rohr, the City of Chula Vista, and the Redevelopment Agency of the City of Chula Vista. The Relocation Agreement provides, among other things, that the District be responsible for the demolition and removal of structures and associated infrastructure located on the South Campus, including the demolition of buildings, foundations, pavement, storm drains, utilities and appurtenances.
In 2017 the Board authorized a Partial Settlement Agreement (Agreement) with Rohr which allocated responsibility and costs for demolition and removal of the remainder of the improvements on the last portion of the South Campus, Site H-23 to the District and the performance of the work assigned to Rohr. The agreement stated that the Rohr cost for demolition and removal of the improvements would be calculated by actual quantities of the demolished components multiplied by pre-agreed unit rates plus an allowable markup for the contractor and Rohr overhead and fees.
During the final phase of the demolition work it was determined the costs were quickly approaching the District’s budget and the District determined the remaining work, grading and stabilizing the site, could be performed by the District at a lower cost than that proposed by Rohr. The District and Rohr agreed to conclude the work at the completion of demolition and authorize final reimbursement of the work Rohr completed up to that point. The balance of the work, grading and stabilization of Site H-23 is currently planned as a District project titled Site H-23 Phase 2 Grading.
The Site H-23 Phase 2 Grading project will be the final phase of the CIP South Campus Pavement and Demolition Project at the Chula Vista Bayfront project. The Contract Documents include plans No. CV-2020-01 and specifications No. 2020-04.
This project includes a requirement for approximately 100,000 cubic yards of soil to be imported from a source determined by the bidder and placed and graded at the H-23 site. The import soil is specified to conform to stringent geotechnical and environmental requirements based on planned future development at the site. Demonstration of compliance to the import soil requirements is a cumbersome and time-consuming process, which at times can lead to unfavorable results. To address that, staff determined it was necessary for the bidders to submit documentation demonstrating the proposed import soil for the project complies with the soil specifications at the time of bid. That determination was made to avoid the risk of awarding the contract and later determining the awardee could not satisfy the import soil specification requirement.
Bids for the Site H-23 Phase 2 Grading project were advertised on November 10, 2020. On December 10, 2020, the District received seven (7) bids ranging from $886,616.33 to $5,841,635.00. Six out of the seven bids received were determined nonresponsive because the documentation demonstrating import soil specification compliance was insufficient to verify if the soil satisfied the specifications. One of the bids, submitted by Sierra Pacific West (SPW) was deemed responsive based on the documentation submitted at bid time.
The lowest responsive and responsible bid was submitted by Sierra Pacific West, Inc. (SPW) in the amount of $886,616.33. Award to this bidder is recommended. The range of low to high bids is greater than normally anticipated for a typical District public works project. However, this range of bids for the Site H-23 Phase 2 Grading project was anticipated since a significant scope element of the project is the import soil. The cost of that soil is influenced on its availability, location, ease of excavation, method of transport, and handling cost necessary to achieve geotechnical and environmental specification requirements. Each of these factors is unique based on each bidder’s source of the imported soil proposed for this project. In the case of the low bidder, SPW, the proposed import soil is sourced from a project currently contracted to SPW in which they are obligated to excavate and export soil that meets the specifications and is of an availability and quantity sufficient to complete the specifications for the grading work of the Site H-23 Phase 2 Grading project. Those conditions appear to be unique compared to the other bidders and allowed for SPW’s proposed bid amount to be significantly lower than the other bidders.
BID RESULTS
Based on review of the bids, the lowest responsive and responsible bid was determined to be submitted by Sierra Pacific West, Inc. at a bid amount of $886,616.33. The engineer’s construction cost estimate was $750,000.00.
