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(1)bid was withdrawn by the contractor shortly after the bid opening.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
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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