HomeMy WebLinkAbout05 AWARD CONTRACT FOR BENETA WELL NO. 2 - PHASE II EQUIPPING PROJECT (CIP NO. 60151)DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
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MEETING DATE:
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FROM:
SUBJECT:
AGENDA REPORT
OCTOBER 4, 2022
MATTHEW S. WEST, CITY MANAGER
Agenda Item 5Ds
Reviewed:��
City Manager Ds
Finance Director �a
DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
AWARD CONTRACT FOR THE BENETA WELL NO. 2 — PHASE II EQUIPPING
PROJECT (CIP NO. 60151)
SUMMARY
Bids for the Beneta Well No. 2 — Phase II Equipping Project (CIP No. 60151) have been received
and a construction contract is ready to be awarded to the lowest responsive/responsible bidder,
Arnaz Engineering Contractors, Inc. ("Arnaz").
RECOMMENDATION
It is recommended that the City Council:
1. Deny the bid protest submitted by Environmental Construction, Inc. ("ECI") as to Arnaz;
2. Award a construction contract to the lowest responsive/responsible bidder, Arnaz, in the
amount of $3,096,800.00 for the Beneta Well No. 2 — Phase II Equipping Project (CIP No.
60151) and authorize the Mayor and the City Clerk to execute the contract documents on
behalf of the City; and
3. Authorize the remaining project budgeted appropriation in excess of ten percent (10%) above
the contract amount as additional contingency.
FISCAL IMPACT
The total budget for this project is $6,175,140. To date, project expenses and commitments total
$2,621,531, which includes design services and approximately $2,095,000 for construction
of the Phase I Drilling Project. The remaining balance of $3,553,609 will be used for
construction of the Phase II Equipping Project, including contingency and construction
management services.
The project is partially funded through the Santa Ana River Conservation and Conjunctive Use
Program (SARCCUP) grant, in the amount of $1,575,140, and administered through the Orange
County Water District (OCWD). Information regarding the grant is provided later in this report. To
date, the full $1,575,140 grant reimbursement request has been submitted to OCWD and is
awaiting reimbursement.
CORRELATION TO THE STRATEGIC PLAN
The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and
Protection of Assets. Specifically, the project implements Strategy 1, which among other items, is
to ensure continuous maintenance and improvement of public facilities. In addition, Goal D:
Foster strong relationships within the community, specifically, Strategy 2, enhance collaborative
efforts with agencies within and outside Tustin on issues of mutual interest and concern.
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
Beneta Well No. 2 — Phase II Equipping Project (CIP No. 60151)
October 4, 2022
Page 2
DISCUSSON
OCWD, in partnership with Santa Ana Watershed Project Authority (SAWPA), was awarded
$7,875,000 in Proposition 84 grant funds from the Department of Water Resources (DWR) for the
SARCCUP program. These grant funds have been dedicated to construct five additional
groundwater wells within the OCWD service boundaries. Tustin was selected as one of five Orange
County water agencies to receive $1,575,140 in matching funds to assist in the construction of a new
groundwater well. On February 2, 2021, the City Council approved a contract entitled "Contract
Between Orange County Water District and the City of Tustin Regarding Construction of Wells for
Santa Ana River Conservation and Conjunctive Use Program (SARCCUP) Water Bank".
Construction of the Phase I Drilling Project is substantially complete. The scope of work of the Phase
II Equipping Project includes construction of a concrete block building to house the well; installation
of a vertical turbine pump, motor and associated piping; electrical equipment; construction of a pump
to waste settling basin with discharge pipe to the Orange County Flood Control District flood channel;
piping and fittings; chlorination facility; drainage of the site; landscaping and irrigation; paving;
motorized gate and accessories; connections to existing utilities; permits; and disinfection and
startup.
Formal bids were submitted electronically and publicly opened on August 2, 2022 and reviewed by
Public Works. Six (6) bids were received and are summarized below by order of least dollar amount:
• Arnaz Engineering Contractors, Inc ................................................ $3,096,800.00
• Environmental Construction, Inc ...............................................:..... $4,036,096.00
• Pacific Hydrotech Corporation........................................................ $4,273,830.00
• Caliagua, Inc.................................................................................. $4,432,085.00
• Canyon Springs Enterprises........................................................... $4,586,350.00
• Metro Builders & Engineers Group Ltd ........................................... $4,805,684.00
Staff has reviewed the references and the State Contractor's License for Arnaz Engineering
Contractors, Inc. and has determined that they are appropriate for the subject project.
