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Home My WebLink About2022-03-22; City Council; ; Acceptance of Bids and Award of Contract to Palm Engineering Construction Company for the Magnolia Avenue Storm Drain Project - Phase ICA Review RMC CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Subject: District: Recommended Action March 22, 2022 Mayor and City Council Scott Chadwick, City Manager Lauren Ferrell, Associate Engineer lauren.ferrell@carlsbadca.gov, 442-339-7551 Hossein Ajideh, Engineering Manager hossein.ajideh@carlsbadca.gov, 442-339-2 756 Acceptance of Bids and Award of Contract to Palm Engineering Construction Company for the Magnolia Avenue Storm Drain Project - Phase I 1 Adopt a resolution accepting bids and awarding a contract to Palm Engineering Construction Company, Inc., a California corporation, for construction of the Magnolia Avenue Storm Drain Improvements Project -Phase I, for an amount not to exceed $775,616. The project is part of the Citywide Drainage Improvement Program, Capital Improvement Program Project No. 6608. Executive Summary This project will build a storm drain pipeline for stormwater runoff along Magnolia Avenue between Brady Circle and Monroe Street. On Nov. 16, 2021, the City Council adopted Resolution No. 2021-254, approving the plans and specifications and authorizing advertising the project for construction bids. Staff received eight bids, and the lowest responsive and responsible bidder was Palm Engineering with a bid in an amount of $775,616. Carlsbad Municipal Code, sections 3.28.080(() and 3.28.080(1)(6) require the City Council's approval for all formally bid contracts when the value exceeds $200,000. Staff recommend acceptance of bids and award of t he construction contract to Palm Engineering for the project for an amount not to exceed $775,616. Discussion The city's Drainage Master Plan, updated and adopted by the City Council in November 2008, calls for construction of a storm drain pipeline to capture and convey stormwater runoff along Magnolia Avenue between Brady Circle and Monroe Street. The proposed storm drain facility, identified as Project BCB in the Drainage Master Plan, consists of approximately 1,500 feet of pipeline and several curb inlets to capture stormwater runoff. The proposed storm drain will join with an existing 54-inch st orm drain pipeline at the intersection of Brady Circle and Magnolia Avenue. The project will mitigate drainage issues along Magnolia Avenue adjacent to Valley Middle School, Magnolia Elementary School and March 22, 2022 Item #1 Page 1 of 8 North County Academy. The project also includes associated pavement and sidewalk improvements such as asphalt resurfacing and sidewalk replacement. Staff coordinated with the Carlsbad Unified School District throughout the design phase of the drainage facility due to the project's proximity to the schools. The district reviewed the proposed construction plan and requested several traffic calming features to enhance pedestrian mobility and safety within the school zone. The district proposed that t wo speed humps be installed on Magnolia Avenue between Brady Circle and Valley Street. In addition, the district requested new curb extensions at the southwest and southeast curb ramps of the Magnolia Avenue and Valley Street intersection. The requested items are within the proposed project area and are consistent with other street improvements associated with the project. Staff support the requested improvements by the district and plan to incorporate these items into the project's construction plans. In collaboration with the district, staff agree that the project needs to be constructed during the academic summer session of the district, mid~June to mid-August, to lessen traffic impacts during the school year. Staff assessed the feasibility of construction during this allotted const ruction window and plan to divide the project into two phases because of the extent of improvements. • Phase I will consist of installing the main trunk line of the storm drain system during the academic summer session of 2022. • Phase II improvements, consisting of the remaining storm drain lateral segment, traffic calming and mobility improvements, and full-width pavement overlay, will be done during summer 2023. This staff report addresses award of a construction contract for Phase I only. Staff expect to return to the City Council in fall 2022 seeking approval of the plans, specifications and contract documents and authorization to advertise for construction bids for Phase II. As noted above, staff received eight bids for construction of the project on Jan. 12, 2022. Staff reviewed the contract documents and determined that Palm Engineering is the lowest responsive and responsible bidder. Palm Engineering's bid was deemed responsive because it met the requirements of the bidding documents and the company was deemed responsible because it submitted a list of similar projects that show its capability and qualification to perform the specified work. The Phase I construction contract contains general performance standards