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Home My WebLink About06 AWARD CONTRACT FOR NEIGHBORHOOD D SOUTHDocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F AGENDA REPORt MEETING DATE: NOVEMBER 7, 2023 TO: NICOLE BERNARD, ACTING CITY MANAGER Agenda Item Reviewed: E City Manager Finance Director FROM: MICHAEL GRISSO, ACTING DIRECTOR OF PUBLIC WORKS SUBJECT: AWARD CONTRACT FOR THE TUSTIN LEGACY NEIGHBORHOOD "D" SOUTH PHASE 2 INFRASTRUCTURE (CIP NO. 70256) CONSTRUCTION PROJECT - PACKAGE #1 AND THE CIVIL PORTION OF THE WORK FOR THE SOUTH HANGAR RENOVATION (CIP NO. 10076) SUMMARY Staff is requesting the City Council award a construction contract to the lowest responsive/responsible bidder for the Tustin Legacy Neighborhood "D" South Phase 2 Infrastructure (CI P No. 70256) Construction Project - Package #1 and the civil portion of the work for South Hangar Renovation (CIP No. 10076) to Boudreau Pipeline Corporation ("Boudreau"). This project involves construction elements associated with five projects in the City's Capital Improvement Program that are required to advance construction of Neighborhood D South, Tustin Legacy Park from Armstrong Avenue to Warner Avenue and future pedestrian bridges over Armstrong and Warner Avenue. RECOMMENDATION It is recommended that the City Council: Award a construction contract in the amount of $8,771,596, for the Tustin Legacy Neighborhood "D" South Phase 2 Infrastructure (CIP No. 70256) Construction Project - Package #1 and the civil portion of the work for South Hangar Renovation (CIP No. 10076) to Boudreau Pipeline Corporation as the lowest responsive and responsible bidder, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City; 2. Appropriate $3,500,000 from Land Sale Proceeds Fund (Fund 189) for the Neighborhood D South Phase 2 Improvements Project (CIP 70256); 3. Appropriate $550,000 from the Backbone Program Fund (Fund 187) for the Armstrong Avenue Pedestrian Bridge Improvements Project (CIP 70257); and 4. Appropriate $520,000 from the Backbone Program Fund (Fund 187) for the Warner Avenue Pedestrian Bridge Improvements Project (CIP 70260). FISCAL IMPACT This project involves construction elements that benefit five projects in the City's Capital Improvement Program (Neighborhood D South Phase 2 Improvements, South Hangar Renovation, Armstrong Avenue Pedestrian Bridge, Warner Avenue Pedestrian Bridge, and Tustin Legacy Park from Armstrong Avenue to Warner Avenue). The table below summarizes the approved project budget for each element of the five projects, and the construction bid item costs that have been DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Award Contract November 7, 2023 Page 2 evaluated and assigned to each project inclusive of a 10% project contingency, SCE fees, IRWD fees, and engineering and geotechnical support. Total project cost is estimated at $10,000,000. Project D South Phase 2 Construction Budget $4,000,000 Construction Bid $6,561,970 ContingencyAppropriation . Related Project Costs $918,960 Total Cost $7,480,930 Request (Rounded) $3,500,000 South Hangar $5,421,683 $240,825 $33,726 $274,551 $0 Armstron Bride $674,849 $1,071,487 $150,055 $1,221,541 $550,000 Warner Bride $250,000 $671,324 $94,015 $765,339 $520,000 Tustin Legacy Park $1,000,000 $225,991 $31,648 $257,639 $0 TOTAL $11,346,532 $8,771,596 $1,228,404 $10,000,000 $4,570,000 As indicated above, sufficient budget funds exist for the portion of civil work that is part of the South Hangar Renovation and Tustin Legacy Park from Armstrong Avenue to Warner Avenue projects. The other three projects do not have sufficient funding in FY 2023-24 and will require additional appropriations. The Backbone Program Fund (Fund 187) and Land Sale Proceeds Fund (Fund 189) have sufficient fund balances to support these appropriation requests. CORRELATION TO THE STRATEGIC PLAN The Tustin Legacy Neighborhood "D" South Phase 2 Infrastructure (CIP No. 70256) Construction Project — Package #1 and the civil portion of the work for South Hangar Renovation (CIP No. 10076) project contributes to the fulfillment of the City's Strategy 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. The civil portion of the work for the South Hangar Renovation project also contributes to fulfilling Goal B: Public Safety and Protection of Assets, specifically the project implementation of Strategy 5, which is to create and implement a plan to protect the City's public assets. DISCUSSION The infrastructure construction of the Tustin Legacy Neighborhood "D" South Phase 2 — Package #1 in the area generally bounded by Airship Avenue, Warner Avenue, Compass Avenue and Armstrong Avenue, consists of clearing and grubbing, grading, future pedestrian bridge surcharge mounding, construction of storm drain, water, reclaimed water, sanitary sewer and roadway improvements. Formal bids were submitted electronically, publicly opened on October 3, 2023 and reviewed by Public Works. Out of ten contractors that obtained bid packages, only two submitted bids. Follow- up discussion with a few contractors that did not submit bids generally revealed that non -participation was due to current heavy workloads of contractors coupled with the amount of available work throughout the construction industry. The two bids received are summarized below: • Boudreau Pipeline Corporation..................................................................$ 8,771,596.00 • Nationwide Contracting Services, Inc. DBA Nationwide General Construction Services .........................................................................................$ 11,989,223.35 Staff worked with the design engineer on the engineer's estimate using the contract prices from the Neighborhood D South Phase 1 Infrastructure Construction Project including an inflation escalation. Still, unit prices were higher across the board: 30% higher on grading, 80% higher on street preparation improvements, and 120% higher on wet utility work. Although bid prices are higher than DocuSign Envelope ID: 6EA22186-1 F25-4BFA-9167-587106976A9F Award Contract November 7, 2023 Page 3 anticipated, considering the competitive and busy construction environment, increased inflation, and the priority in delivering ready to develop parcels, as well as the next phase of the Tustin Legacy Park, staff recommends awarding this project to Boudreau as re -bidding is unlikely to provide more favorable bid results and will cause significant delays in advancing the work. Staff has reviewed the references, the State Contractor's License, and registration with the Department of Industrial Relations for Boudreau and has determined that they are appropriate for the subject project. Staff is recommending that the City Council award the construction contract for the Tustin Legacy Neighborhood "Y South Phase 2 Infrastructure (CIP No. 70256) Construction Project — Package #1 and the civil portion of the work for South Hangar Renovation (CIP No. 10076) to Boudreau as the lowest responsive/responsible bidder, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. DocuSigned by: E l Gvissb C2CSD60ESFD34CC... Michael Grisso Acting Director of Public Works Attachment: Location Map IDocuSigned by: 6,I�,v br(ttr �asfzv A71E3BA15004414... Christopher Koster Director of Economic Development DocuSign Envelope ID: 6EA22186-1F25-4BFA-9167-587106976A9F LOCATION MAP Tustin Legacy Neighborhood D South Phase 2 Infrastructure f Construction Project �p E 4 .t c � TusnN RANCH TUSTIN LEGACY Rl v NO SCALE P PROJECT E T LOCATION °F P� Tustin Legacy Neighborhood PROJECT D South Phase 2 Infrastructure LOCATION Construction Project �� R AVfNUf (CIP No. 70256) 10 Z 0 FPO G 9y o� TUSTIN RANCH ROAD 0 P PARK UE a P��?J e9Pn ci� AVEN_ FILE: Neighborhood D South 70256.dwg