HomeMy WebLinkAbout2010/04/20 Item 12
City Council Meeting, April 20, 2010
ITEM # 12 - Revised Title
PUBLIC HEARING TO CONSIDER WAIVING IRREGULARITIES IN THE BIDS
RECEIVED FOR THE "OTA Y LAKES ROAD WIDENING - PHASE I" PROJECT
(STM355) PER CITY CHARTER SECTION 1009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA 1)
WAIVING IRREGULARITIES; ACCEPTING BIDS; AND, CONTINGENT UPON THE
EXECUTION OF APPROPIUATE RIGHT-OF-WA Y DOCUMENTS, A WARDING THE
CONTRACT FOR THE "OT A Y LAKES ROAD WIDENING - PHASE ]" PROJECT
(STM355) TO SOUTHLAND PAVING, INe. IN THE AMOUNT OF $2,858,937.02; AND
2) AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE SAID RIGHT-
010- WAY DOCUMENTS AND EXPEND ALL A V AILABLE FUNDS IN THE PROJECT
CITY COUNCIL
AGENDA STATEMENT
~~ CITY OF
::: -<: ~~ (HUlA VISTA
,
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
~Item 11-
4-120(10 -
PUBLIC HEARING TO CONSIDER WAIVING IRREGULARITIES
IN THE BIDS RECEIVED FOR THE "OTA Y LAKES ROAD
WIDENING - PHASE I" PROJECT (STM355) PER CITY CHARTER
SECTION 1009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA WAIVING IRREGULARITIES, ACCEPTING BIDS, AND
AWARDING THE CONTRACT FOR THE "OTAY LAKES ROAD
WIDENING - PHASE I" PROJECT (STM355) TO SOUTHLAND
PAVING, INC. IN THE AMOUNT OF $2,858,937.02 AND
AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO
EXPEND ALL AVAILABLE FUNDSjHE PROJECT
DIRECTOR OF PUBLIC WORKS W' ~
ASSIST ANT DTRW" OF ENGIN E~
CITY MANAGER
ASSISTANT CIT ANAGER "). rJ"
4/5THS VOTE: YES
o
[g]
NO
SUMMARY
On March 29, 2010, the Director of Public Works received sealed bids for the "Otay Lakes Road
Widening - Phase roo Project (STM355). The work to be done consists of the widening of
portions of Otay Lakes Road and East H Street, traffic signal installation and modification,
modification of a parking lot at Bonita Vista High School, median modification, landscaping,
and the installation of a recycled water pipeline and modifications to other water facilities on
behalf of the Otay Water District. In reviewing the bids, staff determined that the contractor,
Southland Paving, Inc. (Southland), made a clerical/mathematical error in the bid, resulting in an
increase of $9,900 in the total bid amount and in the lump sum amount bid for a potable water
pressure reducing station. Otay Water District will pay all costs associated with their portion of
the project, has approved this difference in the bid amount, and supports waiving the bid
irregularity; further, the clerical/mathematical error does not increase the bid for the City's
portion of the work. Even with this error, Southland's corrected bid is $83,972.75 lower than the
second lowest bidder. Therefore, staff recommends waiving the bid irregularity and awarding
the contract to Southland in the amount of $2,858,937.02. The proposed actions would waive a
clerical/mathematical error in the bid as immaterial, award the contract to Southland Paving, Inc.
and authorize the Director of Public Works to expend available funds for the completion of
construction work.
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4/13/10, Item_
Page 2 of 5
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed joint project agreement for
compliance with the California Environmental Quality Act (CEQA) and has determined that the
portion of the project involving street improvement work qualifies for a Class I categorical
exemption pursuant to Section 15301 [Existing Facilities] and the portion pertaining to the
installation of the recycled water pipeline qualifies for a'Statutory Exemption pursuant to Section
21080.21 of the CEQA Guidelines, as determined by the Otay Water District as lead agency for
this portion of the project. Thus, no further environmental review is necessary at this time.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The work to be done on the "Otay Lakes Road Widening - Phase I" project generally consists of:
. Widening Otay Lakes Road to six through-lanes (three lanes in each direction) between
Ridgeback Road / Canyon Drive to the first Southwestern College driveway south of East
H Street;
. Adding an eastbound-to-northbound left-turn lane trom East H Street to Otay Lakes
Road, including lengthening the existing left-turn pocket to improve left-turn volumes
through the intersection;
. Adding an eastbound-to-southbound right-turn and eastbound through / right-turn lane
trom East H Street, including street widening trom the Southwestern College entrance on
East H Street to Otay Lakes Road;
. Installing a new traffic signal at Elmhurst Street and modifying the existing traffic signal
at Gotham Street;
. Modifying a parking lot at Bonita Vista High School;
. Modifying and improving landscaping; and,
. Installing a recycled water pipeline on behalf of the Otay Water District (as specified in
an agreement between the City and Otay Water District and approved by City Council
Resolution at the March 2, 2010 meeting) trom Telegraph Canyon Road to Bonita Vista
High School. This pipeline will ultimately provide recycled water service to the college,
high school, and shopping centers.
