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Home My WebLink About05 AWARD CONTRACT FOR RED HILL AVE MEDIAN IMPROVEMENTS - CIP NO. 70252 DocuSign Envelope ID: E8CAAF1 B-5DC4-4FB1-B79D-E9F1 3046CABF 5 • Agenda Item fJS- - AGENDA REPORT Reviewed: -M 5W City Manager o5 Finance Director �a MEETING DATE: AUGUST 3, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE RED HILL AVENUE MEDIAN IMPROVEMENTS PROJECT (CIP NO. 70252) SUMMARY Staff is requesting the City Council consent to the withdrawal of the bid from KASA Construction, Inc., award the construction contract to the second lowest responsive/responsible bidder, Marina Landscape, Inc., for the Red Hill Avenue Median Improvements Project (CIP No. 70252), and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. RECOMMENDATION It is recommended that the City Council: 1. Consent to the bid withdrawal from the lowest responsive/responsible bidder, KASA Construction, Inc. and release bid bond; 2. Award a construction contract to the next lowest responsive/responsible bidder, Marina Landscape, Inc. in the amount of$439,916.25, for the Red Hill Avenue Median Improvements Project (CIP No. 70252); 3. Authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City; and 4. Appropriate $150,000 from Gas Tax Reserves (Fund 130). FISCAL IMPACT Funding in the amount of$350,000 has been budgeted and appropriated in the Capital Improvement Program for construction of the project using Gas Tax (Fund 130). The total engineer's estimate is $303,312. The recent escalation in construction materials costs and high fuel costs have created an unfavorable bidding environment, which is reflected in the bids. A supplemental appropriation in the amount of$150,000 from Gas Tax Reserves (Fund 130) is requested to make up the budget shortfall and provide for construction contingency. Should this additional appropriation be approved, the projected fund balance in Fund 130 will be approximately $4.75M. CORRELATION TO THE STRATEGIC PLAN The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets, to ensure Tustin is an attractive, safe and well-maintained community in which people feel pride. Specifically, the project implements Strategy #5, which among other items, is to ensure continuous maintenance and improvement of public facilities. DocuSign Envelope ID: E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF Red Hill Avenue Median Improvements Project (CIP No. 70252) August 3, 2021 Page 2 DISCUSSION On May 9, 2016, the Governor of the State of California issued Executive Order B-37-16 "Making Water Conservation a California Way of Life", making permanent many of the orders and provisions included in previous Emergency Proclamations and Executive Orders issued during severe drought conditions, including the prohibition of irrigation with potable water of ornamental turf in public street medians. In compliance with the Order, the Red Hill Avenue Median Improvements Project (CIP No. 70252) will remove dead median turf along Red Hill Avenue between Lance Drive and First Street and replace with drought tolerant plant material and water efficient irrigation systems. Also included in the project are lengthening of left turn pockets at Bryan Avenue, removal of existing substandard height median curbs and replacement with full height curbs, installation of median pavers and decorative hardscape, and utility relocations. New median curb elevations will be set to correspond to expected finished roadway elevations associated with the Red Hill Avenue Rehabilitation project planned for fiscal year 2022/2023. Formal bids were submitted electronically and publicly opened on July 6, 2021 and reviewed by Public Works. Three (3) bids were received and are summarized below by order of least dollar amount: • KASA Construction, Inc.................................................................. $ 389,534.50 • Marina Landscape, Inc. .................................................................. $ 439,916.25 • Environmental Construction, Inc. ................................................... $ 493,499.50 In accordance with California Public Contract Code (PCC) Section 5100 et seq., written notice was submitted by KASA Construction, Inc. within five working days after the opening of the bids requesting to be relieved of its bid and to have its bid bond released, citing a mathematical error made in calculating the bid amount, making the bid materially different than what was intended. Staff has reviewed the request and the bid and found that all elements required by PCC Section 5103 have been satisfactorily established in order to grant relief. PCC Section 5106 provides that a public entity may, on refusal or failure of the successful bidder to execute the contract, award it to the second lowest bidder. Staff has reviewed the references and the State Contractor's License for Marina Landscape, Inc. and has determined that they are appropriate for the subject project. It is recommended that the City Council consent to the withdrawal of the bid from KASA Construction, Inc., award the construction contract to the second lowest responsive/responsible bidder, Marina Landscape, Inc., for the Red Hill Avenue Median Improvements Project (CIP No. 70252), and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. 7 ou s . Stack, P.E. D' ct f Public Works/City Engineer Attachment(s): 1. Notice of Bid Withdrawal from KASA Construction, Inc. 2. Location Map S:\City Council Items\2021 Council Items\08-03-2021\Award of Contract for Red Hill Medians\Award of Contract for Red Hill Medians (CIP 70252)_ej draft.docx DocuSign Envelope ID: E8CAAF1 B-5DC4-4FB1-B79D-E9F1 3046CABF ATTACHMENT 1 Notice of Bid Withdrawal DocuSign Envelope ID: E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF MOO CONSTRUC-rloN Building the Foundation for our Future CA License No.927544 1 Classifications:A, B,C-27,C-10 July 7, 2021 City of Tustin 300 Centennial Way Tustin, CA 92780 SUBJECT: NOTICE OF MISTAKE IN BID& REQUEST FOR RELIEF PROJECT: Red Hili Median Improvements Project PROJET NO: CIP No. 70252 Attn: Mr. Eric Johnson, Principal Engineer Mr.Johnson, This correspondence shall be considered as: A) Written notice to the City of Tustin under California Public Contract Code Section 5100 et seq. that KASA Construction, Inc. made the mistake described below in the preparation of its bid for the project named above; and, B) Written request by KASA Construction, Inc.to be relieved of its bid and to have its bid bond released. The mistake was a mathematical error resulting from the incorrect application of a formula within the document utilized to calculate the correct amount of the proposal and made the bid materially different than it was intended to be.This occurred primarily for the asphalt pavement item of the Bid Proposal As further explanation to the clerical errors made: 1) On Bid Item 11, KASA estimated the asphalt to be performed by All American Asphalt at $64 /Ton which should have $164 /Ton not including OH/MU. With OH/MU approximately $197 / Ton. This loss is approximately $35,752 2) Added Bond& Insurance on increase of 2% - $715 KASA bid price would have been approximately $426,000 KASA made ever attempt to analyze the project and was unsuccessful in recouping the overall losses. We apologize for any inconvenience this may have caused and look forward to providing the City of Tustin with competitive proposals on future bids. Should you have any questions or concerns, please do not hesitate to contact me at any time. Sincerely Zavala stimator KASA Construction, Inc. 15148 Sierra Bonita Lane, Chino, California 91710 Phone: (909)457-8260 Fax: (909)457-8261 1 www.kasaconstruction.com DocuSign Envelope ID: E8CAAF1 B-5DC4-4FB1-B79D-E9F1 3046CABF ATTACHMENT 2 Location Map DocuSign Envelope ID:E8CAAF1B-5DC4-4FB1-B79D-E9F13046CABF CITY OF TUSTIN NO SCALE IS>, FFA �q� G Gq q PINE TREE PARK �q PROD Fo LO ION P AM RM HE NeEl—W Brpn.Ewq PROJECT NAME:RED HILL AVENUE MEDIAN IMPROVEMENTS PROJECT(CIP NO.70252)