Protest to Arnaz's Bid
The City received one untimely formal bid protest to the Arnaz bid, dated August 17, 2022, from
Environmental Construction Inc (ECI), the apparent second lowest bidder. ECI submitted the bid
protest fifteen (15) days after bids were received on August 2, 2022. To be considered timely, the
Project Specifications require protests to be filed no later than five (5) calendar days after the date
of when bids were due. Therefore, the bid protest should be denied on the basis of being untimely.
Although untimely, the issues raised in the bid protest were taken into consideration. In the protest,
ECI requested that the City find the apparent lowest bidder, Arnaz, non-responsive. Staff provided
Arnaz with the opportunity to respond to the issues raised in the protest and Arnaz has provided a
response. Staff, along with the City Attorney's Office, has reviewed the issues raised in the protest
as to Arnaz's bid and determined that the protest is without merit. The issues raised in the protest
are discussed below.
1. ECI contends that Arnaz failed to list a subcontractor for the installation of the well pump with
the required contractor's license classification and that Arnaz is not qualified or licensed to
perform this work.
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
Beneta Well No. 2 — Phase II Equipping Project (CIP No. 60151)
October 4, 2022
Page 3
Under Public Contract Code Sections 4104 and 4106, by not listing a subcontractor for an item of
work in excess of one-half of one percent (0.5%) of the total bid, a prime contractor agrees it is fully
qualified to perform that portion of work and that it will self -perform that portion of work. Here, Arnaz
did not list a subcontractor to install the well pump and thus agrees that it is fully qualified to perform
this work and that it will self -perform this portion of the work. ECI contends that Arnaz is not qualified
to perform this work and that a C-57 Well Drilling Contractor specialty license is required for this
project. California Code of Regulations Title 16, Section 832.57 defines a C-57 Well Drilling
Contractor as one that installs and repairs water wells and pumps by boring, drilling, excavating,
casing, cementing and cleaning to provide a supply of uncontaminated water. These items of work
were completed under a separate contract by a C-57 licensed contractor as part of the Phase I —
Drilling Project and are not included as part of the Phase II project. Accordingly, a C-57 license is
not required for this project. In accordance with Section 3300 of the Public Contract Code, the City
has determined and specified that the Contractor shall possess a valid California Contractor's
License Class "A" General Engineering Contractor for this project, which Arnaz possesses.
2. ECI contends that Arnaz failed to list a roofing subcontractor and is not qualified or authorized
to self -perform the roofing work.
Technical Specifications Section 07550 identifies qualifications and requirements for the installation
of the modified bituminous membrane roofing system. These qualifications include that the installer
shall be a company specializing in modified bituminous roofing installation with not less than 5 years
experience and authorized by the roofing system manufacturer as qualified to install the
manufacturer's roofing materials. ECI contends that Arnaz is not a specialized modified bituminous
roofing contractor and is not authorized by the manufacturer, The Garland Company, to perform the
work.
Arnaz did not list a subcontractor for the roofing work and thus has agreed pursuant to Public
Contract Code section 4106 that it is qualified to perform this work and that it will self -perform the
roofing work. In addition to a Class "A" General Engineering contractor's license, Arnaz possesses
a Class "B" General Building contractor's license, under which it can contract for projects that include
roofing and can self -perform roofing work. Arnaz has indicated it does have in-house personnel with
the necessary experience to perform modified bituminous membrane roofing installation and City
staff has determined that Arnaz possesses the required qualifications. Written authorization from
the roofing material manufacturer, The Garland Company, for Arnaz to install the roofing system is
provided in Attachment 3 to this report.
3. ECI contends that Arnaz failed to list an electrical subcontractor with a C-10 license and is not
qualified to self -perform the electrical work
The bid documents do not require bidders to possess a C-10 license. Rather, the bid documents
require bidders to possess a Class "A" General Engineering License. Arnaz holds both Class "A" and
Class "B" licenses. Arnaz did not list a subcontractor for the electrical work and thus has agreed
pursuant to Public Contract Code section 4106 that it is qualified to perform this work and that it will
self -perform the electrical work. The electrical work is ancillary to the overall project and therefore
can be performed under Arnaz's Class "A" and "B" licenses. Arnaz has indicated it does have in-
house personnel with the necessary experience and qualifications to perform the project, including
electrical work. Accordingly, Arnaz is not required to list a subcontractor for the electrical work and
may self -perform this work.
The bid protest and Arnaz's response have been included as attachments to this report.
