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Home My WebLink About2011/05/03 Item 08CITY COUNCIL AGENDA STATEMENT ~ ''~` CHULA VISTA 5/03/11, Item ITEM TITLE: PUBLIC HEARING TO CONSIDER WAIVING IRREGULARITIES EV THE BID RECEIVED FOR THE "SAFE ROUTE 2 SCHOOL- LAUDERBACH ELEMENTARY SCHOOL PEDESTRIAN IMPROVEMENT CIP. NO. STM368" PROJECT PER CITY CHARTER SECTION 1009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; FINDING THAT IT IS NECESSARY FOR THE BENEFIT OF THE PUBLIC TO WAIVE IRREGULARIETES IN THE BID SUBMITTED BY PAL GENERAL ENGINEERING, INC; WANING SUCH IRREGULARITIES; AWARDING THE CONTRACT FOR THE "SAFE ROUTES 2 SCHOOL - LAUDERBACH ELEMENTARY SCHOOL PEDESTRIAN IMPROVEMENT CIP NO. STM368" PROJECT TO PAL GENERAL ENGINEERING, INC. IN THE AMOUNT OF $99,240; AND AUTHORIZING T EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PRO CT SUBMITTED BY: DIRECTOR OF PUBLIC WORKS ASSISTANT DIREC OF EN RING REVIEWED BY: CITY MANAGE ASSISTANT CIT ANAGER !7~ 4/STHS VOTE: YES ^ NO SUMMARY On March 16, 2011, the Director of Public Works received ten (10) sealed bids for the "Safe Routes 2 School - Lauderbach Elementary School Pedestrian Improvement CIP No. STM368', State Project Number: SR2SL-5203(030). The project will provide safer street crossings and consists of the installation of enhanced crosswalk improvements (including curb extensions directly in Front of the school), pedestrian ramps, advanced warning traffic signals and signage at the intersection of Fourth Avenue and Orsett Street. The proposed action would waive a clerical error in the bid, award the contract to PAL General Engineering Services, Inc., and authorize the expenditure of available funds for completion of construction. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 categorical exemption pursuant to Section 15303 [New Construction or Conversion of Small Structures] of the State CEQA Guidelines because the project consists of installation of 8-1 5/0311, Item~~' Page 2 of 3 small warning traffic signals and signage, curbs and improve existing crosswalks. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION One of the purposes of the State Safe Routes 2 School (SR2S) Program is to provide safer street crossings for children and families walking to schools. The "Safe Routes to School - Lauderbach Elementary School" project consists of the installation of enhanced crosswalk improvements (including curb extensions directly in front of each school), pedestrian ramps, advanced warning traffic signals and signage at the intersection of Fourth Avenue and Orsett Street. On March 16, 2011, the Director of Public Works received ten (10) sealed bids. The following bids were received: CONTRACTOR BID AMOUNT 1. PAL General En ineerin Inc. -San Die o CA $97,990 2. HTA Engineering & Construction, Inc. -Poway, CA $108,870 3. DBX, Inc. -Temecula, CA $110,200 4. Ramona Paving & Construction Corp. -Ramona, CA $112,897 5. Palm Engineering -San Diego, CA $116,780 6. CCC - La Mesa, CA $118,300 7. 3-D Enterprises, Inc. -San Diego, CA $118,460 8. New Century Construction, Inc. -Lakeside, CA $121,979 9. PTM General Engineering Services, Ina -Riverside, CA $124,421 10. TED Enterprises, Inc. -San Clemente, CA $128,178 *Is the correct total bid amount Staff reviewed the apparent low bid proposal in the amount of $97,990 submitted by PAL General Engineering of San Diego, California and found that the Contractor had made a clerical error in the total bid amount. Therefore, the corrected total bid amount is $99,240, an increase of $1,250. This irregularity does not affect the outcome or integrity of the bidding process and the revised amount is well below the second lowest bid of $108,870. The low bid submitted by PAL General Engineering, Inc. is below the Engineer's estimate of $126,250.00 by $27,010 (21% 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. 916931A is current and active. e-2 5/0311, Item Page 3 of 3 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-O1, 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 $9,924.00. Approval of tonight's resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $15,000, an increase of $5,076 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, eta 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 sources of funding for this project are a grant from the State Safe Routes 2 School (SR2S) Program and TransNet (grant match). Contractors bidding this project are required to pay State of California genera] prevailing wages to persons employed by them for the work under this project. 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 costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount B. Contingencies (20%) $ 99,240 $ 15,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $114,240 Sufficient funds are available in the STM368 project account to complete construction. ONGOING FISCAL IMPACT: Upon completion of the project, the improvements will require only routine City maintenance totaling $500 annually ATTACHMENTS 1. Contractor's Disclosure Statement Prepared by: Boushra Salem, P.E., Senior Civil Engineer, Public Wa'ks Department ]:~flngineerAAGENDAACAS2017AOS-03-11ASTM368 Award Conttacbrev2.doc 8-3 /tTTACHMENT CITY OF CIiULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-O1, prior to any action upon matters that will require discretionary action by he Council, Planning Commission and all other official bodies of the City, a statement of disclosure of cer:ahl ownersfiip or financial interests, payments, or campaign contnbutions for a City of Chula Vista elation must be filed.171e 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 (1) above is a corporation or partnership, list the names of all individuals with a $2000 inveshnent in the business (corporation/partnership) entity. 