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CC - (FOUR-FIFTHS VOTE REQUIREMENT: (1) Waiver of an Informality in the Bid Submitted by ARC Construction, Inc. Pursuant to Section 3.07.075.E.2 of the Culver City Municipal Code; and, (2) Approval of a Related Budget Amendment; and, (3) Award of a Contract to ARC Construction Inc., as the Lowest Responsive and Responsible Bidder, in an Amount Not-to-Exceed $1,164,033; and (4) Approval of a Professional Services Agreement with Interwest Consulting Group (for Construction Management) in an Amount Not-to-Exceed $104,510 (with an Additional $10,000 Available for Unforeseen Circumstances Subject to the Approval of the Director of Public Works/City Engineer) for the Hetzler Road Pedestrian Trail Project (PP-001).
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Contact Person/Dept: Rudolph R. Galindo / Public Works
Phone Number: (310) 253-5618
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/22/15)
Department Approval: Charles D. Herbertson, Public Works Director / City Engineer (10/19/15)
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RECOMMENDATION
Staff recommends the City Council: (1) waive an informality in the bid submitted by ARC Construction, Inc. pursuant to Section 3.07.075.E.2 of the Culver City Municipal Code; (2) approve a budget amendment in the aggregate amount of $302,043; (3) award a contract to ARC Construction Inc., as the lowest responsive and responsible bidder, for construction of the Hetzler Road Pedestrian Trail Project (PP-001) in the amount of $1,164,033; and (4) approve a professional services agreement with Interwest Consulting Group for related construction management and inspection services in the amount of $104,510 (with authorization to the Public Works Director/City Engineer to increase the agreement by up to $10,000 for unforeseen circumstances).
A budget amendment requires a 4/5ths affirmative vote.
BACKGROUND
The Hetzler Road Pedestrian Trail Project (Project) provides a separate pedestrian walking and jogging trail approximately 10 feet wide and 1,500 feet long. The trail starts near Jefferson Boulevard and terminates at a point beyond the last residential access from Hetzler Road. Construction of the colored concrete trail will include retaining walls to support the adjacent hillside, signage, fencing, and associated drainage improvements. The purpose of the Project is to provide a safer and more desirable alternative for pedestrians and joggers who are currently using the Hetzler Road roadway. Additionally, construction of the Project will address concerns voices by the Culver City residents who live in the area.
The Project is located entirely within the Baldwin Hills area under the jurisdiction of the State of California’s Department of Parks and Recreation (State Parks). Due to lack of staff, both State Parks and Baldwin Hills Conservancy (BHC) requested the City to advertise the project for bidding utilizing plans furnished by State Parks and to administer the construction contract once awarded. The Project plans and specifications were prepared by ALTA Landscape Architects and David Evans, Civil Engineers both firms retained by the Mountains Recreation and Conservation Authority (MRCA) on behalf of State Parks.
On December 16, 2013, the City Council adopted a resolution authorizing the City Manager to submit a grant application through the BHC Proposition 84 Grant Program for the Project. The BHC Board on January 24, 2014 approved the City’s application for a grant in the amount of $791,000. On November 10, 2014 the City Council approved final plans and specifications and authorized staff to advertise the Project for construction bids.
DISCUSSION
Project Construction
The following construction bids were received and opened on January 8, 2015:
ARC construction: $1,164,033 *
MG enterprises: $1,271,963
ACT 1: $1,395,832
AVA builders: $1,662,533
Ruiz Bros: $1,699,998
Parsam: $1,728,319
PALP (excel): $1,798,606
Minaco Const: $2,170,000
*The lowest bid amount submitted was $1,107,632. Subsequent to bid opening, the low bidder, ARC, submitted a letter dated January 13, 2015 notifying the City that the correct bid amount should be $1,164,033 and the wrong amount submitted was due to a mathematical error in adding the bid items. Staff has verified that an error had been made in adding the bid items and that individual bid item amounts are still valid. Staff recommends that the City Council waive this error as a clerical error as an informality as provided in the Culver City Municipal Code and the project specifications.
If the construction contract is awarded by the City Council this evening, staff recommends executing the construction contract with a start date to begin after the rainy season. This proposal has been discussed with ARC which has agreed to honor the costs of their proposal and begin construction after the conclusion of the rainy season.
Construction Management and Inspection
Staff solicited proposals from pre-approved consultants on the Public Works Department’s “on call” list for providing construction management and inspection services for the Project. The services include daily oversight of the Project construction, enforcement of the contract plans and specifications, traffic control, coordination of the construction with other involved agencies, geotechnical field work, materials testing, and responding to concerns by the general public and residents on Hetzler Road. The proposed professional services include cost control and maintenance of expenditure records for grant reimbursement and auditing purposes.
Five proposals were received and reviewed by staff. The top two ranked consultants were interviewed by staff to evaluate their qualifications and experience in similar projects on a steep hillside. Pursuant to this review, staff recommends retaining the firm of Interwest Consulting Group (Interwest) to provide these services at an estimated cost of $104,510.00.
