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Home My WebLink About2011/12/13 Item 12CITY COU NCI L AGENDA STATEMENT ~~~ CITY OF CHULA 1/ISTA 12/13/11, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "NAPLES STREET IMPROVEMENTS FROM THIRD AVENUE TO ALPINE AVENUE (STL350}" PROJECT TO PORTILLO CONCRETE, INC. IN THE AMOUNT OF $502,690, AND AUTHORIZING THE ~PENDITURE OF ALL AVAILABLE CONTINGENCY FUND~~NOT TO EXCEED $60,000 SUBMITTED BY: DIRECTOR OF PUBLIC WORKS `~ ASSISTANT DIRECT R OF ENGIN REVIEWED BY: CITY MANAGER` ASSISTANT CIT MANAGERGj' 4/STHS VOTE: YES ^ NO SUMMARY On November 30, 2011, the Director of Public Works received seven (7) sealed bids for the "Naples Street Improvements from Third Avenue to Alpine Avenue (STL350)" Project. The project is included in the Capital Improvement Program (CIP) budget to reconstruct portions of the roadway and install missing/reconstruct existing curb, gutter and sidewalk improvements along Naples Street. The proposed action, if approved, would award a public works contract to Portillo Concrete, Inc., waive Council Policy 524-01 and authorize the Director of Public Works to approve change orders up to the contingency amount of $60,000. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the proposed street reconstruction work and improvements involve negligible or no expansion of an existing use. Thus, no further CEQA environmental review is necessary. Additionally, because the proposed project will be utilizing federal Community Development Block Grant (CDBG) funds, the Development Services Director has also reviewed the project proposal for compliance with the National Environmental Policy Act (NEPA) as implemented by the U.S. Department of Housing and Urban Development (HUD) Environmental Guidelines. The Development Services Director has determined that the project proposal qualifies for a previously certified Categorical Exclusion (subject to 58.5) pursuant to Code of Federal Regulations (CFR) Title 24, Section 58.35(a). Thus, no further NEPA environmental review or determination is necessary. 12-1 12/13/11, Item Page 2 of 4 RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The "Naples Street Improvements from Third Avenue to Alpine Avenue" (STL350) project consists of the reconstruction of portions of the roadway and installation of missing/reconstruction of existing curb, gutter and sidewalk improvements along Naples Street. On November 30, 2011, the Director of Public Works received seven (7) sealed bids for the project. The following table summarizes the bids received: CONTRACTOR BID AMOUNT 1 Portillo Concrete, Inc. -Lemon Grove, CA $502,690.00 2 RMV, Inc. -San Diego, CA $523,266.00 3 Tri-Group Construction and Development, Inc. -San Diego, CA *$537,400.00 4 PAL General Engineering, Inc. -San Diego, CA $584,245.00 5 New Century Construction, Inc. -Lakeside, CA $592,350.00 6 L.B. Civil Construction, Inc. -San Diego, CA $597,660.00 7 Blair Rasmussen Construction, Inc. -San Diego, CA *$598,435.63 *Bid amount contained minor mathematical error that dta not change the results or the nta opening. The low bid submitted by Portillo Concrete, Inc. is below the Engineer's estimate of $635,000 by $132,310, or approximately 20%. The Contractor has satisfactorily performed construction projects of similar scope for the City in the past. The Contractor's License No. 680144 is current and active. Staff reviewed the low bid and determined the bid package is complete, with no errors or omissions. Therefore, staff recommends awarding a contract in the amount of $502,690 to Portillo Concrete, Inc. The proposed resolution would also authorize the Director of Public Works to approve change orders over and above existing policy limits. Under City Council Policy No. 574-01, if an individual change order causes the cumulative increase in change orders to exceed the Director's authority ("Maximum Aggregate Increase in Change Orders"), then City Council approval is required. The corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-01 is $38,188.30. Approval of the proposed resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $60,000.00, which is an increase of $21,811.70 over that specified authorized amount in Policy No. 574-01. Increasing the Director of Public Works authority will allow staff to continue the project without delay should unforeseen circumstances 12-2 12/13/11, Item ~~. Page 3 of 4 resulting in increased project costs arise during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not used, then they will be returned to the project fund balance. Disadvantaged Business Enterprise Goal The bid documents set forth participation requirements under Federal regulations for meeting disadvantaged minority and women-owned business goals. Staff has reviewed and certified Portillo Concrete, Inc as a MBE (Minority Business Enterprise), and no further review is needed. Further, Portillo Concrete, Inc. is not listed as excluded from Federal Procurement Programs (list of parties excluded from Federal procurement or non-procurement programs as of October 6, 2011). Disclosure Statement Attachment 1 is a copy of the Contractor's Disclosure Statement. Wage Statement The source of funding for this project is Community Development Block Grant Funds. This project is covered by the Davis-Bacon and related acts. The Davis-Bacon Act requires the payment of prevailing wage rates to all laborers and mechanics employed for the work under this contract. Prevailing wage rates are those determined by the U.S. Department of Labor or the U.S. Department of Housing and Urban Development. