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RESOLUTION NO. 2018-029 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE CONSTRUCTION OF THE “TRAFFIC SIGNAL MODIFICATIONS AT FOUR INTERSECTIONS: FOURTH AVENUE & J STREET, HILLTOP DRIVE & L STREET, THIRD AVENUE & H STREET, AND THIRD AVENUE & I STREET (CIP# TRF0388)” PROJECT TO HMS CONSTRUCTION, INC. IN THE AMOUNT OF $893,565.50; AND APPROPRIATING $260,000 FROM THE AVAILABLE BALANCE OF THE TRAFFIC SIGNAL FUND TO TRF0388 (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On October 18, 2017, the Director of Engineering and Capital Projects received five (5) sealed bids for the Construction of Traffic Signal Modifications at Four Intersections (TRF0388) in the City of Chula Vista, California. This project will provide protected left turn phases, ADA pedestrian equipment and pedestrian ramps at the intersections of: Fourth Avenue and “J” Street, Hilltop Drive and “L” Street, Third Avenue and “H” Street, and Third Avenue and “I” Street.
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 because the project involves negligible or no expansion of an existing use. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
CIP Project TRF0388 is a federal aid project under the Highway Safety Improvement Program (HSIP). The project’s scope of work consists of the modification of existing traffic signal systems to include protected left turn phases at the intersection of Fourth Avenue and “J” Street, Hilltop Drive and “L” Street, Third Avenue and “H” Street, and Third Avenue and “I” Street. The project also includes the replacement of curb, gutter, sidewalk, and curb ramps to comply with current Americans with Disabilities Act (ADA) Standards.
City Staff prepared plans and specifications and advertised the project on September 22, 2017. The Director of Engineering and Capital projects received and opened five (5) bid proposals for the project on October 18, 2017, as follows (listed in numerical order of bid total amount):
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CONTRACTOR |
BASE BID TOTAL |
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1 |
HMS Construction, Inc. - Vista |
$893,565.50* |
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2 |
T & M Electric, Inc. - Santee |
$955,173.00* |
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3 |
SELECT Electrical, Inc. - Vista |
$996,268.00* |
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4 |
PTM Gen. Eng. Services Inc. - Riverside |
$1,011,739.03* |
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5 |
DBX, Inc. - Temecula |
$1,118,557.09* |
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*Contained minor clerical errors that did not change overall bid ranking. |
City Staff reviewed the apparent low bid proposal and found minor clerical errors that changed their base bid total from $892,765.50 to $893,565.50. The minor clerical errors did not change the ranking order of the lowest bid. HMS Construction, Inc. submitted a letter acknowledging the clerical errors and stands by the corrected base bid total price of $893,565.50 (Attachment 1).
The low bid by HMS Construction, Inc. of $893,565.50 is $80,100.50 (approximately 10%) above the Engineer's estimate of $813,465.00. Although historical bid unit costs were used to develop the engineer’s estimate, a recent increase in bid unit costs for similar projects has been observed over the last year.
Additional staff time was required to complete the Good Faith Effort analysis in compliance with HSIP requirements for this project. The additional staff time for the analysis required the need for a Bid Extension Letter. HMS Construction Inc. has provided the City with a Bid Extension letter authorizing their bid submittal to remain valid until February 28, 2018 (Attachment 2).
HMS Construction, Inc. is currently an active licensed Class A, B, and C-10 contractor (License No. 765590) and has performed similar work in the City with satisfactory performance. Staff has reviewed the bid submitted by HMS Construction, Inc. and has determined it to be responsive. Staff recommends that Council awards the TRF0388 contract to HMS Construction, Inc. and make an additional appropriation of $260,000 from the Traffic Signal Fund to provide funds required for construction and contract administration.
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 change order limits and authorizes the City Engineer to approve change orders up to the remaining budget of the CIP project, allowing the project to continue without delay.
Wage Statement
The Contractor and its subcontractors are required by bid specifications to pay prevailing wages (“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 3 is a copy of the Contractor’s Disclosure Statement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the project which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of 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 “Traffic Signal Modifications at Four Intersections (TRF0388)” project is to support the Strong and Secure Neighborhood strategy identified in the City’s Strategic Plan. Improvements to existing traffic signal infrastructure are key in providing safe and efficient roadways for motorists, bicyclists and pedestrians alike.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will initiate the construction phase and appropriate $260,000 in Traffic Signal funds to TRF0388 to complete the project. Sufficient funds are available in the Traffic Signal Fund for the appropriation. Therefore, there is no additional impact to this fund.
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FUNDS REQUIRED FOR CONSTRUCTION OF TRF0388 |
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A. Contract Amount |
$893,565.50 |
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B. Contingency (Approximately 7%) |
$61,434.50 |
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C. Construction Inspection Staff Cost |
$50,000 |
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TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$1,005,000 |
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FUNDING SOURCES 1/11/2018 |
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A. TRF0388 - Highway Safety Improvement Program (HSIP Grant) |
$640,800 |
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B. TRF0388 - Traffic Signal Fund (Appropriation) |
$260,000 |
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C. TRF0388 - Traffic Signal Fund |
$104,200 |
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TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$1,005,000 |
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine City maintenance.
ATTACHMENTS
1. Bid Error Acknowledgement Letter
2. Bid Extension Letter
3. Disclosure Statement
Staff Contact: Jose Serrato, Assistant Civil Engineer