On March 29, 2010, the Director of Public Works received eight (8) bids for the "Otay Lakes
Road Widening - Phase I" (STM355) Project. The following bids were received (in order of
lowest to highest bid amounts; the bid amount for the portion of the work being undertaken on
behalf of the Otay Water District is shown for reference):
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4/13/10, Item
--,
Page 3 of 5
Contractorl
Bid Discrepancies
1. Southland Paving, Inc. of Escondido, CA
$2,849,037.02 total bid submitted.
$9,900 error to Bid Item 196, "Potable Water Pressure"
Reducing Station I")
2. Palm Engineering Construction Co., Inc. of San Diego, CA
Missing Letter Authorizing Capacity(ies) for Signature
3. LB Civil Construction of San Diego, CA
Missin Letter Authorizin Ca acit ies) for Si ature
4. Wier Construction Corporation of Escondido, CA
$3,200,073.48 total bid submitted.
Errors to Bid Items 2, 46, 173, 178.
Missin Letter Authorizin Ca acit (ies for Si ature
5. Hazard Construction Company of San Diego, CA
6. Cass Construction, Inc, ofEI Cajon, CA
$3,606,356.64 bid submitted.
Error to Bid Item 196.
Missin Letter Authorizing Ca acit (ies) for Signature
7. 3-D Enterprises, Inc. of San Diego, CA
$3,912,974.10 total bid submitted.
Errors to Bid Items 30, 110, 186, 195
Missin Letter Authorizin Ca acit ies) for Si
8. Daley Corporation of San Diego, CA
$4,425,467.60 total bid submitted.
Errors to Bid Items 4, 54, 60, 101, 122, 132, 145, 183, 187
Missincr Letter Authorizin Ca acit (ies) for Si ature
Total Bid
$2,858,937.02
(Corrected)
$2,942,909.77
$2,968,826.50
$3,297,709.48
(Corrected)
$3,556,833.60
$3,607,203.20
(Corrected)
$4,086,458.10
(Corrected)
$4,392,077.60
( Corrected)
Otay Water
District Share
$890,535
(Corrected)
$761,710
$999,570
$689,239.20
(Corrected)
$1,487,795
$1,245,186.05
( Corrected)
$1,428,430
(Corrected)
$1,858,600
( Corrected)
The low bid submitted by Southland is below the Engineer's estimate of $3,513,000 ($2.313
million for City facilities and $1.2 million for Otay Water District facilities) by $654,063, or
approximately 18.6%. Much of this difference can be attributed to the high degree of
competition currently within the construction market.
Southland's bid had one irregularity in its line item bid for a potable water pressure reducing
station. However, the intent of Southland's bid for this lump sum item is clear in that the unit
price was written out as "seventy two thousand nine hundred dollars" and in the unit cost column
as "$72,900.00," but inadvertently shown in the total as "$63,000.00." The Otay Water District
was informed of this error, has approved the difference in the bid for their portion of the project,
and supports waiving the irregularity as immaterial. Further, the bid error does not increase the
bid for the City's portion of the project. When this error is accounted for, Southland's corrected
bid is $83,972.75 lower than the second lowest bidder. Therefore, staff recommends that City
Council waive the irregularity as immaterial and award the contract for the "Otay Lakes Road,
Phase I" project to Southland Paving, Inc. in the amount of $2,858,937.02. Southland has
satisfactorily completed previous City projects of a similar nature. The Contractor's License No.
