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HomeMy WebLinkAbout06 RED HILL MED. LDSCP 11-06-00 NO. 06 AGENDA RE 'ORT , . TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION AWARD OF CONTRACT FOR RED HILL AVENUE MEDIAN LANDSCAPING FROM EDINGER AVENUE TO WALNUT AVENUE (ClP No. 7124) SUMMARY Bids were opened on September 26, 2000 for the Red Hill Avenue Median Landscaping from Edinger. Avenue to Walnut Avenue (ClP No. 7124)and the construction contract is now ready to be awarded. RECOMMENDATION It is recommended that the City Council take the following actions: 1. Declare the bids from Debec Engineering, Inc., Mariposa Horticult, Trugreen Landscape and A & M Construction as non-responsive; . Approve a supplemental appropriation of $103,000.00 for FY 2000-2001 from the unappropriated Measure "M" Turnback Funds to the Red Hill Avenue Median Landscaping Project (ClP No. 7124); and . Award the construction contract for the Red Hill Avenue Median Landscaping from Edinger Avenue to Walnut Avenue (ClP No. 7124) to S & M Landscape in the amount of $193,637.00, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. FISCAL IMPACT The City's Capital Improvement Program (ClP) Budget for FY 2000-2001 identified a total of $574,748 of Measure "M" Turnback Funds allocated for construction of this project (Phase I and II)o However, approximately $455,000 was expended during construction of the Phase I Pavement Rehabilitation portion leaving approximately $120,000 to complete the Phase II Median Landscape portion. In order to award the Median Landscaping contract to S & M Landscape, Inc. and to provide a modest amount for unforeseen contingencies during construction, a supplemental appropriation of $103,000 from the unappropriated Measure "M" Turnback Funds is required. The Measure "M" Turnback Fund balance is sufficient for this supplemental appropriation. Award of Contract for Red Hill Avenue Median Landscaping from Edinger Avenue to Walnut Avenue November 6, 2000 Page 2 BACKGROUND The first phase of work on Red Hill Avenue between Edinger Avenue and Walnut Avenue, as shown on the attached location map, was the street rehabilitation project which was completed in May 2000. This project also included the replacement of the median island curbs and the removal of the existing turf, trees, and irrigation systems. The median landscaping project is the second phase of work, and will replace the previous landscaping with drought tolerant shrubs and trees. A Iow floTM irrigation system will be installed which will minimize runoff onto the street. Brick pavers will be utilized as the hardscape treatment at the ends of the median islands. These design components have been developed through the coordination of the City's design consultant, Robert Goto & Associates, the Community Development Department, and the Public Works Field Services Division. On June 19, 2000, the City Council adopted Resolution No. 00-45 approving the plans and specifications for this project and directed the City Clerk to advertise for bids. The project was subsequently advertised and the four (4)'bids received were opened on July 18, 2000. Out of the four (4) bids received the only bid that was responsive with respect to the required payment bond information, as discussed below, was the high bidder at 34% over the engineer's estimate. Staff believed this bid to be excessive and the City Council, at their meeting of August 7, 2000, rejected the four (4) bids received on July 18, 2000 and directed the City Clerk to re-advertise for bids. Bids for the re-advertisement were opened on September 26, 2000 and the five (5) bids received are summarized as follows: Debec Engineering, Inc ............................................. $152,726.42 (non-responsive) Mariposa Horticult ...................................................... $175,276.66 (non-responsive) Trugreen Landcare .................................................... $178,780.00 (non-responsive) A & M Construction .................................................... $184,733.00 (non-responsive) S & M Landscape ...................................................... $193,637.00 S & M Landscape's bid is 8.78% over the engineer's estimate of $178,000. The references and the Contractor's State License for S & M Landscape 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. Award of Contract for Red Hill Avenue Median Landscaping from Edinger Avenue to Walnut Avenue November 6, 2000 Page 2 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. 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 Authority 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 four bids received on September 26, 2000, which were deemed non-responsive failed to submit all of the required payment bond information. Director of Public Works/City Engineer Associate Civil Engineer TDS:JO:ccg:Award of Contract Redhill median Edinger to Walnut.doc Attachment:: Location Map