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  Agenda Item   21.    
City Council Meeting
Meeting Date: 12/15/2020  
FROM: Bill Gallardo

Subject:
Approve Plans and Specifications, Receive Bids, Adopt Resolution, and Award Contract with Hardy & Harper, Inc. for the Imperial Highway/Berry Street Intersection Improvements, CIP No. 7278 (“Project”)
RECOMMENDATION
  1. Approve the Plans and Specifications;
  2. Receive bids;
  3. Adopt Resolution to transfer funding of $260,000 from the Traffic Impact Fee Fund (Fund 540) from CIP No. 7276 to CIP No. 7278 ("Project");
  4. Award Contract to the lowest responsive and responsible bidder, Hardy & Harper, Inc., in the amount of $565,000; and
  5. Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.
BACKGROUND/DISCUSSION
The Imperial Highway/Berry Street Intersection Improvements, CIP No. 7278 is programmed in the FY 2020-21 Capital Improvement Program (CIP). The Project is located at the intersection of Berry Street and Imperial Highway (SR 90) (Attachment A).  The work consists of widening Imperial Highway (SR 90) to accommodate a new westbound right-turn pocket on the approach to the Berry Street intersection. The project will include removal of existing curb, gutter and sidewalk and construction of new curb, gutter, sidewalk, access ramps and roadway structural section for the new right-turn lane. The project will also include modifications to existing storm drain facilities and the traffic signal at the intersection. Modifications to existing utilities will include relocation of existing street lights and adjustment of manholes and valves.  New signing and striping improvements, as well as reconstruction of traffic loop detection will also be required.

On October 8, 2020, the Final Plans and Specifications (“Bid Documents”) were accepted by staff, and the Project was advertised for bids on the CIPlist.com website and subsequently published in the Star Progress paper on October 22, 2020, 20 days prior to bid opening.  A hard copy of the Bid Documents are available at the City Clerk’s Office for review. There was one addendum to the Plans, which modified the height of a new pedestrian push button signal pole.  Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.    
 
On November 10, 2020, staff received a total of eight bid proposals.  Soon thereafter, staff tabulated the bid proposals and determined that the apparent low bid amount was $565,000.00 from Hardy & Harper, Inc. (“Hardy & Harper”) from Lake Forest, CA (Attachment B).

Table 1 provides the results of the eight bids received.

Table 1 – Total Bid Summary

 
Bidder
Number

Bidder
 
Amount Bid
1 Hardy & Harper, Inc. $565,000.00
2 Gentry Brothers, Inc. $579,617.35
3 All American Asphalt $599,999.00
4 Hillcrest Contracting $609,109.96
5 Sequel Contractors, Inc. $615,525.00
6 HYM Engineering, Inc. $628,392.70
7 Excel Paving Co. $637,728.25
8 Calpromax Engineering, Inc. $716,085.80
  Engineer's Estimate $513,000.00

As depicted in Table 1, the three lowest bids were very competitive, with the apparent lowest bid price from Hardy & Harper coming in greater than the Engineer’s Estimate (EE) by approximately $52,000, about 10% over.    

Hardy & Harper has been in the construction business for 75 years and has completed construction of similar roadway improvement projects for the cities of Laguna Hills, Dana Point, and Tustin.  Their California Contractor’s license 215952 – A (General Engineering), C-8 (Concrete), and C-12 (Earthwork and Pavement), and Department of Industrial Relations registration number 100000076 have been verified by staff, and their bid package met the City requirements.  In addition, staff contacted the cities of Laguna Hills, Dana Point, and Tustin, where the contractor received favorable reviews.  Based on the aforementioned bid review, staff has determined Hardy & Harper 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, Hardy & Harper in the amount of $565,000.00 (Attachment C).
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff’s recommendation at their December 8, 2020 meeting and recommended to proceed.
FISCAL IMPACT/SUMMARY
The budget for CIP No. 7278 is programmed in the FY 2020-21 CIP budget for $653,595, which included expenses for design. The total updated cost for the CIP No. 7278 going into construction is estimated at $913,595 based on the apparent low bid amount of $565,000, a 10% contingency, final right-of-way acquisition costs, and construction engineering costs. The source of funds for the approved budget is Traffic Impact Fund (540).

In order to award the Construction Contract to Hardy & Harper, staff is recommending transferring funding of $260,000 from CIP No. 7276 to CIP No. 7278.  The improvements for CIP No. 7276 were recently revised, which resulted in a cost savings to the budget.  Based on this re-design, there are sufficient funds remaining to transfer funding to CIP No. 7278, and still complete the improvements for CIP No. 7276.  Both projects are funded from the Traffic Impact Fee Fund (Fund 540).  Therefore, staff prepared a Resolution for the City Council consideration, which will increase funding for CIP No. 7278 and reduce funding for CIP No. 7276 (Attachment D).  If the Resolution is adopted by City Council there will be sufficient funding to complete both projects with no increase in funding from the Traffic Impact Fee Fund (Fund 540). There is no impact to the General Fund from this Project.

The Project will construct a right-turn lane on Imperial Highway west bound onto Berry Street northbound as well as install new signals, curb and gutter, sidewalk, and ADA accessible ramps.  If City Council approves staff recommendations, the Project is anticipated to start construction in January 2021 and be completed by April 2021.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Michael Ho, P.E., Michael Ho, P.E., Deputy Director Public Works/City Engineer
Concurrence: Tony Olmos, P.E., Public Works Director
Attachments
Attachment A - Vicinity Map
Attachment B - Proposal Contractor Hardy & Harper
Attachment C - Contract
Resolution

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