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Home My WebLink About2011-08-23 - AGENDA REPORTS - NEWHALL AVE PEDESTRIAN T2003 (2)CONSENT CALENDAR DATE: Agenda Item: 6 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: August 23, 2011 Curtis Nay SUBJECT: NEWHALL AVENUE PEDESTRIAN IMPROVEMENTS, PROJECT T2003 - APPROVE PLANS AND SPECIFICATIONS AND AWARD CONSTRUCTION CONTRACT DEPARTMENT: Public Works RECOMMENDED ACTION City Council: 1. Approve the plans and specifications for the Newhall Avenue Pedestrian Improvements, Project T2003. 2. Reject the bid protest by KASA Construction. 3. Award the construction contract to Hondo Engineering Inc. in the amount of $393,314 and authorize a contingency in the amount of $78,663, for a total contract amount not to exceed $471,977. 4. Appropriate $300,000 from Landscape Maintenance District Fund Balance 357 to Expenditure Account T2003357-5161.001. 5. Authorize the continuance of $500,000 of Via Princessa Bridge and Thoroughfare Fund 302 from Fiscal Year 2010-11 to Fiscal Year 2011-12 to Expenditure Account T2003302-5161.001. 6. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND Located on the east side of Newhall Avenue from Sierra Highway to 2nd Street, this pedestrian improvement project will increase the safety along the corridor through construction of sidewalk, !AN1 ROVED access ramps, and driveways that comply with the Americans with Disabilities Act (ADA) and the construction of curb and gutters. The project scope also includes the installation of landscaped parkway, trees, and irrigation. These improvements will provide a separation from the sidewalk and traffic in addition to providing beautification to this heavily used pedestrian corridor along Newhall Avenue. The proposed improvements will utilize the available City right-of-way on the east side of Newhall Avenue. This project exemplifies the City's commitment to maintaining the high quality of life enjoyed by Santa Clarita residents. Investing in high-quality pedestrian and landscape projects within the public right-of-way, such as this project, promotes pedestrian safety and also promotes higher property values. Phase II of this project will construct a signalized pedestrian crossing over the railroad tracks at Railroad Avenue and Newhall Avenue to 3rd Street. These improvements will provide a safe pedestrian crossing over the railroad tracks. Staff continues to work with the Southern California Regional Rail Authority (SCRRA) on approval for the proposed improvements in SCRRA's right-of-way. Phase II is anticipated to start construction later this fiscal year. An invitation to bid for this phase was published three times, June 21, June 24, and June 26, 2011, and was noticed on the City's website. Plans and specifications were also sent to area plan, rooms. Ten bids were submitted to the City and opened by Purchasing on July 21, 2011. The results of the bids are shown below: Company Location Bid Amount Hondo Engineering Inc. Lancaster, CA $393,314.00 Kasa Construction Inc. Ontario, CA $447,758.75 R.C. Becker and Son, Inc. Santa Clarita, CA $4525142.20 ARC Accucon Construction La Crescenta, CA $468,820.22 Kalban, Inc. Sun Valley, CA $482,705.80 C.A. Rasmussen, Inc. Santa Clarita, CA $4935379.00 Excel Paving Company . Long Beach, CA $548,272.70 Mendez Concrete, Inc. Santa Paula, CA $553,405.00 Berry General Engineering Ventura, CA $566,782.94 G. Coast Construction Encino, CA $589,830.00 The lowest responsive bid was submitted by Hondo Engineering Inc. in the amount of $393,314. Staff recommends that the project be awarded to Hondo Engineering, Inc. The contractor possesses a valid state contractor's license and is in good standing with the Contractors State License Board. The contractor's bid has been reviewed for accuracy and conformance to the contract documents and was found to be complete. KASA Construction submitted the attached letter of protest dated July 22, 2011. Based on the recommendation from the City Attorney's Office, staff responded to KASA Construction's protest letter on July 27, 2011. After reviewing the bid protest and receiving advice from the City Attorney's Office, it was determined the protest is without merit. Therefore, staff recommends the City Council reject the bid protest filed by KASA Construction. 101 Adequate funds have been budgeted to provide for labor compliance services, staff oversight, construction engineering, survey, quality assurance inspection, water meter services to Newhall County Water District, and connection fees to Castaic Lake Water Agency. The continuance of funds from the previous fiscal year will allow staff to work concurrently on Phase II of the Newhall Avenue Pedestrian Improvements project, as well as provide for anticipated miscellaneous and project administration costs. While the City maintains a Support of Local Business policy that can be utilized by the City Council when warranted, the City is governed by the California Public Contract Code with regard to Public Works project procurement. In these types of procurement, the Public Contract Code does not permit a city to utilize a Support of Local Business policy and instead requires the contract be awarded to the lowest responsible bidder. As confirmed by the City Attorney's Office, this direction precludes the City from applying any superseding criteria for award except in the case of a tie. Thus, in the awarding of Public Works contracts, the City is not permitted to award to other bidders just because they are local, as the Public Contract Code does not allow the City to recognize them as the "lowest" responsible bidder. