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02-13-2018 CC Rpt 18COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: FEBRUARY 13, 2018 FROM: CITY MANAGER ITEM NO:18 SUBJECT:CONTRACT WITH PALP, INC. (DBA EXCEL PAVING COMPANY) FOR THE VILLAGE OAKS SADDLE REPLACEMENT -- PHASE 1 PROJECT RECOMMENDATION: 1. Award a contract to PALP, Inc. DBA Excel Paving Company in the amount of $769,776.42 for the Village Oaks Saddle Replacement -- Phase 1 project. 2. Authorize staff to issue a Notice of Award. 3. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of such. 4. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($76,977.64) of the awarded contract amount. BACKGROUND/ANALYSIS: For several years, the Public Works Water Division has been repairing water main leaks and service saddle blow-outs in the residential areas of Village Oaks. A service saddle is a clamp or sleeve which fastens a water service lateral to the water main. Prior to City incorporation, service saddles installed were made out of cast iron, which is reactive to corrosive soils such as those existing in Chino Hills. Approximately 1,136 service saddles require replacements and the project has been divided into three (3) separate phases. On December 12, 2017, the City Council approved the plans and specifications for the Village Oaks Saddle Replacement -- Phase 1 project and adopted Resolution No. 2017R- 054 approving the design and authorizing staff to solicit bids for construction. On January 18, 2018, eight (8) bids were received and are summarized as follows: CONTRACTORSCONTRACTORS BIDBID 1. PALP, Inc. DBA Excel Paving Company $ 769,776.42 2. Borden Excavating, Inc.$ 825,444.50 3. AMPCO Contracting, Inc.$ 895,877.00 4. Ferreira DBA Ferreira Coastal Const. Company $ 919,893.15 5. Norstar Plumbing & Engineering, Inc.$ 983,329.44 6. Horizons Construction Co. Int'l, Inc.$1,044,276.32 80/231 7. Leonida Builders, Inc.$1,117,144.24 8. The Roberts Incorporated $1,152,623.40 The contracts for competitively bidding public projects must be awarded to the lowest responsible bidder. As shown above, PALP, Inc. DBA Excel Paving Company submitted the lowest base bid and was indicated as the apparent low bidder. Staff received favorable reports from references regarding the work performed by PALP, Inc. (dba Excel Paving Company) and recommends that the Council award them a contract in the amount of $769,776.42. ENVIRONMENTAL (CEQA) REVIEW: At the December 12, 2017, City Council meeting, the project has been determined to be exempt as a Class 1(b) Categorical Exemption (Existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewage, or other public utility services), pursuant to Section 15301 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code Section 21000 et seq. FISCAL IMPACT: The total estimated cost for this project is as follows: ItemItem AmountAmount Design (Phase 1)$ 75,000.00 Construction (Phase 1) 769,776.42 10% Construction Contingency (Phase 1) 76,977.64 Inspection and Project Management (Phase 1) 75,000.00 Phase 2 and Phase 3 1,690,245.94 Grand Total Project FundingGrand Total Project Funding $ 2,687,000.00$ 2,687,000.00 Funding for this project will come from the following source: Project No.Project No.Funding SourceFunding Source AmountAmount W17001 Water Utility Fund $ 2,687,000.00 Grand Total Project FundingGrand Total Project Funding $ 2,687,000.00$ 2,687,000.00 The total approved budget for this project is $2,687,000.00 with funding coming from the Water Utility Fund. No additional appropriation is needed. There is no impact to the General Fund. REVIEWED BY OTHERS: This item has been reviewed by the Finance Director and the City Attorney. Respectfully Submitted,Recommended By: Attachments PALP Inc. Agreement 81/231 82/231 83/231 84/231 85/231 86/231 87/231