2023.03.16 Attachment to Agenda Item 6aSouth Tahoe
Public Utility District
Memorandum
Date: March 15, 2023
To: Board of Directors
John Thiel, General Manager
From: Brent Goligoski, Associate Engineer
Subject: Recommendation for Bid Award
2023 Luther Pass and Heavenly Tanks Rehab Project
As indicated in the attached memorandum and summary by the Contracts Administrator,
Staff has found irregularities in all four bids received. There is an important distinction,
however, between irregularities that are immaterial and ones that are material.
Immaterial irregularities may be waived by the Governing Board, in its discretion. Material
irregularities generally give the bidder an unfair competitive advantage or contain errors
that would permit the bidder to withdraw its bid. Material irregularities may not be waived.
The apparent low bid received from Euro Style Management for the 2023 Luther Pass
and Heavenly Tanks Rehab Project (Project) did not include a valid original Bid Bond (Bid
Security) at the time of the bid opening as required by the contract specifications. It has
been a long standing requirement of District project specifications that a valid original Bid
Security be provided to the District prior to bid opening. It is the opinion of Staff that if the
District does not have a valid Bid Security in hand, a bidder could have the opportunity to
withdraw their bid which provides a material advantage over other bidders. Staff
recommends that the Board find Euro Style Management non -responsive and reject their
bid based on this material deviation from the bidding requirements.
The second lowest bid received from Farr Construction Corporation, dba Resource
Development Company (RDC) contained minor irregularities as listed in the attached
memorandum by the Contracts Administrator. Staff recommends that the Board waive
these immaterial irregularities.
The bid items for this Project were structured to include a single Alternate Bid Item to
provide Seismic Steel Plating to reinforce the Luther Pass Pump Station Tank 1 structure
based on current design standards. The bid amounts for this item ranged from $212,000
to $412,600. Considering the criticality of this storage tank to the District's wastewater
export system and the potential consequences of failure, Staff recommends the Board
include this alternate in the award of the Project.
Staff recommends that the Board: 1) Find the bid from Euro Style Management non-
responsive and reject Bid; 2) Find minor irregularities in the bid from Farr Construction
Corporation, dba Resource Development Company (RDC) to be immaterial and waive
immaterial irregularities; and 3) Award Project to the lowest responsive, responsible
bidder, RDC in the amount of $1,178,000.00 including the Alternate Bid Item.
South Tahoe
Public Utility District
1275 Meadow Crest Drive
South Lake Tahoe, CA 96150
Telephone: (530)544-6474 Fax: (530)541-4319
Memorandum
Date: March 15, 2023
To: Board Members, John A. Thiel
From: Starlet Glaze, Contracts Administrator
Subject: 2023 Luther Pass & Heavenly Tanks Rehabilitation Project
At 2:00 o'clock on the Afternoon of March 7, 2023, we received Four (4) electronic bids via PlanetBids
for the above -referenced project. Bids ranged from $973,200.00 to $1,730,900.00.
The lowest bid was found to be non -responsive for failure to submit the Bid Bond prior to the Bid
Opening as required.
The third lowest was found to be non -responsive for failure to provide the original Bid Forms within
the Forty -Eight Hour period after the Bid opening as required.
A careful review and analysis of the remaining two bids showed only minor deviations. See attached
spreadsheet and list of deviations for full breakdown of each bid.
Farr Construction Corporation dba Resource Development Company is the apparent low bidder. Farr
Construction Corporation dba Resource Development Company had only minor deviations.
I contacted the Contractor's License Board and was given the following information:
License Number 1050646 is current and active and expires 02/28/2025.
The company is a corporation.
Farr Construction Corporation dba Resource Development Company holds a Class A — General
Engineering license, a Class B — General Building license, a C33 Certification for Painting and
Decorating, and a C-61 / D12 Certification for Synthetic Products .
I also contacted the California Department of Industrial Relations Contractor Registration site and
verified that Farr Construction Corporation dba Resource Development Company is registered under
PWCR Number 1000064750.
South Tahoe Public Utility District • 1275 Meadow Crest Drive, South Lake Tahoe, CA 96150
Phone 530.544.6474 a Facsimile 530.541.0614
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2023 Luther Pass & Heavenly Tanks Rehabilitation Project
Bid Opening: Tuesday, March 7, 2023 at 2:00 o'clock p.m.
Deviations and information a#hared dur'rn bid analysis of the four Bids
received:
Euro Style Management
• List of Subcontractors
o The subcontractor's addresses listed on the Bid Form did not match either
the Contractor's State License Board (CSLB) or the California Department of
Industrial Relations (CA DIR) websites. We were, however, able to verify
that both addresses were current and used for mailing purposes.
• Certification by Contractor's Insurance Broker
o The authorized representative did not fill out the "for" blank under the
signature line. The "for" is, however stated in the first paragraph of the
document.
o The Authorized Representative's Signature was dated March 7, 2023;
however the Notary Certification was dated March 3, 2023.
o Staff was unable to verify that the insurance company listed on the Bid
Form was licensed with the California Department of Insurance (CDI).
Bid Bond
o The Contractor failed to provide the original Bid Bond to the District prior
to the Bid Opening on March 7, 2023 as required.
Farr Construction Corporation dba Resource Development Company RDC
• List of Subcontractors
o The full entity name and address listed on the Bid Form does not match
the Department of Industrial Relation's website (CA DIR). We were,
however, able to verify that the CA DIR Registration was current and
active.
