HomeMy WebLinkAbout2009/08/11 Item 12CITY COUNCIL
AGENDA STATEMENT
~ ~C ULAVISTA
8/11/09, Item
ITEM TITLE: PUBLIC HEARING TO CONSIDER WAIVING IltREGULARITIES
IN THE BID RECEIVED FOR THE "NORTH BROADWAY BASIN
PROJECT, BETWEEN C STREET AND D STREET (STM354)" PER
CITY CHARTER SECTION 1009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA WAIVING IRREGULARITIES, ACCEPTING BIDS,
AWARDING THE CONTRACT FOR THE "NORTH BROADWAY
BASIN PROJECT, BETWEEN C STREET AND D STREET
(STM354)" TO MJC CONSTRUCTION, IN THE AMOUNT OF
$1,672,975, AND AUTHORIZING THE EXPENDITURE OF ALL
AVAILABLE FUNDS IN THE PROJECT
SUBMITTED BY: DIRECTOR OF PUBL C WORKS
REVIEWED BY: CITY MANAGER
ASSISTANT CITY ANAGER ~~
4/STHS VOTE: YES ^ NO
SUMMARY
On July 22, 2009, the Director of Public Works received sealed bids for the "North Broadway
Basin Project, between C Street and D Street (STM354)". The work to be done consists of full
street reconstruction, installation of storm drain system and traffic signal modification
improvements. The work also includes all labor, material, equipment, transportation, protection
and restoration of existing improvements and traffic control necessary for the project as shown
on the drawings.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the California Environmental Quality Act and has conducted an Initial Study, IS-09-012 in
accordance with the California Environmental Quality Act. Based upon the results of the Initial
Study, the Environmental Review Coordinator has determined that the project could result in
significant effects on the environment. However, revisions to the project made by or agreed to
by the applicant and adopted mitigation measures would avoid the effects or mitigate the effects
to a point where clearly no significant effects would occur. Therefore, the Environmental
Review Coordinator has prepared a Mitigated Negative Declaration, IS-09-012.
Additionally, the Environmental Review Coordinator has reviewed the proposed project for
compliance with the National Environmental Policy Act (NEPA) due to the use of federal funds
and has conducted an Environmental Assessment (Project ID # B-04-MC-06-0563) in
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accordance with the National Environmental Policy Act (NEPA) as implemented by the U.S.
Department of Housing and Urban Development Guidelines. A Finding of No Significant Impact
has been prepared pursuant to Title 24, Part 58, Subpart E of the US. Department of Housing and
Urban Development (HUD) Environmental Guidelines. Thus no further NEPA environmental
review or documentation is necessary.
RECOMMENDATION
Council conduct the public hearing and adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The North Broadway Basin (STM354) project is an existing CIP established in FY 03/04. The
project is located along Broadway between the intersection of D Street and 200 feet north of the
intersection of C Street. The general scope of the North Broadway Basin project involves the
excavation and grading, removal and disposal of existing improvements, full street
reconstruction, installation of asphalt concrete pavement, crushed aggregate base, portions of
curb, gutter, sidewalk, and driveways, cross-gutters, installation of approximately 2000 lineal
feet of reinforce concrete pipe (RCP) storm drain system, curb-inlets, storm drain clean-outs,
retrofitting existing pedestrian ramps to meet current American with Disability Act (ADA)
requirements, pavement striping and markings, traffic signal upgrades and modifications. The
work also includes all labor, materials, equipment, transportation, protection of existing
improvements and traffic control necessary for the project and other work necessary to complete
the project. Some of the work will be located within the City of National City. Thus, City staff
has prepared and signed a maintenance agreement between the City of National City and the City
of Chula Vista for [he proposed installation of a portion of the storm drain improvement within
National City limits.
The project is comprised of commercial and residential properties along the corridor of the
project. Therefore, on July 9, 2009, City staff held a public meeting to discuss upcoming street
improvements within the project limits. During the public meeting, City staff discussed the
scope of the improvements and how the construction could potentially affect their business
within the construction schedule. City staff informed about common construction issues and
answered questions regarding accessibility to their properties and traffic congestion that will be
originated during the construction of the project.