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
Beneta Well No. 2 — Phase II Equipping Project (CIP No. 60151)
October 4, 2022
Page 4
Staff is recommending that the City Council deny the bid protest submitted by ECI as to Arnaz's bid,
award the construction contract to the lowest responsive/responsible bidder, Arnaz Engineering
Contractors, Inc., for the Beneta Well No. 2 — Phase II Equipping Project (CIP No. 60151), and
authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City.
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Dir
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Attachment(s): 1. Location Map
2. Environmental Construction, Inc. bid protest letter, dated August 17, 2022
3. Arnaz Engineering Contractors, Inc. response to protest issues
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
ATTACHMENT 1
Location Map
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
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DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
ATTACHMENT 2
Environmental Construction, Inc. Bid Protest Letter,
Dated August 17, 2022
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
August 17, 2022
Eric Johnson
Principal Engineer
City of Tustin
300 Centennial Way
Tustin, CA 92780
Project: Beneta Well No. 2 — Phase II Equipping Project
CIP No. 60151-2
Subject: Environmental Construction, Inc.'s Bid Protest
Mr. Johnson,
Please allow this letter to serve as Environmental Construction, Inc.'s ("ECI")
protest to Arnaz Engineering Contractors, Inc.'s ("Arnaz") bid submitted for the Beneta
Well No. 2 — Phase Il Equipping Project, CIP No. 60151-2 (the "Project"). Arnaz's bid
should be deemed non-responsive and rejected due to its numerous material defects
outlined below. Specifically, Arnaz failed to list multiple subcontractors for several
required scopes of work, including well pumping, roofing, electrical work. Therefore, as
the next lowest responsive and responsible bidder, ECI must be awarded the Project.
A. Arnaz Failed to list a Well Pump Subcontractor
The project requires an experienced well pump subcontractor. This role is an
absolute priority on this project because it is specialty work requiring specialized
equipment, manpower, and licensing.
Here, Amaz failed to list any subcontractor required to perform this work. Public
Contract Code Section 4104 states that if a prime contractor fails to specify a subcontractor
when so required, the prime contractor agrees that it is fully qualified to perform that
portion itself and will in fact perform that portion of the work. Arnaz is neither qualified
nor licensed to perform the work, which requires a C-57 license. Therefore, Arnaz's bid
must be deemed non-responsive and rejected due to its failure list a qualified well pump
subcontractor.
B. Arnaz Failed to list a Roofing Subcontractor
Section 07550-3 Modified Bituminous Membrane Roofing, 1.6 B. Installer
Qualifications expressly requires the roofing subcontractor to be a company "specializing
in modified bituminous roofing installation with not less than 5 years' experience and
ENVIRONMENTAL CONSTRUCTION, INC.
■ \It
General Engineering Contractors
21550 Oxnard Street, Suite #1060
Woodland Hills, CA 91367
818-449-8920
August 17, 2022
Eric Johnson
Principal Engineer
City of Tustin
300 Centennial Way
Tustin, CA 92780
Project: Beneta Well No. 2 — Phase II Equipping Project
CIP No. 60151-2
Subject: Environmental Construction, Inc.'s Bid Protest
Mr. Johnson,
Please allow this letter to serve as Environmental Construction, Inc.'s ("ECI")
protest to Arnaz Engineering Contractors, Inc.'s ("Arnaz") bid submitted for the Beneta
Well No. 2 — Phase Il Equipping Project, CIP No. 60151-2 (the "Project"). Arnaz's bid
should be deemed non-responsive and rejected due to its numerous material defects
outlined below. Specifically, Arnaz failed to list multiple subcontractors for several
required scopes of work, including well pumping, roofing, electrical work. Therefore, as
the next lowest responsive and responsible bidder, ECI must be awarded the Project.
A. Arnaz Failed to list a Well Pump Subcontractor
The project requires an experienced well pump subcontractor. This role is an
absolute priority on this project because it is specialty work requiring specialized
equipment, manpower, and licensing.
Here, Amaz failed to list any subcontractor required to perform this work. Public
Contract Code Section 4104 states that if a prime contractor fails to specify a subcontractor
when so required, the prime contractor agrees that it is fully qualified to perform that
portion itself and will in fact perform that portion of the work. Arnaz is neither qualified
nor licensed to perform the work, which requires a C-57 license. Therefore, Arnaz's bid
must be deemed non-responsive and rejected due to its failure list a qualified well pump
subcontractor.
