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    12.    
City Council Regular
Meeting Date: 04/28/2020  

SUBJECT:
AWARD OF CONTRACT -  FY 2019-20 STREET IMPROVEMENT PROJECT
RECOMMENDATION:
  1. Adopt a resolution entitled: A RESOLUTION OF THE CITY OF CHINO HILLS, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2019-20 INCREASING THE FY 2019-20 STREET IMPROVEMENT PROJECT IN THE AMOUNT OF $300,000.
     
  2. Waive the minor irregularity in the bid received from All American Asphalt.
     
  3. Award a contract to All American Asphalt in the amount of $1,364,085.20 for the FY 2019-20 Street Improvement project.
     
  4. Authorize staff to issue a Notice of Award.
     
  5. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of same.
     
  6. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 5% ($68,204.26) of the awarded contract amount.
BACKGROUND/ANALYSIS:
On February 11, 2020, the City Council approved the plans and specifications for the Street Improvement project and adopted Resolution No. 2020R-006 approving the design and authorizing staff to solicit bids for construction. The area of work encompasses approximately seven miles and four miles of public roadway for the base bid and additive bid, respectively, as follows:

Base Bid
  • Summit Ranch Area - Residential public streets bounded by Turquoise Circle (from Cinnabar Court to Topaz Street) to the west, Cinnabar Court and Feldspar Drive to the north, Feldspar Drive to the east, and Carbon Canyon Road to the south. 
  • Green Valley Area - Residential public streets bounded by Morningside Drive (including cul-de-sacs) to the west, Frost Avenue to the north, and Green Valley Drive to the east.
  • Mountain View Area - Residential public streets bounded by Pebble Beach Lane to the west, Winged Foot Way to the north, Pipeline Avenue/Firestone Lane to the east, and Soquel Canyon Parkway to the south. 
  • Rolling Ridge Area - Residential public streets generally bounded by Calle San Marcos to the west, Chino Avenue to the north, Peyton Drive to the east, and Grand Avenue to the south. 
     
Additive Bid
  • Images Area - Residential public streets bounded by Pacific Vista to the west, Grand Avenue to the north, Fontainbleau Lane to the east, and Payne Ranch neighborhood to the south. 
  • Galloping Hills Area - Residential public streets bounded by Galloping Hills Road to the west, north, and east, and Eucalyptus Avenue to the south. 
The work will include crack sealing and selective patching followed by an application of a slurry seal for a uniform wear surface for the majority of the streets. The project also includes asphalt grind and overlay at locations where the pavement condition is severely deteriorated and warrants a more substantial treatment. 
 
On March 19, 2020, nine bids were received and are summarized as follows:
 
CONTRACTORS BASE BID ADDITIVE BID
1. All American Asphalt
$1,093,145.00
$271,077.00
2. Hardy & Harper, Inc. $1,149,000.00 $305,260.00
3. R.J. Noble Company $1,181,990.60 $347,255.32
4. COPP Contracting, Inc. $1,197,332.50 $316,742.82
5. Onyx Paving Company, Inc. $1,269,000.00 $373,000.00
6. Sequel Contractors, Inc. $1,328,951.05 $369,019.95
7. Gentry Brothers, Inc. $1,329,748.92 $333,485.40
8. Christensen Brothers-General Engineering, Inc. $1,381,331.72 $405,549.45
9. Sully Miller Contracting, Inc. $1,544,820.00 $434,621.42
 
The contracts for competitively bid public projects must be awarded to the lowest responsible bidder. As shown above, All American Asphalt ("AAA") submitted the lowest base bid and was indicated as the apparent low bidder. Following the conclusion of the bid opening, the bid was verified and found to have a minor mathematical error in the amount of $136.80 with an actual base bid amount of $1,093,008.20. Since the error is small in nature and the correction thereof does not change the overall outcome of the bid process, staff recommends that the City Council waive this minor irregularity.
 
Staff received favorable reports of references from various municipalities regarding the work performed by AAA. In addition, staff has first-hand knowledge of AAA’s present standing as they are currently contracted with the City of Chino Hills to complete a construction project, and they have previously performed exceptional work for the City. Therefore, staff recommends the City Council award a contract in the amount of $1,364,085.20 for both the base and additive bids. 
 
AAA’s bid was below the engineer’s base and additive bids cumulative cost estimates of $1,550,000, however, the current funding in the amount of $1,250,000 will not cover the cost for total construction contract amount, contingencies, project management and construction inspection costs. Staff estimates the project will need an additional $300,000 from the Measure I fund balance to cover the shortfall in the project funding.
ENVIRONMENTAL (CEQA) REVIEW:
At the February 11, 2020, City Council meeting, the project was determined to be exempt as a Class 1(c) Categorical Exemption (existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities), pursuant to Section 15301 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code section 21000 et seq.
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Amount
Design $40,000.00
Construction 1,364,085.20
Contingencies (5%) 68,204.26
Construction Management, Inspection and Testing 77,710.54
Total $1,550,000.00
 
The current Capital Improvement Program has $1,250,000 budgeted for the FY 2019-20 Street Improvement project. There is no anticipated impact on the General Fund with this item. The proposed budget amendment increase of $300,000 from the Measure I fund balance will result in a total project budget of $1,550,000. The funds available for this project are as follows:
 
Project No. Funding Source Amount
ST200001 Measure I $1,250,000
  Total Approved Funding $1,250,000
  Additional Appropriation Requested 300,000
  Grand Total Project Funding    $1,550,000
REVIEWED BY OTHERS:
This item has been reviewed by the Finance Director and the City Attorney.
Attachments
Resolution
Exhibit No. 1 - Budget Amendment
Agreement

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