HomeMy WebLinkAbout2012/01/24 Item 11TY COUNCIL
STATEMENT
~~~~~ CITY OF
'"~~'` CHULA VISTA
1/24/12, Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, REJECTING THE BID OF THE FIRST
APPARENT LOW BIDDER AS NON-RESPONSIVE, ACCEPTING
REMAINING BIDS, AWARDING CONTRACT FOR THE "ELM
AVENUE IMPROVEMENTS FROM NAPLES STREET TO
OXFORD STREET (STL343)" PROJECT TO TRI-GROUP
CONSTRUCTION AND DEVELOPMENT, INC. IN THE AMOUNT
OF $520,075, WAIVING COUNCIL POLICY 524-01, AND
AUTHORIZING THE EXPENDITU OF ALL AVAILABLE
CONTINGENCY FUNDS NOT TO EX~D $65,000
SUBMITTED BY: DIRECTOR OF PUBLIC WORKS
ASSISTANT DIRECTO OF ENG E
REVIEWED BY: CITY MANAGER
ASSISTANT CITY ANAGER ~
4/STHS VOTE: YES ^ NO
SUMMARY
On December 21, 2011, the Director of Public Works received nine (9) sealed bids for the "Elm
Avenue Street Improvements from Naples Street to Oxford Street (STL343)" 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 Elm
Avenue. The proposed action, if approved, would reject the first apparent low bidder as non-
responsive, accept remaining bids, award a public works contract to Tri-Group Construction and
Development, Inc., in the amount of $520,075, waive Council Policy 524-01 and authorize the
Director of Public Works to approve change orders up to the contingency amount of $65,000.
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
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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.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The "Elm Avenue Street Improvements from Naples Street to Oxford Street (STL343)" Project
consists of the reconstruction of the roadway and installation of missing curb, gutter and
sidewalk improvements along Elm Avenue.
On December 21, 2011, the Director of Public Works received nine (9) sealed bids for the
project. The following table summarizes the bids received:
CONTRACTOR BID AMOUNT
1 Koch-Armstrong General Engineering, Inc. -Lakeside, CA $498,528
2 Tri-Group Construction and Development, Inc. -San Diego, CA $520,075
3 Portillo Concrete, Inc. -Lemon Grove, CA $544,040
4 Palm Engineering Construction -San Diego, CA $557,775
5 Carolino Construction Corporation- National City, CA $581,005
6 RMV, Inc. -San Diego, CA $575,310
7 HTA Engineering & Construction -Poway, CA $653,950
8 MJC Construction -Bonita, CA $658,850
9 New Century Construction, Inc. -Lakeside, CA $683,200
Staff reviewed the apparent low bid by Koch-Armstrong General Engineering, Inc, and
determined that the bid is non-responsive because the Contractor was unable to achieve the
Minority/Woman Business Enterprise "MWBE" goals for the project and is unable to
adequately document their good faith efforts in attempting to meet those goals.
Staff then reviewed the second lowest bid submitted by Tri-Group Construction and
Development, Inc., ("Tri-Group") and determined that the bid package is complete, with no
errors or omissions. Tri-Group has listed two Woman Business Enterprises (WBE) and three
MBEs as subcontractors for the project. Therefore, staff recommends awarding a contract in the
amount of $520,075 to Tri-Group Construction and Development, Inc., of San Diego, California.
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The low bid submitted by Tri-Group Construction and Development, Inc. is below the
Engineer's estimate of $620,000 by $99,925, or approximately 16%. The Contractor has
satisfactorily performed construction projects of similar scope far the City in the past. The
Contractor's License No. 792159 is current and active.
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 $39,405. 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 $65,000, which is an increase of $25,595 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
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, eta If the contingency funds are not
used, then they will be returned to the project fund balance.
Disadvanta¢ed 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 Tri-Group
Construction and Development, Ina has certified that their Sub-Contractors are MBE (Minority
Business Enterprise)/WBE (Woman Business Enterprise) and no further review is needed.
Further, Tri-Group Construction and Development, Inc. and all their Sub-Contractors (as listed
in their Bid Proposal Document) are not listed as excluded from Federal Procurement Programs
(list of parties excluded from Federal procurement or non-procurement programs as of January 6,
2012).
Disclosure Statement
Attaclnnent 1 is a copy of the Contractor's Disclosure Statement.
Wage Statement
The source of funding for this project is HUD, CDBG, Section 108 Loan 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.
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CURRENT YEAR FISCAL IMPACT
A breakdown of the project construction costs is as follows:
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT
A. Base Contract Amount $520,075
B. Contract Contingencies $65,000
C. Public Works Inspection Staff Costs $60,000
D. Design/Survey/Monument Preservation $30,000
TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT 5675,075
There is no direct fiscal impact to the General Fund as the HUD, CDBG, Section 108 Loan funds
provide funding for this project.