B. Arnaz Failed to list a Roofing Subcontractor
Section 07550-3 Modified Bituminous Membrane Roofing, 1.6 B. Installer
Qualifications expressly requires the roofing subcontractor to be a company "specializing
in modified bituminous roofing installation with not less than 5 years' experience and
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
authorized by roofing system manufacturer (The Garland Company) as qualified to install
manufacturer's roofing materials."
Here, Arnaz failed to list any subcontractor required to perform roofing work. Per
Public Contract Code Section 4104, Arnaz would then have to agree to self -perform this
work, which it is not qualified to perform. Indeed, Arnaz is not a specialized modified
bituminous roofing subcontractor nor has it been authorized to perform the roofing work
by The Garland Company. Therefore, Amaz's bid must be deemed non-responsive rejected
due to its failure list a qualified roofing subcontractor.
C. Arnaz Failed to list an Electrical Subcontractor
Specification Section 16010-1 General Electrical Requirements expressly states
that substantial electrical work is required including "materials, installation and testing of
electrical systems." Furthermore, General Provisions, Section 2-2 states "the contractor
and all subcontractors shall be licensed in accordance with State Business and
Professions Code" for the work they intend to perform.
Here, Arnaz failed to list any subcontractor required to perform this work.
Moreover, Arnaz only listed Morrow -Meadows Corp to perform Control Panel, Scada
work. Per Public Contract Code Section 4104, Arnaz would then have to agree to self -
perform the remaining electrical work, which it is neither qualified nor licensed to perform.
Indeed, Arnaz does not possess the required C-10 license to perform the work. Therefore,
Amaz's bid must be deemed non-responsive and rejected due to its failure list a qualified
electrical subcontractor.
D. Conclusion
In conclusion, Amaz's bid contains several material defects which render its bid
non-responsive. ECI requests that the City of Tustin declare Amaz's bid non-responsive
and award the Project to ECI as the lowest responsive and responsible bidder. Should you
have any questions, please do not hesitate to contact me at (818) 251-0315.
Sincerely,
Aria Soroudi
Vice President
Environmental Construction, Inc.
ENVIRONMENTAL CONSTRUCTION, INC.
■ \It
General Engineering Contractors
21550 Oxnard Street, Suite #1060
Woodland Hills, CA 91367
818-449-8920
authorized by roofing system manufacturer (The Garland Company) as qualified to install
manufacturer's roofing materials."
Here, Arnaz failed to list any subcontractor required to perform roofing work. Per
Public Contract Code Section 4104, Arnaz would then have to agree to self -perform this
work, which it is not qualified to perform. Indeed, Arnaz is not a specialized modified
bituminous roofing subcontractor nor has it been authorized to perform the roofing work
by The Garland Company. Therefore, Amaz's bid must be deemed non-responsive rejected
due to its failure list a qualified roofing subcontractor.
C. Arnaz Failed to list an Electrical Subcontractor
Specification Section 16010-1 General Electrical Requirements expressly states
that substantial electrical work is required including "materials, installation and testing of
electrical systems." Furthermore, General Provisions, Section 2-2 states "the contractor
and all subcontractors shall be licensed in accordance with State Business and
Professions Code" for the work they intend to perform.
Here, Arnaz failed to list any subcontractor required to perform this work.
Moreover, Arnaz only listed Morrow -Meadows Corp to perform Control Panel, Scada
work. Per Public Contract Code Section 4104, Arnaz would then have to agree to self -
perform the remaining electrical work, which it is neither qualified nor licensed to perform.
Indeed, Arnaz does not possess the required C-10 license to perform the work. Therefore,
Amaz's bid must be deemed non-responsive and rejected due to its failure list a qualified
electrical subcontractor.
D. Conclusion
In conclusion, Amaz's bid contains several material defects which render its bid
non-responsive. ECI requests that the City of Tustin declare Amaz's bid non-responsive
and award the Project to ECI as the lowest responsive and responsible bidder. Should you
have any questions, please do not hesitate to contact me at (818) 251-0315.
Sincerely,
Aria Soroudi
Vice President
Environmental Construction, Inc.
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
ATTACHMENT 3
Arnaz Engineering Contractors, Inc.
Response to Protest Issues
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
Johnson, Eric
From: arnazeng@aol.com
Sent: Tuesday, August 23, 2022 9:55 AM
To: Johnson, Eric
Cc: yousef.habhab@gmail.com
Subject: RE: Beneta Well No. 2 - Phase II Equipping Project
Dear Mr. Johnson,
Thank you for reviewing our Bid, I hereby would like to respond to your questions as follows:
1. Arnaz Engineering Contractors have a qualified and experienced In -House Key Personnel, capable
of professionally completing all the construction activities for Beneta Well Project. Furthermore, Arnaz
Engineering Contractors is Confident in successfully delivering the Beneta Well Project for the City of
Tustin fully operational and functional, as proven by many completed functional well sites in Southern
California.