On July 22, 2009, the Director of Public Works received fourteen (14) bids for the "North
Broadway Basin Project, between C Street and D Street (STM354)." The following bids were
received:
CONTRACTOR BID AMOUNT
1. MJC Construction -Bonita, CA $1,672,975.00
2. Southland Pavement -Escondido, CA $1,775,563.00
3. Heffler Co. -National City, CA $1,788,963.00
4. Hazard Construction - SanDiego, CA $1,796,450.00
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8/ll/09,Item ~Z
Page 3 of 4
5. Sim J. Harris, San Diego - CA $1,859,500.00
6. Palm Engineering -San Diego, CA $1,998,380.00
7. L.B. Civil Construction -San Diego, CA $2,030,355.00
8. West Coast General -Poway, CA $2,081,571.00
9. Burtech Pipeline -Encinitas, CA $2,098,185.00
10. Portillo Concrete -Lemon Grove, CA $2,136,006.25
11. New Century Construction -Lakeside, CA $2,155,625.00
12. Scheidel Contracting and Engineering, Inc. - La Mesa, CA $2,156,183.00
13. Koch-Armstrong -Lakeside, CA $2,183,953.00
14. Zondiros Corporation -San Marcos, CA $2,358,450.00
Staff reviewed the apparent low bid proposal in the amount of $1,672,975 submitted by MJC
Construction of Bonita, California. During review of MJC Construction's bid proposal, staff
found that the contractor had introduced a minor clerical error in a specific bid item subtotal that
was not significant. The grand total and the unit bid prices remained the same.
MJC Construction submitted a letter acknowledging the clerical error and stand by their original
submitted grand total bid total price of $1,672,975 (Attachment 1).
The low bid submitted by MJC Construction is below the Engineer's estimate of $2,200,000 by
$527,025 (24% below the Engineer's estimate); much of this difference can be attributed to the
high degree of competition currently within the construction market. Design staff has verified
the references provided by the contractor and has determined that the contractor has performed
satisfactorily For those references. The Contractor's License No. 754128 is current and active.
Also for consideration is the authority of 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 contract amount for the subject project is $1,672,975. The corresponding maximum
aggregate contract increase that may be approved by the Director of Public Works under Policy
No. 574-01 is $106,649. Approval of the resolution will increase the Director of Public Works'
authority to approve change orders as necessary up to the contingency amount of $334,595, an
increase of $227,946 and will authorize staff to expend all available contingencies and to
increase the value of the contract, as necessary, as a result of unforeseeable conditions and unit
quantity adjustments. 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 per Federal Regulation for meeting the
disadvantaged and women-owned business goals. Jose Dorado, Community Development
Specialist, has reviewed the bid documents submitted by the lowest bidder, MJC Construction,
Inc.
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8/11/09, Item ~Z
Page 4 of 4
Staff also reviewed MJC Construction's eligibility status with regard to Federal procurement
programs and the status of the State contractor's licenses. MJC Construction is not listed as
excluded from Federal Procurement Programs (list of parties excluded from Federal procurement
or non-procurement programs as of February, 2006).
Disclosure Statement
Attached is a copy of the Contractor's Disclosure Statement (Attachment 2).
Wage Statement
Contractors bidding on this project were required to pay prevailing wages to persons employed
by them for work under this project. No special minority or women owned business requirements
were necessary as part of the bid documents. However, the "Notice to Contractors" was sent to
various trade publications in order to encourage disadvantaged businesses to bid on the project.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that the decision
concerns repairs, replacement, or maintenance of existing streets or similar facilities and,
therefore, there is not a material financial effect of the decision on the property holdings of the
City Council Members pursuant to California Code of Regulations sections 18704.2(b)(2) and
18705.2(b)(1).
FISCAL IMPACT
There is no impact to the General Fund as there aze sufficient TransNet funds in the existing CIP
STM354 necessary to complete the project. A breakdown of the project casts is as follows:
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $1,672,975.00
B. Contingencies (20%) $334,595.00
C. Staff Time & Testing Costs
1. Construction Inspection (15%) $250,000.00
2. Design/Construction Management (22%) $365,000.00
3. Survey/Construction Staking (8%) $125,000.00
4. Environmental/Traffic/Public Works (4%) $65,000.00
5. Soil & Material Testin 4% $60,000.00
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $2,872,570.00
ON-GOING FISCAL IMPACT:
Upon completion of the project, the improvements will require only routine City street
maintenance.
ATTACHMENTS
I. MJC Constnuction letter
2. Contractor's Disclosure Statement
Prepared by: Lnis A. Labrador, P.E., Associate Civil Engineer, Pteblic Works Department
M:\EngineerWCHNDA\CAS2009\08-11-09\STM354 AI 13 .doc
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ATTACHMENT ~
C{3~57RC~{"{'lC7ti
MJC Construction
630 National City Blvd.
National City, CA 91950
619.472.5619 office
619.996.2116 fax
July 24, 2009
City of Chula Vista
Engineering Department
276 Fourth Ave.
Chula Vista, CA 91910
Re: Acknowledgement of Error on Bid Quote 8. Confirmation of Grand Total.
