HomeMy WebLinkAbout2012/06/19 Item 06,~.~.- _.
CITY COUNCIL
AGENDA STATEMEN
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------ CHUTAVISTA
6/19/12, Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, REJECTING THE BIDS OF THE FIRST AND
SECOND APPARENT LOW BIDDERS AS NON-RESPONSIVE,
ACCEPTING REMAINING BIDS, AWARDING A CONTRACT
FOR THE "DEL MAR AVENUE IMPROVEMENTS FROM
NAPLES STREET TO OXFORD STREET (STL385)" PROJECT TO
HTA ENGINEERING AND CONSTRUCTION, INC. OF SAN
DIEGO, CALIFORNIA IN THE AI1%IOUNT OF $620,610
CONTINGENT UPON APPROVAL OF PROJECT FUNDING IN
THE PROPOSED FY2012-13 CAPITAL IMPROVEMENT
PROGRAM, WAIVING COUNCIL POLICY 574-01, AND
AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE
CONTINGENCY FUNDS NOT TO/;E,/~'~.(E~ED $94,390
SUBMITTED BY: DIRECTOR OF PUBLIC WORKS C" per'
REVIEWED BY: CITY MANAGER
ASSISTANT CIT MANAGER
4/STHS VOTE: YES ^ NO
SUMMARY
On May 16, 2012, the Director of Public Works received six (6) sealed bids for the "Del Mar
Avenue Street Improvements from Naples Street to Oxford Street (STL385)" Project. The project
will install full street improvements, including curb, gutter and sidewalk, along Del Mar Avenue.
The proposed actions, if approved, would: (a) reject the bids of the first and second low bidders as
non-responsive, accept remaining bids, and award a public works contract to HTA Engineering and
Construction, Inc. in the amount of $620,610 contingent upon approval of project funding in the
proposed FY 2012-13 Capital Improvement Program; (b) waive Council Policy 574-O1 regarding
change orders; and, (c) authorize the Director of Public Works to approve change orders up to the
contingency amount of $94,390.
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 and improvements involve negligible or no
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6/19/12, Item
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expansion of an existing use. Thus, no further CEQA environmental review is required.
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 required.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The "Del Maz Avenue Street Improvements from Naples Street to Oxford Street (STL385)"
Project consists of full street improvements, including the curb, gutter and sidewalk, along Del
Mar Avenue, from Naples Street to Oxford Street.
On May 16, 2012, the Director of Public Works received six (6) sealed bids for the project. The
following table summarizes the bids received:
BID ACTUAL BID
AMOUNT AMOUNT
DETERMINATION OF BID (At Bid (Corrected for
CONTRACTOR RESPONSIVENESS O enin Math Errors
Portillo Concrete Inc., Lemon Mathematical Error. Actual bid $568,315 $643,915
Grove, CA amount is fourth lowest
Latco Construction Inc., San Diego, Mathematical Error. Actual bid $589,595 $593,703
CA is lowest. However, bid was
determined to be non-
responsive because analysis of
bid shows that Contractor will
not perform at least 50% of the
work with his or her own
or anization.
HTA Engineering and Construction Actual lowest responsive bid $620,610 No Math Errors
Inc., San Die o, CA
Tri-Group Construction & Responsive $640,000 No Math Errors
Develo ment, Inc., San Die o, CA
Patin Engineering Construction Responsive $646,225 No Math Errors
Com an ,Inc., San Die o, CA
New Century Construction Inc., Mathematical Error $683,100 $678,100
Lakeside, CA
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6/19/12, Item
Page 3 of 5
Staff reviewed the apparent lowest bid submitted by Portillo Concrete, Inc., and determined that
the bid is non-responsive because the Contractor's total bid amount is incorrect due to a
mathematical error, which resulted in a determination that the contractor's bid is actually the
fourth lowest bid received.
Staff then reviewed the apparent second lowest bid submitted by Latco Construction, Inc. and
determined that the bid is non-responsive due to a mathematical error and because the
Contractor's bid does not comply with Section 2-03 of the Project Specifications, which requires
that the Contractor perform at least 50% of the contract work with his or her own organization.
Staff then reviewed the third lowest bid submitted by HTA Engineering and Construction, Inc.
(HTA) and determined that the bid package is complete, with no errors or omissions. HTA has
listed two Woman Business Enterprises (WBE) and one Minority Business Enterprise (MBE) as
subcontractors for the project.
The bid submitted by HTA Engineering and Construction, Inc. is below the Engineer's estimate
of $680,000 by $59,390, or approximately 8.7%. The Contractor has satisfactorily performed
construction projects of similar scope for the City in the past. The Contractor's License No.
798372 is current and active. Therefore, staff recommends that the construction contract be
awazd to HTA Engineering and Construction, Inc. of San Diego, California in the amount of
$620,610. -
The proposed FY 2012-13 Capital Improvement Program (CIP) budget includes proposed HUD
Section 108 Loan funding of $840,000 for construction of the proposed street improvements.