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT Funds in the amount of $600,000 are currently budgeted in Expenditure Account T2003302-5161.001. The recommended action to continue $500,000 from Fiscal Year 2010-11 to 2011-12 in Expenditure Account T2003302-5161.001 and the appropriation of $300,000 from Landscape Maintenance District Fund 357 to Expenditure Account T2003357- 5161.001 will provide for a total Newhall Avenue Pedestrian Improvements project budget of $1,400,000, which will provide the anticipated costs for both project phases. ATTACHMENTS Letter from KASA Construction dated July 22, 2011 City Response to KASA Construction dated July 27, 2011 Vicinity Map K C O N STFRI U CTI O N LICENSE # 927544 July 22, 2011 City of Santa Clarita Mike Hennawy, Project Manager Engineering Division 23920 Valencia Blvd. Santa Clarita, CA 91355 Subject: FORMAL BID PROTEST Project: Newhall Ave. Pedestrian Improvements Bid Date: July 21, 2011 at 11:00 a.m. This letter is in regards to the validity of the proposal submitted by the apparent low bidder, Hondo Engineering Inc. After careful review of their proposal, KASA has discovered numerous discrepancies, omissions, and inconsistencies which in turn, should deem the apparent low - bidder, non responsive. In reference to the Bid Schedule on Page C-2 & C-3, the following are the comments which would support our argument and claim. SP3.1, SP3.2, SP3.3 — A Unit Cost price which is required and supersedes the Total Cost, is omitted from their Bid Schedule. When the Unit Cost is left blank on an Excel Sheet the Formula assumes a ZERO value and in turn the Total Cost is Zero. Leaving a "blank" does not constitute a numeric value equivalent to the Lump Sum. Additionally, the Agency shall not be put in a situation to assume that the numeric values entered only on the Total Cost column are actually Hondo's intent, without having the Unit Price Cost to cross reference and confirm against any potential discrepancies. The Unit Cost is intended to be multiplied by the QTY to determine the Total Cost and this could only be done by inserting a Numeric Value, and NOT left blank. Example : 1 x $1 =$1...... 1 x $0 = $0...... 1 x $ = $0. SMAD and SP3.4F — In these two items, the Bidder does in fact enter in the correct numeric monetary value on SMAD, however, failed to insert the correct total cost for SP3.4F. Example: Item SP3.4D —Remove and Replace/ Relocate Sign / EA / 20 / $125 / $2,500. CORRECT Item SP3.4F— Remove AC Driveway / SF / 300 / $125 / $375. INCORRECT It appears that the Bidder may have intended to insert $1.25 instead of $125, however, if both numeric values listed under the Unit Cost Item on SP3.41) &SP3.4F are compared, it is evident that the value of $125 is used with NO decimal point and both values appear almost identical. Therefore, since there is no decimal point, the total cost for Item SP3.417 should have been $37,500 and NOT $375. Assuming this was in fact the case, and the Agency encountered 31 6 N. CORONA AVE., ONTARIO, CA 91 764 PHONE: 909.457.8260 / FAX: 909.457.8261 j C O N STFRI U CTI O N LICENSE # 927544 additional removal of AC at driveways, the Agency would be obligated to pay $125 / SF which is an astronomical amount for such work and Not to the Agencies best interest. SP3.4G — Hondo failed to interest a Unit Cost for even items that are not listed as LS (Lump Sum). This specific Item is EA (EACH ). Hondo failed to insert ANY numeric value under the Unit Cost besides the Total Cost value of $350. The Agency should not be put in a position to have to divide the Total Cost by the Qty in order to determine the Unit Cost. If this was the case, it would be pointless to have the Unit Cost column shown on the Bid Schedule and Agencies would never be able to determine true discrepancies. Since there is no value for the Unit Cost, the cost should be considered to be $Zero. SP3.6 — Asphalt Concrete Paving — Hondo inserted a Unit cost of $90/ ton multiplied by 70 tons which would Equal $6,300 for the Total Cost. Instead, Hondo inserted $3,600. This error should be used as justification to prove that we cannot assume that the Total Cost entered by Hondo on various other bid items is the actual cost that they have intended to use and in turn, cannot be used to determine the Unit Cost. SP3.7E & SP3.7F — 4" PCC Sidewalk. Hondo has correctly inserted a numeric value on item SP3.7E of $3.25, however, Hondo did NOT insert a decimal of point on SP3.7F and therefore the Unit Cost would be $325 as shown on their Unit Cost Item making their total cost of $28,372 incorrect. When $325 is multiplied by the Qty of 8,730 SF, the total cost would be $2,837,250.00. At this point, Hondo would have been the