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Home My WebLink About08 AWARD CONTRACT FOR THE PETERS CANYON CHANNEL IMPORVEMENTS CONSTRUCTION (CIP 50040)1�Y O � � rAGENDA REPORT MEETING DATE: FEBRUARY 6, 2018 TO: JEFFREY C. PARKER, CITY MANAGER Agenda Item Reviewed: City Manager Finance Director FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE PETERS CANYON CHANNEL IMPROVEMENTS CONSTRUCTION PROJECT, CIP NO. 50040 SUMMARY Staff is recommending that the City Council award the construction contract for the Peters Canyon Channel Improvements Construction Project, CIP No. 50040 to the lowest responsive / responsible bidder, KEC Engineering. RECOMMENDATION It is recommended that the City Council award the construction contract for the Peters Canyon Channel Improvements Construction Project, CIP No. 50040 to the lowest responsive/responsible bidder, KEC Engineering, in the amount of $12,843,929.90 and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. The engineer's estimate was $16,100,000.00. FISCAL IMPACT Sufficient funds in the amount of $20,631,000 have been budgeted for this project in the Fiscal Year 2017-2018 Capital Improvement Program budget. The total estimated expenditure for the construction of this project is $13,850,057.90. The project is funded through Legacy Backbone Infrastructure Fees (Fund 187), Community Facilities District 14-1 (Fund 443), and MCAS Tax Allocation Bonds (Fund 561). Project expenditures include: • Construction Contract................................................................. $ 12,843,929.90 • Geotechnical Engineering and Materials Testing ...........................$ 430,000.00 • Construction Management and Inspection ...................................$ 412,128.00 • Construction Engineering/Support................................................$ 164,000.00 • Estimated Expenditures...........................................................$ 13,850,057.90 The remaining budgetary appropriation will be set aside as project contingency for potential unforeseen conditions that may arise necessary to complete the work within the approved project scope and budget. Award Contract for Peters Canyon Channel Improvements, CIP No. 50040 February 6, 2018 Page 2 CORRELATION TO THE STRATEGIC PLAN The construction of Peters Canyon Channel Improvements contributes to the fulfillment of three goals in the City's Strategic Plan. First is contribution to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development; specifically implementation of Strategy #1 which, among other items, is to develop critical phases of Tustin Legacy. Secondly is implementation of Goal B, Strategy #3 to ensure public safety and protection of assets through continuous maintenance and improvement of public facilities. Lastly the agreement also addresses Goal D, Strategy #2 by working collaboratively with agencies to address issues of mutual interest and concern. DISCUSSION AND BACKGROUND The City, the Orange County Flood Control District (OCFCD), and the County of Orange entered in to Cooperative Agreement D02-119 dated March 11, 2003 to establish terms and conditions under which certain Peter's Canyon Channel Flood Control Improvements are to be scheduled, engineered, financed, constructed, operated, and maintained. Amendment No. 3 to Cooperative Agreement D02-119, approved on July 5, 2017 and signed by the County on August 4, 2017 increased the residential certificate of occupancy limit of 1,200 units, established in the second amendment to the agreement with the OCFCD and the County of Orange, by an additional 200 units to 1,400 units. Prior to that limit being reached, a contract for the construction of the Peter's Canyon Channel Improvements is required to be awarded and construction commenced. The Peters Canyon Channel Improvement project from north of Edinger Avenue to just north of Warner Avenue consists of widening the channel by approximately thirty feet along the eastern edge and construction of a concrete channel lining. The project will also provide improvements to the pedestrian and bicycle trail on the east side of the channel. The City Council adopted Resolution No. 17-54 approving the plans and specifications and authorized and directed the City Clerk to advertise for Project bids on November 7, 2017. The Project was advertised and the bids were opened on December 19, 2017 and evaluated. Eleven (11) bids were received by the noticed deadline and are summarized as follows: • USS CAL BUILDERS, Inc . .......................................... • KEC Engineering......................................................... • Ortiz Enterprises, Inc ................................................... • OHL USA, Inc.............................................................. • Bosco Constructors, Inc . ............................................. • Sukut Construction, LLC .............................................. • Reyes Construction, Inc . ............................................. • Los Angeles Engineering, Inc ...................................... • SEMA Construction, Inc . ............................................. • Innovative Construction Solutions ............................... • Environmental Construction, Inc .................................. ................$ 10,729,000.00 ................$ 12,843,929.90 ................$ 13,684,319.20 ................ $ 14, 384, 600.60 ................$ 14,444,444.00 ................ $ 14, 584,256.50 ................ $ 14, 832, 554.00 ................$ 15,498,000.00 ................$ 16,873,603.40 ................$ 18,518,278.00 ................ $ 20, 843, 797.00 On December 22, 2017, USS CAL BUILDERS, Inc. submitted a letter requesting withdrawal of their bid due to a clerical error regarding bid item no. 27. This letter was submitted timely within five (5) business days of the bid opening. After consultation with the City Attorney's office, staff recommends accepting the withdrawal of USS CAL BUILDER's bid, return of their bid bond, and Award Contract for Peters Canyon Channel Improvements, CIP No. 50040 February 6, 2018 Page 3 awarding the construction contract to the next lowest responsive/responsible bidder, KEC Engineering. _ uglAs. S,fack, P.E. e or fVublic Works/City Engineer Attachment(s): 1. Location Map 2. USS CAL BUILDERS' Withdrawal Letter ATTACHMENT 1 Location Map LOCATION MAP Peters Canyon Channel Improvements Constructic Project TUSTIN RANCH TUSTM LEGACY PROJECT LOCATION Peters Canyon Channel (CIP No. 50040) Improvements Construction Project r FILE: CIP 50040 Peters Canyon Channel.dwg NO SCALE ATTACHMENT 2 USS Cal Builders' Withdrawal Letter Department of Public Works - Engineering Douglas S. Stack City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Withdrawal of Bid Project Title: Peters Canyon Channel Improvements Construction Project Contract Identification: CIP NO. 50040 Project Location: Peters Canyon Channel, City of Tustin To Whom It May Concern: USS CAL BUILDERS INC. ("USS") submitted a bid in the amount of $10,279,000.00 for the above referenced project on December 19t", 2017, CIP NO. 50040 (the "Project"). Please be advised that this written request is being submitted on December 22nd, 2017 within five (5) business days of the bid opening. USS is requesting that it be allowed to withdraw its bid since a clerical error was made in writing down the correct figure for the line item noted below. In writing down the total amount, my assistant mistakenly input inaccurate information. On Item 27 — PROTECT IN PLACE EDINGER BRIDGE (SHORING). Instead of writing down $1,000,000.00 he wrote down $10,000.00 as indicated in the bid submittal. This clerical mistake resulted in the bid being materially different than what it was intended. As you can see from the above: 1) A mistake was made. 2) We gave the public entity written notice within five working days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred. 3) The mistake made the bid materially different than it was intended to be. 4) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications. Thank you for your understanding and we look forward to working with you in the future. Sincerely, Rabih EI -Zein VP of Operations USS CAL BUILDERS, Inc. T 714 828 4882 . F 714 828 9498 LIC 654454 8051 Main Street, Starton, CA 90680 www.tissoalbuilders.com