CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

May 1, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Robert M. Harary, P.E., Director of Public Works

APPROVED BY: Chip Rerig, City Administrator

Resolution No. 2018-043, Rejecting a Bid Protest, Awarding a Contract to Remedial

Transportation Services, for a Not-to-Exceed Amount, Including 10% Contingency, of
SUBJECT: $218,270, and Authorizing a Supplemental Appropriation of $118,270 to the Fiscal Year
2017/18 Adopted Budget for Decommissioning the Fuel Station at the Public Works
Yard.

RECOMMENDATION:

Adopt Resolution 2018-043, rejecting a Bid Protest, awarding a contract to Remedial Transportation Services
for a not-to-exceed amount, including 10% contingency, of $218,270, and authorizing a supplemental
appropriation of $118,270 to the FY 2017/18 Adopted Budget for decommissioning the Fuel Station at the
Public Works Yard.
BACKGROUND/SUMMARY:

In September 2017, the City Council amended the Fiscal Year (FY) 2017/18 Capital Improvement Program to
include a new project to Decommission the Fuel System at the Public Works Yard, and allocated $150,000 of
Measure D Funds for the project.

In October 2017, the Monterey County Environmental Health Department inspected the fueling station and
ordered the removal of the underground fuel tanks by July 2018. The fueling station was permanently shut down
at that time.

In December 2017, Council awarded a Professional Services Agreement to Pacific Crest Engineering (PCE)
for design, environmental, and construction support services associated with fuel tank removals and site closure
of the fuel station for a not-to-exceed fee, including contingency, of $41,773.75.

Construction plans and specifications for this project were prepared by PCE and checked by Public Works
staff. This project includes concrete slab demolition, shoring of an open pit up to 14 feet deep, removal and
disposal of both underground fuel tanks, the fuel island, pump equipment, underground product lines, and
utilities, constructing a new reinforced concrete slab, and processing site closure permits.
The project was extensively advertised for bids. Legal announcements were placed in the Carmel Pine Cone
and Monterey County Herald, and the project was posted on the City, construction industry, and public bidding
websites. Also, courtesy calls and notification letters were sent to Environmental Hazardous Material Abatement
companies.

Four bids were received and announced at the public bid opening held on April 10, 2018 as follows:

Engineer’s B&T RTS Triton Balch

Estimate Petroleum
Base Bid $210,631.00 $191,300.00 $198,427.25 $231,212.50 $293,560.00
Non- Mathematically Mathematically Non-
Responsive Corrected Bid Corrected Bid Responsive

Award of this contract is based on the lowest responsive, responsible bidder of the Base Bid. No additive bid
alternates were used. Bid prices are detailed in the attached Tabulation of Bids exhibit. Two of the four bidders,
B&T Service Station Contractors (B&T) and Balch Petroleum, submitted incomplete bid proposals which were
deemed non-responsive by Public Works staff.

The lowest responsive, responsible bid was submitted by Remedial Transportation Services (RTS). RTS’s bid
of $198,427.25 is 6% below the Engineer’s Estimate and 16% below the next highest bidder. Established in
2002, RTS, of Shafter, California, has completed many environmental cleanup projects for Chevron, Waste
Management, PG&E, and others.

The total amount for award of the Base Bid to RTS is $198,427.25. A 10% contingency of $19,842.75 is
recommended for unforeseen extra work items typically associated with underground work and remediation
projects. The total amount of award is not-to-exceed $218,270.

Bid Protest

On April 12, 2018, B&T filed a Bid Protest (attached) stating that their bid was complete and since they were the
lowest bidder, they should be issued the construction contract. After further review, Public Works staff
determined that the apparent low bid of $191,300, submitted by B&T, was non-responsive because no monetary
amount was entered in their bid proposal for Bid Item 11, which was to establish a unit price to off haul and
dispose of earthwork, and Bid Item 12, for a unit price to remove and dispose of Class 2 Hazardous Material.
Instead, for both Bid Items, B&T inserted a note that read “Not Included as Per Addendum #1.” Staff believes
that B&T misinterpreted earthwork-related portions of an Addendum issued prior to the bid opening.

