HomeMy WebLinkAbout09 IRVINE BLVD REHAB 08-21-00AGENDA REP%RT
NO. 9
08-21-00
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
AWARD OF CONTRACT FOR IRVINE BOULEVARD REHABILITATION
BETWEEN THE SR-55 FREEWAY AND PROSPECT AVENUE (CIP NO. 7160)
AND PROSPECT AVENUE REHABILITATION BETWEEN FIRST STREET AND
IRVINE BOULEVARD (CIP NO. 7161)
SUMMARY
Award of the construction contract for Irvine Boulevard Rehabilitation and Prospect Avenue
Rehabilitation to Sequel Contractors, Inc. This project will provide for the pavement rehabilitation of
Irvine Boulevard between the-SR-55 Freeway and Prospect Avenue, and the pavement
rehabilitation of Prospect Avenue between First Street and Irvine Boulevard.
FISCAL IMPACT
The City's Capital Improvement Program (CIP) budget for FY 2000-2001 appropriated $440,000 for
the Irvine Boulevard Rehabilitation, and $278,000 for the Prospect Avenue Rehabilitation. These
funds are sufficient for the construction and contract administration of these projects.
The City was successful in securing grant funding for this project from the Orange County
Transportation Authority (OCTA) Combined Transportation Funding Program (CTFP) through the
Arterial Highway Rehabilitation Program (AHRP). The AHRP provides up to 50% reimbursement for
eligible construction items through the Federal Local Surface Transportation Program (LSTP), which
is administered by Caltrans.
RECOMMENDATION
It is recommended that the City Council declare the bids from All American Asphalt and R.J. Noble
as non-responsive and award the construction contract for the rehabilitation of Irvine Boulevard
between the SR-55 Freeway and Prospect Avenue (CIP No. 7160), and Prospect Avenue
between First Street and Irvine Boulevard (CIP No. 7161) to Sequel Contractors, Inc., the third Iow
bidder in the amount of $592,890.20, and authorize the Mayor and the City Clerk to execute the
contract documents on behalf of the City.
BACKGROUND
The Irvine Boblevard Rehabilitation Project will provide for the removal and replacement of
damaged asphalt concrete pavement, repair of existing curb and gutter, construction of an asphalt
concrete surface course, and replacement of the traffic striping. The Prospect Avenue
Rehabilitation Project will provide for the total reconstruction of the asphalt concrete pavement,
replacement of damaged curb and gutter, and replacement of the traffic striping.
Award Of Contract For Irvine r_,,~dlevard Rehabilitation
August 21,2000
Page 2
Bids were opened on July 18, 2000 and the five (5) bids received are summarized as follows:
All American Asphalt, Corona
R.J. Noble, Orange
Sequel Contractors, Inc., Downey
Palp dba Excel Paving, Long Beach
Holland-Lowe Construction, San Bernardino
$587,587.00
$588,785.8O
$592,890.20
$617,939.00
$7O3,887.25
(Non-Responsive)
(Non-Responsive)
(Non-Responsive)
Sequel Contractors' bid is 16.5% below the Engineer's Estimate of $710,000. The contractor has
successfully completed work for the City recently. The references and the contractor's State License
for Sequel Contractors, Inc. have been checked and are appropriate for the subject project.
Based on the outcome of the recent court case of Walt Rankin & Associates, Inc., v. City of
Murrieta, the Fourth District Court of Appeal has held that a mandatory duty is imposed on a City
to determine whether a surety is an admitted surety insurer and to independently investigate the
surety's solvency prior to accepting a payment bond from that surety.
Past experience has shown that after City Council award of a construction contract it may take an
undue amount of time for the City to obtain this information, thus delaying the contract approval
and start of construction. See attached Exhibit A for a chronology of contract processing for
recent public works projects.
In order to expedite the contract approval process the City requested the production of payment
bond information from the contractor's proposed payment bond surety at the time of the bid
opening. Pursuant to Rankin, the required payment bond information, which was required to be
submitted as part of the bid package, includes: the name of the proposed payment bond surety,
Certificate of AuthcJrity from the State of California, Certificate of Fact from the Court Clerk of the
County of Orange, and the proposed Payment Bond Surety's most recent quarterly and annual
financial statements. By requiring the production of this information during the bidding phase, the
City can ensure the sufficiency of the surety on the payment bond prior to award of the contract,
thus ensuring a) the timely commencement of the project and b) full and complete compliance
with the holding in Rankin. The three bidders which were deemed non-responsive failed to submit
all of the required payment bond information.
Tim D. Serlet
Director of Public Works/City Engineer
Jec~ry ,(:¢ttes~'n
Associate Civil Engineer
TDS:JO:ccg:Award of Contract Irvine & Prospect.
Attachments:
Exhibit A
Location Map
Addendum
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Public Works / Engineering
July 5, 2000
To: PROSPECTIVE BIDDERS
City
of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3150
FAX (714) 734-8991
SUBJECT:
ADDENDUM NO. 1
IRVINE BOULEVARD REHABILITATION BETWEEN SR-55 FREEWAY
AND PROSPECT AVENUE (C.I.P. NO. 7160) AND PROSPECT
AVENUE REHABILITATION BETWEEN IRVINE BOULEVARD AND
FIRST STREET (C.I.P. NO. 7161)
The following changes are hereby made to the Specifications. Each bidder shall include
a signed copy of this Addendum with his/her bid. Failure to do so shall cause the bid to
be disqualified.
Page B-7A, Add Page B-7A to the Specifications
This Addendum consists of 2 pages.
Very truly yours,
son
Associate Civil Engineer
Receipt of this Addendum is hereby acknowledged.
Signed:
Bidder's Name:
Date:
·
JO:klb/S:\ClP Projects\lrvine-Prospect Rehab 7160 & 7161\SpecificationSgAddendum No. 1 .doc
REQUIRED PAYMENT BOND INFORMATION
The bidder shall submit with its bid the following information regarding the
payment bond (Labor and Material Bond):
A. COMPLETE NAME OF THE
INSURER TO BE UTILIZED FOR
THE PAYMENT BOND (LABOR
AND MATERIAL BOND)
INSURER INFORMATION
B. A certified copy of the certificate of authority of the insurer issued by the
Insurance Commissioner of the State of California.
C.
A Certificate of Fact from the court clerk of the County of Orange, stating that
the certificate of authority of the insurer has not been surrendered, revoked,
canceled, annulled, or suspended, or, in the event that it has, that renewed
authority has been granted. The Certificate of Fact can be obtained, at a cost of
$15.00 from:
Lamoreaux Justice Center
Probate Division
341 The City Drive
Orange, CA 92868
(714) 935-6061
D. Copies of the insurer's most recent annual statement and quarterly statement
filed with the Department of Insurance pursuant to Article 10 (commencing with
Section 900) of Chapter 1 of Part 2 of Division 1 of the Insurance Code. The
assets must exceed the liabilities in an amount equal to or in excess of the
amount of the bond.
Failure on the part of the Contractor to submit the aforementioned informa_tion,
shall result in the City declaring the bid as non-responsive. Additionally, the bid
will be declared non-responsive if the insurer does not meet the City's
requirements as stated in the Specifications.
B-7A