Title
RESOLUTION NO. 2014-185 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; REJECTING BIDS DECLARED NON-RESPONSIVE; AWARDING THE CONTRACT FOR THE "PHASE I - WILLOW STREET BRIDGE REPLACEMENT (WATER LINE RELOCATION) [CIP NO. STL-384, FEDERAL PROJECT NO. BHLS-5203(016)]" PROJECT, INCLUDING ADDITIVE ALTERNATE BID ITEMS, TO TECHCOM INTERNATIONAL, CORPORATION IN THE AMOUNT OF $3,520,358.40; APPROPRIATING $534,900 OF NON-DEPARTMENTAL CIP FUNDS BASED ON UNANTICIPATED REVENUE ASSOCIATED WITH UTILITY AGREEMENT WITH CITY OF SAN DIEGO TO CIP NO. STL-384; REDUCING THE BUDGET FOR CIP NO. STL-261 BY $58,740 IN TRANSPORTATION DEVELOPMENT IMPACT FEE FUNDS (TDIF) AND APPROPRIATING THE EQUIVALENT AMOUNT TO CIP NO. STL-384; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $356,388 (4/5 VOTE REQUIRED)
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
By Resolution 2014-140 (See Attachment "1"), on July 8, 2014, the City Council rejected the bid proposals received on May 21, 2014 for the Phase I - Willow Street Bridge Replacement (Water Line Relocation) [CIP No. STL-384, Federal Project No. BHLS-5203(016)] project (Project) due to various factors and directed the Director of Public Works to re-advertise the project.
The Director of Public Works re-advertised the Project and on August 27, 2014, received three (3) sealed bids from the re-advertisement. The Project is included in the Capital Improvement Program for Fiscal Year 2013/2014. The proposed resolution, if approved, would 1) accept bids; 2) reject bids declared non-responsive; 3) award the contract for the Project, including Additive Alternate Bid Items, to TechCom International, Corporation in the amount of $3,520,358.40; 4) appropriate $534,900 of non-departmental CIP funds based on the unanticipated revenue associated with Utility Agreement with the City of San Diego to CIP No. STL-384; 5) reduce the budget for CIP No. STL-261 by $58,740 in TDIF and appropriate the equivalent amount to CIP No. STL-384; and 6) waive City Council Policy 574-01; and 7) authorize the expenditure of all available contingency funds in an amount not to exceed $356,388.
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 was adequately covered in the previously adopted Mitigated Negative Declaration, IS-10-006 for the Chula Vista Willow Street Bridge Replacement Project on November 14, 2011. Thus, no further CEQA environmental review is required. In addition, the Development Services Director has reviewed the proposed project for compliance with the National Environmental Policy Act (NEPA) in conjunction with the California Department of Transportation (Caltrans), the state department designated as Lead Environmental Agency by the U.S. Department of Transportation, Federal Highway Administration (FHWA) for federally funded street projects. It was determined that the Project qualifies for a categorical exclusion pursuant to Title 23 Code of Federal Regulations (CFR ) Section 771.117(d); activity:(d)(1) [Modernization of a Street by resurfacing, restoration, rehabilitation or reconstruction]. Thus, no further NEPA environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
Project Background
This waterline relocation project is the first phase of a two phase Bridge Replacement project that will ultimately replace the existing 2-lane Willow Street Bridge with a new 4-lane bridge; the existing bridge was constructed in 1940 and crosses the Sweetwater River. The overall project (Phase I and II) will be advertised and awarded as two (2) separate contracts. Phase I of the project is primarily a utility relocation project and Phase II is the actual bridge replacement work.
The improvements accomplished with Phase I of the project include relocating an existing 32-inch water transmission line (Owner - Sweetwater Authority) and an existing 36-inch water transmission line (Owner - City of San Diego) outside of the proposed bridge envelope. The transmission lines run along the westerly side of the existing Willow Street Bridge and traverse the northerly end of the bridge; the two lines also run parallel to each other and diverge towards the north end of the existing bridge. Relocation of the two lines is needed due to conflicts with the proposed northerly bridge abutment and bridge columns. The project also includes clearing and grubbing of the overall Bridge Replacement project site, dewatering, environmental fencing, traffic control, and other associated miscellaneous work items.