The bid documents state under Bid Document Completion that proposals to receive consideration shall be
made in accordance with the following instructions: “The proposal shall be made upon the form provided
therefore with all items filled out. The completed form must be without interlineations, alterations,
erasures, or omissions. All submitted documents must be in original form.”

Furthermore, without unit prices for these two Bid Items, the true cost of the contract would be unknown at the
time of award because unsuitable soil and/or Class 2 hazardous material may be encountered during
construction and that would trigger a change order whose cost is unknown at this time.

Staff requests that the City Council rejects B&T’s bid protest.
FISCAL IMPACT:
The current unencumbered balance in project account 301-311-00-43008, 118FSD, is approximately $100,000.
The cost of this construction contract, with contingency is $218,270.

To award this contract, an additional $118,270 would need to be transferred from the Measure D Fund balance
to this capital project account as a supplemental appropriation to the FY 2017/18 Adopted Budget.
PRIOR CITY COUNCIL ACTION:

In September 2017, the City Council amended the Fiscal Year (FY) 2017/18 Capital Improvement Program to
include a new project to Decommission the Fuel System at the Public Works Yard, and allocated $150,000 of
Measure D funds for the project.

In December 2017, Council awarded a Professional Services Agreement to Pacific Crest Engineering (PCE)
for design, environmental, and construction support services associated with fuel tank removals and site closure
of the fuel station for a not-to-exceed fee, including contingency, of $41,773.75.

ATTACHMENTS:

Attachment #1 - Resolution No. 2018-043, Fuel Decom Contract

Attachment #2 - Tabulation of Bids
Attachment #3 - B&T Bid Protest Letter
Attachment #4 - Response to B&T Bid Protest
 CITY OF CARMEL-BY-THE-SEA Attachment 1
CITY COUNCIL

RESOLUTION NO. 2018-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA REJECTING A BID

PROTEST, AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A CONTRACT WITH REMEDIAL
TRANSPORTATION SERVICES FOR A NOT-TO-EXCEED AMOUNT, INCLUDING 10% CONTINGENCY, OF
$218,270, AND AUTHORIZING A SUPPLEMENTAL APPROPRIATION OF $118,270 TO THE FISCAL YEAR
2017/18 ADOPTED BUDGET FOR THE FUEL STATION DECOMMISSIONING PROJECT

WHEREAS, on September 12, 2017, the City Council of the City of Carmel-by-the-Sea amended the
Fiscal Year 2017/18 Capital Improvement Program to include a new project to Decommission the Fuel System
at the Public Works Yard, and allocated $150,000 of Measure D funds for the project; and

WHEREAS in October 2017, the fueling station was permanently shut down, and the Monterey County
Environmental Health Department ordered removal of the underground fuel tanks by July 2018; and

WHEREAS in December 2017, Council awarded a Professional Services Agreement to Pacific Crest
Engineering (PCE) for design, environmental, and construction support services associated with fuel tank
removals and site closure of the fuel station for a not-to-exceed fee, including contingency, of $41,773.75; and

WHEREAS, PCE completed the design, the project was extensively advertised for bids, and four bids
were received and read aloud at the public bid opening on April 10, 2018; and

WHEREAS, two of the four bid proposals were determined to be non-responsive; and

WHEREAS, B&T Service Station Contractors (B&T) filed a bid protest claiming that they were the low
bidder and their bid proposal was responsive; and

WHEREAS, Public Works staff concluded that B&T’s bid proposal improperly left statements, rather
than unit costs, for bid items for earthwork off haul and for removing and disposing Class 2 hazardous
materials; thus, any such work during construction would require a change order of unknown cost; and

WHEREAS, Remedial Transportation Services submitted the lowest responsive, responsible bid of
$198,427.25; and

WHEREAS, a 10% contingency is warranted for unforeseen extra work items typically associated with
underground and remediation projects; thus, the total contract amount for the Base Bid plus 10% contingency,
is $218,270; and

WHEREAS, a budget transfer of $118,270 is required from the Measure D fund balance to this capital
project account to award this contract.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA DOES HEREBY:

Reject the bid protest submitted by B&T Service Station Contractors.

BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

DOES HEREBY:

Authorize the City Administrator to execute a construction contract with Remedial Transportation
Services for a not-to-exceed amount, including 10% contingency, of $218,270 for decommissioning
of the Fuel Station at the Public Works Yard Project.
 Attachment 1

BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-

THE-SEA DOES HEREBY:

Authorize an increase in appropriations of $118,270 to the Fuel System Decommissioning Project

through the transfer of Measure D Fund Balance as shown in the attached Exhibit A.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 1st day
of May 2018, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

SIGNED: ATTEST:

_______________________ ___________________________
Steve G. Dallas, Mayor Tom Graves, MMC, City Clerk
 Exhibit A Attachment 1

General Ledger G/L Account Description Adopted Adjustment Amended

Account Description/ Budget/ Amount Budget/
Fund Fund
Balance Balance
206-216-00-49009 Measure D Fund Transfer to $1,710,000 $ (118,270) $1,591,730
Balance transfer to Capital Projects,
Capital Projects/Outlay Fuel System
(301-311-00-43008) Decommissioning

301-311-00-43008 Construction in Increase $150,000 $118,270 $268,270

Project: 118FSD Progress- appropriations for
Task Label: Project Fuel System Capital Projects,
118PWFUELSYD Decommissioning Fuel System
Decommissioning
 TABULATION OF BIDS

Attachment 2
Fuel Island Decommission
Bid Opening: April 10, 2018

BASE BID: Engineer's Estimate B&T Service Station Remedial Transportation Triton Balch Petroleum, Inc.
Contractors, Inc Services Construction
# Description Quantity Unit Price Amount Price Amount Price Amount Price Amount Price Amount
1 Mobilization & Demobilization 1 LS $10,000.00 $10,000.00 $4,500.00 $4,500.00 $44,000.00 $44,000.00 $13,000.00 $13,000.00 blank $25,000.00
2 Storm Water Compliance 1 LS $3,000.00 $3,000.00 $2,425.00 $4,850.00 $2,700.00 $2,700.00 $2,000.00 $2,000.00 blank $5,000.00
3 Traffic Control 1 LS $3,000.00 $3,000.00 $500.00 $1,500.00 $1,700.00 $1,700.00 $2,000.00 $2,000.00 blank $5,000.00
4 Tank Closure Permit 1 LS $1,826.00 $1,826.00 $1,745.00 $6,980.00 $1,800.00 $1,800.00 $3,500.00 $3,500.00 blank $5,000.00
5 Remove & Dispose Diesel Fuel 1350 Gal $2.50 $3,375.00 $931.60 $4,658.00 $5.60 $7,560.00 $3.50 $4,725.00 blank $4,050.00
6 Remove & Dispose Gasoline 500 Gal $2.50 $1,250.00 $287.50 $1,725.00 $5.60 $2,800.00 $3.50 $1,750.00 blank $1,500.00
7 Sawcut Concrete 6" Thick 210 LF $10.00 $2,100.00 $187.57 $1,313.00 $3.50 $735.00 $6.00 $1,260.00 blank $3,150.00
8 Demolition & Dispose of 6" Thick Concrete 2,475 SF $9.00 $22,275.00 $1,933.63 $15,469.00 $4.25 $10,518.75 $14.00 $34,650.00 blank $25,000.00
9 Furnish, Place & Finish 8" SOG including Rebar 2,475 SF $25.00 $61,875.00 $4,796.78 $43,171.00 $15.30 $37,867.50 $19.00 $47,025.00 blank $100,000.00
10 Earthwork Excavation & Stockpiling, including Handling 1 LS $9,000.00 $9,000.00 $625.00 $6,250.00 $2,750.00 $2,750.00 $34,000.00 $34,000.00 blank $24,000.00
11 Earthwork Off Haul & Disposal 20 Ton $250.00 $5,000.00 See Note A See Note A $84.00 $1,684.00 $200.00 $4,000.00 blank $1,000.00
12 Remove & Dispose of Class 2 Hazardous Material 20 Ton $250.00 $5,000.00 See Note A See Note A $165.00 $3,300.00 $400.00 $8,000.00 blank $1,900.00
Remove Fuel Pumps, Historical Abandoned Lines, Underground
13 1 LS $29,000.00 $29,000.00 $4,161.92 $54,105.00 $19,500.00 $19,500.00 $11,000.00 $11,000.00 $37,400.00
Storage Tanks and All Associated Pipe and Conduit blank
14 Remove Veeder-Root System 1 LS $1,600.00 $1,600.00 $250.00 $3,500.00 $2,000.00 $2,000.00 $1,500.00 $1,500.00 blank $1,560.00
15 Tank Backfill 3/8” Pea Gravel Wrapped with Mirafi 140 NC 170 Ton $72.00 $12,240.00 $576.67 $8,650.00 $68.00 $11,560.00 $170.65 $29,010.50 blank $7,500.00
16 Earthwork Furnish, Place & Compact Cl 2 Base 95% 163 CY $70.00 $11,410.00 $286.56 $4,585.00 $129.00 $21,027.00 $125.00 $20,375.00 blank $15,000.00
17 Electrical Work 1 LS $4,800.00 $4,800.00 $111.76 $1,900.00 $1,725.00 $1,725.00 $4,427.00 $4,427.00 blank $6,500.00
18 Shoring Adjacent to Storage Building 30 LF $796.00 $23,880.00 $1,563.56 $28,144.00 $840.00 $25,200.00 $300.00 $9,000.00 blank $25,000.00
EXCEL CALCULATED BID TOTAL: $210,631.00 $191,300.00 $198,427.25 $231,222.50 $293,560.00
CONTRACTOR CALCULATED BID TOTAL: $191,300.00 $198,423.25 $222,212.50 $293,560.00
QUALIFICATION: NonResponsive* Qualified** Qualified*** NonResponsive****

