CC 2021-01-12_08l Award Contract_Castillo Del Mar ExtensionMEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS DIRECTOR
BY: ROBIN DICKERSON, PE, CITY ENGINEER
JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO J.J. FISHER
CONSTRUCTION, INC. FOR CONSTRUCTION OF THE CASTILLO DEL MAR
EXTENSION PROJECT, PW 2020-05, AND AUTHORIZATION OF A BUDGET
ADJUSTMENT IN THE AMOUNT OF $31,124.71 FOR UNANTICIPATED
REVENUE FROM THE LUCIA MAR UNIFIED SCHOOL DISTRICT TO FUND
350-CAPITAL IMPROVEMENT PROGRAM AND FOR A TRANSFER OF
$24,102.78 OF LOCAL SALES TAX FUNDS FROM THE ANNUAL PAVEMENT
MANAGEMENT PROGRAM TO THE SUBJECT PROJECT
DATE: JANUARY 12, 2021
SUMMARY OF ACTION:
Award a construction contract for the Castillo Del Mar Extension project, and authorize a budget
adjustment to account for an additional $31,124.71 contribution from the Lucia Mar Unified School
District and for a transfer of $24,102.78 of Local Sales Tax Funds from the Annual Pavement
Management Program to the project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2020-21 Capital Improvement Program (CIP) budget includes $1,011,353 for the design,
testing, contract administration, construction, and construction contingencies of the Castillo Del
Mar Extension project. A total of $1,066,581 is needed to fully fund the project. The Lucia Mar
Unified School District (LMUSD) has approved an additional contribution of $31,124.71, and staff
recommends a transfer of Local Sales Tax from the Annual Pavement Management Program
budget for the remaining $24,102.78 as shown in the table below.
Developer
Contribution
Local
Sales Tax LMUSD Total
Revenues
Current CIP Budget $ 536,500 $ 419,018 $ 55,835 $ 1,011,353
Additional Funding 24,103 31,124 55,227
Total Revenues $ 536,500 $ 443,121 $ 86,959 $ 1,066,580
Staff time will be necessary to provide construction management and inspection services for the
project.
RECOMMENDATION:
It is recommended the City Council: 1) Award a contract for the Castillo Del Mar Extension Project
to J.J. Fisher Construction, Inc. in the amount of $930,943.20; 2) Authorize the City Manager to
approve change orders for 10% of the contract amount, $930,943.20, for unanticipated costs
during the construction phase of the project (total construction costs = $930,943.20 + $93,094.32
= $1,024,037.52); 3) authorize a budget adjustment in the amount of $31,124.71 of unanticipated
revenue from the Lucia Mar Unified School District (LMUSD) to fund 350-Capital Improvement
Program and for a transfer of $24,102.78 of Local Sales Tax funds from the Annual Pavement
Management Program to the subject project.
Item 8.l. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO J.J. FISHER CONSTRUCTION, INC.
FOR CONSTRUCTION OF THE CASTILLO DEL MAR EXTENSION PROJECT, PW 2020-05,
AND AUTHORIZATION OF A BUDGET ADJUSTMENT IN THE AMOUNT OF $31,124.71 FOR
UNANTICIPATED REVENUE FROM THE LUCIA MAR UNIFIED SCHOOL DISTRICT TO FUND
350-CAPITAL IMPROVEMENT PROGRAM AND FOR A TRANSFER OF $24,102.78 OF
LOCAL SALES TAX FUNDS FROM THE ANNUAL PAVEMENT MANAGEMENT PROGRAM
TO THE SUBJECT PROJECT
JANUARY 12, 2021
PAGE 2
BACKGROUND:
On September 22, 2020, the City Council approved the construction plans and specifications,
authorized the solicitation of bids, and confirmed the environmental determination for the Castillo
Del Mar Extension project. The general Base Bid scope of work involves the demolition of portions
of the existing roadway and Arroyo Grande High School parking lot and the construction of public
improvements within a new right-of-way that will realign Castillo Del Mar to a new connection
point with Valley Road. The scope of work also includes a multi-use path, drainage improvements,
waterline relocation, and landscaping. The project scope also included a number of Add
Alternative Bid items to allow the City to award the Base Bid as well as Add Alternate Bid items
in any order or quantity based on available funding. On December 15, 2020, the Lucia Mar Unified
School District (LMUSD) Board approved a total of $86,959.81 to be used towards the Add
Alternate Bid items for street lighting, parking lot striping, and an access drive that connects the
two parking lots and provides additional parking. The School District has agreed to relocate the
portable buildings in the parking lot themselves, so the bid alternate for the portable building
relocation is not necessary.
ANALYSIS OF ISSUES:
On November 19, 2020, eleven bids were received for the Castillo Del Mar Extension project.
Following review and mathematical corrections, the lowest base bid was received from J.J. Fisher
Construction, Inc. in the amount of $784,158.67, which is approximately $22,200 below the
engineer’s estimate of $804,380. The final engineer’s estimate for the Base Bid plus the six Add
Alternative Bid items was $966,715. J.J. Fisher Construction, Inc.’s total project bid was
$933,166.16, which is approximately $33,500 below the engineer’s estimate.
The project specifications state that the lowest bidder will be determined using the base bid. J.J.
Fisher Construction, Inc.’s base bid has been determined to be responsive and J.J. Fisher
Construction, Inc. to be a responsible bidder. Therefore, an award of a construction contract to
J.J. Fisher Construction, Inc. is being recommended. In addition to the award of the Base Bid,
staff is also recommending the award of five of the Add Alternative Bid items as outlined below.
Item 8.l. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO J.J. FISHER CONSTRUCTION, INC.