2. As submitted in the bid package, Arnaz Engineering Contractors has completed many well site
projects that are very similar to the Beneta Well Project. Arnaz Engineering Contractors In -House
Crew had performed Modified bituminous membrane roofing, Electrical, Instrumentation, Controls,
and installing pumps along with all the related tasks to have complete functional facilities.
Attached is a picture of completed Well 54 located in the City of Anaheim.
3. For Further verification, Arnaz Engineering Contractors has worked on similar industrial water
projects designed by AKM Consultants, the design company for Beneta Well Project. Listed below
are some of those projects:
a. Ontario Booster Station, including 9 Pumps, 9 VFDs, and an Emergency Generator, which was
completed totally with our In -House Crew.
Designer: Mr. Gary Hopson.
b. WRF2 - 1.OMGD Tertiary Membrane Filter Project including recycle booster station. All
construction activities were completed by our In -House Crew.
Designer: Mr. Gary Hopson.
c. Equipping Well 31 Located in the City of Corona, including modified bituminous membrane
roofing, electrical, and well Pump. All construction activities were completed by our In -House Crew.
Designer: Mr. Gary Hopson.
d. Equipping Well 31 Located in the City of Garden Grove Including Electrical, Instrumentation, and
Controls. All construction activities were completed by our In -House Crew.
Designer: Mr. John Loague.
e. WRF1 Recycle booster station located at City of Corona. All construction activities were completed
by our In -House Crew.
Designer: Mr. Gary Hopson.
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
4. As mentioned in our bid proposal reference projects. Please feel free to Contact the
listed References for further verification. Some of the references:
a. Mr. Tyrone Chesenak. Phone: (949) 285-5529. Project: Walnut Booster Station.
b. Mr. Michael Feleccia. Phone: (714) 765-4427. City of Anaheim
c. Mrs. Lisa O'Connell. Phone: (714) 765-4225. City of Anaheim.
d. Mr. Sonny Tran. Phone: (714) 288-2497. City of Anaheim.
e. Mr. Samuel Kim. Phone: (714) 741-5534. City of Garden Grove.
5. Arnaz Engineering Contractors has pride in being solely capable and knowledgeable in performing
all the construction activities, listed under California Contractors State License Board A & B, involved
in Industrial Water Facilities projects.
6. I, Ali Yazdanshenas, with the Contractor License No. 453219, have been active in Industrial Water
Facilities Projects since 1984. With more than 400 completed sites for different municipalities in
California. Also, Arnaz Engineering Contractors is a UL LISTED / CERTIFIED Industrial Control Panel
Builder and has UL Certification in Designing for Compliance in Industrial Control Panels, UL 508A
and Short -Circuit Current Ratings. Certificate Number: UL -US -2207916-0.
7. As per out bid package, we hereby confirm that we shall not have any additional sub -contractors
beyond of those who are named in the submitted package.
We understand and appreciate your concern and would like to assure you, that we will deliver a
complete operational well site, per the plans and specifications.
Sincerely,
Ali Yazdanshenas
(949) 279-0027
ra
DocuSign Envelope ID: 5C373DDE-C7CC-4C88-991A-CEEBBBFD10B1
Johnson, Eric
From:
Ali Yazdanshenas <araengineering@gmail.com>
Sent:
Thursday, September 15, 2022 9:20 AM
To:
Johnson, Eric
Cc:
Yousef Habhab
Subject:
Fwd: Letter of Certification / Authorization
Dear Mr. Johnson,
Please see the attached authorization letter.
Sincerely
Ali Yazdanshenas
Begin forwarded message:
From: Steve Lampman <slampman@garlandind.com>
Date: September 15, 2022 at 9:14:13 AM PDT
To: Yousef Habhab <yousef.habhab@gmail.com>
Cc: Ali Yazdanshenas <araengineering@gmail.com>
Subject: Re: Letter of Certification / Authorization
Mr Habhab;
This email is to confirm that The Garland Company will authorize your
company Arnaz Engineering to install the roofing system at Beneta Well
for City of Tustin.
We look forward to working with you.
Sincerely,
Steve Lampman
The Garland Company
949-322-1770