*Deemed NonResponsive due to blank Unit Pricing and blank Amount on Items 11 and 12
**Math error on calculation of Amount on Item 11 resulting in a $4.00 difference in Bid Total
***Math error on calculation of Amount on Item 15 resulting in a $9,010.50 difference in Bid Total
****Deemed NonResponsive due to blank Unit Pricing

Note A: "Not Included As Per Addendum #1" was written on the bid schedule.
 BT &
Service Station Contractors
Attachment 3

Maintenance and Construction

License No. 902034
A, B, C-61/D-40, Hazmat Certification
www.btssc.com

April 12, 2018

To: City of Carmel-By-The-Sea

Department of Public Works
Attn: Robert Estrella

RE: Letter of Protest – Fuel Island Decommission Project – Invitation for bids 17-18-0005

Mr. Estrella,

Thank you for giving B&T Service Station the opportunity to provide an estimate for this project. We also
would like to protest B&T’s disqualification based on the following items:

Section 1. Official Bid results. Base bid line item 11 Earthwork Off Haul and Disposal and Line item 12
Removal and Disposal of Class 2 Hazardous Material.

Section 2. On the official bid results page See Note A which refers to “Not Included as Per Addendum #1,
which was written on the bid schedule.

Section 3. As per Addendum 1 dated 04-05-18 question 2.12 “ Since the possibility of reusing the
excavated overburden soils is unknown at this time, until the soil has been sampled and determined to
be either acceptable for reuse or unacceptable and must be removed from the site, can the City change
the Bidding Schedule to reflect the earthwork task of wither reusing the excavate overburden or
earthwork tasks of removing the excavated overburden soil and replacing the remove material with
clean imported fill material? Also, these earthwork task items should be quantified in Cubic Yards rather
that lump sum, since the actual quantities need to compete the project are unknown at this time,
depending on the outcome of the soil sampling conducted by the engineer” and the Answer to Question
2.12 is “For bidding purposes, consider the existing soil suitable for reuse. Items 11 and 16 of Bidding
Schedule have been changed to reflect unit pricing.”

