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Agenda Packet 2009-01-08 SPCity Council Tony Ferrara Mayor Joe Costello Mayor Pro Tern Jim Guthrie Council Member Ed Arnold Council Member Chuck Fellows Council Member 1. CALL TO RC ER: 4:00 P.M. 2. ROLL CALL 3. FLAG SALUTE 5. CONSENT T AGENDA: CITY OF NOTICE OF SPECIAL MEETING ARROYO GRANDE CITY COUNCIL THURSDAY, JANUARY 8, 2009 4:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande Agenda Steven Adams City Manager Timothy J. Carmel City Attorney Kelly Wetmore City Clerk 4. PUBLIC COMMENT: Members of the public wishing to address the City Council on any item described in this Notice may do so when recognized by the Presiding Officer. 5.a. CONSIDERATION OF AN AWARD F CONTRACT TO R UGH CONSTRUCTION INC. FOR CONSTRUCTION OF THE EAST BRANCH STREETSCAPE PROJECT, PW 2009-01 (SPAGNOLO) Recommended Action: 1) Award a construction contract to Br ugh Construction, Inc. for the East Branch Streets a e Project, PW 2009-01, in the amount of $699,250; 2) Authorize the City Manager to approve change orders not to exceed the 15% contingency in the amount of $104,888 for unanticipated costs during the construction phase of the project. 6. ADJOURNMENT MENT t the next Regular City Council Meeting at 7 :00 p.m. on Tuesday, January 13, 2009, in the City Council Chambers, 215 E. Branch Street. AGENDA SUMMARY JANUARY 13, 2009 PAGE 2 ie9lr*# rye**** *irk*** k All staff reports or other written documentation relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk's office, 214 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability- related modification or accommodation, contact the Administrative Services Department at 805 -473 -5414 as soon as possible prior to the meeting date. This agenda was prepared and posted pursuant to Government Code Section 54954.2, Agenda reports can be accessed and downloaded from the City's website at www,rroyjrde,org City Council/Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande's Government Access Channel 20. The rebroadcast schedule is published at ww.lo- span.org. MEMORANDUM TO: CITY COUNCIL 1 FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS CITY ENGINEER EER SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. FOR CONSTRUCTION OF THE EAST BRANCH STREETSCAPE PROJECT, PW 2009431 DATE: JANUARY 8, 2009 RECOMMENDATION: It is recommended the City Council: A. award a construction contract to Brough Construction, Inc. for the East Branch Streetscape Project, PW 2009 -01, in the amount of $699,250; B. authorize the City Manager to approve change orders not to exceed the 5% contingency in the amount of $104,888 for unanticipated costs during the construction phase of the project (total construction costs $699,250 $104,888 $604,138). FUNDING: The total current budget for the East Branch Streetscape Project includes the following: Local Sales Tax Funds $150,000 Redevelopment Agency Tax Increment Funds $70,000 SAFE Funds $120,000 RSHA $153,000 TE Funds $7630O0 Total $1,256,000 However, staff was recently notified that the TE Funds had been rescheduled by the San Luis Obispo Council of Governments (SLOCOG) and will not be available until after July 1, 2009. Therefore, it is proposed to swap the TE funds with funds from other eligible City projects that can be delayed more easily beyond July 1, 2009 in order to maintain the current schedule for the East Branch Streetscape Project. As a result, the revised budget is as follows: CITY COUNCIL CONSIDERATION OF AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. FOR CONSTRUCTION CTIO OF THE EAST BRANCH STREETSCAPE PROJECT, pw 2009 JANUARY 8, 2009 PAGE 2 Local Sales Tax Funds $840,800 Redevelopment Agency Tax Increment Funds $70,000 SAFE Funds $120,000 RSHA 153 000 Total $1,183,800 The additional local sales tax funds are derived from trading TE funds to the following projects for local sales tax funds currently budgeted: El Camino Real $276,800 Castillo Del Mar $150,000 Sidewalk Projects 264 000 Total $690,800 of the total budget of $1,1 83,800, $21 8,444 has been expended for street lights, street furniture, planning and design. Therefore, the remaining balance is $965,356. The lowest responsive construction bid is $699,250. Given the variety of complicated issues involved in the project, a 15% contingency is recommended. Therefore, the estimated total cost of the project is as follows: Construction $699,250 Contingencies $104,888 Construction management and administration 30,000 Design remaining to be invoiced 25,0 Total $859,13 BACKGROUND: Approximately five years ago, the City and Village Improvement Association (VIA) developed a preliminary East Branch Streetscape Enhancement Plan, which was approved by the City Council after a series of public workshops and other community input. Subsequently, the City applied to SLOCOG for grant funding. The conceptual improvement project included East Branch Street from Traffic Way to Mason Street. The objective of the project is to improve pedestrian accessibility and safety, enhance the Village character and appearance, and at the same time, maintain efficient traffic flow and parking. The project consists of bulbouts, crosswalk enhancements, drainage improvements, new street furniture, decorative streetlights, street trees, irrigation and electrical systems. Due to delays in obtaining the grant funding, streetlights were funded primarily through private CITY COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. FOR CONSTRUCTION OF THE EAST BRANCH STREETSCAPE PROJECT, PW 2009-01 JANUARY 8, 2009 PAGE 3 donations and have already been completed. The street furniture was funded by initial grant funding and has also already been installed. In February 2008, after approval was received for grant funding, the Council approved preliminary plans and directed staff to proceed with relinquishment of Route 227 from Caltrans, which was determined necessary in order to install the improvements. At the October 28, 2008 meeting, the City Council approved