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Regular-Community Services # 50.
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| Board of Supervisors |
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| Subject |
| Approve agreement with RJ Gordon Construction for the construction of the next landfill module, Waste Management Unit 6F and approve agreement with Conaway Preservation Group for construction water. (No general fund impact) (Echiburu/Kieffer) |
| Recommended Action |
- Approve agreement with RJ Gordon Construction as the lowest responsive and responsible bidder and authorize the Director, Division of Integrated Waste Management to sign the agreement;
- Authorize the Director, Division of Integrated Waste Management to approve all change orders up to the maximum amount allowable under State law, provided the total contract amount does not exceed the available funds for this project; and
- Approve agreement with Conaway Preservation Group for construction water and authorize the Chair of the Board of Supervisors to sign the agreement.
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| Strategic Plan Goal(s) |
Operational Excellence
Sustainable Environment |
| Reason for Recommended Action/Background |
Prior to placing waste in any new area of the landfill, a waste management module must be constructed which consists of multiple layers of soil, compacted clay, geomembrane liners (thick plastic) and a leachate drainage layer. Construction plans and specifications for this next module, denoted Waste Management Unit 6F, were approved by the Board on January 15, 2019.
The Department issued these plans for bid and bids were initially received on March 14, 2019. However, due to several inconsistencies in the first and second low bidder's bids, and a change in the location of soil haul road for the project, all bids were rejected and the project was re-advertised on March 15, 2019 with bids due on March 26, 2019. A total of four bids were received on March 26th with the results summarized in competitive bid process summary table below. Nichelini General Engineering was the original lowest bidder.
Bid protests were received from the second and third lowest bidders alleging various deficiencies in Nichelini's bid, as well as each other's bids. The Purchasing Agent conducted a thorough review of the bids and ruled to deny the bid protests.
As required by County policy, all bidders on public works projects in excess of seven hundred fifty thousand ($750,000) dollars must participate in a State of California Division of Apprenticeship Standards approved joint labor and management apprenticeship program. As none of the four contractors who submitted bids included proof of participation, the division notified all contractors on April 12, 2019 of the requirement and allowed them until noon on April 15, 2019 to provide the information. Each contractor submitted information related to this requirement. The information submitted by Nichelini (low bidder) did not meet the County's requirements and as such, Nichelini's bid was considered non-responsive and eliminated. (Attachment C) As the second lowest bidder, RJ Gordon's information was reviewed and concluded that they meet the apprenticeship requirements. A review of the remaining portions of RJ Gordon's bid concluded they they were the next lowest responsive and responsible bidder. Division staff is recommending award of the agreement to RJ Gordon (Attachment A).
When the plans and specifications were originally presented to the Board in January, the Department had been in discussions with Conaway Preservation Group to utilize a portion of their property as the haul route for soil transportation as well as access to one of Conaway's irrigation ditches for construction water. At the time, an agreement seemed likely, however Conaway subsequently determined that the subject property had a Swainson's Hawk easement and could not be taken out of agriculture, even for a short duration. This is the primary reason a rebid was necessary. However, a water use agreement was negotiated and is attached for approval as Attachment B.
Also included in the January 15, 2019 Board meeting was a requirement for Director, Division of Integrated Waste Management and Chief Financial Officer, Department of Financial Services to return to the Board with a budget resolution and financing plan for this project. Funding for this project will be provided by short term use of Sanitation Enterprise funds while long term financing is planned to occur through a revenue bond issuance. The Department of Financial Services currently closed a Municipal Advisory RFP on April 1 and is wrapping up evaluations to select the financial advisor to assist with the bond issuance. The plan would be to issue the amount of bonds required to finance the project not to exceed $10 million and close the debt issuance by September 30, 2019. The plan of finance was presented to the Debt Committee at its April 9, 2019 meeting and was approved. There is some risk associated with using short term funds of the Sanitation Enterprise funds to complete construction which the longer term financing is constructed that should be recognized. Though internal modeling of the debt issuance appear favorable, this will be the first Solid Waste Revenue bonds and the County will likely be subject to revenue requirements, debt service coverage ratios and other debt covenants on the Sanitation Enterprise fund moving forward after this debt issuance.
Exhibits to the RJ Gordon agreement (Att. A) are on file with the Clerk of the Board. |
| Collaborations (including Board advisory groups and external partner agencies) |
County Counsel has approved the agreements as to form.
Department of Financial Services (DFS) has prepared a draft financing plan for the project and is soliciting a financial advisor to help to advise on a bond issuance to fund the project.
The Purchasing Division of DFS ruled on the bid protest and the Purchasing division of DFS in conjunction with County Counsel ruled on the apprenticeship proof and disqualification of Nichelini. |
| Competitive Bid Process |
Invitation for Bid
Bids Received
| Bidder |
Bid |
| Nichelini General Engineering (Non-Responsive) |
$8,434,668 |
| RJ Gordon Construction, Inc. |
$8,851,787 |
| Teichert Construction |
$8,919835 |
| Kiewit Infrastructure West Co. |
$12,513,7500 |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| Overall project budget is $10,000,000, which includes construction cost, construction quality assurance inspection and contingency. Initial financing will be through the use of Sanitation Enterprise funds with subsequent bond issuance anticipated to be completed by September 30, 2019. A budget resolution to increase the FY 2018-19 Community Services budget for this project and the closure of waste management units 4 and 5 was included as a separate agenda item. The remaining funding for this agreement will be included in the requested budget for FY 2019-20. |
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