FOR CONSTRUCTION OF THE CASTILLO DEL MAR EXTENSION PROJECT, PW 2020-05,
AND AUTHORIZATION OF A BUDGET ADJUSTMENT IN THE AMOUNT OF $31,124.71 FOR
UNANTICIPATED REVENUE FROM THE LUCIA MAR UNIFIED SCHOOL DISTRICT TO FUND
350-CAPITAL IMPROVEMENT PROGRAM AND FOR A TRANSFER OF $24,102.78 OF
LOCAL SALES TAX FUNDS FROM THE ANNUAL PAVEMENT MANAGEMENT PROGRAM
TO THE SUBJECT PROJECT
JANUARY 12, 2021
PAGE 3
Developer
Contribution
Local
Sales Tax LMUSD Total
Expenditures
Design and Survey $ 8,034 $ 8,034
Testing $ 14,994 $ 14,994
Contract Admin/Inspection $ 19,516 $ 19,516
Construction $ 536,500 $ 315,389 $ 79,054 $ 930,943
Base Bid 536,500 247,659 784,159
Add Alt 1 - Increase Street
Section 39,690 39,690
Add Alt 2 - Street Trees 28,040 28,040
Add Alt 3 - Parking Lot Striping 4,284 4,284
*
Add Alt 4 - Relocate Portable
Storage - - - -
Add Alt 5 - Street Lights 17,456 17,456
Add Alt 6 - Parking Lots Access
Drive 57,314 57,314
Construction Contingencies (10%) $ 85,188 $ 7,905 $ 93,093
Total Expenditures $536,500 $ 443,121 $ 86,959 $1,066,580
* LMUSD to complete Add Alternate 4
The original Castillo Del Mar Extension project budget estimated a contribution of $55,835 from
LMUSD. Since that time, LMUSD authorized an additional $31,124 contribution to fund certain
Add Alternative Bid items. In order to fully fund the project with the five chosen Add Alternative
Bid items, an additional $24,103 is needed in the budget, beyond the $86,959 being contributed
by LMUSD. A budget adjustment is recommended to account for the full amount being provided
by LMUSD. Staff is also recommending a transfer of $24,103 of Local Sales Tax funds from the
Annual Pavement Management Program budget to be used toward the construction
contingencies to fully fund the remainder of the project. If all of the contingencies are not used,
the funds will be returned to the Annual Pavement Management Program budget.
Developer
Contribution
Local
Sales Tax LMUSD Total
Revenues
Current CIP Budget $ 536,500 $ 419,018 $ 55,835 $ 1,011,353
Additional Funding 24,103 31,124 55,227
Total Revenues $ 536,500 $ 443,121 $ 86,959 $ 1,066,580
The estimated contract time is 222 working days (180 for the base bid plus 3 working days each
for Add Alternative Bid Items 1, 2, 3 and 6, and 30 working days for Add Alternative Bid Item 5).
It is anticipated work will be accomplished between February 2021 and December 2021.
Item 8.l. - Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO J.J. FISHER CONSTRUCTION, INC.
FOR CONSTRUCTION OF THE CASTILLO DEL MAR EXTENSION PROJECT, PW 2020-05,
AND AUTHORIZATION OF A BUDGET ADJUSTMENT IN THE AMOUNT OF $31,124.71 FOR
UNANTICIPATED REVENUE FROM THE LUCIA MAR UNIFIED SCHOOL DISTRICT TO FUND
350-CAPITAL IMPROVEMENT PROGRAM AND FOR A TRANSFER OF $24,102.78 OF
LOCAL SALES TAX FUNDS FROM THE ANNUAL PAVEMENT MANAGEMENT PROGRAM
TO THE SUBJECT PROJECT
JANUARY 12, 2021
PAGE 4
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve the recommended actions as proposed;
2. Award a construction contract to the lowest responsive/responsible bidder but limit the
number of Add Alternative Bid items awarded;
3. Do not award a construction contract for the project at this time; or
4. Provide direction to staff
ADVANTAGES:
The extension of Castillo Del Mar will result in improved access for the Vista Del Mar and the
Heights at Vista Del Mar developments, and will help relieve congestion related to high school
traffic.
DISADVANTAGES:
The City will be responsible for the additional road maintenance costs. A transfer of Local Sales
Tax funds takes away funding from other streets projects.
ENVIRONMENTAL REVIEW:
The project was reviewed in compliance with the California Environmental Quality Act (CEQA),
the CEQA Guidelines and the City of Arroyo Grande Rules and Procedures for Implementation of
CEQA. The City Council adopted a Mitigated Negative Declaration on August 22, 2006 which
included the extension of Castillo Del Mar. In September 2020, per Section 15162 of the CEQA
Guidelines, City staff reviewed the adopted Mitigated Negative Declaration and found that there
are no substantial changes that would require additional environmental review. On September
22, 2020, the Council adopted Resolution No. 5036 confirming the environmental determination.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government
Code Section 54954.2.
Attachment:
1. Bid Opening Log Sheet
`
Item 8.l. - Page 4
$875,552.52$41,670.00$36,798.99$71,659.88$1,047,452.39$72,745.00$1,073,613.00$927,596.00$1,143,586.00ATTACHMENT 1Item 8.l. - Page 5
$992,819.18$1,168,503.69$17,084.44$29,114.00$80,066.85$1,342,521.54$75,783.20$1,148,734.57Item 8.l. - Page 6
$816,982.80$69,747.20$999,646.16$917,913.60Item 8.l. - Page 7
$784,158.67$4,284.00$933,166.15Item 8.l. - Page 8