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Home My WebLink About2022-11-15; City Council; ; Acceptance of Bids and Award of Contract to Aster Construction Services Inc. for the Carlsbad Boulevard Pedestrian Improvements Project, and Authorization of Additional ACA Review __RK__ Meeting Date: Nov. 15, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: John Kim, City Traffic Engineer John.Kim@carlsbadca.gov, 442-339-2757 Subject: District: Acceptance of Bids and Award of Contract to Aster Construction Services Inc. for the Carlsbad Boulevard Pedestrian Improvements Project, and Authorization of Additional Appropriation in the amount of $833,788 1 Recommended Action Adopt a resolution accepting bids and awarding a contract to Aster Construction Services Inc., for construction of the Carlsbad Boulevard Pedestrian Improvements Project, Capital Improvement Program Project No. 6097, in an amount not to exceed $1,246,567 and authorizing an additional appropriation in the amount of $833,788. Executive Summary This project will enhance six uncontrolled crosswalks: Carlsbad Boulevard at Oak Avenue, Sycamore Avenue, Maple Avenue, Cherry Avenue, Hemlock Avenue and at Army/Navy Academy between Mountain View Drive and Cypress Avenue, which currently have existing rectangular rapid flashing beacon systems. The proposed improvements include: •Pedestrian-activated in-pavement flashing lights to augment the existing beacon systems •Curb extensions •Continental-style high-visibility crosswalk markings •Green bicycle lane treatments in vehicle-bicycle conflict areas These safety improvements will enhance pedestrian access and safety for pedestrians and bicyclists along Carlsbad Boulevard, and this project has been identified as a priority project in response to the city’s proclamation of a traffic safety emergency. 1 The city put this project out to bid previously, but received only one bid, which was higher than had been estimated, and so offered it up for bids a second time. Staff have now evaluated all 1 The City Manager, acting as the Director of Emergency Services, proclaimed a state of local emergency for bike, e- bike and traffic safety on Aug. 23, 2022. On Aug. 30, 2022, the City Council adopted Resolution No. 2022-214, ratifying the proclamation seven days later. The City Council extended the state of local emergency for an additional 60 days on Oct. 18, 2022, with Resolution No. 2022-250. Nov. 15, 2022 Item #7 Page 1 of 7 bids received and recommend that the City Council award the contract to the lowest responsive and responsible bidder, Aster Construction Services Inc., in an amount not to exceed $1,246,567. Staff also request that the City Council authorize an additional appropriation of $833,788 from the Gas Tax Fund to complete the project. Carlsbad Municipal Code, or CMC, Sections 3.28.080(C) and 3.28.080(I)(6), which cover purchasing in construction contracts, require the City Council to award all formally bid contracts when the value exceeds $200,000, as this contract does. Discussion Timeline Dec. 7, 2021 - The City Council approved the plans and specifications and authorizing the advertising for bids for construction of the project, Carlsbad Boulevard Pedestrian Improvements Project, Capital Improvement Program, Project No. 6097. (Resolution No. 2021- 265) Sept. 15, 2022 - Staff received only one bid for construction of the project. The single bid received considerably exceeded an engineer’s estimate of the cost. Sept. 27, 2022 - The City Council adopted rejected the bid received and authorized the City Clerk to re-advertise for bids for the project, with a solicitation period of at least 30 days. (Resolution No. 2022-224) Nov. 1, 2022 - Staff received five bids. Staff reviewed the bids and determined Aster Construction Services Inc. to be the lowest responsive and responsible bidder with a bid in the amount of $1,246,567. Project costs All bids received exceeded the engineer’s estimate of $775,600. The higher bid amounts received could be a result of different factors. The engineer’s estimate was prepared in 2021, which is about a year before the second bid solicitation and may not reflect the recent hike in construction costs due to inflation, manufacturing and supply chain issues. In addition, the California Department of Transportation has a “Buy America” requirement on construction materials, including steel and iron for state-funded projects. This project was awarded using Highway Safety Improvement Program funds in the amount of $591,600, and is therefore subject to the “Buy America” requirement, which may have contributed to a higher construction cost. Options Staff provide the following options for the City Council’s consideration: 1. Accept the bids received, award a contract to Aster Construction Services Inc. for construction of the project in an amount not to exceed $1,246,567, and authorize an additional appropriation of $833,788 from the Gas Tax Fund Pros • Aster Construction Services has been determined to be the lowest responsive and responsible bidder Nov. 15, 2022 Item #7 Page 2 of 7 • The project will: o Enhance pedestrian and bicyclist safety at the six uncontrolled crosswalks along Carlsbad Boulevard o Enhance the pedestrian and bicyclist experience along the coastal corridor o Encourage use of the roadway by people using all forms of travel Cons • The additional funding required for this project may result in the deferral of future projects or alternative funding sources to be reallocated 2. Do not accept the bids received, do not award the contract to Aster Construction Services Inc., and do not authorize additional appropriation in an amount of $833,788 from the Gas Tax Fund Pros • None identified Cons • Delays start of construction • Delays implementing pedestrian and bicyclist safety improvements • Potential increase in construction