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    21.    
City Council Regular
Meeting Date: 08/14/2018  

SUBJECT:
CONTRACT WITH KASA CONSTRUCTION, INC. FOR THE LOS SERRANOS PARK
RECOMMENDATION:
  1. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2018-19 ADJUSTING THE FUNDING SOURCES AND INCREASING THE LOS SERRANOS PARK PROJECT BY $1,002,671
     
  2. Award a contract to Kasa Construction, Inc. in the amount of $3,688,324.92 for the Los Serranos Park Project. 
     
  3. Authorize staff to issue a Notice of Award. 
     
  4. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of such. 
     
  5. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($368,832.49) of the awarded contract amount.
BACKGROUND/ANALYSIS:
On June 12, 2018, the City Council approved the plans and specifications for the Los Serranos Park Project and adopted Resolution No. 2018R-037 approving the design and authorizing staff to solicit bids for construction.
 
On July 19, 2018, eight (8) bids were received.  Due to math errors made by four of the prospective bidders, only four (4) bids were tabulated as responsive.  They are summarized as follows:
 
 CONTRACTORS BID
1.  Kasa Construction, Inc. $   3,688,324.92
2.  Los Angeles Engineering, Inc. $   3,868,000.00
3.  Riverside Construction Company, Inc. $   4,298,136.25
4.  Access Pacific $   4,901,900.75
 
As shown above, Kasa Construction, Inc. submitted the lowest base bid and is considered the apparent low bidder.  Kasa Construction, Inc. also submitted a bid bond for 10% of their bid amount.
 

 
Staff received favorable reports from references regarding the work performed by Kasa Construction, Inc. and recommends that the City Council award them a contract in the amount of $3,688,324.92.
ENVIRONMENTAL (CEQA) REVIEW:
At the June 26, 2018, City Council meeting, the project plans were approved and the Mitigated Negative Declaration and Mitigation Monitoring Reporting Program were adopted by City Council under the California Environmental Quality Act of 1970.
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Amount
Design Contract (expended) $             367,299
Construction Contract Amount    3,688,325
Contingencies (10%)       368,833
Project Management, Inspection, and Testing      400,000
Total $          4,824,457
 
Funding for this project will come from the following sources:
 
Project No. Funding Amount
 
800212
General Fund $           2,172,986
Parks & Recreation Facilities Fee      750,000
Quimby In-Lieu Fee      750,000
Community Facilities District No. 5      148,800
Total Approved Funding $           3,821,786
Reduce Appropriation - General Fund (1,648,388)
Additional Appropriation Requested - Quimby In-Lieu Fee  673,000
Additional Appropriation Requested - Community Facilities District No. 5 1,978,059
Grand Total Project Funding $           4,824,457
 
The total approved budget for this project is $3,821,786, as outlined above.  Staff recommends that the City Council reduce the appropriation from the General Fund by $1,648,388, leaving $351,598 to cover a portion of the expenditures incurred for the planning and design phase of the project, as well as $173,000 for the donation from the Chino Hills Community Foundation that was contributed for the playground equipment and surfacing.  It is recommended to appropriate $673,000 from the Quimby In-Lieu Fee and $1,978,059 from the Community Facilities District No. 5 unreserved fund balances to cover the reduction from the General Fund and the shortfall in funding due to the bid costs received.  There are sufficient funds available in the various funding sources to cover the total appropriation requested.  This budget amendment will result in an increase to the General Fund unreserved fund balance in the amount of $1,648,388, and an overall decrease to the other funds of $2,651,059.
 
REVIEWED BY OTHERS:
This item has been reviewed by the Finance Director and the City Attorney.
Attachments
Resolution
Exhibit No. 1 to Resolution
Agreement

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