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    6.    
Finance Committee
Meeting Date: 07/11/2023  
FROM: Bill Gallardo

Subject:
Award Contract to Sol Construction, Inc. in the amount of $779,353.00 for the Berry Street Reservoir Ring Road Rehabilitation, CIP No. 7965
RECOMMENDATION
  1. Approve the Plans and Specifications; 
  2. Receive bid; 
  3. Award Contract to the lowest responsive and responsible bidder, Sol Construction, Inc. in the amount of $779,353.00; 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
Berry Street Reservoir Ring Road Rehabilitation, CIP 7965 (“Project”) was programmed within the FY 2021-22 Capital Improvement Program (“CIP”).  The Project is located at the Berry Street Public Works Department 30 million gallon reservoir at 545 N. Berry Street in Brea (Attachment A).  The initial design was completed in the spring of 2022, which included various pavement rehabilitation improvements to the ring road.  However, after an additional geotechnical investigation was completed to assess the stability of the dam portion of the road, it was determined that a more extensive slope stabilization design was warranted.  Therefore, the design was enhanced pursuant to the geotechnical report recommendations, which included improvements such as, clearing and grubbing, slope grading, slope excavation, concrete slope paving, excavation and removing existing asphalt concrete (AC) pavement sections, milling, furnishing and placement of aggregate base and AC pavement, and all other requirements and incidentals to complete the road and slope work adjacent to the 30-million-gallon reservoir.
 
On March 31, 2023, 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 prior to bid opening.  A hard copy of the Bid Documents is available at the City Clerk’s office for review (Attachment B).  There were no addenda issued during the bid period.  Therefore, staff recommends City Council approve the Plans and Specifications as bid.    
 
On April 18, 2023, the Public Works Department held a mandatory pre-bid meeting at the Project site.  Six (6) potential bidders attended the meeting.
 
On May 2, 2023, staff received one (1) bid proposal out of the six (6) potential bidders.  Soon thereafter, staff tabulated the bid proposal and determined that the apparent low bid amount was $779,353.00 from Sol Construction, Inc. (“Sol”) from Riverside, CA (Attachment C).  The Engineer’s Estimate was $790,000.  Staff evaluated the bid proposal and determined that the bid unit prices from Sol’s proposal were considered reasonable as compared to the Engineer’s Estimate.  
 
Sol has been in the construction business for 17 years and has completed construction of similar slope paving, reservoir protection, and excavation improvement projects for the County of Orange.  Their California Contractor’s license is 812330 – A (General Engineering), and Department of Industrial Relations registration number is 1000012204; both have been verified by staff, and their bid package meets the City’s proposal requirements.  In addition, staff contacted Orange County Public Works, where the contractor received a favorable review. Furthermore, based on the aforementioned bid review, staff has determined Sol’s bid as responsive and that they are a responsible bidder. Therefore, staff recommends that the City Council consider awarding a Construction Contract to Sol as the apparent lowest responsive and responsible bidder, in the amount of $779,353.00 (Attachment D).
SUMMARY/FISCAL IMPACT
The approved FY 2023-24 CIP Project budget for Construction and Construction Engineering is $941,000. The total cost for Construction and Construction Engineering is $931,000.30, which includes the apparent low bid amount ($779,353.00), a 10% contingency ($77,935.30), and Construction Engineering costs ($73,712.00). The sources of funds within the approved budget are from the Water Fund (Fund 420). Therefore, there are sufficient funds to complete the Project construction. Upon completion of the Project, the remaining fund balance will be de-obligated and transferred back into the Water Fund (Fund 420).  There is no fiscal impact to the General Fund from this Project.  See budget table below:
 
Description Amount
Construction (Sol Contract) $779,353.00
Construction Contingency (10%) $77,935.30
Construction Engineering  $73,712.00
Total Construction Cost $931,000.30
Approved FY 2023-24 Budget $941,000.00

The Project will regrade and complete slope stabilization improvements along the reservoir dam and rehabilitate the ring road AC pavement along the perimeter of the 30-million-gallon reservoir.  If City Council approves staff recommendations, the Project is anticipated to start construction in August 2023 and be completed by November 2023. 
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by:   Ryan Chapman, P.E., Assistant City Engineer
Concurrence:  Michael Ho, P.E., Public Works Director / City Engineer
Attachments
Attachment A - Location Map
Attachment B - Bid Documents
Attachment C - Sol Construction, Inc. Bid Proposal
Attachment D - Construction Contract Agreement

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