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Home My WebLink About10 AWARD CONTRACT VETERANS SPORTS PARK IMPROVEMENT PROJECT CIP 20043Agenda Item 10 AGENDA REPORT Reviewed: City Manager IN 0 Finance Director MEETING DATE: NOVEMBER 20, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE VETERANS SPORTS PARK AT TUSTIN LEGACY PARK IMPROVEMENTS PROJECT, CIP NO. 20043 SUMMARY Staff is recommending that the City Council award the construction contract for the Veterans Sports Park at Tustin Legacy Park Improvements Project, CIP No. 20043 to the lowest responsive / responsible bidder, Los Angeles Engineering, Inc. RECOMMENDATION It is recommended that the City Council: Deny the bid protest submitted by Ohno Construction; and 2a. Award the construction contract for the Veterans Sports Park at Tustin Legacy Park Improvements Project, CIP No. 20043 to the lowest responsive/responsible bidder, Los Angeles Engineering, Inc., in the amount of $18,991,493 (excluding the water play feature) adjusted for the bid alternative and deductive items and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City; and appropriate the following: 1. $1,500,000 from anticipated revenue in the Capital Improvement Program — General Fund (Fund 200) for use of grant funds awarded for this project, 2. $333,000 from anticipated revenue in the Capital Improvement Program — General Fund (Fund 200) for reimbursable T -Mobile expenses, and 3. $1,500,000 from the MCAS Tax Allocation Bond Fund (Fund 561). •Z 2b. Award the construction contract for the Veterans Sports Park at Tustin Legacy Park Improvements Project, CIP No. 20043 to the lowest responsive/responsible bidder, Los Angeles Engineering, Inc., in the amount of $19,445,493 (including the water play feature) adjusted for the bid alternative and deductive items and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City; and appropriate the following: 1. $1,500,000 from anticipated revenue in the Capital Improvement Program — General Fund (Fund 200) for use of grant funds awarded for this project, 2. $333,000 from anticipated revenue in the Capital Improvement Program — General Fund (Fund 200) for reimbursable T -Mobile expenses, 3. $1,500,000 from the MCAS Tax Allocation Bond Fund (Fund 561), and Award Contract for Veterans Sports Park Improvements November 20, 2018 Page 2 4. $454,000 from the General Fund Reserves (Fund 100) for the water play feature. FISCAL IMPACT The total amount of the bid received by Los Angeles Engineering is $ 22,295,893. This includes alternate and deductible bid items designed to provide flexibility to delete or modify park amenities if needed. Staff has provided two options for the City Council's consideration. The first includes the elimination of several of these bid items, reducing the contract amount to $18,991,493. The bid items eliminated include synthetic turf for the soccer fields ($2,510,000), the water play feature ($454,000) and miscellaneous replacement items that are unnecessary because the preferred park amenity will be constructed ($340,400). The second option retains the water play feature for a total contract amount of $19,445,493. The remaining available approved budget for the construction of this project is $17,940,189. Previously demolition, grading, and underground utilities were constructed by Sukut Construction under separate contract. Since the adoption of the budget, the City has been awarded $1,500,000 in grant funding through the California Land and Water Conservation Fund for this project. Staff is recommending the City Council appropriate the grant funds as part of this agenda item, which would increase the budget to $19,440,189. Also, as part of the project the City will be constructing cell tower equipment building for T -Mobile in the amount of $333,000.00. T -Mobile will reimburse the City the cost associated with the cell tower building construction. Staff is also recommending an appropriation of $333,000 from the General Fund for proper accounting of this reimbursable item. These budget modifications increase the total funding available for the project to $19,773,189 as outlined below: MCAS Backbone Fees (Fund 187) $ 9,250,000 MCAS Tax Allocation Bonds (Fund 561) $ 6,784,712 Park Development Fees (Fund 132) $ 1,659,171 Community Facilities District 06-1 (Fund 434) $ 246.306 $17,940,189 Land and Water Conservation Fund Grant (Fund 200) $ 1,500,000 T -Mobile Building Reimbursement (Fund 200) $ 333.000 $19,773,189 The estimated expenditures for this project total $21,273,189, which includes: Construction Contract (excluding water play feature) $ 18,991,493 Estimated Construction Management, Inspection, Geotechnical & Testing $ 800,000 Estimated Construction Engineering/Support $ 200,000 Contingency (-7%) $ 1.281.696 $21,273,189 Staff has identified an additional $1,500,000 available in the MCAS Tax Allocation Bond Fund (Fund 561) to complete the project without the water play feature. The Community Services Commission was advised that the lowest bid is over the available funding and that a park amenity may need to be removed from the project. At their October 19, 2018 meeting, the Commission voted to remove the water play feature if funding cannot be secured. The water play feature can be included now with an appropriation of $454,000 from unappropriated reserves of the General Fund or built later once other funds become available. The projected General Fund Reserves should this appropriation be authorized would be $19,727,043. Award Contract for Veterans Sports Park Improvements November 20, 2018 Page 3 CORRELATION TO THE