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    30.    
City Council Regular
Meeting Date: 06/13/2017  

SUBJECT:
CONTRACT WITH ALL AMERICAN ASPHALT FOR THE PIPELINE AVENUE RAISED CONCRETE MEDIAN PROJECT
 
RECOMMENDATION:
  1. Reject the bids of Roadway Engineering and Contractors, Inc. and Hardy and Harper, Inc. as non-responsive.
  2. Award a contract to All American Asphalt in the amount of $337,139.84 for the Pipeline Avenue Raised Concrete Median project. 
  3. Authorize staff to issue a Notice of Award, accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of such. 
  4. Approve an appropriations budget amendment in the amount of $60,000 from the Measure I Fund balance to the Pipeline Avenue Raised Concrete Median project. 
  5. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($33,713.98) of the awarded contract amount.
BACKGROUND/ANALYSIS:
On May 10, 2016, the City Council approved the concept design for the raised concrete median project on Pipeline Avenue from Chino Hills Parkway north, to the City of Chino limits.
 
On February 14, 2017, the City Council adopted Resolution No. 2017R-008 approving the design and authorizing staff to solicit bids for construction of the project.
 
On May 11, 2017, four bids were received and are summarized as follows:
 
CONTRACTORS BID
1. Roadway Engineering and Contractors, Inc. $   316,006.08
2. Hardy and Harper, Inc. $   321,000.00
3. All American Asphalt $   337,139.84
4. California Landscape Design $   352,650.72

Roadway Engineering and Contractors, Inc. submitted the low bid for the project.  However, they failed to provide qualifying Disadvantaged Business Enterprise (DBE) sub-contractors with their proposal.  The DBE goal for this contract was set at 4% of the total amount bid.  If a bidding contractor cannot meet the project’s advertised goal, they must submit Caltrans Exhibit 15-H DBE Information – Good Faith Efforts.  Unless Exhibit 15-H is submitted with the bid, the contractor is given four days from the date of the bid opening to provide this completed form.  This information was shared with Roadway Engineering, but Roadway Engineering did not provide such information to staff within the allotted time.
 
Similarly, the second lowest bidder, Hardy and Harper, Inc., did not submit the required DBE information with its bid nor subsequent to the bid within the allotted time frame.  Therefore, staff had no other choice but to categorize the bids of both Roadway Engineering and Hardy and Harper  as “non-responsive.” City staff recommends that their bids for this project be rejected as non-responsive.
 
All American Asphalt also did not meet the project goal of 4% DBE.  They included two disadvantaged sub-contractors for this project, but their combined total was only 1.9%.  However, as required, All American Asphalt submitted Caltrans Exhibit 15-H attesting to their good faith efforts in obtaining suitable contractors that qualify as DBE firms.  After reviewing their contract, it was determined that they put forth a substantial effort to obtain qualifying sub-contractors and, as such, their Good Faith Effort was approved, so City staff recommends that the City Council award the contract to All American Asphalt as the lowest responsive bidder.  
 
All American Asphalt’s bid is $337,139.84.  Including 10% contingencies and management (4%) and inspection costs (12%), staff estimates the project's cost will be $424,400.  The project currently has a budget balance of $364,400 and will need an additional $60,000.  Therefore, staff is requesting that the City Council authorize a budget appropriations amendment in the amount of $60,000 from the Measure I Fund balance. 
ENVIRONMENTAL (CEQA) REVIEW:
At the February 14, 2017, City Council meeting, the project was determined to be exempt as a Class 1(c) Categorical Exemption, (existing highway 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.
 
This project received a NEPA environmental determination (Categorical Exemption) through Caltrans on August 12, 2016. 
FISCAL IMPACT:
The City Council has already appropriated $364,400 for this Project.  An appropriations budget amendment in the amount of $60,000 from the Measure I Fund balance will be required.  
 
REVIEWED BY OTHERS:
This item has been reviewed by the Finance Director and the City Attorney.
 

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