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Home My WebLink About06 AWARD CONTRACT FOR ARMSTRONG AVE & WARNER AVE EXTENSIONAgenda Item 6 AGENDA REPORT Reviewed: 0 City Manager Finance Director MEETING DATE: APRIL 15, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE ARMSTRONG AVENUE AND WARNER AVENUE EXTENSION PHASE 2 STREET IMPROVEMENTS CONSTRUCTION PROJECT, CIP NOS. 70201 & 70202 SUMMARY With the substantial completion of the Phase I grading and storm drain installation, staff is recommending that the City Council award the construction contract for the Armstrong Avenue and Warner Avenue Extension Phase 2 Street Improvements to the lowest responsive /responsible bidder, R.J. Noble Company, and appropriate funding for construction, construction engineering, management and inspection. RECOMMENDATION It is recommended that the City Council: 1. Appropriate $700,000 from unencumbered Irvine Ranch Water District Reimbursement (Fund 200), $4,200,000 from unencumbered Community Facilities District 06 -01 Construction Fund (Fund 434), $500,000 from unencumbered Community Facilities District 06 -01 Annexation Construction Fund (Fund 438), $1,000,000 from unencumbered Street Lighting Fund (Fund 142), in addition to funds already appropriated in the amount of $7,100,000 from TSIA and Measure M2 RCP for a total project appropriation of $13,500,000; and 2. Award the construction contract for the Armstrong Avenue and Warner Avenue Extension Phase 2 Street Improvements Construction Project, CIP Nos. 70201 & 70202 to the lowest responsive /responsible bidder, R.J. Noble Company in the amount of $10,552,962.61 and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City and authorize the City Manager to expend said funds in an amount not -to- exceed $13,500,000 for construction, dry utility fees, geotechnical engineering, construction engineering, management and inspection. Award Contract for Armstrong Avenue & Warner Extension Street Improvements Project April 15, 2014 Page 2 FISCAL IMPACT With the recommended action, sufficient funds will be available to cover project expenditures. The project is funded through a combination of sources that includes Santa Ana - Tustin Transportation System Improvements Authority (TSIA), Measure M2 Regional Capacity Program (RCP), Irvine Ranch Water District (IRWD) Capital Facilities Reimbursement, Community Facility District (CFD) 06 -01 Construction and Annexation, and Street Lighting funds. The original funding approach, as approved in the Fiscal Year 2013 -2014 CIP budget, included $9,300,000 in Land Proceeds and $4,000,000 in MCAS Backbone Fees. MCAS Backbone Fees have been used to fund the sewer realignment in Tustin Ranch Road / Barranca Parkway and the Barranca Parkway Channel undergrounding and street widening improvement. Staff is also reserving a major portion of Land Proceeds pending resolution with the California Department of Finance (DoF) to finalize any outstanding obligation necessary to further absolve the City's MICAS Tax Allocation Bond Proceeds (MCAS TAB) held in abeyance by the State. As a result, staff is recommending alternative appropriations as a means to move forward with the Phase 2 improvements of Armstrong and Warner Avenues and allow the City to fulfill its obligations to the Orange County Transportation Authority and The Irvine Company. Project expenditures include: Construction Contract ........ ............................... $ 10,552,962.61 Dry Utility Fees ................. ............................... $ 600,000.00 Geotechnical Engineering .. ............................... $ 195,000.00 Construction Engineering ... ............................... $ 250,000.00 Construction Management and Inspection ............. $ 430,000.00 Contingency ..................... ............................... $ 1,472,037.39 TOTAL $ 13,500,000.00 The table on the following page summarizes the appropriations approved in the Fiscal Year 2013 -2014 CIP budget and the proposed appropriations necessary to move forward with the project. THIS SPACE INTENTIONALLY LEFT BLANK Award Contract for Armstrong Avenue & Warner Extension Street Improvements Project April 15, 2014 Page 3 Armstrong Avenue and Warner Avenue Extension Phase 2 Street Improvements Fund Description FY 2013 -2014 CIP Budget Allocation Proposed Project Funding TSIA $ 3,000,000 $ 3,000,000 Measure M2 RCP' $ 4,100,000 $ 4,100,000 IRWD Reimbursement $ - $ 700,000 CFD 06 -1 Construction $ - $ 4,200,000 CFD 06 -1 Annexation $ - $ 500,000 Street Lighting Fund $ - $ 1,000,000 Land Proceeds $ 9,300,000 $ - MCAS Backbone Fees $ 4,000,000 $ - TOTAL $ - 20,400,000"" $ 13,500,000 * Total reimbursement up to $4,400,000 based on actual eligible expenses. * *Includes $5,000,000 reimbursement to The Irvine Company for construction of Warner Avenue between Legacy Road and Tustin Ranch Road. The appropriation from the Street Lighting Fund will be transferred to the Capital Improvement Fund (Fund 200) and used solely for expenditures related to dry utilities and will be replenished with MCAS TAB funds when available after resolution with DoF. The current MCAS TAB fund balance is approximately $32,000,000. CORRELATION TO THE STRATEGIC PLAN The construction of Armstrong Avenue and Warner Avenue roadway extension contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, the project implementation of Strategy 1, which among other items, is to develop critical phases of Tustin Legacy. DISCUSSION AND BACKGROUND On January 7, 2014 City Council approved plans and specifications and authorized the City Clerk to solicit bids. The Engineer's Estimate $13,200,000. Formal bids were publicly opened on March 4, 2014 and reviewed by Public Works. Ten (10) bids were received by the noticed deadline and are summarized below by order of least dollar amount: • R.J. Noble Company .................. ............................... $ 10,552,962.61 • Palp Inc. dba Excel Paving Company ....................... $ 11,065,912.45 Shawnan ...................................... ..............................$ 11,373,777.70 • All American Asphalt .................. ............................... $ 11,700,397.98 • Hillcrest Contracting ................... ............................... $ 11,710,974.21 • Los Angeles Engineering ........... ............................... $ 12,251,032.75 Award Contract for Armstrong Avenue & Warner Extension Street Improvements Project April 15, 2014 Page 4 • Environmental Construction, Inc . .............................. $ 12,625,982.34 • The Sun Group ........................... ............................... $ 15,415,093.00 • USS Cal Builders ....................... ............................... $ 15,487,354.00 • Minako America Corporation ...... ............................... $ 16,220,916.00 As is customary, staff has reviewed the references and verified the State Contractor's License for R.J. Noble Company and has determined that they are in good standing and current. Furthermore, R.J. Noble Company has been an outstanding contractor for the City and has successfully completed the Tustin Ranch Roadway Improvements, the 20" Sewer Realignment in Tustin Ranch Road / Barranca Parkway and the Barranca Channel and Street Improvement currently under construction. It is recommended that the City Council appropriate the supplemental funding and award the construction contract to the lowest responsive /responsible bidder, R.J. Noble Company, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. Stack, P.E. Public Works /City Engineer Attachment: Location Map SACity Council Items\2014 Council Items \04- 15- 2014Wward of Contract for Armstrong & Warner Extension\Hward of Contract for Armstrong Avenue (CIP 70201) and Warner Avenue (CIP 70202) Extension Phase 2 Street Improvements SC_dss3.docx ARMSTRONG AVENUE AND WARNER AVENUE EXTENSION PHASE 2 STREET IMPROVEMENTS LOCATION MAP qF PROJECT 1�(LOCATIONJy�� THE IRVINE CO. , CITY OF c��y•. �4 �-'�� TUSTIN