Section 4. Per answer to Question 2.12 it specifically states “That for bidding purposed Existing Soil is
Suitable for Reuse”. To me this statement does not match your bid form. Bid instructions per Addendum
#1 assume soil is reusable and there will be no off haul required. If Off Haul is not required, why would a
cost be included in the overall bid and not listed as an alternate to the base bid? By listing a possible

630 So. Frontage Road

Nipomo, CA 93444
(805) 929 – 8944
Fax (805) 929 – 8948

Santa Barbara
San Luis Obispo
Ventura
Monterey

Toll Free 1-888-862-2552

* Contractors are required by law to be licensed and regulated by the Contractors’ State License Board.
Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board
P.O. Box 26000, Sacramento, California 95818.
 BT &
Service Station Contractors
Attachment 3

Maintenance and Construction

License No. 902034
A, B, C-61/D-40, Hazmat Certification
www.btssc.com

alternative (scope unknown) in the base bid, cost are unnecessarily inflated. This applies to both Bid
Form line items 11 and 12.

Section 5. B&T feels the bid form line items 11 and 12 should be a zero cost number based on
information from Addendum #1, and if the City of Carmel wants alternate pricing then they should be
listed as Alternates, as to not affect the base bid with unnecessary and/or unknown cost.

With these listed sections above and the provided back up and reasoning, B&T Service Station
Contractors requests that the City of Carmel reconsider and drop the disqualification of B&T Service
Station Contractors from this project.

Regards,

Jeff Scott
B&T Service Station Contractors
805-929-8944 office
916-417-4983 cell

Cc: Chris Fasse, B&T

630 So. Frontage Road

Nipomo, CA 93444
(805) 929 – 8944
Fax (805) 929 – 8948

Santa Barbara
San Luis Obispo
Ventura
Monterey

Toll Free 1-888-862-2552

* Contractors are required by law to be licensed and regulated by the Contractors’ State License Board.
Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board
P.O. Box 26000, Sacramento, California 95818.
 Attachment 4

City of Carmel-by-the-Sea
P.O. Box CC
Carmel-by-the-Sea CA 93921

April 16, 2018

Mr. Jeff Scott

B&T Service Station Contractors
630 So. Frontage Rd
Nipomo, CA 93444

Re: Response to B&T Service Station Contractors Letter of Protest - Fuel Island
Decommission Project

Dear Mr. Scott:

The City has received and considered your attached bid protest letter, dated April 12, 2018, and its
supporting documents. We have determined that your protest cannot be sustained based on the
following facts.

The lowest Base Bid of $191,300, submitted by B&T Service Station Contractors (B&T), was deemed
Non-Responsive because it did not include a dollar amount, nor zero ($0.00}, for Bid Items 11 and 12 in
the Bid Schedule for "Earthwork Off Haul & Disposal" and "Remove and Dispose of Class 2 Hazardous
Material."

In the Contract Documents under Part Ill, General Provisions, Page ,1 entitled BIDDING; under BID
DOCUMENT COMPLETION; it states that bid proposals to receive consideration shall be made in
accordance with the following instructions: 1. "The proposal shall be made upon the form provided
therefore with all items filled out (Appendix A of these specifications}. The completed form must be
without Interlineation&, alterations, erasures, or omissions. All submitted documents must be in
original form (no photocopies or faxes)." As you know, B&T's Bid Proposal inserted the phrase "Not
included as per Addendum #1" for both Bid Items in the Bid Schedule rather than any dollar amount.

If B&T's interpretation of the Addendum concluded that Bid Items 11 and 12 would never apply and
thus they should be at zero cost basis, then "$0.00" should have been entered in these Bid Items.

Furthermore, the statement "Not Included As Per Addendum #1" had no further explanation, while all
three other bidders entered in prices for both Bid Items. The City included Bid Items 11 and 12 because
we needed unit prices for these items included in the Base Bid. Otherwise, if unsuitable soil and/or
Class 2 hazardous material are encountered in the fuel tank pit, a change order would have to be
negotiated for unit pricing. The City cannot render such a bid responsive knowing that any unsuitable
soil or Class 2 material would have to be removed at an unknown cost at the time of award.

The City does appreciate your efforts to submit a bid proposal for this project.

~
'~rt Estrella, CQM-C
Project Manager
 Attachment 4

Enclosures: B&T Bid Protest Letter, dated April 12, 2018, and supporting documents

CC: Glen Mozingo, ESQ, City Attorney

Tom Graves, MMC, City Clerk

Robert Harary, P.E., Director of Public Works