HomeMy WebLinkAbout06 REAFFIRMATION OF PREVIOUS AWARD OF TUSTIN RANCH ROAD PROJECT PHASE 1 AND AUTHORIZATION TO AWARD PHASE 2Agenda Item ~_
AGENDA REPORT
Oversight Board of the Successor Agency of the
'Tustin Community I2edeveiopment Agency
MEETING DATE: MARCH 13, 2012
SUBJECT/ACTION: OVERSIGHT BOARD REAFFIRMATION OF TUSTIN
COMMUNITY REDEVELOPMENT AGENCY'S PREVIOUS
AWARD OF THE TUSTIN RANCH ROAD PROJECT PHASE I
GRADING AND STORM DRAIN WORK AND
AUTHORIZATION FOR SUCCESSOR AGENCY TO AWARD
THE TUSTIN RANCH ROAD PHASE 2 ROADWAY
IMPROVEMENTS CONSTRUCTION CONTRACT (CIP NOS.
70100, 70204, 70206, 70214 & 70215)
RECOMMENDATION /PROPOSED ACTION
1. Reaffirm the Agency's previous July 19, 2011 award far the construction contract for
Tustin Ranch Road Grading and Storm Drain Project (CIP No. 70100 and 70206}
pursuant to the adopted Enforceable Obligations Schedule (FOPS) and draft
Recognized Obligation Schedule (BOPS) utilizing MCAS Tustin 2010 Tax Allocation
Bond Proceeds for their intended use.
2. Authorize the Successor Agency to award the construction contract for the Tustin
Ranch Road Phase 2 Roadway Improvements {CIP Nos. 70100, 70204, 70206,
70214, & 70215} from Walnut Avenue to Warner Avenue to the lowest
responsive/responsible bidder, R.J. Noble Company, pursuant to the adopted
Recognized Obligation Payment Schedule (BOPS) utilizing MCAS 2010 Tax
Allocation Bond Proceeds for their intended use.
{Note that the above actions by the Oversight Board (Board) shall not become effective
for three business days, pending any request for review by the California Department of
Finance (DoF}. If DoF requests review of this Board action, it shall have 10 days from
the date of its request to approve the Board action or return it to the Board for
reconsideration and the action, if subject to review by DoF, shall not be effective until
approved by DoF).
BACKGROUND
On August 2, 2011, the City Council and the Tustin Community Redevelopment Agency
awarded the construction contract for the Tustin Ranch Road Phase 1 Grading and
Agenda Report
March 13, 2012
Page 2
Storm Drain Project from Walnut Avenue to Warner Avenue {CIP Nos. 70100 and
70206). The contract was awarded after the Agency opted under the voluntary
participation provisions of AB 1X 27 at the time and before the California Supreme
Court's partial stays of certain provisions of AB 1 X 26 and AB 1 X 27 on August 11,
2011. The construction effort for the entire Tustin Ranch Road Extension project
between Walnut Avenue on the north and Warner Avenue on the south was segregated
into two phases to permit settlement to occur during fill placement and grading of the
northerly overcrossing ramp prior to other street improvements and bridge construction.
This phasing of work also allowed the allocation of dewatering costs associated with
storm drain installation versus those future costs associated with sewer and water line
installation which will be an Irvine Ranch Water District {IRWD) reimbursable expense.
Both phases of the project were intended to be funded under MCAS Tustin Allocation
Bonds-Series 10. It is clear under both existing provisions of AB 1X 26 and the
California Supreme Court's decision upholding AB 1X 26, that activities associated with
the intended purposes of a bond measure could continue subject to Oversight Board
approval. The Phase I Project contract with change orders has an expected obligation
of $14,727,942.57, with a remaining total expected obligation under the FOPS and draft
ROPS from January through June 30th of $4,869,485. Given recent DaF questions
regarding the Phase I contract award (particularly the confusion regarding the Agency's
taking action after adoption of an opt-in ordinance under AB 1X 27), which is no longer
effective, the Oversight Board's reaffirmation of the Phase I project contract award
using, among other funds, MCAS 2010 Tax Allocation Band Proceeds intended for such
use is requested. The Official Statement for the MCAS 2010 Tax Allocation Bond
specifically identifies that one of the primary purposes of the bonds were for
construction of the Tustin Ranch Road Project as well as other Tustin Legacy Backbone
Infrastructure Improvements.
The Agency awarded the Phase I contract on July 19, 2011 and the contract was
executed on August 2, 2011 with Sandoval Pipeline Engineering. Phase 1, consists of
clearing and grubbing, mass grading, structural retaining wall, and storm drain/retention
basin construction. This work is well under way, nearing 75% complete to date, with a
projected substantial completion by April/May 2012.
Subsequent to the award of the Phase 1 Project, on July 19, 2011 the City Council and
the Tustin Community Redevelopment Agency approved apre-qualification package for
general contractors for construction of the Tustin Ranch Road Phase 2 Roadway
Improvements Project. The pre-qualification procedure was selected due to the
specialized nature of construction and the complexity of scheduling required for
construction, including the deep IRWD underground utility improvements in the vicinity
of ongoing Navy groundwater clean-up operations near the southerly Navy Hangar and
the elevated bridge crossing aver Edinger Avenue, SCRRA railroad tracks, and the
Agenda Report
March 13, 2012
Page 3
specialized nature of construction and the complexity of scheduling required for
construction, including the deep IRWD underground utility improvements in the vicinity
of ongoing Navy groundwater clean-up operations near the southerly Navy Hangar and
the elevated bridge crossing over Edinger Avenue, SCRRA railroad tracks, and the
Santa AnalSanta Fe Channel. On August 25, 2011, the City received submittals under
the pre-qualification process from twelve general contractors. Subsequently, on
October 4, 2011, ten (10} general contractors were approved by the City and the
Agency as qualified bidders for Phase 2.
Again, Phase 2 of this project involves construction of the remaining underground utility
work, sound walls, and street and landscape improvements, including the Edinger
AvenuelRailroad/Flood Control Channel bridge overcrossing.
Five (5) formal bids were received from the pre-qualified list of potential bidders and
were publicly opened on February 28, 2012 and reviewed by the Public Works
Department. These five bids are summarized below in order of least to highest dollar
amount:
• R.J. Noble Company .................................................. $ 22,649,304.73
• Griffith Company ........................................................ $ 22,654,500.00
• C.C. Myers, Inc .......................................................... $ 23,707,949.30
• Flatiron West .............................................................. $ 23,991,560.00
• Shawnan .................................................................... $ 24,544,387.80
It is recommended that the Oversight Board authorize the Successor Agency to award
the construction contract for the Tustin Ranch Road Phase 2 Roadway Improvements
Construction Project (CIP Nos. 70100, 70204, 70206, 70214, & 70215) from Walnut
Avenue to Warner Avenue to the lowest responsive/responsible bidder, R.J. Noble
Company, in the amount of $22,649,304.73 and use, among other funds, MCAS 2010
Tax Allocation Bond Proceeds intended for such use.
Christine A. Shingl n pouglas S. Stack, P.E.
Assistant Executiv Director Dir~cto~f Public Works/City Engineer
Successor Agency of the successor Agency of the
Tustin Community Redevelopment Agency Tustin Community Redevelopment Agency