Because the award of the construction contract is dependent upon the appropriation of construction
funds proposed in the FY2012-13 CIP budget, award of the contract to HTA Engineering and
Construction, Inc. would be contingent upon approval of staffls recommended funding for the
project in the proposed 2012-13 CIP budget.
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 $46,443. Approval of the proposed
resolution would increase the Director of Public Works' authority to approve any and all change
orders, as necessary, up to the contingency amount of $94,390 (approximately 15% of the base
contract), and represents an increase of $47,947 over that authorized vnount 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, hazazdous materials, unexpected underground
conflicts, eta If the contingency funds aze not used, then they will be returned to the project
fund balance.
The proposed resolutions, if approved, would: (a) reject the bids of the first and second low bidders
as non-responsive, accept remaining bids, and a~n~azd a public works contract to HTA Engineering
and Construction, Inc. in the amount of $620,610 subject to the approval of project funding in the
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Page 4 of 5
proposed FY 2012-13 Capital Improvement Program; (b) waive Council Policy 574-O1 regazding
change orders; and, (c) authorize the Director of Public Works to approve change orders up to the
contingency amount of $94,390.
Disadvantaeed 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 the bid proposal
and HTA Engineering and Construction Inc. has certified that one of their subcontractors is MBE
(Minority Business Enterprise) and two are WBEs (Woman Business Enterprises), and no further
review is necessazy.
Further, HTA Engineering and Construction Inc, Inc. and all of their subcontractors (as listed in
their bid proposal) are not listed as excluded from Federal Procurement Programs (list of parties
excluded from Federal procurement or non-procurement programs as of May 24, 2012).
Disclosure Statement
Attachment 1 is a copy of the Contractor's Disclosure Statement.
Wade Statement
The source of funding for this project is a HUD Section 108 Loan. This project is covered by the
Davis-Bacon Act 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 boundazies of the property, which is the subject of this action.
CURRENT YEAR FISCAL IMPACT
Projected construction costs are as follows:
FUNDS REQUIRED FOR CONSTRUCTION
A. Base Contract Amount $ 620,610
B. Contract Contingencies (Appoximately 15%) $ 94,390
C. Public Works Inspection Staff Costs $ 55,000
D. Desi n/Surve /Monument Preservation $ 30,000
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $800,000
Construction of the improvements will commence in August 2012; therefore, there is no fiscal
impact in the current fiscal year related to awazding the construction contract. Should the City
Council approve staff s recommended HUD Section 108 Loan funding in the proposed FY 2012-
13 Capital Improvement Program for this project, sufficient funds will be available to complete
construction of the project and any remaining funds would be proposed for reallocation to other
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projects within the Castle Pazk area. Further, there are no General Fund impacts in the current or
FY 2012-13 fiscal yeazs.
ONGOING FISCAL IMPACT
The HUD Section 108 Loan, which is financing the full street improvements, is being repaid
from the City's annual Community Development Block Grant (CDBG) capital improvement
allocation. In addition, an assessment district has been established under which the property
owners will repay, through their annual tax assessments, costs associated with construction of
their driveways and relocation/reconstruction of private improvements, such as fences, walls,
gates, etc.
Upon completion of the project, the improvements will require routine maintenance of the street
facilities.
ATTACHMENTS
1. Contractor's Disclosure Statement
Prepared by: Boushra Salem, Senior Civil Engineer, Public Works-Engineering Department
1:\Eneineer\AGENDA\CAS2012\06-19-12\STL385-CAS Award -REV 6-13-121.doc
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d-1TAC4-4MENT
CTTY OF CHCTLA 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 fmancial interests, payments, or campaign contributions for a City of Chula Vista
election must be filed. The following information must be disclosed:
1. List the names of all persons having a fmancial interest in the property that is the subject of the
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier.
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2. If any person* identified pursuant to (I) above is a corporation ox partnership, list the names of all
individuals with a $2000 investment in the business (corporation/partnership) entity.
3. If any person* identified pursuant to (1) above is a non-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.
~,~/,~-
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.
5. Has any person* associated with this contract had any fmancial dealings with anofficial**~°-f the
City of Chula Vista as it relates to this contract within the past 12 months? Yes Ng~
67
Q:\Engineering\A11 Projects\STL\STL385 De1Maz (ADI I-01)\Contract-Spec\STL385 Specs Final.doc
6-6
If Yes, briefly describe the nature of the fmancial interest the official** may have in this contract.
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6. Have you made a contribution of more than $~0 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 $340 (or an item of equivalent value) to an official** of the City of
Chula Vista in the past twelve (12) months`?~is includes being a source of income, money to retire
a legal debt, gift, loan, etc.) Yes _ No ~T
If Yes, which official** and what was the nature of item provided?
r ~/ y
Date: `~ ~~ ~~ T, h`S/'`c.~
Signature of Contractor/Applicant
Print or t name of ontractor/Applicant
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
a board, commission, or committee of the City, employee, or staff members.
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Q:\EngineeringWl Projects\STL\STL385 De1Mar (ADI I-O1)\Contract-Spec\STL385 Specs Finai.doc
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RESOLUTION NO. 2012-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, REJECTING THE BIDS OF THE FIRST AND
SECOND APPARENT LOW BIDDERS AS NON-
RESPONSIVE, ACCEPTING REMAINING BIDS, AWARDING
A CONTRACT FOR THE "DEL MAR AVENUE
IMPROVEMENTS FROM NAPLES STREET TO OXFORD
STREET (STL385)" PROJECT TO HTA ENGINEERING AND
CONSTRUCTION, INC. OF SAN DIEGO, CALIFORNIA IN
THE AMOUNT OF $620,610 CONTINGENT UPON
APPROVAL OF PROJECT FUNDING IN THE PROPOSED
FY2012-13 CAPITAL IMPRPOVEMENT PROGRAM,
WAIVING COUNCIL POLICY 574-01, AND AUTHORIZING
THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY
FUNDS NOT TO EXCEED $94,390
WHEREAS, on May 16, 2012, the Director of Public Works received six (6) sealed ids
for the "Del Mar Avenue Street Improvements from Naples Street to Oxford Street (STL385)"
Project; and
WHEREAS, the project consists of the sidewalk improvements and related street work
along Del Mar Avenue from Naples Street to Oxford Street in the City of Chula Vista; and
WHEREAS, the following six (6) bids were received and reviewed for responsiveness to
tha hirl enlinitatinn ac fnllnwc•
BID ACTUAL BID
AMOUNT AMOUNT
DETERMINATION OF BID (At Bid (Corrected for
CONTRACTOR RESPONSIVENESS O enin Math Errors)
Portillo Concrete Inc., Lemon Mathematical Error. Actual bid $568,3]5 $643,915
Grove, CA amount is the fourth lowest
Latco Construction Inc., San Diego, Mathematical Error. Actual bid $589,595 $593,703
CA is lowest. However, bid was
determined to be non-
responsive because analysis of
bid shows that Contractor will
not perform at least 50% of the
work with his or her own
or anization.
HTA Engineering and Construction Actual lowest responsive bid $620,610 No Math Errors
Inc., San Diego, CA
Tri-Group Construction & Responsive $640,000 No Math Errors
Develo ment, Inc., San Die o, CA
Palm Engineering Construction Responsive $646,225 No Math Errors
Company, Inc., San Die o, CA
New Century Construction Inc., Mathematical Error $683,100 $678,100
Lakeside, CA
6-8
Resolution No.
Page 2
WHEREAS, staff reviewed the apparent lowest bid submitted by Portillo Concrete Inc.,
and determined that the bid is non-responsive because the Contractor's total bid amount was
incorrect due to a mathematical error, resulting in Portillo Concrete, Inc.'s bid actually being the
fourth lowest bid; and
WHEREAS, staff reviewed the apparent second lowest bid submitted by Latco
Construction Inc. and determined that the bid is non-responsive due to a mathematical error and
because the Contractor's bid does not comply with Section 2-03 of the Project Specifications,
which requires that the Contractor perform at least 50% of the contract work with his or her own
organization; and
WHEREAS, staff then reviewed the third lowest bid submitted by HTA Engineering and
Construction, Inc. ("HTA") and determined that the Contractor's bid package is complete, with
no errors or omissions; and
WHEREAS, HTA has listed two Woman Business Enterprises (WBE) and one MBE as
subcontractors for the project; and
WHEREAS, the low bid by HTA Engineering and Construction, Inc. of $620,610 is
below the Engineer's estimate of $680,000 by $59,390, or approximately 8.7%; and
WHEREAS, this contractor has satisfactorily completed several projects for the City and
their Contractor's License No. 798372 is current and active; and
WHEREAS, the proposed FY 2012-13 Capital Improvement Program (CIP) budget
includes proposed HUD Section 108 Loan funding of $840,000 for construction of the proposed
street improvements; and,
WHEREAS, staff recommends award of the construction contract to HTA Engineering
and Construction, Inc. of San Diego, California in the amount of $620,610 contingent upon
approval of project funding in the proposed 2012-13 CIP budget; 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 bids of the first and second low bidders as non-responsive, accept
remaining bids, and award a public works contract to HTA Engineering and Construction, Inc. of
San Diego, California in the amount of $620,610 contingent upon approval of project funding in
the proposed FY 2012-13 Capital Improvement Program..
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Resolution No.
Page 3
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 t° °°~°°a e°n °zn
Presented by
Richard A. Hopkins
Director of Public Works
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