15-0203_CHI CONSTRUCTION_Agenda Report_D10City of San Juan Capistrano
2/3/2015
D10
Agenda Report
TO: Karen P. Brust, City Manage
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FROM: Keith Van Der Maaten, P.E., Public Works and Utilities Directormfi cz�'
Prepared by: Paul Meshkin, P.E., Senior Civil Engineer,
DATE: February 3, 2015
SUBJECT: Consideration of Award of Contract and Approval of Proposed Budget
Adjustment for the Safe Routes to School Project SRTSL — 5372 (013),
Sidewalk Construction on North Side of Via Positiva Street and the
Installation of Lighted Crosswalk on Camino Del Avion at Avenida
Descanso (CIP 08103)
RECOMMENDATION:
By motion,
1. Approve an adjustment to:
a. Reduce the Fiscal Year 2014-15 budget for the Sidewalk Construction on
North Side of Via Positiva Street and the Installation of Lighted Crosswalk
on Camino Del Avion at Avenida Descanso Project (CIP 08103) by
$19,616 to $249,909; and,
b. Reduce the Fiscal Year 2014-15 budget for the Trabuco Creek Road
Improvements Project (CIP 10104) from Measure M funding and increase
the Measure M funding to CIP 08103 by $27,580; and,
2. Award a Contract for the Sidewalk Construction on the North Side of Via Positiva
Street and the Installation of Lighted Crosswalk on Camino Del Avion at Avenida
Descanso (CIP 08103) to the lowest responsible bidder, CHI Construction, Inc. in
the estimated amount of $187,459, and reject all other bids; and,
3. Authorize the City Manager to approve changes in a total amount not to exceed
10% of the contract amount.
City Council Agenda Report
February 3, 2015
Page 2 of 5
EXECUTIVE SUMMARY:
Staff is recommending that the City Council award a Contract to the lowest responsible
bidder, CHI Construction in the estimated amount of $187,459 and authorize the
City Manager to approve Change Orders to the Contract provided that they do not
exceed 10% of the Contract amount or the project budget contingency for the Safe
Routes to School Project SRTSL — 5372 (013), the Sidewalk Construction on North Side
of Via Positiva Street and Installation of Lighted Crosswalk on Camino Del Avion at
Avenida Descanso Project (Project).
Six bids for the Project were received and opened on January 8, 2015. Bids are valid
until April 8, 2015 for a period of ninety (90) days from the bid opening date.
DISCUSSION/ ANALYSIS.
The project will construct a five-foot sidewalk on the north side of Via Positiva west of
Alipaz Street. This will eliminate the need for students who live on the north side of Via
Positiva from having to cross Via Positiva twice to arrive at their schools (Kinoshita
Elementary School, Marco Forster Middle School and Del Obispo Elementary School).
The project will also install a solar -powered in -pavement crosswalk lighting system at
the intersection of Camino Del Avion and Avenida Descanco and speed display warning
signs on Camino Del Avion east and west of Avenida Descanco. This is a heavily used
marked crosswalk with a crossing guard assigned to it. These traffic devices will
enhance pedestrian safety along Camino Del Avion. This project was advertised for
construction on December 4, 2014, and the bid opening date was January 8, 2015. A
total of six (6) bids were received and all were responsible for the project as follows:
Contractor's Name Bid Amount
CHI Construction
$187,459
Unique Performance Construction Inc.
$189,700
PTM General Engineering Sericex, Inc.
$190,901
ND Electric Construction, Inc
$195,542
Naka Engineering Contractors
$197,868
EI Camino Construction & Eng. Corp
$222,025
The lowest responsible bid was for $187,459 by CHI Construction which is below the
Engineer's Estimate of $246,000. A time limit of 40 (forty) working days from the date of
Notice to Proceed has been set for completion of the construction with an expected
completion date of April 17, 2015. Staff has checked the references, licenses, and
bonds and received positive feedback for their performance.