costs due to delay in awarding construction contract Fiscal Analysis Funding for the project has been appropriated from the Gas Tax Fund in the amount of $222,100 and grant funds in the amount of $591,600 awarded by Caltrans for Highway Safety Improvement Program funding. Staff request an additional appropriation of $833,788 from the Gas Tax Fund to complete the project. There are sufficient gas tax funds available. The available funds and estimated construction costs are shown in the table below: Carlsbad Boulevard Pedestrian Improvements Project CIP Project No. 6097 Total appropriation to date $813,700 Total expenditures and encumbrances to date $921 Available balance $812,779 Construction contract – Aster Construction Services Inc. $1,246,567 Construction contingency (estimated) $250,000 Construction management, inspection and material testing (estimated) $125,000 Public outreach $25,000 Total estimated project costs $1,646,567 Remaining balance ($833,788) Additional appropriation needed $833,788 Nov. 15, 2022 Item #7 Page 3 of 7 Carlsbad Municipal Code sections 3.28 – Purchasing, subjections 040(C)(5) and 090(B) authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time the project is awarded, which is $250,000 for this project. Next Steps Once the City Council accepts the bids and awards the construction contract to Aster Construction Services Inc., staff will issue a purchase order, schedule a preconstruction meeting with the contractor and issue a notice to proceed for construction of the project, which is expected to commence in December 2022. Before construction begins, the public will be notified of the construction activities. The duration of the construction contract is 120 working days, not including rainy days and delays from change orders that may extend the contract duration. The estimated construction completion date is summer 2023. Upon successful completion of the project, a notice of completion will be recorded to release bonds the city issued for the project. Environmental Evaluation The City Planner has determined the project is exempt from the California Environmental Quality Act under CEQA Guidelines Section 15301(c), which covers the minor alteration of existing facilities including streets, sidewalks, gutters and similar facilities, including pedestrian crossings, involving negligible or no expansion, and that no exception to the exemption as set forth in CEQA Guidelines Section 15300.2 applies. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibit 1. City Council resolution Nov. 15, 2022 Item #7 Page 4 of 7 RESOLUTION NO. 2022-262 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS RECEIVED, AWARDING A CONTRACT TO ASTER CONSTRUCTION SERVICES, INC. FOR THE CARLSBAD BOULEVARD PEDESTRIAN IMPROVEMENTS PROJECT, AND AUTHORIZING AN ADDITIONAL APPROPRIATION IN AN AMOUNT OF $833,788 WHEREAS, the City Council of the City of Carlsbad, California, has determined it necessary, desirable and in the public interest to construct the Carlsbad Boulevard Pedestrian Improvements Project, Capital Improvement Program, or CIP, Project No. 6097, or Project; and WHEREAS, on Dec. 7, 2021, the City Council adopted Resolution No. 2021-265, approving the plans and specifications and authorizing the advertising for bids for construction of the Project; and WHEREAS, on Sept. 15, 2022, staff received one bid for construction of the Project, which considerably exceeded the engineer's estimate; and WHEREAS, on Sept. 27, 2022, City Council adopted Resolution No. 2022-224, rejecting the bid received from the first bid solicitation and authorizing the City Clerk to re-advertise for bids, with a solicitation period of at least 30 days, for the Project; and WHEREAS, on Nov. 1, 2022, staff received five construction bids; and WHEREAS, staff determined that Aster Construction Services, Inc. submitted the lowest responsive and responsible bid, in an amount of $1,246,567; and WHEREAS, Carlsbad Municipal Code Sections 3.28.080(() and 3.28.080(1)(6), which cover purchasing in construction contracts, require the City Council to award all formally bid contracts when the value exceeds $200,000, as this contract does; and WHEREAS, additional appropriation in the amount of $833,788 is required for construction of the Project; and WHEREAS, sufficient funding is available in the Gas Tax Fund; and WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(8) 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 $250,000 for the Project; and WHEREAS, the City Planner has determined that the Project is exempt from the California Environmental Quality Act, or CEQA, per State CEQA Guidelines Section 15301(c) -minor alteration of existing facilities including streets, sidewalks, gutters and similar facilities, including pedestrian Exhibit 1 Nov. 15, 2022 Item #7 Page 5 of 7 crossings, involving negligiele or no expansion, and that no exception to the exemption as set forth in CEQA Guidelines section 15300.2 applies. 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 bid of $1,246,567 submitted by Aster Construction Services, Inc for construction of the Carlsbad Boulevard Pedestrian Improvements Project, CIP Project No. 6097, 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 $250,000. 4.That the Deputy City Manager, Administrative Services, is hereby authorized to appropriate an additional $833,788 of Gas Tax Fund to the Carlsbad Boulevard Pedestrian Improvements Project, CIP Project No. 6097. 5.That the award of this contract is contingent upon Aster Construction Services, Inc. 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. Nov. 15, 2022 Item #7 Page 6 of 7 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 15th day of November, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. 'kJ1i �FAVIOLA MEDINA, City Clerk Services Manager {SEAL) Nov. 15, 2022 Item #7 Page 7 of 7