final project plans and authorized solicitation of bids. The relinquishment was completed in November 2008. on January 6, 2009, eight bids were opened for the East Branch Streetscape Project. The lowest responsive bid for the entire base bid schedule, from Brough Construction, Inc., was in the amount of $699250. Staff designed the project with a base bid schedule and four separate deductive alternates to enable the project to be constructed within the available funding. The schedules, descriptions and bid totals are as follows: Base Bid Alternate A Alternate B Alternate C Alternate D East Branch Streetscape Electrical Receptacles in Landscape Planters Irrigation System Short Street Storm Drain System East Branch Street West of Nevada Street $699,250 ($17,000) ($20,000) ($51,000) {$59.500} since the lowest responsive bid is within the allocated budget amount, staff recommends that Council award the entire project (Base Bid) to Brough Construction, Inc. Company in the amount of $699,250. ANALYSIS OF ISSUES: On December 9, 200 8, ten bids were opened for the East Branch Streetscape Project. However, due to irregularities discovered in the bid documents, and to avoid potential delays from bid protests, the City Council rejected all bids for the East Branch Streetscape Project at a December 18, 2008 Special Meeting and directed staff to solicit new bids. The City has worked very hard to coordinate the timing of the E. Branch Streetscape Project in order to minimize the impact of construction on Village businesses and events. As a result, it was determined that the project construction must begin in early January in order to be completed by Strawberry Festival. The 227 relinquishment process was accelerated to accomplish this schedule, as well as the proposed start date for the proposed contractor. Therefore, any further delay will likely result up to a 12 month delay to the project. cm( COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT ACT To BROUGH CONSTRUCTION, STF UCTIOI INC. FOR CONSTRUCTION UCTIOI OF THE EAST BRANCH ICH STF EETSCAPE PROJECT, PW 2009-01 JANUARY Y 8, 2009 PAGE 4 Last year, in order to obtain additional funding, the City agreed to a recommendation by SLOCOG to switch the majority of funding for the project from RSHA funds to TE funds. However, staff was never made aware that by following the SLOCOG recommendation the timing of the funding was delayed one year and will not be available until July 1, 2009. In order to maintain the project schedule and award the bids, staff developed the strategy and requested to SLOCOG that the TE funds allocated for the E. Branch Streetscape Project be switched with local funds for other budgeted City projects eligible for the TE funds and that could be constructed after July 1, 2009. These include El Camino Real, Castillo Del Mar and sidewalk projects. This proposal was agreed to by SLOCOG. California Transportation Committee (CTC) approval is still necessary, but it is our understanding that their approval is relatively ministerial once approved by the SLOCOG Board of Directors. Therefore, this creates some risk of losing the funds, but staff believes it is minimal. While a total of $763,000 in TE funds were allocated to East Branch Streetscape Project, only $690,800 was traded. The remaining $72,200 was placed in the El Camino Real CIP budget, but was not necessary to swap for the East Branch Streetscape Project. Staff will coordinate closely with the business owners during the project to mitigate the impacts of the construction project on their operations. Copies of the construction schedule will be distributed to each owner following the preconstruction meeting. staff will provide regular updates and/or personally visit each store before each major construction operation to explain the construction activity and potential impacts to the businesses. This will enable the business owners to express their specific needs (such as delivery access at a particular time of day) and allow staff to coordinate the request to the contractor, if at all possible. The contract time for this project is specified at 110 calendar days. Work is expected to begin in late January and be complete prior to the Stra wberry Festival in May. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staffs recommendations; Do not approve staffs recommendations; Modify as appropriate and approve staffs recommendations; or Provide direction to staff. CITY COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO BROUGH CONSTRUCTION, INC. FOR CONSTRUCTION OF THE EAST BRANCH STREETSCAPE PROJECT, PW 2009-01 JANUARY 2009 PAGE ADVANTAGES: The favorable bidding climate produced construction bids that were below the Architect's Estimate. The project design included a number of deductive alternates to enable the project to be "sized down" to meet the available funding. This would necessitate having to perform any deleted portions of work at a later date. The favorable bid enables all the construction work to be performed under one project. DISADVANTAGES: The construction activities may negatively impact the Village businesses. Construction of the storm drain system at the intersection of East Branch Street and Nevada Street will require restrictions in traffic. The contractor is required to maintain one lane of vehicle travel in each direction. However, this may require the temporary elimination of parking on one or both sides of the street or the temporary elimination of the center travel lane. Construction will also be performed during the winter months and progress may be affected by seasonal weather. ENVIRONMENTAL REVIEW: The project is categorically exempt from CEQA pursuant to Sections 15301(c) and 1 5302. PUBLIC NOTIFICATION 1TION A[ D COMMENTS: TS: The agenda was posted in front of City Hall on Wednesday, January 200 9. The agenda and staff report were posted on the City's website on Wednesday, January 7, 2009. No public comments were received as of the time of preparation of this report.