STRATEGIC PLAN The park improvements of Veterans Sports Park at Tustin Legacy, CIP No. 20043 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 complete the master Plan for Tustin Legacy and Strategy 6, which is to assess and to explore opportunities for expanded recreational activities. DISCUSSION AND BACKGROUND The Veterans Sports Park at Tustin Legacy park improvements project consists of construction of the Veteran's Memorial monument, sports fields, sports courts, restroom buildings, walkways and site amenities. The first phase of the project consisted of demolition, grading and installation of storm drain, potable water, reclaimed water, and sanitary sewer facilities. The phase one work was completed by Sukut Construction in May 2018 and the final construction cost totaled $3,003,336. The City Council adopted Resolution No. 18-31 approving the plans and specifications for the park improvements and authorized the City Clerk to advertise to receive bids from the seven (7) pre -qualified general contractors approved by the City Council on May 1, 2018. Staff recommended the pre -qualification procedure for the construction of the Veterans Sports Park at Tustin Legacy Park Improvements Project due to the very specialized nature of construction. Construction scheduling may prove difficult and will require significantly more expertise in coordination and facilitation of project progress. The City received three (3) formal bids from the pre -qualified list of potential bidders that were publicly opened on September 18, 2018 and reviewed by Public Works. Provided below is a summary of the three (3) bids by order of least dollar amount: Los Angeles Engineering, Inc . ........................................ $ 22,295,893.00 Ohno Construction Company ................................................ $ 23,974,901.05 (*) BrightView Landscape Development, Inc ......................... $ 24,513,800.00 (*) Corrected total bid amount based upon correctly multiplying the number of units by the unit price bid. Staff has reviewed the references and verified the State Contractor's License for Los Angeles Engineering, Inc. and has determined that they are in good standing and current. The City received a formal bid protest dated September 19, 2018 from Ohno Construction Company, the apparent second lowest bidder. In the protest, Ohno Construction Company requested that the City find the apparent lowest bidder, Los Angeles Engineering, Inc. non- responsive due to the following: 1. Los Angeles Engineering listed an unregistered and non -responsible subcontractor 2. Los Angeles Engineering listed multiple subcontractors that are not permitted to install the specified products 3. Los Angeles Engineering's bid is non-responsive because it did not use the correct notary form as required by the bid documents 4. Los Angeles Engineering did not include the required submittal for the Shade Canopies that was required with the bid. Award Contract for Veterans Sports Park Improvements November 20, 2018 Page 4 City staff requested Los Angeles Engineering to provide a response to Ohno Construction assertions. Los Angeles Engineering response adequately addresses the issues raised by Ohno Construction. 1. Los Angeles Engineering explained that the subject subcontractor has valid DIR registration number and experienced installing similar projects of this scope, subsequently Los Angeles Engineering has requested to substitute the subject contractor. 2. Los Angeles Engineering listed subcontractors to provide and perform work in accordance with plans and specifications for this project. 3. Los Angeles Engineering submitted with their bid legal Notary Acknowledgment forms provided by the Secretary of State of California. 4. Los Angeles Engineering is utilizing USA Shade & Fabric Structures, which is an approved manufacturer in accordance with specifications and did not provide a submittal with their bid for the reason consistent with the City's response to question number 36 in Addendum No. 2. City staff, along with the City Attorney's office, determined that: 1. Los Angeles Engineering substitution of the subject subcontractor is permissible. 2. Los Angeles Engineering listed subcontractors are able to provide and to perform work in accordance with plans and specifications. 3. Public entities have discretion to waive inconsequential deviations from public bid specifications. 4. It was permissible for Los Angeles Engineering not to include a bid for the fabric tension structures with its bid submittals. The information above is a summary of the bid protest and the City's response. The bid protest and the formal response from the City have been included as attachments to this report. It is therefore recommended that the City Council deny the bid protest by Ohno Construction Company, award the construction contract to the lowest responsive/responsible bidder, Los Angeles Engineering, Inc., and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City, and appropriate the necessary funds as stated above to complete the park improvements with or without the water play feature at this time. bou s . Stack, P. E. Dir or f Public Works/City Engineer Attachment(s): 1. City response to bid protest 2. Los Angeles Engineering response to bid protest letter, dated September 25, October 9, 10 & 17, 2018 3. Ohno Construction bid protest letter, dated September 19, 2018 4. Location Map SiCily Counal I1-0018 Council Ilems111-06.201864ward of Contract for Veterans Sports Park Improvemenls. CIP No. 200431Award of Contract for Veterans Sports Park Improvements, CIP 20043.docx