The Phase I improvements will be predominantly constructed within City of Chula Vista (City) and County of San Diego (County) right-of-way. Inter-agency coordination between the City and the County was required as well as coordination with the California Department of Transportation (Caltrans) due to their Federal oversight role for the project.
Agreements
Utility Agreements, prepared in accordance with Federal procedures, between the City and both water line utility owners (Sweetwater Authority and City of San Diego) have been executed and approved by the City and Caltrans (See Attachments "2" and "3", respectively); said agreements outline the details/responsibilities between the City and the utility owners for the Project that includes, but are not limited to, the following items: work to be done, liability of work, performance of work, and payment for work. Additionally, the City of San Diego's Utility Agreement includes their obligation to pay for their requested water line betterments in the amount of $534,900.
A Joint Use Agreement between the City and the City of San Diego has also been prepared and executed in order to formalize financial responsibilities of any future relocations associated with the City of San Diego's water line (See Attachment "4").
Community Interaction
The overall Willow Street Bridge Replacement Project is supported by the Sweetwater Community Planning Group and the Sweetwater Valley Civic Association. Extensive public and agency interaction occurred during the development phase of this project and will continue throughout the construction phase.
Project Re-Advertisement and Bid Proposal Results
City staff began the re-advertisement of the Project on July 25, 2014 and held a non-mandatory Pre-Bid Meeting on August 14, 2014 to review the project requirements and receive questions regarding the bid documents. Four (4) prime contractors were in attendance. The Director of Public Works received and opened three (3) bids for the Project. On August 27, 2014 the bid results were (listed in numerical order of responsive base bid amount):
|
CONTRACTOR |
BASE BID AMOUNT |
1 |
TechCom International, Corporation (responsive) |
$3,486,000 |
2 |
Metro Builders & Engineers Group, Ltd. (non-responsive) |
$2,859,310 |
3 |
GRFCO, Inc. (non-responsive) |
$3,595,000 |
Staff thoroughly reviewed all of the bid proposals received and recommend that the apparent low bidder (Metro Builders & Engineers Group, Ltd.) and third low bidder (GRFCO, Inc.) be declared non-responsive. Staff determined that their bid proposals failed to meet the Disadvantaged Business Enterprise (DBE) Goal and did not satisfactorily demonstrate a DBE Good Faith Effort. The funding source (Federal Highway Administration Funds) requires bidders to meet the goal in utilizing DBE's or make good faith efforts in attempting to secure DBE's.
Staff determined the bid package submitted by TechCom International, Corporation (second low bid) was complete, with no errors or omissions. Additionally, the 11.7% DBE goal set for the Project was achieved by TechCom International, Corporation.
Additionally, City staff checked the references submitted by TechCom International, Corporation and all references verified their work has been satisfactory. TechCom International, Corporation is a licensed General Engineering (Class A) and General Building (Class B) Contractor with a current and active License No. 824687.
The lowest responsive base bid amount submitted by TechCom International, Corporation is above the Engineer's estimate of $1,910,000 by $1,576,000 (approximately 82.51%).
For the re-advertisement, City staff provided modifications to the originally advertised contract documents in an effort to reduce construction costs to an amount closer to the Engineer's Estimate. The re-advertised project addressed issues with the construction schedule requirements/penalties and facilitated the solicitation of sub-consultant quotes for environmental oversight. The estimated costs for the civil work and water transmission line items of the Engineer's Estimate were compiled by City staff and the design consultant (Kimley-Horn), respectively. However, based on the base bid proposal amounts received from the re-advertisement, City staff has determined that the Engineer's Estimate still underestimated the actual construction costs of the Project and that the bid proposals received reflect the "true" construction costs. The existing alluvial soil environment and construction within the Sweetwater River as well as waterline material costs appear to have increased construction costs substantially.