City Council Agenda Report
February 3, 2015
Paae 3 of 5
FISCAL IMPACT:
The City's Fiscal Year 2014-15 adopted budget for this project is $269,525. The
updated Fiscal Year 2014-15 budget for CIP 08103 is estimated as follows:
FY 14-15 Proposed Updated
Budget Ajdustment Estimate
Construction $269,525 ($82,066) $187,459
10% contingency _ 18,745 18,745
Total direct construction costs $206,204
Construction Engineering (staff time) 43,705 43,705
Total $269,525 ($19,616) $249,909
The City's Fiscal Year 2014-15 budget for this project is $269,525, which includes State
Safe Routes to Schools (SRTS) Grant funds of $253,400 and Gas Tax funds of
$16,125. Although, the City has been awarded a maximum SRTS grant of $253,400
from the State Department of Transportation, the only costs in the proposed budget
outlined above that are eligible to be funded by the grant are the direct construction
costs, which is $206,204. City staff plans to submit a request to the State Department
of Transportation to request an amendment to the City's approved Program Supplement
Agreement to include some funding for construction engineering costs. However,
pending the approval of the amendment to SRTSL- 5372(013) Supplemental
Agreement and in order to proceed with the project timely, City staff is requesting the
budget adjustment below to align the project budget with the Project Manager's revised
cost estimate and the current approved grant levels. Therefore, the Fiscal Year 2014-
15 funding for this project is proposed as follows:
The Measure M funding is being requested through a transfer from the Trabuco Creek
Road Improvements Project (CIP 10104), which has a Fiscal Year 2014-15 budget of
$49,390. No work has begun yet on this project during this fiscal year. The funds will
be returned to the project either when the City's grant amendment from the State is
approved or when the City's Seven -Year Capital Improvement Program is updated for
Fiscal Year 2015-16.
FY 14-15
Proposed
Revised FY 14-15
Funding
Adjustment
Funding_
Gas Tax
$16,125
$0
$16,125
Measure M
0
27,580
27,580
State Grant Funding
253,400
(47,196)
206,204
Total
$269,525
($19,616)
$249,909
The Measure M funding is being requested through a transfer from the Trabuco Creek
Road Improvements Project (CIP 10104), which has a Fiscal Year 2014-15 budget of
$49,390. No work has begun yet on this project during this fiscal year. The funds will
be returned to the project either when the City's grant amendment from the State is
approved or when the City's Seven -Year Capital Improvement Program is updated for
Fiscal Year 2015-16.
City Council Agenda Report
February 3, 2015
Paae 4 of 5
ENVIRONMENTAL IMPACT:
The City's Environmental Administrator completed a preliminary review of this project in
accordance with Section 15061 of the California Environmental Quality Act Guidelines.
Based on that review, the Environmental Administrator has determined the project to be
Categorically Exempt (Class 1, Existing Facilities) under Section 15301 (c).
PRIOR CITY COUNCIL REVIEW:
• On November 18, 2014, the City Council rejected all bids received for the project
and authorized staff to re -advertise and receive bids for Construction on
north side of Via Positiva and the Installation of Lighted Crosswalk on Camino
Del Avion at Avenida Descanso, Project Number SRTSL- 5372 (013).
• On October 21, 2014, the City Council adopted a Resolution authorizing the
Mayor to execute all Program Supplemental Agreements and/or any
Amendments thereto to the Administering Agency -State Agreement No. 12-
5372R with the California Department of Transportation.
• On February 4, 2014, the City Council adopted a Resolution to execute the right-
of-way Certification for the Safe Routes to School Project # SRTSL-5372(013);
and authorized the Mayor to sign the Interim Short Form Right -of -Way Local
Assistance Project.
• On May 1, 2012, the City Council approved plans and specifications for
construction of the sidewalk on the north side of Via Positiva and installation of a
lighted crosswalk on Camino Del Avion and authorized staff to advertise and
receive construction bids.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
Not applicable.
NOTIFICATION:
Jim Kaufman, Caltrans District 12
Reza Faraz, Caltrans District 12
Patrick Louie, Caltrans Headquarters
Kristen Vital, Capistrano Unified School District Superintendent
Mr. Pedraza, Principal of Kinoshita Elementary School
Mr. Kraft, Principal of Del Obispo Elementary School
Ms. Carrie Bertini, Principal of Marco Forster Middle School
Mitch Darvish (CHI Construction)
Moumtaz Kabany (Unique Performance Construction Inc.)
Elizabeth H. Mendoza de Mc Rae (PTM General Engineering Services Inc.)