451191 is current and active.
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4/13/10, Item_
Page 4 of 5
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 $165,946.85. Approval of the resolution
would increase the Director of Public Works' authority to approve change orders, as necessary,
up to the contingency amount of$350,000 (approximately 12.2% of the base bid), an increase of
$184,053.15 over Policy No. 574-01. Increasing the contingency funds 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, etc. If the contingency funds are not used, then they will be returned to
the project fund balance.
Disclosure Statement
Attached is a copy of the contractor's Disclosure Statement as Attachment 1.
Wage Statement
The source of funding for this project are Transportation Development Impact Fees (TDIF),
Community Facility District (CFD) bond proceeds, and an Otay Water District deposit of
$978,588.50 (i.e., $890,535 base bid + 10% contingencies). Contractors bidding this project are
not required to pay prevailing wages to persons employed by them for the work under this
project. Disadvantaged businesses were encouraged to bid by sending "Notice to Contractors" to
various trade publications.
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 properties, which are the subject of this action.
CURRENT YEAR FISCAL IMPACT
A breakdown of the project construction costs is as follows:
FUNDS REQUIRED FOR CONSTRUCTION
Contract Amount
Contingencies (Approximately 12.2%)
Construction Staff Cost (Inspection, Survey, Design)
Material T estingfGeotechnical Engineering
TOTAL FUNDS REQUIRED FOR CONSTRUCTION
$2,858,937.02
$ 350,000.00
$ 200,000.00
$ 50,000.00
$3,458,937.02
FUNDS AVAILABLE FOR CONSTRUCTION
Transportation Development Impact Fees (TDIF)
Community Facility District (CFD) 07-ID
Otav Water District Deposit/Obligation
TOTAL FUNDS AVAILABLE
$2,797,753.00
$ 896,248.07
$ 978,588.50
$4,672,589.57
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4/13/10, ltem_
Page 5 of 5
Sufficient funds will be available to complete construction. Funds not used for this phase of
construction will be used for future construction phases, including the acquisition of right-of-way
and environmental mitigation.
The estimated total cost for all three phases of this project is $8 million to $9.5 million. To date,
$1.1 million has been spent in designing all three phases, including surveying and geotechnical
work, and right-of-way engineering and acquisition; design for Phases 2 and 3 is 95% complete.
Phases 2 and 3 will require only a minimum amount of design effort prior to advertisement and
construction. Construction on Phase 2 is currently scheduled for Spring 2012, but may be
accelerated to coincide with the development of the vacant parcel by Southwestern College at the
southwest comer of Otay Lakes Road and East H Street. Phase 3 may be completed with Phase
2 or in Spring 2014, depending upon the availability ofTDlF funds.
ON-GOING FISCAL IMPACT:
Upon completion of the project, the improvements will require only routine City maintenance.
ATTACHMENTS
I. Contractor's Disclosure Statement
Prepared by: Kirk Ammerman, Principal Civil Engineer, Public Works-Engineering
04/06/2010 1-22 PM
M:\EngineerIAGENDAICAS2010104-13-10ISTM355 Contract Award CAS.doc
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ATTACHMENT /
City of Chula 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 dis,Plosed:
I. 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.
r;lrh1vr\ neck
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.
\<' "2\1('.-1( A ~ \ f(J<
3. If any person" identified pursuant to (I) 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.
!\Ic})orr;\ 'I=\eck
Ro~ r+ Ke {)(Ied v\
-1
5. Has any person* associated with this contract had any financial dealings with an official** of the
City ofChula Vista as it relates to this contract within the past 12 months? Yes_ NoL
41
M:\DesignWI Projects\STMlSTM355\SPECIFICATION\PHASE I\FINAL-SPECIFICATION\Non-Prevailing - Contract Specs
( cm).doc
12-6
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? NoL Yes _1fyes, which Council member?
7. 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? (This includes being a source of income, money to
retire a legal debt, gift, loan, etc.) Yes _ No L
If Yes, which official"" and what was the nature of item provided?
Date:
J ---(/I-I()
Jk~
SigTIature of Contractor/Applicant
~'l d1{,yd f=-Iuk. M75IC!-U}.f-
Print or type name of Contractor/Applicant
"
Person is defmed 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.