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
7:AEngineed.4GENDAACAS2012VO1-2412\STL343-CAS AwacdREV.doc
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CITY OF CHUI,A VISTA DISCLOSURE STATEMENT
Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by
the Council, Planning Commission and all 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:
List the names of all persons having a financial interest in the property that is the subject of the
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
2. 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.
,. If any person* identified pursuant to (I) above is anon-profit organization or trust, list the names of
any person serving as duector of the non-profit organization or as trustee or beneficiary or trustor of
the trust.
4. Please identify every person, including any agents, employees, consultants, or independent
contractors you have assigned to represent you before the City in this matter.
NS, F~55
~s D~'"q"
5. Has any person's associated with this contract had any financial dealings with an official`~* of the
City of Chula Vista as it relates to this contract within the past 12 months? Yes No_~
68
Project tt STL343
Q:\Engineering\All Projects\STL\STL343 Elm Ave (ADIO-02)\Spec-Contract\Specs Final.doc
11-5
If Yes, briefly describe the nature of the financial interest the official** may have in [his
contract.
6.
pK
Have you made a contribution of more tban $250 within the past twelve (12) months to a current
member of the Chula Vista City Council? No /yes _ If yes, which Council member?
Have you provided more than $34D (or an item of equivalent value) to an official** of the City of
Chula V ista in the past twelve (12) months? (This includes being a source of income, money to retire
a legal debt, gift, loan, etc.) Yes _ No C/
If Yes, which official** and what was the nature of item provided?
Date: t a ~ l
Signature of Contractor/Applicant
NANI ASST
Print or type name of Contractor/Applicant
SECRETARY OF CORPCP..4TION
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: Mayor, Council member, Planning Commissioner, Member of
aboard, commission, or committee of the City, employee, or staff members.
69
Project r STL343
Q:\Engineering\All Projects\STL\STL343 Elm Ave (ADIO-02)\Spec-Contract\Specs Finat.doc
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RESOLUTION NO. 2012-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, REJECTING THE BID OF THE FIRST
APPARENT LOW BIDDER AS NON-RESPONSIVE,
ACCEPTING REMAINING BIDS, AWARDING CONTRACT
FOR THE "ELM AVENUE IMPROVEMENTS FROM NAPLES
STREET TO OXFORD STREET (STL343)" PROJECT TO TRI-
GROUP CONSTRUCTION AND DEVELOPMENT, INC. IN
THE AMOUNT OF $520,075, WAIVING COUNCIL POLICY
524-01, AND AUTHORIZING THE EXPENDITURE OF ALL
AVAILABLE CONTINGENCY FUNDS NOT TO EXCEED
$65,000
WHEREAS, on December 21, 2011, the Director of Public Works received nine (9)
sealed bids for the "Elm Avenue Street Improvements from Naples Street to Oxford Street
(STL343)" Project; and
WHEREAS, the project consists of the sidewalk improvements and related street work
along Elm Avenue from Naples Street to Oxford Street 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 nine (9) bids were as follows:
CONTRACTOR BID AMOUNT
1 Koch-Armstrong General Engineering, Inc.- Lakeside, CA $498,528
2 Tri-Group Construction and Development, Inc. -San Diego, CA $520,075
3 Portillo Concrete, Inc.- Lemon Grove, CA $544,040
4 Palm Engineering Construction -San Diego, CA $557,775
5 Carolino Construction Corporation -National City, CA $581,005
6 RMV, Inc. -San Diego, CA $575,310
7 HTA Engineering & Construction -Poway, CA $653,950
8 MJC Construction -Bonita, CA $658,850
9 New Century Construction, Inc. -Lakeside, CA $683,200
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Resolution No.
Page 2
WHEREAS, Staff reviewed the
Engineering, Inc, and determined that the
unable to achieve the Minority/Woman BL
and is unable to adequately document their
and
apparent low bid by Koch-Armstrong General
bid is non-responsive, because the Contractor was
sines Enterprise "MWBE" goals of for the project
good faith efforts in attempting to meet those goals;
WHEREAS, staff then reviewed the second lowest bid submitted by Tri-Group
Construction and Development, Inc., and determined that the bid package is complete, with no
errors or omissions; and
WHEREAS, Tri-Group has listed two Woman Business Enterprises (WBE) and three
MBEs as subcontractors for the project, and staff recommends awarding a contract in the amount
of $520,075 to Tri-Group Construction and Development, Inc., of San Diego, California; and
WHEREAS, the low bid by Tri-Group Construction and Development, Inc. of $520,075
is below the Engineer's estimate of $620,000 by $99,925, or approximately 16%; and
WHEREAS, this contractor has satisfactorily completed several projects for the City and
their Contractor's License No. 792159 is current and active; 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 reject the first apparent low bidder as non-responsive, accept remaining bids,
and awazd contract for the "Elm Avenue Street Improvements from Naples Street to Oxford
Street (STL343)" Project to Tri-Group Construction and Development, Inc. in the amount of
$520,075.
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 $65,000.
Presented by
Appro ned as to foam by
Richard A. Hopkins
Director of Public Works
R. Gobg
Attorney
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