Alex Kazemi (Naka Engineering)
Miguel Guajardo (EI Camino Construction & Engineering)
Michael Martin (ND Construction Company)
City Council Agenda Report
February 3, 2015
Paae 5 of 5
ATTACHMENT(S):
Attachment 1 — Contract
Attachment 2 — Location Map
SECTION D. CONTRACT AGREEMENT
Sidewalk and Lighted Crosswalk Construction
At Via Positiva and Camino Del Avion
CIP No. 08103 - Federal Project No. SRTSL-5372(013)
This contract is made and entered into by and between the CITY OF SAN JUAN CAPISTRANO,
hereinafter referred to as "CITY" and CHI Construction hereinafter referred to as
"CONTRACTOR."
IT IS HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS:
FIRST. CONTRACT DOCUMENTS. The contract documents shall be considered to include the
Notice Inviting Bids, the Instructions to Bidders, the Proposal, the Bid Bond, the Non -Collusion
Affidavit, the Designation of Sub -Contractors, the Contract which is prepared for execution by the
CITY and the CONTRACTOR. Plans, Specifications and Special Provisions, the Standard
Specifications for Public Works Construction, 2012 Edition Contract Bonds, Resolutions adopted
by the CITY pertaining to the work, insurance policies and certificates, and any supplemental
written agreements amending or extending the scope of the work originally contemplated that may
be required to complete the work in a substantial and acceptable manner.
SECOND. THE WORK. CONTRACTOR agrees to furnish all tools, labor, material, equipment,
transportation, and supplies necessary to perform and complete in good and workmanlike manner
the construction of Sidewalk and Lighted Crosswalk Construction in strict conformity with the
Plans, Specifications and all other contract documents, which documents are on file at the Office
of the City Clerk, City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California.
THIRD. PAYMENT. CITY agrees to pay, and CONTRACTOR agrees to accept, the lump sum
adjusted for variations of quantities, at the prices designated in bid proposal at the time and in the
manner set forth in the Specifications.
FOURTH. COMMENCEMENT AND COMPLETION OF THE WORK. CONTRACTOR
agrees to begin and complete the work within the time specified in the Notice Inviting Bids. It is
agreed that it would be impractical and extremely difficult to fix the actual amount of damages,
and loss sustained by CITY, should CONTRACTOR fail to complete the work in the specified
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time; therefore, CONTRACTOR shall pay CITY, as liquidated damages, not in the nature of a
penalty, Five Hundred Dollars ($500) per calendar day for each day delayed; provided that
extensions of time with waiver of liquidated damages, may be granted as provided in the
Specifications.
FIFTH. PERFORMANCE BOND AND LABOR AND MATERIAL BOND. CONTRACTOR
agrees to furnish bonds guaranteeing the performance of this contract and guaranteeing payment
of all labor and material used under this contract, as required by the laws of the State of California,
on forms approved by the CITY. The Performance Bond shall be for an amount of one hundred
percent (100%) of the amount of this contract and shall be conditioned on full and complete
performance of the contract, guaranteeing the work against faulty workmanship and materials for
a period of one (1) year after completion and acceptance. The Labor and Material Bond shall be
for an amount of one hundred percent (100%) of the amount of this contract and shall be
conditioned upon full payment of all Labor and Material entering into or incidental to the work
covered by this contract. CONTRACTOR agrees to furnish the bonds on the forms found within
the Specifications.
CONTRACTOR agrees to pay CITY such sum as the Court may judge as reasonable for the legal
services of any attorney representing the CITY in any action brought to enforce or interpret the
obligations of this agreement, and such sums shall be made a part of any judgment in such action
against CONTRACTOR if such action is determined in favor of said CITY. The required
Performance, Labor and Materials Bonds, and Bid Bond shall provide that the surety shall pay
attorney's fees incurred by CITY in enforcing this agreement.
SIXTH. GENERAL PREVAILING RATE OF PER DIEM WAGES. Notice is hereby given
BIDDERS that this project is funded with Safe Routes To School (SRTS) federal money, and that
the rate of wages for each craft or type of work or mechanic employed under this contract shall be
as specified under the current determinations of the Department of Labor as required under the
Davis -Bacon Act.
In addition and pursuant to the Labor Code of the State of California, copies of the prevailing rate
of per diem wages, as determined by the Director of the State Department of Industrial Relations,
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are on file in the Office of the City Clerk, 32400 Paseo Adelanto, San Juan Capistrano, California,
and are hereby incorporated and made a part hereof. CONTRACTOR agrees that he, or any SUB-
CONTRACTOR under him, shall pay not less than the foregoing specified prevailing rates of
wages to all workmen employed in the execution of the contract.
