HomeMy WebLinkAboutE-9 Staff Report - Increase Contract PO 9.18.2023CONSENT ITEM
E-9
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 18, 2023
SUBJECT: APPROVAL OF INCREASE TO CONTRACT PURCHASE ORDER FOR THE
2022 AND 2023 RESIDENTIAL ROADWAY REHABILITATION PROJECT
BACKGROUND:
On April 17, 2023 the City Council of the City of Azusa authorized staff to Award a Contract to
Toro Enterprises, Inc. for the 2022 and 2023 Residential Roadway Rehabilitation Project. The
Project will rehabilitate the pavement on nineteen (19) residential street segments approximately
two (2.5) miles in total length and three alleyways. There are various rehabilitation treatments
being utilized such as cape seals, slurry seals, 2-Inch thick and 4-Inch thick asphalt concrete
pavement restoration. Additional improvements include removal and replacement of curb ramps,
sidewalks, drive approaches, alley approaches, curbs and gutters at various locations throughout
the project limits.
RECOMMENDATIONS:
Staff recommends the City Council take the following actions:
1)Approve an increase to the contract purchase order for Toro Enterprises, Inc. by $150,000;
and
2)Authorize the City Manager to increase the compensation for a total not-to-exceed contract
amount of $2,708,716
Approved
City Council
September 18, 2023
APPROVAL OF INCREASE TO CONTRACT PURCHASE ORDER FOR THE 2022 AND
2023 RESIDENTIAL ROADWAY REHABILITATION PROJECT
SEPTEMBER 18, 2023
Page 2
ANALYSIS:
The 2022 and 2023 Residential Roadway Rehabilitation Project commenced on July 24, 2023. The
project improvements are located within the area bounded by Thirteenth Street on the north,
railroad tracks on the south, Vernon Avenue on the west, and San Gabriel Avenue on the east; and
within the area bounded by Foothill Boulevard on the north, First Street on the south, Zachary
Padilla Avenue on the west, and San Gabriel Avenue on the east.
There are additional locations within the project limits that need sidewalk replacement and are
being added to the scope of work.
FISCAL IMPACT:
The recommended actions approve an increase to contract purchase order in the amount of
$150,000 and further authorize Staff to increase the contract for a total not-to-exceed contract
amount of $2,708,716. The cost of this construction project is included in the FY2023-24 approved
CIP budget. The $150,000 will be funded with the Citywide Sidewalk Improvements under (Acct.
10-80-000-662-7120/66222B-7120).
Prepared by: Reviewed by:
Christina Curiel Robert Delgadillo, P.E.
Public Works Project Manager Director of Public Works/ City Engineer
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachment:
1) Approved Staff Report 4-17-2023 (Award of Contract)
2) Toro Enterprises, Inc. Contract
CONSENT ITEM
E-7
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: APRIL 17, 2023
SUBJECT: RESOLUTION AUTHORIZING AWARD OF CONTRACT FOR THE 2022
AND 2023 RESIDENTIAL ROADWAY REHABILITATION PROJECT;
REJECTION OF BID PROTEST; AND APPROVE A PROFESSIONAL
SERVICES AGREEMENT WITH WILLDAN FOR INSPECTION SERVICES
BACKGROUND:
On January 17, 2023 the City Council of the City of Azusa (“City”) authorized staff to post a
Notice of Inviting Bids for the 2022 and 2023 Residential Roadway Rehabilitation Project and
solicit bids. The proposed 2022 and 2023 Residential Roadway Rehabilitation Project will
rehabilitate the pavement on nineteen (19) residential street segments approximately two (2.5)
miles in total length and three alleyways. There are various rehabilitation treatments being utilized
such as cape seals, slurry seals, 2-Inch thick and 4-Inch thick asphalt concrete pavement
restoration. Additional improvements include removal and replacement of curb ramps, sidewalks,
and curbs & gutters at various locations throughout the project limits.
This project is located within the area bounded by Thirteenth Street on the north, railroad tracks
on the south, Vernon Avenue on the west, and San Gabriel Avenue on the east; and within the area
bounded by Foothill Boulevard on the north, First Street on the south, Zachary Padilla Avenue on
the west, and San Gabriel Avenue on the east. The bid opening for this project was held on March
1, 2023.
On February 21, 2023, the City Council authorized the City Manager to increase the blanket
purchase order for Willdan, an On-Call Engineering firm with the City. The proposed actions will
approve a professional services agreement with Willdan to provide inspection services for the 2022
and 2023 Residential Resurfacing Project.
Approved
City Council
April 17, 2023
Attachment 1
2022 & 2023 RRR PROJECT
APRIL 17, 2023
Page 2
On March 3, 2023, the City Clerk’s Office received a bid protest from the second lowest bidder,
Kalban Inc. (“Kalban”). Kalban protested the bid results due to the alleged failure by the lowest
apparent bidder Toro Enterprises Inc. (“Toro”) to list a land surveyor as a subcontractor.
RECOMMENDATIONS:
Staff recommends the City Council take the following actions:
1) Adopt Resolution No. 2023-C21 authorizing an award of contract in the amount of
$2,558,716, which includes a 10% contingency for potential change orders as needed, to
the lowest responsible bidder, Toro Enterprises, Inc., submitting a responsive bid;
2) Reject the bid protest from the second lowest bidder, Kalban.;
3) Approve a professional services agreement in the amount of $56,012.00, which includes a
10% contingency for potential change orders as needed, to Willdan; and
4) Authorize the City Manager to execute the project contract, in a form acceptable to the City
Attorney, on behalf of the City.