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, Iist the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trus[or 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 financial dealings with an official** of the City of Chula V ista as it relates to this contract within the past 12 months? Yes_ No x If Yes, briefly describe the nature of the &nancial interest the official** may have in this contract I6 Q:~E~ginettingWi Pmiectsl5TM~517/36fl I.euderhech SR25\Speci6cotion~51MMi5fl Specs Finel.doc 8-4 6. Piave 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? 7. Have you provided more than $340 (or m 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 x If Yes, which official** and what was the nature of item provided? ' Data; March 1?th, ZOll Signature of Contractor/Applicant nAL General Enaineering Inc. Print or type name of Contrnctor/Applicant Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any outer county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited tn: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 17 Q:\3,gineaingW,Il ProjcLSISTM~STM368 Leudabach SR25lSpxiacmivnlSTM368 Spas Fwatdoc 8-5 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; FINDING THAT IT IS NECESSARY FOR THE BENEFIT OF THE PUBLIC TO WAIVE IRREGULARITIES IN THE BID SUBMITTED BY PAL GENERAL ENGINEERING, INC; WAIVING SUCH IRREGULARITIES; AWARDING THE CONTRACT -FOR THE "SAFE ROUTES 2 SCHOOL - LAUDERBACH ELEMENTARY SCHOOL PEDESTRIAN IMPROVEMENT CIP NO. STM368" PROJECT TO PAL GENERAL ENGINEERING, INC. IN THE AMOUNT OF $99,240; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT WHEREAS, on March 16, 2011, the Director of Public Works received sealed bids for the "Safe Route 2 School- Lauderbach Elementary School Pedestrian Improvement CIP No. STM368", State Project Number SR2SL-5203(030); and WHEREAS, the work to be done consists of installation of enhanced crosswalk improvements (including curb extensions directly in front of each school), pedestrian ramps, advanced warning traffic signals and signage, and other miscellaneous work to complete the project at the intersection of Fourth Avenue and Orsett Street; and WHEREAS, the Director of Public Works received ten (10) bids as follow: CONTRACTOR BID AMOUNT 1. PAL General Engineering, Inc. -San Diego, CA $97,990.00 ($99,240.00) 2. HTA Engineering & Construction, Inc. -Poway, CA $108,870.00 3. DBX, Inc. -Temecula, CA $110,200.00 4. Ramona Paving & Construction Corp. -Ramona, CA $112,897.00 5. Palm Engineering -San Diego, CA $116,780.00 6. CCC - La Mesa, CA $118,300.00 7. 3-D Enterprises, Inc. -San Diego, CA $118,460.00 8. New Century Construction, Inc. -Lakeside, CA $121,979.00 9. PTM General Engineering Services, Inc. -Riverside, CA $124,421.00 10. TED Enterprises, Inc. -San Clemente, CA $128,178.00 *is the correct total bid amount WHEREAS, during review of PAL General Engineering Construction's bid proposal, staff found that the Contractor had introduced a clerical error in the total bid amount. Therefore, the corrected total bid amount is $99,240.00, an increased of merely $1,250. Staff feels that this irregularity is of little consequence and the revised amount will be well below the second lowest $-6 Resolution No. Page 2 bidder amount of $108,870.00; and WHEREAS, the low bid submitted by PAL General Engineering, Inc. is below the Engineer's estimate of $126,000 by $27,010 or approximately 21%; and WHEREAS, the Contractor has satisfactorily performed construction projects of similaz scope for the City in the past; and WHEREAS, staff has reviewed the low bid and recommends awarding the contract to PAL General Engineering, Inc. of San Diego, California. 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 for the "Safe Route 2 School- Lauderbach Elementazy School Pedestrian Improvement CIP No. STM368, State Project Number SR2SL-5203(030)." BE IT FURTHER RESOLVED that the City Council of the City Of Chula Vista does hereby find that it is necessary to waive irregularities in the bid from PAL General Engineering, Inc. for the benefit of the public. BE IT FURTHER RESOLVED that the City Council of the City Of Chula Vista does hereby waive such irregularities. BE IT FURTHER RESOLVED that the City Council of the City Of Chula Vista does hereby award the contract for the "Safe Route 2 School- Lauderbach Elementazy School Pedestrian Improvement CIP No. STM368, State Project Number SR2SL-5203(030)" project to PAL General Engineering, Inc. in the amount of $99,240.00. 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 to approve change orders, as necessazy, up to the contingency amount of $15,000 and expend all available funds in the project. Presented by Richazd A. Hopkins Director of Public Works 8-7