and references technical specifications, which if not met, allow the city to withhold payment. The contract also includes a one-year warranty period, which starts from the notice of completion date. Options Staff provide the following options for t he City Council's consideration: 1. Accept bids and award a contract to Palm Engineering for construction of the project in an amount not to exceed $775,616 Pros • Palm Engineering has been determined to be the lowest responsible and responsive bidder • Award of the contract complies with applicable municipal code sections March 22, 2022 Item #1 Page 2 of 8 • Construction will start on schedule and occur during the district's summer break • Streets in the school zone achieve compliance with the city drainage standards • Sufficient funding is available for the contract Cons • None identified 2. Do not accept the bids and do not award the contract to Palm Engineering Pros • Funds could be used for other drainage projects Cons • Delays start of construction • Drainage issues will continue to exist and affect access to the school facilities when it rains • Delays implementing traffic calming and pedestrian mobility improvements proposed in a later phase of the project • Potential increase in construction costs due to delay in awarding contract Staff recommend Option 1 for the City Council's approval. Fiscal Analysis Sufficient funding for the project has been appropriated from the Gas Tax and Infrastructure Replacements funds. Remaining funds will be used on future drainage improvement projects throughout the city. Staff estimates for construction costs are shown in the following table: Citywide Drainage Improvement Program Capital Improvement Program Project No. 6608 Total appropriation to date $10, 772,094 Total expenditures/encumbrances to date $8,775,900 Total available balance $1,996,194 Magnolia Avenue Storm Drain Improvements Project -Phase I Construction contract -Palm Engineering Construction Company $775,616 Construction contingency (estimated) $155,125 Construction management, inspection, testing, and public outreach (estimated} $200,000 Total estimated construction costs $1,130,741 Remaining balance $865,453 Additional appropriation requested $0 Municipal code sections 3.28.040(()(5) and 3.28.090(B) authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $155,125. Next Steps Once the City Council accepts bids and awards the construction contract to Palm Engineering, staff will issue a purchase order, schedule a pre-construction meeting with Palm Engineering and issue a notice to proceed for construction of the project, expected to begin in summer March 22, 2022 Item #1 Page 3 of 8 2022. The contract requires all work to be completed by the st art of the school district's school year on Aug. 24, 2022. Upon successful completion of t he project, a notice of completion to release bonds issued for the project will be recorded. Staff will return to the City Council in fall 2022 to request approval of the plans and specifications and authorization for construction bids for Phase II of the project, which is expected to start and be completed in summer 2023. Environmental Evaluation The project was previously evaluated in the final environmental impact report (FEIR 04-02, SCH No. 2006041066), dated December 2007, for the City of Carlsbad Drainage Master Plan Update. This report evaluated t he potential environmental effects of the project components described in the Drainage Master Plan Update. The project is within the scope of this report and no further California Environmental Quality Act documentation is required. All applicable mitigation measures contained in the prior environmental document have either been satisfied previously, or will be incorporated into the project, or are conditions of approval for the project. Public Notification Public notice of this item was posted in accordance with t he Ra lph M. Brown Act and it was available for public viewing and review at least 72 hours prior to t he scheduled meet ing date. Exhibits 1. City Council resolution 2. Project plans, specifications and bid documents (on file in the Office of the City Clerk) 3. Location map March 22, 2022 Item #1 Page 4 of 8 RESOLUTION NO. 2022-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC., A CALIFORNIA CORPORATION, FOR CONSTRUCTION OF THE MAGNOLIA AVENUE STORM DRAIN IMPROVEMENTS PROJECT -PHASE I Exhibit 1 WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary, desirable and in the public interest to construct the Phase I portion of the Magnolia Avenue Storm Drain Improvements Project, or Project, as part of the Citywide Drainage Improvement Program, Capital Improvement Program, or CIP, Project No. 6608; and WHEREAS, on Nov. 16, 2021, the City Council adopted Resolution No. 2021-254, approving plans _and specifications and authorizing the advertisement for bids for construction of the Project; and WHEREAS, on Jan. 12, 2022, staff received eight bids for construction of the Project; and _ WHEREAS, the lowest responsive and responsible bid for the Project was submitted by Palm Engineering Construction Company, Inc., a California corporation, or Palm Engineering, in an amount of $775,616; and WHEREAS, the Project is funded with Gas Tax and Infrastructure Replacement funds, and sufficient funds are available to complete Phase I of the Project; and WHEREAS, Sections 3.28.040(C)(5) and 3.28.090(8) of the Carlsbad Municipal Code authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of Project award, which is $155,125 for the Project; and WHEREAS, the Project was previously evaluated in the Final Environmental Impact Report, FEIR 04-02, SCH No. 2006041066, dated December 2007, for the City of Carlsbad Drainage Master Plan Update, and no further California Environmental Quality Act (CEQA) documentation is required per CEQA Guidelines Section 15162. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as -follows: 1. That the above recitations are true and correct. 2. That the low bid of $775,616 submitted by Palm Engineering Construction Company, Inc., a California corporation, for construction of the Magnolia Avenue Storm Drain Improvements Project -Phase I, is accepted and the Mayor is hereby authorized to execute a contract for the Project. 3. That the City Manager or designee is hereby authorized to approve construction change orders up to $155,125. 4. That the award of this contract is contingent upon Palm Engineering executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 days of adoption of this Resolution. The City Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies. PASSED, APPROVED AND ADOPTED at a Regular Meeting qf the City Council of the City of Carlsbad on the 22nd day of March, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. -tlY FAVIOLA MEDINA, City Clerk Services Manager (SEAL) . Exhibit 2 Project plans, specifications and bid documents (on file in the Office of the City Clerk) March 22, 2022 Item #1 Page 7 of 8 PROJECT NAME LOCATION MAP : :: : :)\c!iU,if:: :. ··-·····•-·•··"····· :::::HEO/ONDA::. ::::::TAGbON::::': . ........................... OCEANSIDE PACIFIC OCEAN PROJECT SITE CITYWIDE DRAINAGE IMPROVEMENT PROGRAM -MAGNOLIA AVENUE STORM DRAIN PHASE I Exhibit 3 :..VICINITY MAP ENCINITA S af!:~CR E.~cR :'it.~ ,...\ .-,::,_ ·'in '!,I) ·13 ~ GA~Y GR VISTA PROJECT NUMBER 6608 EXHIBIT 2 Created By: BeMmtQlip 2 "llp!lm'il. S:\Benjamin_Arp\Localion Map\CIP _ 6608\ ToDesign _ 100120\LocationMap_ C/P_ 6608_~~d Page 8 of 8 Acceptance of Bids and Award of Contract to Palm Engineering for Construction of the Magnolia Avenue Storm Drain Project –Phase 1 Lauren Ferrell, Associate Engineer Hossein Ajideh, Engineering Manager Public Works March 22, 2022 TODAY’S PRESENTATION •Recommended Action •Project Background •Project Location •Proposed Improvements •Fiscal Analysis •Next Steps ITEM 1: Magnolia Avenue Storm Drain Improvements RECOMMENDED ACTION Adopt a resolution accepting bids and awarding a contract to Palm Engineering Construction Company Inc. for construction of Magnolia Ave Storm Drain Improvements Project –Phase I, for an amount not to exceed $775,616 ITEM 1: Magnolia Avenue Storm Drain Improvements •A component of the city’s 2008 Drainage Master Plan •Project is part of Citywide Drainage Improvement Program, Capital Improvement Program Project No. 6608 •Nov. 16, 2021, City Council adopted a resolution, approving plans and specifications and authorizing advertising for bids •Jan. 12, 2022, 8 bids were received •Lowest bidder is Palm Engineering Construction Co. for $775,615.99 ITEM 1: Magnolia Avenue Storm Drain Improvements BACKGROUND •Magnolia Ave between Brady Cir and Monroe St ITEM 1: Magnolia Avenue Storm Drain Improvements PROJECT LOCATION •New storm drain system within Magnolia Ave to achieve compliance with city standards •Phase I (Summer 2022) –Main storm drain trunk line on Magnolia –Water main replacement –Associated trench resurfacing and sidewalk replacement •Phase II (Summer 2023/2024) –Minor storm drain lateral segment –Full roadway width pavement overlay –Speed humps –Curb bulbs out extension at Valley/Magnolia intersection ITEM 1: Magnolia Avenue Storm Drain Improvements PROPOSED IMPROVEMENTS •Construction contract: $775,615.99 •Funding Project with Citywide Drainage Improvement Program, Capital Improvement Program No. 6608 •Funding appropriated from Gas Tax and Infrastructure Replacements funds ITEM 1: Magnolia Avenue Storm Drain Improvements FISCAL ANALYSIS –PHASE I •Fully execute construction contract •Issue a purchase order •Schedule a pre-construction meeting with contractor •Construct improvements during the summer break of Carlsbad Unified School District •Return to City Council in fall 2022 to request approval plans and specifications and authorization to bid the phase II portion of project ITEM 1: Magnolia Avenue Storm Drain Improvements NEXT STEPS RECOMMENDED ACTION Adopt a resolution accepting bids and awarding a contract to Palm Engineering Construction Company Inc. for construction of Magnolia Ave Storm Drain Improvements Project –Phase I, for an amount not to exceed $775,616 ITEM 1: Magnolia Avenue Storm Drain Improvements ITEM 1: Magnolia Avenue Storm Drain Improvements THANK YOU