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Home My WebLink About07-05-2017 Item 09 - Grant Funded Calle Joaquin Park & Ride Speci. No. 91288 Request for Authorization to Advertise Meeting Date: 7/5/2017 FROM: Daryl Grigsby, Public Works Director Prepared By: Jennifer Rice, Transportation Planner/Engineer SUBJECT: GRANT FUNDED CALLE JOAQUIN PARK & RIDE, SPECIFICATION NO. 91288 REQUEST FOR AUTHORIZATION TO ADVERTISE RECOMMENDATION 1. Approve the revised plans and specifications for the Calle Joaquin Park & Ride Lot, Specification No. 91288; and 2. Authorize staff to advertise for bids, and authorize the City Manager to award the contract if the lowest responsible bid is within the Engineer’s Estimate of $530,868. DISCUSSION On October 18, 2016, the City Council approved plans and specifications for the Calle Joaquin Park and Ride Lot, Spec. 91288. Bids were solicited and the project was subsequently awarded by Council on January 17, 2017 to RDZ Contractors for a construction contract total of $500,000. On April 25, 2017, the contract with RDZ Contractors was terminated (Attachment A). Since all other bidders were above the contract cost estimate, staff has reassessed the project and adjusted the scope. Even with the revised project plans and specifications current estimates are above the previous approved amount of $500,000. The increase is primarily due to the active construction market and limited contractor availability. The engineers estimate has been updated to reflect the current economic climate; including cost increases for materials and labor costs consistent with the current market. The updated engineers estimate is $530,868 (Attachment B). This location on Calle Joaquin has been identified by SLOCOG in their adopted 2015 Park & Ride Lot study and SLOCOG subsequently allocated a combination of State Highway Account (SHA) and Congestion Management & Air Quality (CMAQ) grant funding to the City for design and construction of the facility. The City is the lead on the construction of the facility and will be responsible for maintenance when completed. Construction is estimated to be complete by December of 2017. The project received authorization for construction from Caltrans on September 20, 2016 and i s expected to begin reimbursable work. CONCURRENCES Caltrans & SLOCOG are a part of the project team and concur with this recommendation. Packet Pg 171 9 ENVIRONMENTAL REVIEW Caltrans has issued this project a Categorical Exclusion pursuant to Federal Regulations Title 23 part 771.117(c) (13) Ridesharing activities. FISCAL IMPACT The Council accepted and appropriated $365,000 for this project at its February 18th, 2014 meeting and the money became available in September 2016, per Caltrans authorization. As the economic climate has changed since the start of this project, costs have increased for materials and labor. In response to this, the Council approved $550,000 for this project at its January 7, 2017 meeting (in the 2015-17 budget). With the most recent increase to the engineer’s estimate and a 10% construction contingency amount for unforeseen conditions, the project requires an additional $33,955. Claims from RDZ Contractors have resulted in a $40,481.89 expense to the project. These claims have gone through the process and final payments are in process. These two amounts require an additional $74,436.89 for the project Staff proposes to fund the project shortfall from the Los Osos Valley Road/US 101 project. This project is nearing completion and there are funds remaining in the debt fund account for the project that can be used for public improvements being constructed by the Park and Ride project. These improvements include the completion of the road terminus along old Calle Joaquin, storm drain tie ins, and work reconstructing the Park and Ride/Hampton Inn driveway to the realigned new Calle Joaquin. Because the work on Calle Joaquin is an overlapping component of both this project and the LOVR Interchange a proportion of the LOVR Interchange funding is eli gible for use on this project. Staff is recommending that an additional $74,436.89 of these funds be transferred from the LOVR Interchange budget for use in completing the park and ride project. There is sufficient funding remaining in Los Osos Valley Road Interchange to fund the project. Overall Project Fiscal Summary Project Budget from 15-16 CIP Carry Forward $318,778 LOVR Sub Area $75,000 LOVR Interchange Project $158,251.41 Tree Removal ($1,750) Advertising ($134.56) Printing ($144.85) Cost Associated with RDZ Claim ($40,481.89) Available $509,518.11 Construction $530,868 Contingency $53,087 Total for Construction $583,955 Additional Funding Needed $74,436.89 Packet Pg 172 9 ALTERNATIVES Deny authorization to advertise. The