Title
RESOLUTION NO. 2016-080 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "PAVEMENT MAJOR REHABILITATION FY14/15 & FY15/16 (STM383 & STM387) AND SEWER ACCESS ROAD REHABILITATION FY12/13 (SW277)" PROJECT TO ATP GENERAL ENGINEERING CONTRACTORS IN THE AMOUNT OF $3,950,171.50; WAIVING CITY COUNCIL POLICY NO. 574-01; AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS NOT TO EXCEED $592,525.73; AND APPROPRIATING $46,050 FROM THE AVAILABLE BALANCE OF THE PROPOSITION 1B HIGHWAY SAFETY FUND TO STM383 (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On March 16, 2016, the Director of Public Works received sealed bids for the “Pavement Major Rehabilitation FY14/15 & FY15/16 (STM383 & STM387) and Sewer Access Road Rehabilitation FY12/13 (SW277)” project. The project consists of the removal and replacement of failed asphalt concrete pavement (dig-outs), resurfacing of street pavement using the Asphalt Rubber Aggregate Membrane (ARAM) on various streets in the City. Additional scope of work on this project includes the repair/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
Environmental Notice
Environmental Notice
The Project qualifies for a Class 1 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 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required.
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 sections of pavement (dig-outs) or entire pavement sections using various methods of reconstruction and the application of suitable types of surface treatments. The re-construction of some street segments and the application of the Asphalt Rubber Aggregate Membrane (ARAM) surface treatment on the street segments shown in Attachments 1 will complete the overall maintenance strategy on these street segments.
Additionally, the Sewer Access Road Rehabilitation (SW277) was added to this project to take advantage of historical cost savings for a larger project versus smaller projects.
In addition to applying the surface treatment, the scope of work also includes the removal and replacement of pedestrian ramps and other concrete work, dig-out and repair of asphalt pavement, weed removal and treatment with herbicide, crack filling, pavement striping and markings, traffic control, protection and restoration of existing improvements and other miscellaneous work necessary to successfully complete the project.
On March 16, 2016, the Director of Public Works received five (5) bids for the “Pavement Major Rehabilitation FY14/15 & FY15/16 (STM383 & STM387) and Sewer Access Road Rehabilitation FY12/13 (SW277)” project. The following bids were received:
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CONTRACTOR |
SUBMITTAL RESULT |
BID TOTAL SUBMITTED |
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1 |
ATP General Engineering Contractors - Chula Vista, CA |
All requirements met |
$3,950,171.50 |
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2 |
PAL General Engineering - San Diego, CA |
All requirements met but with minor mathematical error |
$4,094,149.47 |
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3 |
TC Construction Co., Inc. - Santee, CA |
All requirements met |
$4,176,787.00 |
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4 |
Ortiz Corp. - National City, CA |
All requirements met but with minor mathematical error |
$4,473,024.78 |
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5 |
Hazard Const. - San Diego, CA |
All requirements met but with minor mathematical error |
$5,220,826.50 |
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 $4,188,439.90 by $238,268.40 (or approximately 5.69%).
The Contractor has satisfactorily performed construction projects of similar scope for the City in the past and staff has determined their work to be satisfactory. 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 $3,950,171.50 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 $220,508.58. 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 $592,525.73, which is an increase of $372,017.15 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 and Sewer Facility Replacement funds. Contractors bidding this project are 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 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. Staff is not independently aware, nor has staff 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 FY14/15 & FY15/16 (STM383 & STM387) and Sewer Access Road Rehabilitation FY12/13 (SW277)” 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:
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FUNDS REQUIRED FOR CONSTRUCTION |
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A. Contract Amount B. Contingencies (Approx. 15%) C. Staff Time, Material Testing &Other Costs (Approx. 10%) |
$3,950,171.50 $ 592,525.73 $ 395,017.15 |
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CONSTRUCTION TOTAL |
$4,937,714.38 |
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FUNDING SOURCES (ROUNDED) |
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A. STM383 (TransNet Funds) |
$1,157,416 |
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B. STM383 (Prop1B Funds- Appropriation) |
$46,050 |
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C. STM387 (TransNet Funds) |
$3,702,248 |
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D. SW277 (Sewer Facility Replacement Funds) |
$32,000 |
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TOTAL |
$4,937,714 |
Approval of the resolution will initiate the construction phase of STM383, STM387 and SW277 and appropriate $46,050 in Proposition 1B funds to STM383. Sufficient TransNet, Sewer Facility Replacement and Proposition 1B funds are available to cover the construction and staff costs associated with STM383 & STM387 and SW277. Therefore, there is no additional impact to these funds.
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 Location
2. Disclosure Statement
Staff Contact: Roberto Juan, Associate Engineer