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. CURRENT YEAR FISCAL IMPACT A breakdown of the project construction costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION CONTRACT A. Base Contract Amount $502,690.00 B. Contract Contingencies $60,000.00 C. Construction Inspections Staff Costs $60,000.00 D. Desi Surve /Monument Preservation $30,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT $652,690.00 There is no direct fiscal impact to the General Fund as the Section 108 Loan provides funding for this project. 12-3 12/13/11, Item ~ ~ Page 4 of 4 ONGOING FISCAL IMPACT Upon completion of the project, the improvements will require only routine maintenance of the street facilities. ATTACHMENTS 1. Contractor's Disclosure Statement Prepared by: Boushra Salem, Senior Civil Engineer, Public Works-Engineering Department J:\Engineer\AGENDA\CAS2011\12-13-11\STL350 Contract Award-rev2.doc 12-4 ATTACH~E~T ~ CITX CF C~IEULA VISTA I~ISCL®SURE STATEMENT Pursuant to Council Policy 1 Ol-0I, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and alI other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: I. ?. 3 4. List the names of all persons having a financial interest in the property that is the sub,~eet of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. ~C~r't b ~(~~ 11b l i n~ ~C~C~ ~~0 If any person* identified pursuant to {i) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business {corporation/partnership) entity. ~C~'C i ~ ~~~Itt~ ~~ ~r~ ~~~ If any person* identified pursuant to {I) above is anon-profit organization or trust, list the names of any person serving as director of the non profit organization or as trustee or beneficiary or trustor of the trust.`` IV Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. Has any persona` associated with this contract had any financial dealings with an official*' the City of Chula Vista as it relates to this contract within the past I2 months? Yes No Projects STL3~0 62 Q:1EnQineerin~lr'~a ProjectslSTL\STL3~0 Naples St (AD 10-01)\Spec-ContractlSTL3~0-SPEGFinai.doc 12-5 If Yes, briefly describe the nature of the financial interest the off~cial~* may have in this contract. .~' 6. Have you made a contribution of more than 250 within the past rivelve {I2) months to a current member of the Chula Vista City Council? No Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalen# value) to an official'r'r of the City of Chula Vista in the past twelve (12} monthsA 4This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No !~ If Yes, which official~~~~ and what was the nature of item provided? Date: ~ ~~D -~ W~`^' Signature of Contractor/Applicant Print or type name of Contrac#or/AppIicant Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. '~:.,.,; *''` Official includes, but is not limited to: Mayar, Council mernber, Planning Commissioner,lblember of aboard, canunission, or committee of the City, employee, or staff members. Project # STL3~0 63 Q:~EngineerinelAl! ProjectslSTL1STL3~0 Naptes St (AU10-O1)1SQeo-Contzact15TL3~Q-SPEC.Finat.doc 12-6 RESOLUTION N0.2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT-FOR THE "NAPLES STREET IMPROVEMENTS FROM THIRD AVENUE TO ALPINE AVENUE (STL350)" PROJECT TO PORTILLO CONCRETE, INC. 1N THE AMOUNT OF $502,690, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS NOT TO EXCEED $60,000 WHEREAS, on November 30, 2011, the Director of Public Works received seven (7) sealed bids for the "Naples Street Improvements from Third Avenue to Alpine Avenue (STL350)" Project; and WHEREAS, the project consists of the sidewalk improvements and related street work along Naples Street from Third Avenue to Alpine Avenue in the City of Chula Vista; and WHEREAS, the work also includes all labor, materials, equipment, transportation, protection and restoration of existing improvements and traffic control necessary for the project as shown on the drawings; and WHEREAS, the seven (7) bids were as follows: CONTRACTOR BID AMOUNT 1 Portillo Concrete, Inc. -Lemon Grove, CA $502,690.00 2 RMV, Inc. -San Diego, CA $523,266.00 3 Tri-Group Construction and Development, Inc. -San Diego, CA *$537,400.00 4 PAL General Engineering, Inc. -San Diego, CA $584,245.00 5 New Century Construction, Inc. -Lakeside, CA $592,350.00 6 L.B. Civil Construction, Inc. -San Diego, CA $597,660.00 7 Blair Rasmussen Construction, Inc. -San Diego, CA *$598,435.63 *Bid amount. contained minor mathematical error that did not cnange the results or the ma opening. WHEREAS, the low bid by Portillo Concrete, Inc. of $502,690 is $132,310 (20%) below the Engineer's estimate of $635,000; and WHEREAS, staff has reviewed the low bid and determined the bid package is complete with no errors or omissions; and WHEREAS, in order to approve change orders as necessary, staff is requesting City Council waive Council Policy No. 574-01. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept bids and award contract for the "Naples Street Improvements from 1 2-7 Resolution No. Page 2 Third Avenue to Alpine Avenue (STL350)" Project to Portillo Concrete, Inc. in the amount of $502,690. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby waive Council Policy No. 574-01 and authorize the Director of Public Works to expend all available contingency funds in an amount not to exceed $60,000. Presented by Richard A. Hopkins Director of Public Works 12-8