City Council could choose to deny or defer the advertisement of this project. Staff does not recommend this option. Caltrans has authorized this project for construction, thus the project must be completed by July 30, 2018 or federal funding will be jeopardized. Attachments: a - 91288 Calle Joaquin Park & Ride Lot CM Report-RDZ Contract Termination b - 91288 Calle Joaquin Park & Ride Lot Engineer's Estimate c - Council Reading File-91288 Calle Joaquin Park & Ride Plan Set d - Council Reading File-91288 Calle Joaquin Park & Ride Lot Specifications Packet Pg 173 9 City of San Luis Obispo, City Manager Report Final City Manager Approval Approver Name Date Approved City Administration GH for DJ 4/25/17 Reviewer Routing List Reviewer Name Date Reviewed Finance XB 4/21/17 City Attorney JMA 4/14/17 City Engineer Matt Horn 4/6/17 April 4, 2017 FROM: Daryl Grigsby, Director of Public Works Drg 4/11/17 PREPARED BY: Kyle Rowland - Engineer, Jennifer Rice - Transportation Planner/Engineer SUBJECT: CALLE JOAQUIN PARK & RIDE, SPECIFICATION NO. 91288 RECOMMENDATION 1. Approve the termination of the contract with RDZ Contractors for the Calle Joaquin Park & Ride Lot, Specification No. 91288 DISCUSSION On January 17, 2017, City Council approved a construction contract with RDZ Contractors (RDZ) of Nipomo for the Calle Joaquin Park & Ride Lot, Specification No. 91288, in the amount of $500,000. A pre-construction meeting was held on February 15, 2017 with construction slated to begin when site soil conditions were no longer impacted by the inclement weather. A consultant geotechnical firm monitoring soil conditions has recently determined the site is still too unfavorable for construction to start due to the saturated soil. At this time, a construction start date is still undetermined and no contract work has been completed by RDZ. Formal review of work identified to be performed by the prime and subcontractors is necessary for all City projects and occurs prior to construction. The bid forms included in the bid submittal typically provide enough information to determine what percentage of the contract work is to be performed by subcontractors. However, since this project includes federal grant funding, more detailed information is required regarding what percentage of each bid item is to be subcontracted. This information must be verified and certified by the City, and is subject to Caltrans audit. 50% Prime Contactor Requirement When reviewing and comparing all submitted documents, several discrepancies were discovered indicated the possibility that RDZ was failing to complete 50% of the contract work. This a requirement per Section 5.13 – Subcontracting of the Standard Specifications. In an attempt to Packet Pg 174 9 Calle Joaquin Park & Ride Termination, Spec. 91288 Page 2 decipher the reasoning for the conflicting subcontracting documents, the City requested RDZ furnish the executed subcontracts. After four requests to furnish the executed subcontracts, RDZ intentionally provided subcontracts with redacted pricing. The City then again requested the subcontracts without redacted pricing and indicated the need for subcontractor bid item pricing to verify the information previously submitted. RDZ responded by submitting all subcontracts, but with one lump sum amount for each. Without a bid item breakdown for each subcontract, it was still impossible for the City to accurately determine the breakdown of the bid items. The furnished documentation appears to indicate a subcontractor is performing the majority of the project, which invalidates RDZ’s claim of performing 50% of the work. Attachment 1 explains the discrepancies that exist between all documents submitted. Disadvantaged Business Enterprise Participation Due to the Federal grant funding on this project, the City identified a Disadvantaged Business Enterprise (DBE) utilization goal of 11% in the special provisions. RDZ is the only DBE involved with the project, so the amount of work they are performing can be used as credit towards the DBE utilization. RDZ submitted form Exhibit 15-G indicating that 50% of the project work would be performed with their own forces. Therefore, RDZ identified a total claimed DBE participation of 50%. However, after reviewing the Exhibit 15-G, the City noticed multiple inflated prices and an error on the total summation. After correcting the inflated prices, RDZ’s DBE participation is reduced to 42.4%. To further complicate the DBE participation, several items RDZ is claiming credit for are identified in other bid documents as being performed by subcontractors. Federal projects such as this are actively audited for compliance with DBE and failure to comply could jeopardize future funding. Termination Considering the number and magnitude of the discrepancies and contradictory information in the aforementioned documents, staff is recommending contract termination to the City Manager for the following reasons: 1. There are several items in the bid documents and supplemental information indicating that RDZ is failing to perform 50% of the work as a prime contractor, as required by Section 5.13 – Subcontracting. 