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RESOLUTION NO. 2014-084 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACCEPTING BID, AWARDING THE CONTRACT FOR THE "BROADWAY DRAINAGE IMPROVEMENT PROJECT BETWEEN MAIN STREET AND SOUTH CITY LIMITS IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP# STM367)" TO JUST CONSTRUCTION IN THE AMOUNT OF $888,000 WAIVING CITY COUNCIL POLICY NO. 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $133,200
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On April 9, 2014, the Director of Public Works received eight (8) sealed bids for the "Broadway Drainage Improvement Project, between Main Street and South City Limits (STM367)". The proposed resolution, if approved, would accept the bids, award the contract to Just Construction in the amount of $888,000, waive City Council Policy 574-01, and authorize the expenditure of all available contingency funds in an amount not to exceed $133,200.
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 (c) categorical exemption pursuant to Section 15301 [Existing Facilities] of the State CEQA Guidelines because the proposed scope of work consists of replacement of existing drain pipe facilities and headwall within existing street right-of-way and private easement involving no expansion of an existing use. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The Broadway Drainage Improvement project involves the installation of approximately 1,600 lineal feet of a combination of reinforced concrete pipe (RCP) and high-density polyethylene (HDPE) storm drain pipes, clean-outs, curb-inlets and upstream energy dissipator. The project will convey rainfall run-off from Broadway directly into the Otay River.
On April 9, 2014, the Director of Public Works received eight (8) seal bids. The following bids were received:
Contractor |
Bid Amount |
1. Just Construction - San Diego, CA |
$888,000 |
2. Schilling Paradise Corp. - El Cajon, CA |
$912,500 |
3. New Century Construction - Lakeside, CA |
$917,175 |
4. Blue Pacific Eng. & Construction Inc. - San Diego, CA |
$938,200 |
5. Alvan Construction Inc.- Poway, CA |
$962,500 |
6. GRFCO, Inc.- Moreno Valley, CA |
$988,000 |
7. Ortiz Corp., National City, CA |
$1,162,854 |
8. Weird Construction- Escondido, CA |
$2,301,040 |
The low bid submitted by Just Construction is below the Engineer's estimate of $925,500 by $37,500, or approximately 4%. In the past, Just Construction has satisfactorily performed construction projects for the City of Chula Vista. Just Construction is a Licensed General Contractor Class A with a current and active License No.968910.
Staff reviewed the lowest bid submitted by JUST Construction and determined the bid package is complete, with no errors and omissions. Therefore, staff recommends awarding a construction contract to JUST Construction in the amount of $888,000.
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, when an individual change order causes the cumulative increase in change orders to exceed the Director's authority ("Maximum Aggregate Increase in Change Orders"), City Council approval is required. For this project the corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-01 is $65,160. 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 $133,200, an increase of $68,040 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 is TransNet Funds. Contractors bidding this project are not required to pay 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 property which is the subject of this action. 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 Drainage Improvement along Broadway between Main Street and South City Limits project support the Strong & Secure Neighborhood goal as it will ensure a sustainable and well maintain drainage infrastructure by improving existing storm drain capacity and help insure the storm drain facilities meets the need of the public.
CURRENT YEAR FISCAL IMPACT
Sufficient TransNet Funds are available in CIP Project No. STM367 to complete the project. There is no direct impact to the General Fund. The table below summarizes the project construction costs.
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT |
A. Base Contract Amount B. Contract Contingencies C. Construction Inspection Staff Costs D. Design/Survey/Monument Preservation |
$888,000 $133,200 $60,000 $50,000 |
TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT |
$1,131,200 |
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ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine City maintenance.