highest bidder. SP3.1 OC — Adjust Gate — This Item is very similar to SP3.4G item from above where the "Units" were EA and the "QTY" was 1 and Hondo failed to insert a Unit Cost for EA. This example would prove that Hondo did in fact know their obligation to insert a Value for the Unit Cost since they have done it correctly on SP3.10 by inserting $1,000 for the Unit Cost and again $1,000 for the Total Cost. This however was NOT done correctly on SP3.4G SP3.12 — Signing and Striping — Again, Hondo failed to insert a Unit Cost would have helped explain a potential discrepancy. The total cost listed was ????? It could either be $3,000 or $3,500. Unfortunately, since Hondo did not insert a Unit Cost, we are left to guess what their true total cost number.is. Since there is no unit cost value, this item should be considered to be $0. SP3.13 — Seal Coat — Again, Hondo failed to insert a Unit Cost, even though the "UNITS" are based on SF ( Square Foot ). The total cost listed is shown as 7700. Does this mean that its $7,700 or $77.00 or $.7700 ??? We should not assume anything in order to determine the correct Square Foot unit price. Since there is no unit cost value, this item should be considered to be $0. SP3.14A — PREP — Clearly, Hondo inserted a Unit Cost Value of $25. When $25 is multiplied by 5200 SF the Total Cost is equal to $130,000 not $1300. Since the Unit Price supersedes the Total Cost, the actual Total Cost should be revised to $130,000. 31 6 N. CORONA AVE., ONTARIO, CA 91 764 PHONE: 909.457.8260 / FAX: 909.457.8261 5 m C O N STR U CTI O N LICENSE # 927544 Based on the above, KASA Construction kindly requests that the Agency makes a fair determination to find Hondo Engineering non-responsive for numerous errors and omissions on the Bid Schedule and in turn, award the contract to KASA Construction. If there are any additional questions or concerns, please do not hesitate to contact me at any time at the numbers listed below. Sincerely, Sam Kasbar VP KASA Construction, Inc. 31 6 N. CORONA AVE., ONTARIO, CA 91 764 PHONE: 909.457.8260 / FAX: 909.457.8261 -94 i^}'ki, 11J, 1 yp- \.'l' t j .( 3( i"r�. kY S.a .-..Y f ,tlr� L �. x {�✓... 4t sr :�yl 'M•xc�'nn .3. '; u+ q it�.:�v'!3 SN (r .F i. Z. .. H 4 �. .a� .-i. - . r t .)y 't� PE r r i2 i}, F \f f x 1 •`J :� np jy i�. .t y. f\�,t Y. { vt C'i >f ' i �+,pb�' n >ry+ a y i t t't 1 {'*.• �. ANT t a�, x ��'-"'� `� �P.1'� {�h�Cr� 'r t r : r a •c' D s7 - f^'. 5 xc."{' F - } f L >'rrr- _ j S A 5-. �. t C. 1 'pit 1 • :, n.. +' o <y t �;, e � .1 •. r t ., { + It ;-c i°.Pk. y: � j t t!, t irti nj.a 1.. � t >W � i. . 1 i -ti 9 : r •^a ; r � 1 r >�.r Y(Y � ic45Js � � 1 y4,,n. r. � r„T i � St” trr... ♦ 1 7f.'.=,v ��.�JS.- 'f 31.E �'k,�. ..�a �.�>.�:. >: +�, _d .', aCwrx ,w 4. i%f' ,�r, .�1 �hQ o1K'xt4r•. Ve .n City of SANTA CLARITA 23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196 Phone: (661) 259-2489 • FAX: (661) 259-8125 www. sa n to-cl a ri la. com July 27, 2011 VIA Fax: 909-457-8261 Sam Kasbar, Vice President KASA Construction, Inc. 316 N. Corona Avenue Ontario, CA 91764 Dear Mr. Kasbar: Subject: Newhall Avenue Pedestrian Improvements — Project T2003 The City has received your letter of July 22, 2011, protesting the bid of Hondo Engineering, Inc. ("Hondo'). City staff has reviewed your bid protest and finds that the protest is without merit for the following reasons: • Your objection regarding the bid items in which the quantity is one and there is no unit price is without merit because it is clear from the Hondo bid that the unit cost is the same as the total cost. Further confirmation is found in the fact that the sum of the total cost items of the Hondo bid (including those in which the quantity is one) equals the total base bid of $393,314. • Your objection regarding the Hondo bid lacking a decimal point is without merit because the figures listed in the unit cost are slightly elevated, which confirms that the figure is cents, not dollars, so there is no need for a decimal point. Further confirmation is found in the fact that the total cost equals the quantity multiplied by the unit price in cents. • Your objection to the Hondo bid on Item SP3.6 Asphalt Concrete Paving minimum 4" is without merit. The quantity of 70 tons multiplied by the unit price of 90 equals $6,300 and the total cost in the Hondo bid is $3,600, which is less than $6,300. The total base bid of $393,314 is consistent with the use of $3,600 for this bid item. Hondo has confirmed that it will perform the work for $393,314 and that the bid item total cost will remain at $3,600 for bid Item SP3.6. For the above reasons, City staff intends to recommend to the City Council that the bid protest by KASA Construction, Inc., be rejected and that the contract be awarded to Hondo. This recommendation,, will be presented to the City Council at the meeting on August 23, 2011, 6:00 p.m. at Santa Clarita City Hall, Council Chambers, located at 23920 Valencia Boulevard. If you wish, you may attend the City Council meeting to address the Council on this matter. Thank you for your cooperation. Sincerely, Harry;Lder Senior Engineer HC:JT:ce S:pw\eng-civi\james tongWetter to Kasa 0726201 I - Rev