DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AWARD OF CONSTRUCTION CONTRACT TO VICON ENTERPRISE FOR THE SAN LUIS REY WATER RECLAMATION FACILITY RAS PIPE REPLACEMENT PROJECT
RECOMMENDATION
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Staff recommends that the City Council award a contract to Vicon Enterprise, in the amount of $499,500, for the construction of the San Luis Rey Water Reclamation Facility RAS Pipe Replacement Project; authorize the City Engineer to execute change orders up to a total of 15 percent of the contract value for any unforeseen conditions for a total not to exceed amount of $574,425; appropriate $350,000 from the Sewer Fixed Asset Replacement Fund; find the project exempt from CEQA and direct staff to file a Notice of Exemption; and authorize the City Manager to execute the agreements upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The San Luis Rey Water Reclamation Facility (SLRWRF), originally constructed in 1972, treats wastewater from the eastern and central portions of the City, Rainbow Municipal Water District, and a portion of the City of Vista. A section of exposed steel piping in the return activated sludge (RAS) system of the facility is heavily corroded and in need of immediate replacement.
The RAS Pipe Replacement Project (Project) proposes to remove and replace the RAS steel piping and some conflicting features that limit access. The Project also includes valve installations to facilitate construction and future operations.
The Project was advertised for bids on April 1, 2025, and on May 1, 2025, four bids were received and formally opened. The apparent low bidder is Vicon Enterprise with a total bid in the amount of $499,500. Attachment 2 includes the list of bidders and bid amounts.
A bid protest (Attachment 3) was submitted by the apparent second low bidder, Innovative Construction Solutions (ICS), alleging that the apparent low bidder is non-responsive due to omissions in bid documentation including resumes, certification numbers, and completeness of subcontractor listing information. The protest also alleges the apparent low bidder is non-responsible due to the quality of reference projects provided and the subcontractors submitted. Staff reviewed the protest with the City Attorney’s Office and determined that the cited omissions are inconsequential and may be waived, as they do not affect the price, quantity, quality, or competitiveness of the bid. (Staff’s response to ICS regarding its bid protest is attached as Attachment 4.) These items may be clarified post-bid opening without granting an unfair advantage to the low bidder or compromising the integrity of the bidding process. All missing documentation has been provided by the apparent low bidder and is in accordance with project requirements. Furthermore, the City has completed its review of all references and bid documentation and determined that Vicon Enterprise is a responsible bidder. Therefore, staff recommends rejecting the protest and proceeding with award to the lowest responsive and responsible bidder, Vicon Enterprise.
Additionally, staff recommends authorizing the City Engineer to execute change orders up to 15 percent of the contract value due to the project scope including work on aging infrastructure which may present unforeseen challenges once construction begins.
The City will be using its as-needed construction management contract with NV5 to provide construction management and inspection (CM&I) services throughout the project in an amount of $60,000. The City has also utilized its as-needed project design services contract with Dudek to provide engineering design services in the amount of $15,000.
Staff anticipates commencement of work in July 2025, with an estimated project duration of eight months.
FISCAL IMPACT
The amount of the construction contract with Vicon Enterprise is $499,500.
The Project will be charged to the SLRWRF RAS Piping Replacement Account 909197325722.5703.10600. This is a new account with $320,000 available for FY2025-26. The project scope has expanded since initial budgeting, and an additional $350,000 appropriation from the Sewer Fixed Asset Replacement fund unrestricted balance (722.3100.0002) is needed for contract award, with $75,000 to be appropriated to professional services, 5305.10600, and $275,000 to be appropriated to construction, 5703.10600. This account has balance of $116 M; therefore, there are sufficient funds for this request. This cost represents construction in the amount of $499,500 and a fifteen-percent contingency in the amount of $74,925.
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SLRWRF RAS Piping Replacement Account 909197325722 |
|
FY 25-26 Budget Available |
$ 320,000 |
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Proposed Appropriation to 909197325722.5305.10600 from 722.3100.0002 |
75,000 |
|
Proposed Appropriation to 909197325722.5703.10600 from 722.3100.0002 |
275,000 |
|
Total Appropriation |
350,000 |
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Total Available Balance |
670,000 |
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Construction Contract (Vicon Enterprise) (5703.10600) |
499,500 |
|
Construction Contingency (15%) (5703.10600) |
74,925 |
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As-needed CM&I Services (5305.10600) |
60,000 |
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Engineering Design Services (5305.10600) |
15,000 |
|
Remaining balance |
$ 20,575 |
Funding for this project comes from sewer service and flow charges in the Sewer Fixed Asset Replacement Fund 722.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on May 20, 2025.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form. The contract should be awarded to the lowest responsible bidder whose bid is responsive to the call for bids. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract. City Council also has discretion to reject all bids and re-advertise.
ENVIRONMENTAL ANALYSIS
Planning Division staff has completed a preliminary review of this project in accordance with the City of Oceanside's Environmental Review Guidelines and the California Environmental Quality Act (CEQA), 1970. Based on that review, the City Planner finds that the proposed project constitutes replacement of deteriorated wastewater facilities to meet current standards of public health and safety. Therefore, the City Planner has determined that further environmental evaluation is not required because the project is categorically exempt under Class 2, “Replacement or Reconstruction” (California Code of Regulations Section 15302). Staff recommends that the City Council find the project exempt and direct staff to file a Notice of Exemption.
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Prepared By: Neil Irani, Senior Civil Engineer
Approved By: Michael Gossman, Assistant City Manager
Submitted By: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Bid Tabulation
3. Bid Protest
4. Response - ICS Bid Protest
5. Vicon Enterprise SLR RAS Public Works Agreement
6. CEQA Exemption