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RESOLUTION NO. 2014-215 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "PAVEMENT MAJOR REHABILITATION FY13/14 (OVERLAY) (STM379)" PROJECT TO ATP GENERAL ENGINEERING CONTRACTORS IN THE AMOUNT OF $2,659,705.50, WAIVING CITY COUNCIL POLICY NO. 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $398,955.83
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On October 22, 2014, the Director of Public Works received sealed bids for the "Pavement Major Rehabilitation FY13/14 (Overlay) (STM379)" project. The project consists of the removal and replacement of failed asphalt concrete pavement, reconstruction of street pavement using the 16" Full Depth Reclamation (FDR) process, placement of pavement reinforcement fabric and application of asphalt concrete (AC) on various streets in the City. Additional scope of work on this project includes the installation of stormwater treatment systems; installation or replacement of concrete pedestrian ramps; curb, gutter, and sidewalk; traffic control; striping and markings, and other miscellaneous items of work necessary to complete the project.
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 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 Public Works 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 localized sections of pavement (dig-outs) or entire street sections using various methods of reconstruction and the application of suitable types of surface treatments. The street segments and preventive maintenance strategy are identified in Attachment 1.
Some street segments in this project are severely deteriorated beyond the scope of an AC overlay. This is the case for First Avenue between G Street and H Street where dig-out repairs alone are not sufficient to correct underlying breakdown of the pavement base material. A Full Depth Reclamation (FDR) process will be employed. FDR has been used successfully in the Montgomery area of the City. FDR requires 16" of existing pavement and base material to be ground up and mixed in place, adding a binder (cement) for rigidity. It is capped with asphalt concrete to provide smooth riding surface. Four (4) locations would receive a complete removal and replacement (R&R) of existing AC pavement (Attachment 1, Alternate Bid Items).
In addition to applying the asphalt overlay, the scope of work also includes the removal or replacement of pedestrian ramps; Stormwater facilities, pavement reinforcing fabric, weed removal; herbicide treatment, crack filling, various traffic control items, and other miscellaneous work necessary to successfully complete the project.
On October 22, 2014, the Director of Public Works received six (6) bids for the "Pavement Major Rehabilitation FY13/14 (Overlay) (STM379)" project. The following bids were received:
|
CONTRACTOR |
SUBMITTAL RESULT |
BID TOTAL SUBMITTED |
1 |
ATP General Engineering Contractors - Chula Vista, CA |
All requirements met |
$2,659,705.50 |
2 |
TC Construction Co., Inc. - Santee, CA |
All requirements met |
$2,666,633.50 |
3 |
Ramona Paving & Const. Corp. - Ramona, CA |
All requirements met |
$2,686,303.65 |
4 |
PAL General Engineering - San Diego, CA |
All requirements met |
$2,759,718.65 |
5 |
SRM Contracting & Paving - San Diego, CA |
All requirements met |
$2,767,367.00 |
6 |
PCI, Portillo Concrete Inc. - Lemon Grove, CA |
All requirements met but with $4,557.16 Mathematical error. New total is $2,829,430.75 |
$2,833,987.91 |
Staff reviewed the low bid submitted by ATP General Engineering Contractors and determined that their bid package met all the submittal requirements. The bid submitted by ATP General Engineering Contractors is below the Engineer's estimate of $3,098,026.85 by $438,321.35 (or approximately 14.15%). The biggest factor in the price difference appears to be the continuing decrease in oil prices, a significant material used in the manufacture of asphalt concrete.
The Contractor has satisfactorily performed construction projects of similar scope for the City in the past. The Contractor's License No. 502506, as well as all listed sub-contractors' licenses, are current and active. Staff recommends awarding a contract including the alternate bid in the amount of $2,659,705.50 to ATP General Engineering Contractors.
Additionally, City Council Policy No. 574-01 allows the Director of Public Works to authorize a maximum cumulative change order(s) amount of $73,000 plus 5% of the original contract over $1,000,000 without City Council prior approval. Based on the contract amount, the maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-01 is $155,985.28. The proposed resolution would increase the Director of Public Works' cumulative change order authority to approve change orders, as necessary, up to the 15% contingency amount of $398,955.83, which is an increase of $242,970.55 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. Any remaining unused contingency funds will be returned to the project fund balance.
Disclosure Statement
Attachment 2 is a copy of the Contractor's Disclosure Statement.
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. Disadvantaged businesses were encouraged to bid in the Notice Contractors for various trade publications.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it solely concerns the repair, replacement or maintenance of existing streets, sewer, storm drainage or similar facilities and, as such, the financial effect of the decision on real property is presumed to be not material, pursuant to California Code of Regulations Title 2, sections 18704.2(b)(2). Consequently, this item does not present a conflict 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 "Pavement Major Rehabilitation FY13/14 (Overlay) (STM379)" 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
The following is a summary of anticipated project costs:
FUNDS REQUIRED FOR CONSTRUCTION |
|
A. Contract Amount B. Contingencies (Approx. 15%) C. Staff Time, Material Testing &Other Costs (Approx. 15%) |
$2,659,705.50 $ 398,955.83 $ 398,955.83 |
CONSTRUCTION TOTAL |
$3,457,617.16 |
FUNDING SOURCES (ROUNDED) |
A. STM379 (TransNet Funds) |
$3,457,618 |
TOTAL |
$3,457,618 |
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There is no additional impact to the TransNet fund as sufficient funding is available to cover the construction and staff costs associated with STM379.
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.
Staff Contact: Roberto Juan, Associate Engineer