Bidder's General Information
o Item 6, the name, address, and agent's name were provided by the
brokerage agency on the Bid Form (no phone number). No surety
company information (name, address, or phone number) was provided.
We were, however, able to verify that the Bid Bond is valid and meets
District requirements.
Certification by Contractor's Insurance Broker
o The Certification was filled out incorrectly. The authorized agent named
the brokerage agency instead of the insurance company in both the
second line and third paragraph of the Certification.
o Staff was able to obtain and verify the insurance company's name through
the brokerage agency we were not however, able to verify that the entity
was registered with the California Department of Insurance (CDI). The
intent of the Certification by Contractor's Insurance Broker Bid Form is to
- verity that the Contractor can obtain the required insurance prior to
execution of the Contract. Staff requested and received a new Certification
that met District requirements.
Crosno Construction Inc.
• List of Subcontractors
o The subcontractor's addresses listed on the Bid Form did not match either
the Contractor's State License Board (CSLB) or the California Department
of Industrial Relations (CA DIR) websites. We were, however, able to
verify that both addresses were current and used for mailing purposes.
• Bidder's General Information
o Item 6, The authorized agent did not provide the surety company's name.
We were, however, able to verify that the bid Bond is valid and meets District
requirements.
• Original Bid Forms
o The Contractor failed to provide the original Bid Forms within Forty -Eight
Hours of the Bid opening as required.
Utility Service Co., Inc.
• Bidder's General Information
o The address provided on the Bid form does not match either the
Contractor's State License Board (CSLB) or the California Department of
Industrial Relations (CA DIR) websites. We were, however, able to verify
that both addresses were current and used for mailing purposes.
• Certification by Contractor's Insurance Broker
o The Bid Form was left blank with a letter from the Contractor's insurance
broker submitted in leu of. No insurance company name was provided.
Without this information we were unable to verify that the insurance
company was registered with the California Department of Insurance
(CDI).
2023 LUTHER PASS & HEAVENLY TANKS REHAB PROJECT
CONTRACTOR'S SUBCONTRACTORS
Euro Stvle Manaaement
Description of Work
Subcontractors Name
& Address
Cathodic Protection 5%
Accurate Corrosion Control, Inc.
7310 N 108th Ave.
Glendale., AZ 85307
CA#654613; CA DIR PWC #1000028833
Named E ui mentlMaterial
Supplier List:
Equipment/Material
Supplier 1 Manufacturer
Interior Coating for Luther
Sherwin - Williams
Exterior Coating for Luther
Sherwin - Williams
Exterior Coating for Heavenly
Sherwin — Williams
Abrasive Blast Material
Kleen Blast/Can AM Minerals
Farr rnnQtri,r_tinn Cnrnnratien dba Resource Develonment Comm
Description of Work
Subcontractors & Address
Cathodic Protection 1 %
Corrosion Integrity LLC
5N954 E Ridgewood Dr.
St. Charles, IL 60175
CA#1057714; CA DIR PWC #1000421416
Named E ui mentlMaterial
Supplier List:
Equipment/Material
Supplier / Manufacturer
Interior Coating for Luther
Sherwin Williams Commercial Paint Store I
Dura late 6000/6100
Sherwin Williams
Exterior Coating for Luther
Sherwin Williams Commercial Paint Store /
Galvapac I Corothane/Macropoxy 646 /
Sherwin Williams
Sherloxane 800
Exterior Coating for Heavenly
Sherwin Williams Commercial Paint Store I
Galvapac I Corothane/Macropoxy 646 /
Sherwin Williams
Sherloxane 800
Abrasive Blask Material
Kleen Blast / Kleen Blast
35 Grit Iron Alumina Silicate
Paint Pumps
Allredi / Graco
Graco XP70/X70
Dehumifier
CDI HVAC / Arid -Dry
MS 6000 RC2-138
Blast Pot
Allredi / Marco
Blastmaster 160 CuFt Blast Pot
2023 LUTHER PASS & HEAVENLY TANKS REHAB PROJECT
CONTRACTOR'S SUBCONTRACTORS
Crosno Construction. Inc.
Description of Work
Subcontractors & Address
Coating / Painting 39%
Olympus and Associates, Inc.
Reno, NV
CA#777677: CA DIR(PWC)#1000007287
Cathodic Protection 2%
Accurate Corrosion Control
Glendale, AZ
CA#654613; CA DIR PWC #1000028833
Named E ui mentlMaterial
Supplier List:
Equipment/Material
Supplier/ Manufacturer
Interior Coating for Luther
Sherwin Williams / Sherwin Williams
Exterior Coating for Luther
Sherwin Williams / Sherwin Williams
Exterior Coating for Heavenly
Sherwin Williams / Sherwin Williams
Abrasive Blast Material
Kleen Blast / Kleen Blast
NUN Service Co.. Inc.
Description of Work
Subcontractors & Address
Cleaning / Painting 20.8%
Odle Inc.
2560 W Kilgore Avenue
Muncie, IN 47304
CA#1053142; CA DIR(PWC)#1000537692
Cathodic Protection 2.3%
Corrpro Companies Inc.
17988 Edison Avenue
Chesterfield, MO 63005
CA#764878; CA DIR(PWC)#1000002963
Named E ui mentlMaterial
Supplier List:
Equipment/Material
Supplier / Manufacturer
Interior Coating for Luther
Sherwin Williams / Sherwin Williams
Exterior Coating for Luther
Sherwin Williams / Sherwin Williams
Exterior Coating for Heavenly
Sherwin Williams / Sherwin Williams
Abrasive Blast Material
MES / Green Diamond