Title
A. RESOLUTION NO. 2018-014 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE “STREET PAVEMENT REHABILITATION - MEASURE P (CIP# STL0427)” PROJECT TO ATP GENERAL ENGINEERING CONTRACTORS, LLC. IN THE BID AMOUNT OF $5,127,997
B. RESOLUTION NO. 2018-015 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY2017/18 CIP PROGRAM BUDGET BY ESTABLISHING NEW CIP PROJECTS, “STREET PAVEMENT REHAB PHASE II - MEASURE P (CIP# STL0430)” AND “CMP REHAB OUTSIDE RIGHT OF WAY PHASE II - MEASURE P (CIP# DRN0211)”; TRANSFERRING $8,750,000 IN MEASURE P APPROPRIATIONS FROM STL0427 TO STL0430; AND TRANSFERRING $5,639,000 IN MEASURE P APPROPRIATIONS FROM DRN0209 TO DRN0211 (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
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SUMMARY
On December 20, 2017, the Director of Engineering and Capital Projects received five (5) sealed bids for the “Street Pavement Rehabilitation - Measure P (CIP# STL0427)” project. The project consists of routine rehabilitation of failed asphalt by milling and placing asphalt on all the street segments shown in Attachment 1. The proposed action would: (1) award the contract to ATP General Engineering Contractors, LLC, (2) create two new CIP projects, and (3) transfer available funds from two existing CIP projects (STL0427 & DRN0209) to the two new CIP projects.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Class 1(c) Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.
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Environmental Determination
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 1 Categorical Exemption pursuant to Section 15301(c) (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Engineering and Capital Projects Department utilizes a Pavement Management System (PMS) and pavement preservation program to develop the priority list of streets to rehabilitate and preserve throughout the city. This preservation program is designed to extend the roadway life and serviceability through the removal and replacement of deteriorated sections of pavement or entire pavement sections using various methods of reconstruction and the application of suitable types of surface treatments. The milling and asphalt placement on all the street segments shown in Attachment 1 will complete the overall maintenance strategy on these street segments.
City Staff prepared plans and specifications and began the advertisement of the project on November 24, 2017. The Director of Engineering and Capital projects received and opened five (5) base bids for the project on December 20, 2017, as follows (listed in numerical order of bid total amount):
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|
CONTRACTOR |
BID AMOUNT |
|
1 |
ATP GENERAL ENGINEERING CONTRACTORS, LLC |
$5,127,997.00 |
|
2 |
SRM CONTRACTING AND PAVING |
$5,485,460.00 |
|
3 |
TC CONSTRUCTION COMPANY, INC. |
$5,837,522.00 |
|
4 |
HAZARD CONSTRUCTION COMPANY |
$6,159,970.00 |
|
5 |
EAGLE PAVING COMPANY, INC. |
$6,246,984.50 |
The apparent low bid by ATP General Engineering Contractors, LLC of $5,127,997 is $2,695,932 (approximately 34%) below the Engineer’s estimate of $7,823,929.
ATP General Engineering Contractors, LLC is currently an active licensed Class “A”, General Engineering Contractor (License No. 502506) and has performed similar work in the region with satisfactory performance. Staff has reviewed ATP General Engineering Contractors, LLC bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding STL0427 to ATP General Engineering Contractors, LLC.
On May 9, 2017, City Council approved Resolution 17-0174 to adopt ordinance (Ord. 3400 § 1, 2017) of the City of Chula Vista and amend Chapter 2.56 of the Chula Vista Municipal Code - “Purchasing System. This ordinance amends the change order limits and authorizes the City Engineer to approve change orders up to the remaining CIP budget available for the CIP project. Authorizing the Director of Engineering and Capital Projects/City Engineer to approve change orders will allow the project to continue without delay should unforeseen circumstances arise resulting in increased project costs 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, unexpected pavement conditions etc.
Staff also recommends an inter-project transfer of $8,750,000 from STL0427 to STL0430, and an inter-project transfer of $5,639,000 from DRN0209 to DRN0211 to create Phase II of the street and drainage rehabilitation projects. STL0427 and DRN0209 have sufficient balance available to fund the inter-project transfers.
Wage Statement
The Contractor and its subcontractors are required by bid specifications to pay prevailing wage (“Prevailing Wage Rates”) to persons employed by them for work under this Contract. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to be done. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California.
Disclosure Statement
Attachment 2 is a copy of the Contractor’s Disclosure Statement.
DECISION-MAKER CONFLICT
Not Applicable - Not Site-Specific
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The goal of the “Street Pavement Rehabilitation - Measure P (CIP# STL427)” project is to support the Strong and Secure Neighborhood strategy identified in the City’s Strategic Plan. The maintenance and rehabilitation of public infrastructure is a key City function in providing a safe and efficient roadway system for residents, businesses and visitors alike.
CURRENT YEAR FISCAL IMPACT
Approval of these resolutions will initiate the construction phase of STL0427. In addition, $8,750,000 in Measure P funds will be transferred from STL0427 to STL0430 and $5,639,000 in Measure P funds will be transferred from DRN0209 to DRN0211. Sufficient funding is available to award the contract for STL0427 and for said transfers. Therefore, there is no additional impact to the Measure P Fund.
The following is a summary of anticipated project costs for bid:
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FUNDS REQUIRED FOR CONSTRUCTION |
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|
A. Contract Amount B. Contingencies (Approx. 15%) C. Construction Management, Staff Time, Material Testing & Other Costs (Approx. 8%) |
$5,127,997.00 $769,200.00 $400,000.00 |
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CONSTRUCTION TOTAL |
$6,297,197.00 |
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FUNDING SOURCES FOR CONSTRUCTION (ROUNDED) |
|
A. Measure P Funds |
$6,297,197.00 |
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TOTAL |
$6,297,197.00 |
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine City street maintenance. Since the improvements are anticipated to increase the life of the streets included, there should be a positive long term fiscal impact.
ATTACHMENTS
1. Project Locations
2. Disclosure Statement
Staff Contact: Claudia I. Estupinan, Associate Engineer