Where a discrepancy exists between Federal and State prevailing wage rate, the higher of the two
prevailing wage rates shall apply.
--"Pursuant to Labor Code section 1771.1, no contractor or subcontractor may be listed
on a bid proposal for a public works project unless registered with the Department of
Industrial Relations. Furthermore, Contractor is hereby notified that no contractor or
subcontractor may be awarded a contract for public work on a public works project
unless registered with the Department of Industrial Relations."
--"Pursuant to Labor Code section 1771.4, Contractor is hereby notified that this project
is subject to compliance monitoring and enforcement by the Department of Industrial
Relations."
SEVENTH. INSURANCE. CONTRACTOR shall maintain at all times during this contract
liability and property damage insurance naming the CITY and its elected and appointed officials
as a named insured, which such policies shall be of an amount not less than Two Million Dollars
($2,000,000) combined single limit. Insurance certificates shall be for a minimum period of one
(1) year.
CONTRACTOR shall maintain in full force and effect comprehensive automobile liability
coverage, including owned, hired, and non -owned vehicles in the following minimum amounts:
$1,000,000 property damage;
$1,000,000 injury to one person/any one occurrence/ not limited to contractual period;
$2,000,000 injury to more than one person/any one occurrence/not limited to contractual
period.
The insurance policies shall bear an endorsement or shall have an attached rider providing that in
the event of expiration of proposed cancellation of such policies for any reason whatsoever, the
CITY shall be notified by registered mail, return receipt requested, giving a sufficient time before
the date thereof to comply with the applicable law or statute but in no event less than thirty (30)
days before expiration or cancellation is effective. CONTRACTOR shall provide to CITY the
policy certificate establishing that the required level of insurance has been satisfied.
CONTRACTOR shall indemnify, defend and save harmless the CITY, AMN Management, its
officers, agents, and employees from and against any and all claims, demands, loss or liability of
any kind or nature which CONTRACTOR, its officers, agents and employees may sustain or incur
or which may be imposed upon them or any of them for injury to or death of persons, damage to
property as a result of, or arising out of, or in any manner connected with the performance of the
obligations under this contract.
EIGHTH. COMPLIANCE WITH OTHER PROVISIONS OF LAW RELATIVE TO PUBLIC
CONTRACTS. CITY is subject to the provisions of the Government Code and the Labor Code of
the State of California. It is stipulated and agreed that all provisions of law applicable to public
contracts are a part of this contract to the same extent as though set forth herein and shall be
complied with by CONTRACTOR. These include, but are not limited to, the stipulation that eight
(8) hours labor constitute a legal day's work and CONTRACTOR shall, as a penalty to CITY,
forfeit Twenty-five Dollar ($25) for each workman employed in the execution of the Contract by
CONTRACTOR, or by any SUB -CONTRACTOR, for each calendar day during which such
workman is required or permitted to work more than eight (8) hours in violation of the provisions
of Article Three, Chapter One, Part Seven, Division 2, of the California Labor Code, except as
permitted by law.
If CONTRACTOR is not already enrolled in the U.S. Department of Homeland Security's E -
Verify program, Consultant shall enroll in the E -Verify program within fifteen days of the effective
date of this Agreement to verify the employment authorization of new employees assigned to
perform work hereunder. Consultant shall verify employment authorization within three days of
hiring a new employee to perform work under this Agreement. Information pertaining to the E -
Verify program can be found at http://www.uscis.gov, or access the registration page at
https://www.vis-dhs.com/employerregistration. Consultant shall certify its registration with E -
Verify and provide its registration number within sixteen days of the effective date of this
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Agreement. Failure to provide certification will result in withholding payment until full
compliance is demonstrated.
IN WITNESS WHEREOF, this contract is executed by the duly authorized agent(s) of CITY,
pursuant to City Council action, and by CONTRACTOR on the date set before the name of each.
City of San Juan Capistrano
DATED: BY:
ATTEST:
Maria Morris, City Clerk
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III(TED O.
.41R 1,
Derek Reeve, Mayor
CONTRACTOR, LICENSE NO. and CLASSIFICATION
CHI Construction
Lic. 839455 A. B. C 10
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ATTACHMENT 1
ATTACHMENT 2