That the La Habra Utility Authority:
A. Approve Plans and Specifications for Annual Sewer Rehabilitation Program, Main Sewer Lining, Fiscal Year 2021-2022 and Fiscal Year 2022-2023 City Project No. 1-S-23 ("Project"); and

B. Award construction contract for the Annual Sewer Rehabilitation Program, Main Sewer Lining, Fiscal Year 2021-2022 and Fiscal Year 2022-2023 City Project No. 1-S-23 to Sancon Technologies, Inc., of Huntington Beach, California, in the amount of $90,770, and reject all other bids; and,

C. Authorize the Executive Director to execute an agreement with Sancon Technologies, Inc., of Huntington Beach, California, in the amount of $90,770, and authorize staff to issue a purchase order to Sancon Technologies, Inc., of Huntington Beach, California, in the amount of $109,000; which includes an approximate twenty percent (20%) contingency.

The proposed Annual Sewer Rehabilitation Program, Main Sewer Lining, Fiscal Year 2021-2022 and Fiscal Year 2022-2023, City Project No. 1-S-23 consists of relining 8" and 12” sewer lines located at various locations within the City of La Habra. This Project will rehabilitate the City’s sewer infrastructure by installing a Cured-In-Place Pipe (CIPP) liner on deteriorated sewer pipes without using an open trench method.

On February 15, 2023, the City of La Habra received a total of three bid proposals for the Project, as follows:
 

At the time of bid opening, the apparent low bidder was Nu Line Technologies, LLC; however, after a thorough review of the bids received, Nu Line Technologies, LLC failed to acknowledge and include the required Addenda No. 1 in the bid proposal; therefore, their bid was deemed non-responsive.
 
The second low bidder, Sancon Technologies, Inc., (Sancon), submitted a bid in the amount of $90,770. Staff reviewed the bid proposal from Sancon and found them to be responsive and experienced with the type of work being proposed. The references Sancon provided were found to be satisfactory, and prior projects completed for other clients were found to be of similar scope. In addition, there was no record of excessive change orders initiated by the contractor, and they maintain a valid Contractor's license. Staff recommends that the La Habra Utility Authority award a contract to the second-lowest bidder, Sancon, and authorize the Executive Director execute a contract with Sancon for the Annual Sewer Rehabilitation Project, Main Sewer Lining, Fiscal Year 2021-2022 and Fiscal Year 2022-2023.

The proposed Project is included in the adopted Fiscal Year 2022-2023 Capital Improvement Program (CIP) with a total approved budget of $130,000 from the Sewer Fund. As the total proposed project cost is now estimated at $109,000, which includes a 20 percent contingency, there is sufficient budgeted funding for this project and no additional funds are being requested at this time.