2. The specified total DBE participation was inflated and miscalculated to increase total participation. 3. The City is unable to certify the subcontracting information provided by RDZ due to the discrepancies, contradictory information, and furnished subcontracts. Certification is a requirement of Caltrans and FHWA. 4. The Federal grant funding for this project is at risk and subject to repayment if the City proceeds with construction in light of the identified issues. 5. RDZ’s misinterpretations of the Standard Specifications and contract requirements up to this point is likely an indication of what can be expected throughout the construction phase. CONCURRENCES Packet Pg 175 9 Calle Joaquin Park & Ride Termination, Spec. 91288 Page 3 Caltrans District 5 Division of Local Assistance, who administers the grand funding on this project, concurs with contract termination if staff believes it’s for the best interest of the City. FISCAL IMPACT There is no fiscal impact at this time. The Contractor may be eligible for reimbursement of justifiable costs to date such as material handling costs for material returned to vendors. Since RDZ never mobilized at the site, there appears to be a minimal amount of materials that could have been ordered. After contract termination is determined, any potential payment adjustment(s) will be evaluated and resolved at that time in accordance with the Standard Specifications. Considering the situation that has led to this termination, and the significant amount of time spent by City administration to manage this project, the City will potentially utilize the Contractor’s performance bond to recuperate these incurred costs. Furthermore, the City will determine the appropriate way to move forward with the project once any payment adjustments are made. ALTERNATIVE The City Manager may determine to not terminate the contract. This alternative is not recommended due to the amount of subcontracting discrepancies at this point and potential for losing grant funding. ATTACHMENTS 1. Subcontracting Letter to RDZ 2. Subcontracting Bid Documents 3. Agreement with RDZ 4. CAR Award T:\City Manager Reports\Public Works\2017\CIP\91288 Calle Joaquin Park & Ride\CMR 91288 Contract Termination.docx Packet Pg 176 9 Preliminary Opinion of Construction Cost Calle Joaquin Park and Ride City of San Luis Obispo 5/24/2017 65-6457-09/ 1955 Construction Costs: No. Item Description Units Quantity Unit Cost Total 1 Mobilization LS 1 $32,000.00 $32,000.00 2 Clearing & Grubbing LS 1 $16,000.00 $16,000.00 3 Remove Concrete (Curb & Gutter)LF 66 $20.00 $1,320.00 4 Remove Concrete Sidewalk SQFT 1730 $2.50 $4,325.00 5 Remove Concrete (Mow Strip)LF 204 $10.00 $2,040.00 6 Remove Irrigation LS 1 $2,000.00 $2,000.00 7 Excavation CY 1000 $55.00 $55,000.00 8 Class 2 Aggregate Base CY 560 $75.00 $42,000.00 9 Class 3 Aggregate Base CY 69 $75.00 $5,175.00 10 Class 4 Aggregate Base CY 461 $75.00 $34,575.00 11 Geotextile Fabric SF 4680 $1.00 $4,680.00 12 Hot Mix Asphalt (Type A)TON 309 $120.00 $37,080.00 13 Permeable Interlocking Concrete Pavers SQFT 4680 $9.00 $42,120.00 14 Observation Well EA 2 $750.00 $1,500.00 15 Minor Concrete (Curb)LF 950 $30.00 $28,500.00 16 Minor Concrete (Retaining Curb)LF 17 $35.00 $595.00 17 Minor Concrete (Barrier Curb)LF 295 $30.00 $8,850.00 18 HDPE Plastic Edging LF 330 $10.00 $3,300.00 19 Minor Concrete (Curb and Gutter)LF 162 $28.00 $4,536.00 20 Minor Concrete (Sidewalk)SQFT 3200 $8.00 $25,600.00 21 Minor Concrete (Driveway)SQFT 400 $11.00 $4,400.00 22 Mi C t (B P d)SQFT 1030 $11 00 $11 330 0022Minor Concrete (Bus Pad)SQFT 1030 $11.00 $11,330.00 23 Minor Concrete (Motorcycle Parking)SQFT 62 $9.00 $558.00 24 Wheel Stop EA 2 $200.00 $400.00 25 Area Drain Inlet EA 6 $1,000.00 $6,000.00 26 Curb Drain Inlet EA 1 $8,000.00 $8,000.00 27 Storm Drain Pipe (12" HDPE)LF 362 $50.00 $18,100.00 28 Storm Drain Pipe (18" RCP)LF 98 $85.00 $8,330.00 29 City Std 3520 Storm Drain Manhole EA 1 $9,000.00 $9,000.00 30 Pavement Markings SQFT 610 $5.50 $3,355.00 31 Signs EA 9 $375.00 $3,375.00 32 Lighting LS 1 $35,000.00 $35,000.00 33 Landscaping LS 1 $28,000.00 $28,000.00 34 Irrigation SF 5478 $8.00 $43,824.00 Subtotal (Construction Costs)$530,868.00 Construction Contingency 10%$53,087.00 Total Estimated Construction Costs $583,955.00 R1955C008.xlsx Packet Pg 177 9 Page intentionally left blank. 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