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    4.    
Finance Committee
Meeting Date: 02/25/2020  
FROM: Bill Gallardo

Subject:
Approve Plans and Specifications, Receive Bids and Award Contract to Stephen Doreck Equipment Rentals, Inc. in the amount of $4,382,734 for the Puente Street Improvements from Imperial Highway to Lambert Road, CIP No. 7311, Gemini Avenue and Titan Way Improvements, CIP No. 7453, and the Puente Street Improvements from Briarwood Drive to Imperial Highway, CIP No. 7464, (“Project”)
RECOMMENDATION
  1. Approve the Plans and Specifications; 
  2. Receive Bids; 
  3. Award Contract to the lowest responsive and responsible bidder, Stephen Doreck Equipment Rentals, Inc. in the amount of $4,382,734; and,
  4. Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.
BACKGROUND/DISCUSSION
The Puente Street Improvements from Imperial Highway to Lambert Road, Capital Improvement Program (CIP) No. 7311, Gemini Avenue and Titan Way Improvements, CIP No. 7453, and the Puente Street Improvements from Briarwood to Imperial Highway, CIP No. 7464 (collectively “Project”) were programmed within the Fiscal Year 2018-2019 and 2019-20 CIP. The title of the Projects were updated during the Plans, Specifications and Estimate (PS&E) Phase to appropriately reflect scope of work for the combined bid documents.  The Project is located on Puente Street from Imperial Highway to Lambert Road, Gemini Avenue and Titan Way, and Puente Street from Briarwood to Imperial Highway (see Attachment A).  The scope of work for the Project includes, but is not limited to: installation of 6”, 8”, 10”, and 12” water mains and fittings, water services connections, cap/plug old water main, grinding AC pavement, removing AC pavement, placement of AC pavement, re-striping, remove and replace center medians, update ADA ramps, and adjusting water valve and utility manholes as required within the three project boundaries.

The Project also includes coordination with Caltrans for the Imperial Highway work, Orange County Flood Control for the culvert crossing work on Gemini Avenue, the Union Pacific Railroad (“UPRR”) for the water main crossing and street rehabilitation work at the Puente Avenue railroad crossing, and the City of Fullerton for the pavement rehabilitation work on Puente Avenue south of Imperial Highway along the City boundaries.
 
The Final Plans and Specifications (“Bid Documents”) were accepted by staff on December 3, 2019, and the Project was advertised for bids on the CIPlist.com website and subsequently published in the Star Progress paper on December 19, 2019 and again on December 26, 2019, 22 days prior to bid opening.  Furthermore, the hard copy of the Bid Documents are available at the City Clerk’s office for review.  There was one addendum to the Plans and Specifications, which provided clarification on the waterline trench detail, required trench backfill material, updated some bid quantities, and other miscellaneous modifications to the Specifications (see Attachment C).  Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.    
 
On January 9, 2020, staff received a total of ten bid proposals.  Soon thereafter, staff tabulated the bid proposals and determined that the apparent low bid amount was $4,382,734 from Stephen Doreck Equipment Rentals, Inc. (Stephen Doreck) from Pico Rivera, California (see Attachment D).   Below are the results of the ten bids received within Table 1:
 
Table 1 – Total Bid Summary
 
Bidder  #                                   Bidder   Amount Bid
1 Stephen Doreck Equipment Rentals, Inc. $4,382,734.00
2 Hardy and Harper, Inc. $4,411,000.00
3 Shawnan $4,545,454.52
4 Sully Miller Contracting Company $4,618,000.00
5 Palp, Inc. $4,658,622.40
6 All American Asphalt $4,768,426.50
7 The R.J. Noble Company $5,157,366.00
8 Griffith Company $5,165,000.00
9 Dominguez General Engineering, Inc. $5,303,961.00
10 Leatherwood Construction, Inc. $5,448,186.90
  Engineer's Estimate $3,600,000.00
 

The Project Bid Document contained three separate bid schedules pursuant to the three CIP projects for the combined apparent low bid total amount from Stephen Doreck as follows:
Table 2 - Bid Schedule Summary
 
Bid Schedule CIP #   Bid Amount
A 7311 $2,148,190.00
B 7454 $1,212,573.00
C 7464 $1,021,971.00
Total Bid Amount $4,382,734.00


As depicted within Table 1, the apparent lowest bid price from Stephen Doreck exceeded the Engineer’s Estimate by approximately $780,000.  The main bid items that trended higher than the Engineer’s Estimate (EE) was the UPRR Work bid amount of $348,650 versus $185,000 EE, the cost of the Asphalt Concrete bid items totaling $1.23M versus $0.96M EE, and waterline bid items totaling  $1.71M versus $1.56M.  Generally, the cost of construction has trended upwards around 8%-15% over the last year’s numbers for waterline and pavement rehabilitating type of projects.  This trend is likely to continue.
 
Stephen Doreck has been in the construction business for over 20 years and has completed construction of similar pipeline improvement projects for the City of El Segundo, City of Alhambra, and City of Manhattan Beach.  Their California Contractor’s license 665471 - A and Department of Industrial Relations registration number 1000011335 have been verified by staff and their bid package met the City requirements.  In addition, staff contacted the cities of Alhambra and El Segundo, where the contractor received a favorable review.  Based on the aforementioned bid review, staff has determined Stephen Doreck to be a responsive and responsible bidder.  Therefore, staff recommends that the City Council consider awarding a Construction Contract to the lowest responsive and responsible bidder, Stephen Doreck Equipment Rentals, Inc. in the amount of $4,382,734 (see Attachment E).
SUMMARY/FISCAL IMPACT
The total updated cost for the Project is estimated at $5,488,000 based on the apparent low bid amount of $4,382,734, a 10% contingency, and design and construction engineering costs.  A total combined Project budget for the three CIP projects (7311, 7453, and 7464) of $6,146,110 was approved within the Fiscal Year 2019-2020 CIP.  The sources of funds are from Water (Fund 420), Gas Tax (Fund 220), Measure M (Fund 260), RMRA (Fund 221), and Development Fees collected for the Gemini Ave./Titan Way road rehabilitation as part of a development mitigation. See Table 3 for individual CIP project budget breakdown:

Table 3 – CIP Project Budget Summary
 
CIP #
 
FY 19-20
Adopted Budget
FY 19-20
Amended  
Budget
Increase/Decrease
(+/-)
7311 $2,134,000 $2,628,000 +$494,000
7453 $2,892,110 $2,188,110 -$704,000
7464 $1,120,000 $1,330,000 +$210,000
Totals $6,146,110 $6,146,110 $0
Total Project Cost $5,488,000  
 

There are sufficient funds for the Project.  However, a reallocation of funding among these three CIP projects will be included as part of Budget Adjustments described in a separate agenda item at this same meeting.  There is no impact to the General Fund from this Project.

The Project will replace various water mains with associated water infrastructure and will rehabilitate the pavement on Puente Street from Briarwood Street to Lambert Road and on Gemini Avenue and Titan Way.   If City Council approves staff recommendations, the Project is anticipated to start construction in late March 2020 and be completed by December 2020. 
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by:  Michael Ho, P.E., Deputy Director of Public Works / City Engineer
Concurrence:  Tony Olmos, P.E., Public Works Director
Attachments
Attachment A - 7311, 7453, 7464 Map
Attachment B - Bid Documents (Plans & Specs)
Attachment C - Full Addendum #1
Attachment D - Bid Proposal - Stephen Doreck - 1st
Attachment E - Contract

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