ANALYSIS:
Sealed bids were received publicly on March 1, 2023. The results are as follows:
Table 1 – 2022-2023 Residential Resurfacing Project Bid Opening Results.
No. Company Location Total Bid
1 Toro Enterprises, Inc. Oxnard, CA $2,326,105.25
2 Kalban, Inc. Santa Clarita, CA $2,666,535.00
3 Hardy & Harper Lake Forest, CA $2,675,000.00
4 Excel Paving Long Beach, CA $2,688,870.00
5 Copp Contracting, Inc. Buena Park, CA $2,973,922.50
6 All American Asphalt Corona, CA $2,994,090.00
7 Sully-Miller Contracting Company Brea, CA $3,082,725.00
The lowest, responsive bid was submitted by Toro, who has been in business in Southern
California since 1994 and is a general engineering contractor.
The Notice Inviting Bids published for this project specified, that the “City shall award the
contract for the Project to the lowest responsive, responsible Bidder as determined by the City from
the Base Bid alone. City reserves the right to reject any or all bids or to waive any irregularities or
informalities in any bids or in the bidding process”. On March 3, 2023, Kalban, the second lowest
2022 & 2023 RRR PROJECT
APRIL 17, 2023
Page 3
bidder, submitted a bid protest by email to the City Clerk’s Office (see Attachment 3)
protesting the bid submitted by Toro.
The bid protest claims Toro failed to list a land surveyor as a subcontractor. The bid protest
claimed that the value of the survey and construction staking work constitutes 3.3% of Toro’s
total bid and in accordance with Public Contract Code and the Subletting and Subcontracting
Fair Practices Act (“Act”), Toro should have listed a land surveyor as a subcontractor to
perform this scope.
City staff, in consultation with the City Attorney, carefully and thoroughly reviewed Toro’s
bid, the bid protest, the City’s bid documents, the Act and other applicable sections of Public
Contract Code and related statutes and case law. Following such review, staff concluded that
Toro’s bid is responsive, in accordance with the following analysis:
Registered civil engineers entitled to practice land surveying or licensed land surveyors providing
land surveying services are not considered subcontractors for purposes of the Act. Public Contract
Code section 4113 defines “subcontractor” as a contractor within the meaning of the provisions of
Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code.
Chapter 9 defines contractor as synonymous with the term “builder” and includes any person who
undertakes, offers to undertake, purports to have the capacity to undertake, or submits a bid to
construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building,
highway, road, parking facility, railroad, excavation, or other structure, project, development, or
improvement. (See Bus. & Prof. Code, § 7026.) Furthermore, Chapter 9 does not apply to a
licensed architect or a registered civil or professional engineer acting solely in his or her
professional capacity. (See Bus. & Prof. Code, § 7051.) Instead, registered civil engineers are
governed by the Professionals Engineers Act and licensed land surveyors are governed by the
Professional Land Surveyors’ Act. (See Bus. & Prof. Code, § 6700; § 8700.) Taken together,
registered civil engineers or licensed land surveyors providing land surveying services are not
subcontractors for purposes of the Act. Therefore, bidders are not required to list them in their bid
in order to comply with subcontractor listing obligations under the Act.
ENVIRONMENTAL CLEARANCE:
This action is categorically exempt from the requirements of the California Environmentally
Quality Act (CEQA) pursuant to Section 15301 Class 1 (c) – Rehabilitation of Existing Streets and
Highways. Staff has filed a Notice of Exemption with the Los Angeles County Clerk’s Office.
FISCAL IMPACT:
The recommended actions will award the contract to Toro in the amount of $2,326,105.25 and
further authorize Staff to increase the contract by 10% for potential change orders for a total not-
to-exceed contract amount of $2,558,716. The cost of this construction project is included in the
FY2022-23 approved CIP budget including $953,945 in SB1-Road Maintenance & Rehabilitation
Account Funds (Acct. 05-80-000-661-7120/66123C-7120) allocated for the FY 2021-2022
Residential Roadway Rehabilitation Project, $900,000 in SB1 Funds (Acct. 05-80-000-661-
2022 & 2023 RRR PROJECT
APRIL 17, 2023
Page 4
7120/66123A-7120) allocated for the FY 2022-2023 Residential Roadway Rehabilitation Project,
and $704,771 from the Citywide Sidewalk Improvements under (Acct. 10-80-000-662-
7120/66222B-7120).
Also, the recommended actions will approve a Professional Services Agreement for Inspection
Services with Willdan in the amount of $50,920.00 and authorize Staff to increase the contract by
10% for potential change orders for a total not-to-exceed contract amount of $56,012.00. The cost
for inspection services is included in the FY2022-23 approved budgeted under account (Acct.
1055651000-6399). and shall be charged to the blanket purchase order for On-Call Professional
Engineering Services.
Prepared by: Reviewed by:
Christina Curiel Robert Delgadillo, P.E.
Public Works Project Manager Director of Public Works/ City Engineer
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachment:
1) Resolution No. 2023-C21
2) Toro Enterprises, Inc. - Bid Proposal
3) Kalban, Inc. – Bid Protest
4) Public Works Contract
5) Professional Services Agreement
Attachment 2