MJC Construction formally acknowledges the clerical error made on line item #58 of our Bid
Proposal for the North Broadway Basin project.
The correct bid for this line item is as follows:
Description Units Unit Price Total
Marking with Pavement Markers S,000LF $0.42/LF $2,100.00
MJC Construction holds to their original submitted Grand Total of $1,672,975.00 and is
committed to furnish all materials and do all work required to complete the said work in
accordance with said plans, specification and special provisions.
Feel free to call with any questions.
Sincerely,
Tom Yaotani
Vice President of Business Development
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KRACHM~t~T 2
CTTY OF CFIUI,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 atl 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:
1. 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.
-NONE-
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/partrtership) entity.
-NONE-
3. If any person* identified pursuant to (1}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
ttustor of the trust.
-NONE-
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.
Tom Yaotani
5. Has any person* 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 x
44
M:1Gcneral Services~Desig~Wl ProjectslS7M~5TM3541STM354 Contras Spec.Ufi25.09.doc
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If Yes, briefly describe the nature of the financial interest the official" may have in this
contract.
6. Have you made a contribution of more than $250 within the past twelve (12) months to a current
member of the Chula Vista City Council? No X Yes _ If yes, which Council member?
Have you provided more than 5c340 (or an item of equivalent value) to an officia]"" of the
Ciry of Chula Vista in the past twe]ve (12) months? (This inc]udes being a source of income,
money to retire a legal debt, gift, loan, etc.) Yes _ No X
If Yes, which official** and what was the nature of item provided?
Date: July 22, 20D9
Signa re of Contract pplicant
MJC Construction
Print or type name of Contractor/Applicant
Person is defined as: any individual, firm, co-partnership, joint venture, assoc;at;on, soc;al club,
fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city,
municipality, district, or other political subdivision, -or any other soup 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 Ciry, employee, or staff members.
a5
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RESOLUTION NO.2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING IRREGULARITIES,
ACCEPTING BIDS, AWARDING CONTRACT FOR THE
"NORTH BROADWAY BASIN PROJECT, BETWEEN C
STREET AND D STREET (STM354)" TO MJC
CONSTRUCTION, IN THE AMOUNT OF $1,672,975.00,
AND AUTHORIZING THE EXPENDITURE OF ALL
AVAILABLE FUNDS IN THE PROJECT
WHEREAS, City staff prepared plans and specifications for the "North Broadway Basin
Project, between C Street and D Street (STM354)" and advertised the project on June 26, 2009;
and
WHEREAS, on July 22, 2009, the Director of Public Works received fourteen (14) sealed
bids for the project as follows:
CONTRACTOR BID AMOUNT
1. MJC Construction -Bonita, CA $1,672,975.00
2. Southland Pavement -Escondido, CA $1,775,563.00
3. Heffler Co. -National City, CA $1,788,963.00
4. Hazard Construction - SanDiego, CA $1,796,450.00
5. Sim J. Hams, San Diego - CA $1,859,500.00
6. Palm Engineering -San Diego, CA $1,998,380.00
7. L.B. Civil Construction -San Diego, CA $2,030,355.00
8. West Coast General -Poway, CA $2,081,571.00
9. Burtech Pipeline -Encinitas, CA $2,098,185.00
10. Portillo Concrete -Lemon Grove, CA $2,136,006.25
11. New Century Construction -Lakeside, CA $2,155,625.00
12. Scheidel Contracting and Engineering, Inc. - La Mesa, CA $2,156,183.00
13. Koch-Armstrong -Lakeside, CA $2,183,953.00
14 . Zondiros Corporation -San Mazcos, CA $2,358,450.00
WHEREAS, staff reviewed the low bid proposal in the amount of $1,672,975, submitted
by MJC Construction of Bonita, California and found a minor clerical error in the bid total; and
WHEREAS, MJC Construction submitted a letter acknowledging the clerical error and
agreeing to stand by their original submitted grand total bid total price of $1,672,975; and
WHEREAS, the low bid by MJC Construction is below the Engineer's estimate of
$2,200,000 by $527,025 (24%). Staff has verified the references provided by the contractor with
satisfactory results. The contractor has performed various work for the City of Chula Vista and
other Cities and Counties and their work has been satisfactory.
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby waive irregularities, accept bids, and award the contract for the "North
Broadway Basin Project, between C Street and D Street (STM354)" to MJC Construction in the
amount of $1,672,975.
BE IT FURTHER RESOLVED, that the City Council of the City Of Chula Vista does
hereby waive Council Policy 574-01 and authorize the Director of Public Works Operations to
approve change orders as necessary and expend all available funds in the nroiect.
Presented by
Richazd A. Hopkins
Director of Public Works
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