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HomeMy WebLinkAboutE-19 Staff Report - Reject All Bids for Arrow Highway Street ResurfacingCONSENT ITEM E-19 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: SEPTEMBER 19, 2022 SUBJECT: REJECTION OF ALL BIDS FOR THE ARROW HIGHWAY STREET RESURFACING AND HIGHWAY SAFETY IMPROVEMENT PROJECT; FEDERAL PROJECT NO. HSIPL-5112(019); AND AUTHORIZE STAFF TO SOLICIT A NOTICE OF INVITING BIDS BACKGROUND: On April 18, 2022 the City Council authorized staff to solicit a Notice of Inviting Bids for the Arrow Highway Street Resurfacing and Highway Safety Improvement Project, Federal Project No. HSIPL-5112(019). Four (4) sealed bids were received at the bid date of July 27, 2022. One (1)bid was withdrawn by the contractor shortly after the bid opening. The proposed action rejects all bids for the Arrow Highway Street Resurfacing and Highway Safety Improvement Project, Federal Project No. HSIPL-5112(019); and authorize staff to solicit a Notice of Inviting Bids. RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1)Reject all bids for the Arrow Highway Street Resurfacing and Highway Safety Improvement Project, Federal Project No. HSIPL-5112(019); and 2)Authorize staff to solicit a Notice of Inviting Bids for the Arrow Highway Street Resurfacing and Highway Safety Improvement Project; Federal Project No. HSIPL- 5112(019) separately in two Phases. 3)Approve revised Construction Documents to show the scope of work within the City of Covina as an additive “Bid Alternate Item”. APPROVED CITY COUNCIL 9/19/2022 REJECTION OF ALL BIDS FOR THE ARROW HIGHWAY STREET RESURFACING AND HSIP FEDERAL PROJECT AND AUTHORIZE STAFF TO SOLICIT A NIB SEPTEMBER 19, 2022 Page 2 ANALYSIS: The Arrow Highway Street Resurfacing and Highway Safety Improvement Project (HSIP) is a multi-jurisdictional capital improvements project that includes the City of Covina, the County of Los Angeles, and the City of Azusa as the lead agency. The limits of the HSIP Project on Arrow Highway extend from 500 feet west of Azusa Avenue to Citrus Avenue, and the limits of the non- participating federal project are from Citrus Avenue to 855 feet east of Citrus Avenue. The project is partially funded with HSIP federal funds with each of the three public agencies contributing their share of the project costs within their jurisdiction. The Engineer’s estimate for the project was $5,439,000 including a 10% contingency. The anticipated construction cost for each agency is listed below: City of Azusa: $3,774,500 City of Covina: $1,194,000 Los Angeles County: $470,500 TOTAL: $5,439,000 Sealed bids were received publicly on July 27, 2022. The results are summarized in Table 1 below. The lowest bid received was approximately $272,000 or 5% above the Engineer’s cost estimate. Table 1 – July 27, 2022 Bid Results No. Company Location Total Bid 1 Sully-Miller Contracting Company Brea, CA $5,710,641.20 2 All American Asphalt Corona, CA $5,759,053.00 3 Hardy & Harper Inc. Lake Forest, CA $5,920,000.00 The bid results were shared with the City of Covina and LA County. The City of Covina, raised concerns over the construction cost within their jurisdiction and stated that their shared cost ($1,194,000) exceeded their budget. The City of Covina stated that they could not move forward to award the contract. In addition, the City of Covina requested to bid the scope within their jurisdiction as an additive Bid Alternate and not make it part of the base bid. Fulfilling this request means that only the scope within the City of Azusa and LA County would be considered the base bid to award the contract. The Additive Bid Alternate Item within the City of Covina would would be awarded only if the bid results fall within their budget. In addition, the City of Covina would like to revise the previously approved Construction Documents to “value engineer” the scope within their jurisdiction. Furthermore, during the bid analysis and the review of the list of subcontractors, it was noted that the lowest 3 bidders had the same landscape subcontractor. Per public contract law, it is allowed for multiple bidders to have the same subcontractors; however, the bid results show that the landscape portion of the project, approximately $2,000,000.00 was not bid competitively. The primary reason for the non-competitive bids for the landscape scope is that the Contract REJECTION OF ALL BIDS FOR THE ARROW HIGHWAY STREET RESURFACING AND HSIP FEDERAL PROJECT AND AUTHORIZE STAFF TO SOLICIT A NIB SEPTEMBER 19, 2022 Page 3 Documents required the bidder to be a licensed contractor with a Class A (General) or C-12 (Earthwork and Paving), and did not specify a C-27 (Landscaping) contractor license. A solution to encourage local landscape contractors to bid on the Arrow Highway project is to split the HSIP improvements (paving and hardscape) from the non-federal project improvements (landscape scope). This could be accomplished by building the project in two Phases. Phase I would consisting of roadway paving and concrete improvements and Phase II would consist of only the landscape improvements. Only Phase I would be partially funded with HSIP Federal funds. Phase II would be exempt from Federal filing requirements and consequently it would be more appealing to local landscape contractors. Each Phase would be bid separately so there would be an approximate 10% to 15% savings in overhead associated with the prime contractor and subcontractor relationship. Consequently, staff recommends that the City Council reject all bids received on July 27, 2022 and authorize staff to re-bid the project in two Phases. In addition, as requested by the City of Covina, the scope within their jurisdiction would be presented as Additive Bid Alternates for each Phase of work. This approach allows the cities to access their Federal grants which are restricted to roadway pavement and to consume them by their lapse deadline of June 2023. FISCAL IMPACT: There is no fiscal impact associated with the recommendation action. Staff is currently working with participating agencies on the bid-alternate approach to include the City of Covina’s associated work items and other revisions to the bid schedule that may reduce project costs and meet the grant funding timelines. Prepared by: Reviewed by: Christina Curiel Robert Delgadillo, P.E. Public Works Project Manager Director of Public Works/ City Engineer Miguel Cabanas, P.E. Principal Civil Engineer Fiscal Review by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager