CC 2014-06-10_08.k. Award Contract Old Ranch Road Improvementsi
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JULY ,o. 1911 MEMORANDUM
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TO: CITY COUNCIL /
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTO- a r-
BY: MIKE LINN, ASSISTANT CITY ENGINEER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO SOUZA
CONSTRUCTION, INC. FOR THE OLD RANCH ROAD PROPERTY
IMPROVEMENTS (TRACT 3018) PROJECT, PW 2013-10
DATE: JUNE 10, 2014
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the Old Ranch Road Property Improvements (Tract 3018) to
Souza Construction, Inc. in the amount of$109,200;
2. Authorize the City Manager to approve change orders for 20% of the contract
amount, $21,840 for unanticipated costs during the construction phase of the
project (total construction costs = $109,200 + $21,840 = $131,040);
3. Modify the appropriated budget as recommended; and
4. Direct the City Clerk to file a Notice of Exemption.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2013/14 Capital Improvement Program includes $100,000 for the subject
project, funded 70% from the Water Fund and 30% from the Sewer Fund. Based on the
bids received, staff has reevaluated the total project costs as follows:
Construction $109,200
Construction Contingencies $21,840
Estimated Project Costs $131,040
The original intent of the project was to reimburse the Water and Sewer Funds with
revenues from the sale of the lots. However, staff has determined that $30,000 of the
cost is eligible to be funded from the Water Facility Fund and $30,000 is eligible to be
funded from the Sewer Facility Fund. Therefore, it is recommended the budget be
modified to reflect the following appropriations:
Item 8.k. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO SOUZA CONSTRUCTION, INC. FOR
CONSTRUCTION OF THE OLD RANCH ROAD PROPERTY IMPROVEMENTS (TRACT 3018)
PROJECT PW 2013-10
JUNE 10, 2014
PAGE 2
General Fund $71,040
Water Facility Fund $30,000
Sewer Facility Fund $30,000
Total $131,040
BACKGROUND:
On February 12, 2013, the City Council approved Final Tract Map 3018, subdividing 5
acres of vacant land at the northwest corner of West Branch Street and Old Ranch
Road into four (4) Single Family Residential Lots and one (1) Public Facility Lot.
The revenue derived from selling the properties are intended to finance improvements
for a future Police Station project. Staff secured the services of a local engineering
consultant to perform the design of the water, sewer and stormwater services and
coordinate with utility companies to provide gas, electric, cable, and telephone services
to the northern three residential lots. The southernmost lot is reserved for future access
purposes and/or additional parking for future development of the Public Facility Lot.
ANALYSIS OF ISSUES:
On May 29, 2014, eleven bids were opened for the subject project. The lowest bid,
from Souza Construction, Inc. was in the amount of $109,200. Staff has determined
the bid to be responsive and recommends the award of a construction contract to Souza
Inc. Staff anticipates the work starting in early-July with a 45 calendar da
Construction,
P 9 Y Y Y
time duration.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staff's recommendation to award a construction contract to Souza
Construction, Inc. for the Old Ranch Road Property Improvements (Tract 3018)
Project;
2. Do not award a construction contract for the project; or
3. Provide direction to staff.
ADVANTAGES:
Installing the site utilities to each lot enhances their value and makes them more
attractive for potential purchase. Sale of the properties will provide much needed
revenue to the City.
DISADVANTAGES:
The construction will create additional noise in a quiet residential neighborhood. Staff
will ensure that the contractor rigidly complies with the work hour limits and restrictions.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15332.
Item 8.k. - Page 2
I
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO SOUZA CONSTRUCTION, INC. FOR
CONSTRUCTION OF THE OLD RANCH ROAD PROPERTY IMPROVEMENTS (TRACT 30181
PROJECT PW 2013-10
JUNE 10, 2014
PAGE 3
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, June 5, 2014. The agenda and staff
report was posted on the City's website on Friday, June 6, 2014. No public comments
were received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
2. Notice of Exemption
Item 8.k. - Page 3
Attachment No. 1
CITY-OF
• CITY OF ARROYO GRANDE
BID OPENING LOG SHEET
`YCALIFORNIA
In
DEADLINE: THURSDAY, MAY 29, 20141-3:00 PM
PROJECT NAME: OLD RANCH ROAD PROPERTY IMPROVEMENTS
PROJECT NO. PW 2013-10
ENGINEER'S ESTIMATE: $110,000
SUBMITTED BY: TOTAL
R. Baker, Inc. $117,169.00
Arroyo Grande, CA
R. Burke Corporation $119,808.00
Arroyo Grande, CA
Cooks and Son, Inc. $150,103.00
Santa Maria, CA
Pacific Coast Excavation, Inc. $154,933.00
Santa Maria, CA
Brough Construction, Inc. $194,151.00
Arroyo Grande, CA
John Madonna Construction Co., Inc. $176,780.00
San Luis Obispo, CA
Dechance Construction Co., Inc. $135,775.00
Arroyo Grande, CA
V. Lopez Jr.& Sons $165,234.00
Santa Maria, CA
Souza Construction, Inc. $109,200.00
San Luis Obispo, CA
Crandall Construction $113,644.00
Nipomo, CA
Butch Pope Construction $123,421.15
Arroyo Grande, CA
n
Kitty Nort I Deputy City Clerk
c: Director of Community Development
Director of Public Works
Assistant City Engineer-
City Manager
Item 8.k. - Page 4
Attachment No. 2
Notice of Exemption
To: Office of Planning and Research From: (Public Agency) City of Arroyo Grande
1440 Tenth Street, Room 121 300 East Branch Street
Sacramento, CA 95814 Arroyo Grande, CA 93420
O County Clerk
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: Old Ranch Rd. Property Improvements (Tract 3018) Proiect, PW 2013-10
Project Location - Specific: Three residential lots in the 300 Block of Old Ranch Road(east side)
Project Location -City: Arroyo Grande Project Location - County: San Luis Obispo
Description of Project: Install utilities to three future residential lots. Install curb and gutter along the
street frontage.
Name of Public Agency Approving Project: City of Arroyo Grande— Public Works Department
Name of Person or Agency Carrying Out Project: Geoff English
Exempt Status: (check one)
• Ministerial (Section 12080(b)(1); 15268);
• Declared Emergency (Sec. 21080(b)(3); 15269(a));
❑ Emergency Project(Sec. 21080(b)(4); 15269(b)(c));
O Categorical Exemption. State type and section number: Section 15332
❑ Statutory Exemptions. State code number:
Reasons Why Project Is Exempt: Lots were previously subdivided as part of Tract 3018. The project
size is less than five acres, surrounded by urban uses located within the City limits, and is without habitat
value.
Lead Agency
Contact Person: Michael Linn, P.E. Area Code/Telephone/Extension: (805) 473-5444
If filed by Applicant:
1. Attach a certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? El Yes ❑ No
Signature: Date:
Geoff English
Public Works Director
El Signed by Lead Agency ❑ Date received for filing at OPR:
❑ Signed by Applicant
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