42
M:\DesignWI Projects\S1M\STM355\SPECIFICATION\PHASE 1\FINAL-SPECIFICATIONlNon-Prevailing - Contract Specs
(cm).doc
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RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING IRREGULARITIES, ACCEPTING
BIDS, AND AWARDING THE CONTRACT FOR THE "OTAY
LAKES ROAD WIDENING - PHASE I" PROJECT (STM355) TO
SOUTHLAND PAVING, INC. IN - THE AMOUNT OF
$2,858,937.02 AND AUTHORIZING THE DIRECTOR OF
PUBLIC WORKS TO EXPEND ALL AVAILABLE FUNDS IN
THE PROJECT
WHEREAS, City staff prepared specifications for the "Otay Lakes Road Widening -
Phase I" Project (STM355) and advertised the project on March 5, 2010; and
WHEREAS, on March 29, 2010, the Director of Public Works received eight (8) sealed
bids for the project as follows:
Contractor/
Bid Discrepancies Total Bid
1. Southland Paving, Inc. of Escondido, CA $2,858,937.02
$2,849,037.02 total bid submitted. (Corrected)
$9,900 error to Bid Item 196, "Potable Water Pressure
Reducing Station 1")
2. Palm Engineering Construction Co., Inc. of San Diego, CA $2,942,909.77
Missing Letter Authorizing Capacity(ies) for Signature
3. LB Civil Construction of San Diego, CA $2,968,826.50
Missing Letter Authorizing Capacity(ies) for Signature
4. Wier Construction Corporation of Escondido, CA $3,297,709.48
$3,200,073.48 total bid submitted. (Corrected)
Errors to Bid Items 2, 46, 173, 178.
Missing Letter Authorizing Capacity(ies) for Signature
5. Hazard Construction Company of San Diego, CA $3,556,833.60
6. Cass Construction, Inc. of E1 Cajon, CA $3,607,203.20
$3,606,356.64 bid submitted. (Corrected)
Error to Bid Item 196.
Missing Letter Authorizing Capacity(ies) for Signature
7. 3-D Enterprises, Inc. of San Diego, CA $4,086,458.10
$3,912,974.10 total bid submitted. (Corrected)
Errors to Bid Items 30, 110, 186, 195
Missing Letter Authorizing Capacity(ies) for Signature
8. Daley Corporation of San Diego, CA $4,392,077.60
$4,425,467.60 total bid submitted. (Corrected)
Errors to Bid Items 4,54, 60,101,122,132,145,183,187
Missing Letter Authorizing Capacity(ies) for Signature
WHEREAS, the corrected low bid submitted by Southland Paving, Inc. of Escondido,
CA in the amount of $2,858,937.02 was determined to have one irregularity in its line item bid
for a potable water pressure reducing station during the review of the bid proposal; and
12-8
WHEREAS, the intent of Southland's bid for this lump sum item is clear in that the unit
price was written out as "seventy two thousand nine hundred dollars" and in the unit cost column
as "$72,900.00," but inadvertently shown in the total as "$63,000.00"; and
WHEREAS, when this error is accounted for, Southland's corrected bid is $83,972.75
lower than the second lowest bidder; and '
WHEREAS, the bid error does not increase the bid for the City's portion of the project;
and,
WHEREAS, staff recommends that the irregularity be waived as immaterial and that the
contract for the "Otay Lakes Road Widening - Phase I" project be awarded to Southland Paving,
Inc.; and
WHEREAS, the low bid submitted by Southland is below the Engineer's estimate of
$3,513,000 ($2.313 million for City facilities and $1.2 million for Otay Water District facilities)
by $654,063, or approximately 18.6%; and
WHEREAS, SoutWand Paving, Inc. has satisfactorily completed previous City projects
of a similar nature and its Contractor's License No. 451191 is current and active.
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 "Otay Lakes
Road Widening - Phase I" Project to Southland Paving, Inc. in the amount of $2,858,937.02.
BE IT FURTHER RESOLVED, that the City Council of the City Of Chula does hereby
waive Council Policy 574-01 and authorize the Director of Public Works to approve change
orders, as necessary, and expend all available contingency funds in the project. /
---....,
/~ I
Pre"~"dby APP~ ~ w by D
Richard A. Hopkins
Director of Public Works
Cit
12-9