The project scope includes a segment of storm drain pipe located directly south of Site H-23 on a parcel owned by Pacifica Companies. This improvement is needed on a temporary basis to drain water from portions of Site H-23 into an existing storm drain system located on the Pacifica Companies parcel. The storm drain system will no longer be needed upon Pacifica Companies’ future development of the streets and utilities planned for the infrastructure improvements of the Pacifica Companies parcel. Representatives from Pacifica Companies and District staff have agreed in concept on the terms of an easement agreement to allow the temporary storm drain improvements to be located on the Pacifica Companies’ parcel. That agreement is currently under review by both parties and is anticipated to be finalized within 2-4 weeks and, if necessary, presented to the Board for authorization at the March or April 2021 meeting. Upon execution of the easement agreement, construction is expected to commence in early March 2021 and be completed by end of June 2021.
Staff recommends approving plans and specifications and awarding Contract No. 2020-04 to Sierra Pacific West, Inc. in the amount of $886,616.33, for the construction of the Site H-23 Phase 2 Grading Project, conditioned on future execution of an easement agreement with Pacifica Companies.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda and resolution, as presented, as to form and legality.
Environmental Review:
The proposed Board action, including without limitation, a resolution approving plans and specifications and awarding a contract for the H-23 Phase 2 Grading Project, was adequately covered in the Final Environmental Impact Report (FEIR) for the Chula Vista Bayfront Master Plan (UPD #83356-EIR-658; SCH #2005081077; Clerk Document No. 56562), certified by the District on May 18, 2010 (Resolution No. 2010-78), the Addendum to the FEIR, which was adopted by the Board on August 13, 2013 (Resolution No. 2013-138), the Second Addendum to the FEIR, which was adopted by the Board on April 10, 2018 (Resolution No. 2018-0069), and the Third Addendum to the FEIR, which was adopted by the Board on December 8, 2020 (Resolution No. 2020-116). The proposed Board action is not a separate “project” for CEQA purposes but is a subsequent discretionary approval related to a previously approved project. (CEQA Guidelines § 15378(c); Van de Kamps Coalition v. Board of Trustees of Los Angeles Comm. College Dist. (2012) 206 Cal.App.4th 1036.) Additionally, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, including without limitation, the FEIR and Addendums, the District finds and recommends that the proposed Board action does not require further environmental review as: 1) no substantial changes are proposed to the project and no substantial changes have occurred that require major revisions to the FEIR and Addendums due to the involvement of new significant environmental effects or an increase in severity of previously identified significant effects; 2) no new information of substantial importance has come to light that (a) shows the project will have one or more significant effects not discussed in the FEIR and Addendums, (b) identifies significant impacts would not be more severe than those analyzed in the FEIR and Addendums, or (c) shows that mitigation measures or alternatives are now feasible that were identified as infeasible and those mitigation measures or alternatives would reduce significant impacts, and 3) no changes to mitigation measures or alternatives have been identified or are required. Pursuant to CEQA Guidelines §15162(b), the District finds and recommends that no further analysis or environmental documentation is necessary. Accordingly, the proposed Board action is merely a step-in furtherance of the original project for which environmental review was performed and no supplemental or subsequent CEQA has been triggered, and no further environmental review is required.
The proposed Board action complies with Sections 21, 35, 81, and 87 of the Port Act which allow for the Board to pass resolutions, to do all acts necessary and convenient for the exercise of its powers, and for the use funds for the expenses of conducting the District. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board action was covered in the Coastal Development Permit (CDP) for Site Preparation at Chula Vista Bayfront (CDP-2017-01; Clerk Document No. 66187) approved by the District on January 25, 2017, amendment number 1 to the CDP (Clerk Document No. 69788) issued on November 1, 2018, and amendment number 2 to the CDP (Clerk Document No. 70814) issued on January 6, 2020. The proposed Board action is consistent with the project in that CDP and amendments. No additional action under the California Coastal Act is required at this time.
Equal Opportunity Program:
Due to limited known subcontracting opportunities, no SBE goal was established for this Contract.
PREPARED BY:
Mark McIntire
Capital Project Manager II, Engineering-Construction
Abraham Pineda
Assistant Engineer, Engineering-Construction
Attachment(s):
Attachment A: Tabulation of Bids
Attachment B: Site Location Map