Available Project Budget (per Approved BHC Grant)
Construction $610,000 * State Parks Design Engineer Estimate
10% Contingency $ 61,000 *10% of construction cost
Construction Management $ 90,000 *15% of construction cost
City Staff Costs $ 30,000 *Staff Support
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Total Project Cost $791,000 *Grant Amount Awarded from BHC
Actual Costs Based on Lowest Responsible Bid
Construction $1,164,033 *Lowest bid amount
10% Contingency $ 116,000 *10% of lowest bid amount
Construction Management $ 104,510 Proposal from Interwest
City Staff Costs $ 30,000 *No change
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Revised Total Project Cost $1,414,543
Less: Awarded Grant Funds $ 791,000
Funding Shortfall $ 623,542
The approved BHC grant of $791,000 does not provide sufficient funding for the estimated costs of the Project. The Public Works Department met with the Project stakeholders, which included BHC, State Parks, MRCA, and the Project architect, to discuss the funding shortfall. The consensus reached was that further funding opportunities needed to be explored and that the scope of work also should be reduced to achieve cost savings.
Cost Savings Proposals
State Parks agreed to delete the guard railing for the elevated walkway and landscaping and irrigation work. These items will be installed by State Parks utilizing its own funds. A few other items were modified, and the reduced scope of work results in a reduction of $293,745 to the contract amount for which Credit Change Order No.1 (Attachment #4) is proposed.
Staff discussed the funding shortfall issue and the reduced scope of work with ARC, which agreed to work with the City to hold the low bid prices until sufficient funds were available to award a contract and to concurrently execute Change Order No.1 formalizing the credit to the City for the reduced scope of work.
Additional Funding Sources
The reduced scope of work did not reduce the project cost sufficiently to enable award of the construction contract. Staff worked with BHC, State Parks, MRCA, and the Office of Los Angeles County Supervisor of the Second District Mark Ridley-Thomas to identify additional funds to finance the Project. As a result, the following additional funding commitments have been secured:
Approved BHC Grant Funds (previously awarded) $ 791,000
Culver City Capital Improvement & Acquisition (420)
Funds for Project PP001 (approved in the City Council
Adopted Budget for Fiscal Year 2015/2016) $ 110,000
Baldwin Hills Regional Conservation Authority $ 100,000
State Parks Federal Land & Water Conservation Fund (LWCF): $ 172,043
California State Parks Foundation (CSPF) $ 30,000
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Total funds available for the Project: $1,203,043
Funds from the LWCF, BHRCA and CSPF have been awarded as documented in Attachments #3, #5, and #6. The $30,000 from CSPF have been committed, and the Public Works Department is awaiting documentation and payment from CSPF.
FISCAL ANALYSIS
Approval of a budget amendment in the aggregate amount of $302,043 is requested. Amounts from the individual sources to be appropriated are shown below:
Baldwin Hills Regional Conservation Authority $100,000
State Parks Federal Land & Water Conservation Fund (LWCF): $172,043
California State Parks Foundation (CSPF) $ 30,000
Total: $302,043
A budget amendment requires a 4/5ths affirmative vote.
Revised Budget with Additional Funding
Construction $1,164,033 *Adjusted low bid amount
Less: Change Order No. 1 $ 293,745
Base Construction Contract $ 870,288 *ARC Net Contract
Additional Costs:
Construction Contingencies $ 87,000 *10% of net construction contract
Construction Management $ 104,510 *Interwest Consulting Group
Construction Management $ 10,000 *10% of construction contingencies
City Staff Support $ 30,000 *No change from original budget
Revised Total Project Cost $1,101,798
All Funding for Project $1,203,043 *Sufficient Funds Available
ATTACHMENTS
1. Letter from ARC regarding the clerical error made in its bid.
2. Credit Change Order No.1 resulting in a reduced contract amount of $870,288.
3. Agreement of Award from the State of California Natural Resources Agency supporting the Project for a Land and Water Conservation Fund grant of $172,043.
4. Letter from the U.S. Department of Interior Land and Water Conservation Fund Program approving the waiver of retroactivity for eligible project costs if the grant is approved.
5. Minutes showing $100,000 approved by the Baldwin Hills Regional Conservation Authority.
6. Letter of Commitment from California State Parks Foundation
RECOMMENDED MOTIONS
That the City Council:
1. Waive an informality in the bid submitted by ARC Construction, Inc. pursuant to Section 3.07.075.E.2 of the Culver City Municipal Code; and,
2. (Four-Fifths Vote Required) Approve a budget amendment in the aggregate amount of $302,043; and,
3. Award a construction contract to ARC Construction Inc., as the lowest responsive and responsible bidder, in the amount of $1,164,033 for the Hetzler Road Pedestrian Trail Project No. PP-001; and,
4. Approve Change Order Number 1 to the construction contract for a net credit to the City of $293,745 reducing the awarded contract amount to $870,288; and,
5. Authorize the Public Works Director/City Engineer to approve change orders to the construction contract in an amount not-to-exceed $87,000 (approximately 10% of the contract amount), if necessary; and,
6. Award a professional services agreement for professional construction inspection and management services to Interwest Consulting Group in the amount of $104,510; and,
7. Authorize the Public Works Director/City Engineer to increase the professional services agreement with Interwest Consulting Group by up to $10,000 (approximately 10% of the contract amount) for unforeseen additional services such as overtime, weekend, and emergency inspection services; and,
8. Authorize the City Attorney to review/prepare the necessary documents; and,
9. Authorize the City Manager to execute such documents on behalf of the City.