Additive Alternate Bid Items were also included in the bid proposal for the Project, but were not considered in determining the lowest responsive bidder. The Additive Alternate Bid Items to be included with the contract are for additional items related to the City of San Diego's water line betterments and maintenance of the stormwater Best Management Practices (BMP's) to overlap Phase II construction (Additive Alternate Bid Item No's. 1, 2 and 9). The recommended contract award amount (cumulative total of the base bid amount and additive alternate bid items amount) is summarized in the table below for each bid proposal (listed in numerical order of responsive base bid amount):
|
CONTRACTOR |
BASE BID AMOUNT |
ADDITIVE ALTERNATE BID ITEMS |
CONTRACT AWARD AMOUNT |
1 |
TechCom International, Corporation (responsive) |
$3,486,000 |
$34,358.40* |
$3,520,358.40 |
2 |
Metro Builders & Engineers Group, Ltd. (non-responsive) |
$2,859,310 |
$86,620* |
$2,945,930 |
3 |
GRFCO, Inc. (non-responsive) |
$3,595,000 |
$30,000* |
$3,625,000 |
*Includes Additive Alternate Bid Item No's. 1, 2 and 9 only.
Staff recommends awarding the construction contract, which includes the Additive Alternate Bid Items, to TechCom International, Corporation in the amount of $3,520,358.40.
Change Orders
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 $199,018. Approval of the resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $356,388, an increase of $157,370 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, other unexpected underground conditions, etc. If the contingency funds are not used, then they will be returned to the project fund balance.
Wage Statement
This is a federally funded project. The Contractor that is awarded the contract and its subcontractors are required to pay prevailing wages to persons employed by them for work under this contract. The prevailing wage scales are those determined by the U.S. Federal Department of Labor Relations (Davis-Bacon) and those determined by the Director of Industrial Relations, State of California. The Contractor is obligated to pay the higher of the two wage determinations (hourly rate plus fringe benefits) for each applicable craft or classification.
Disclosure Statement
Attachment "5" is a copy of the Contractor's Disclosure Statement.
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 (See Attachment "6"). 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 Phase I - Willow Street Bridge Replacement (Water Line Relocation) [CIP No. STL-384, Federal Project No. BHLS-5203(016)] project supports the Strong and Secure Neighborhoods Strategic Goal as it improves safety from traffic and floods to the residences and pedestrians, as well as it creates appealing communities to live, work, and play. This project is also included in the 2012 Regional Transportation Improvement Plan as CHV08.
CURRENT YEAR FISCAL IMPACT
The funding sources for this project are a combination of the City's Transportation Development Impact Fee (TDIF) program, a betterment deposit from the City of San Diego, and a grant from the Highway Bridge Program (HBP) (the HBP will reimburse 88.53% of the eligible construction costs). The tables below summarize the costs required for project construction and the funds available for project construction:
FUNDS REQUIRED FOR CONSTRUCTION |
A. Contract Amount |
$3,520,358.40 |
B. Contract Contingency |
$356,388 |
C. Construction Engineering Cost (Inspections, Design Support, Land Surveying, Environmental Monitoring, Geotechnical, & Materials Testing) |
$534,583 |
TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$4,411,329.40 |
|
|
FUNDS AVAILABLE FOR CONSTRUCTION |
A. Highway Bridge Program (HBP) Funds |
$3,609,412 |
B. Transportation Development Impact Fee (TDIF) |
$208,278 |
C. TDIF Transfer from CIP No. STL-261 to CIP No. STL-384 |
$58,740 |
D. Contribution from City of San Diego for Betterments |
$534,900 |
TOTAL FUNDS AVAILABLE FOR CONSTRUCTION |
$4,411,330 |
|
|
The above action of awarding the contract will authorize a total expenditure of $4,411,329.40 for construction of the Project (CIP No. STL-384). There is currently $3,609,412 and $208,278 of available HBP and TDIF funds in the project's account, respectively. The following transfers and appropriations into CIP No. STL-384 are recommended to provide sufficient funds for costs associated with the Project construction:
· $534,900 from Non-Departmental CIP (contribution from City of San Diego)
· $58,740 (rounded) from CIP No. STL-261 (TDIF)
Therefore, there is no additional impact to the HBP and TDIF funds.
ONGOING FISCAL IMPACT
Since the water transmission lines are owned by the Sweetwater Authority and City of San Diego, no additional funds will be required.
ATTACHMENTS
1. Resolution 2014-140
2. Utility Agreement No. STL261-2 between the City and Sweetwater Authority
3. Utility Agreement No. STL261-1 between the City and City of San Diego
4. Joint Use Agreement between the City and City of San Diego
5. Contractor's Disclosure Statement
6. Decision-Maker Conflicts Map
Staff Contact: William S. Valle, Assistant Director of Engineering / City Engineer (Department of Public Works - Engineering)