Agenda #: 4.7
Meeting Date: September 20, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AWARD OF CONSTRUCTION AGREEMENT TO WRIGHT
CONSTRUCTION ENGINEERING CORP AND FIRST AMENDMENT
TO CONSULTANT SERVICE AGREEMENT WITH HUSHMAND
ASSOCIATES, INC. FOR THE DIAMOND BAR CENTER SLOPE
STABILIZATION PROJECT NO. FP20500.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
A. Approve, and authorize the Mayor to sign, a Construction Agreement with Wright Construction Engineering Corp (Wright) in the amount of $594,570, plus a contingency amount of $59,457, for contract change orders, if any, to be approved by the City Manager, for a total authorization amount of $654,027; and B. Approve an exception to competitive bidding pursuant to the City's Purchasing Ordinance, and authorize the Mayor to sign, the First Amendment to Consultant Service Agreement for construction management, material testing, engineering support, and inspection services with Hushmand Associates, Inc. in the amount of $227,890, plus a contingency amount of $22,789, for a total authorization amount of $250,679.
FINANCIAL IMPACT:
Sufficient funds are included in the FY 2022/23 Capital Improvement Program (CIP) for this Project, including contingencies, as follows:
Diamond Bar Center Slope Stabilization
Project; CIP No. FP20500
FY 2022/23
Budgeted
Appropriations
Resource
Amount
General Fund $1,245,000 $1,245,000
Measure W Fund $15,000 $15,000
Total Project Budget $1,260,000
Wright Construction Engineering Corp
Construction Contract $594,570
Construction Contingency (10%) $59,457
HAI Construction Management (CM), testing
materials, and Inspection Services $227,890
CM, testing and Inspection Services
Contingency (10%) $22,789
Balance $355,294
The contingency amount of $59,457 for Wright and $22,789 for Hushmand Associates, Inc. (HAI) will only be used in the event of unforeseen circumstances that warrant a contract change order.
BACKGROUND/DISCUSSION:
The Diamond Bar Center (DBC) is an asset to Diamond Bar Community. A 2017 geotechnical analysis identified natural and designed slopes with slope stability issues and signs of soil “creep” movements, causing exterior distress in the area of the northwest facing earth slopes of the DBC building (Attachment 1– Evaluation Area). The Project objective is to stabilize the north-west slope and soil “creep” movement.
On July 7, 2020, the City Council approved a Consulting Service Agreement with HAI to design the Diamond Bar Center Slope Stabilization Project. The plans and specifications were approved at the June 21, 2022 City Council meeting with the adoption of Resolution No.2022-40.
Award of Contract for Construction
On July 20, 2022, the City advertised the Project in order to solicit/receive bids from qualified contractors. By the due date of August 19, 2022, seven (7) bids were received, as follows:
Contractor Base Bid
Wright Construction Engineering Corp $594,570.00
Metrocell Construction, Inc $743,572.80
Aguilar & Calderon Corporation $748,470.33
Towo Enterprise, Inc. $784,185.00
Clarke Contracting Corporation $985,105.00
C.S. Legacy Construction, Inc. $1,122,853.00
GMZ Engineering, Inc. $1,197,930.00
The engineer’s estimate is $850,000. Staff evaluated all the bid proposals and discussed the lowest bid proposal with Wright Construction Engineering Corp. The low bidder verified and confirmed that it is ready, willing, and able to do the Project for the submitted bid price amount.
Staff has verified that Wright holds a valid contractor license and maintains a reputable experience with similar projects. Wright has completed various successful construction projects for several municipalities, including the City Los Angeles, City of Chino, City of Carlsbad, City of National City, and other municipalities.
As required in the bidding documents, the contractor is committed to work with City staff to minimize disruptions to the previously scheduled events at the DBC. This is achieved by including in the construction schedule five (5) “No Work” days and early stop work every Friday at 2 PM. Additionally, the contractor is committed to complete the Project within the required contract schedule per specifications.
Award of Contract for Construction Management Services, Inspection, Material Testing and Engineering Support
Pursuant to the City’s Purchasing Ordinance, a minimum of three (3) proposals are to be obtained for professional services of this nature and dollar amount, unless an exception is granted pursuant to Diamond Bar Municipal Code Section 3.24.090. One exception is when satisfactory bids cannot be reasonably obtained making competitive bidding impractical. A second is when the bidding requirements are for any other reason specifically waived by the City Council.
Staff requested fee proposals from three (3) firms, including HAI, that we believed met the qualifications to perform the services. For various reasons, only HAI submitted a proposal and the other two (2) firms declined. One firm did acknowledge that HAI would be in the best position to provide the requested services.
As noted above, HAI was previously retained under an agreement to provide the geotechnical investigation and design service for the Project. The above construction bids were based upon HAI’s design. HAI as the original designer, is qualified to provide all the disciplines needed for the Project, including construction management, geotechnical, structural engineering, quality assurance services, material testing and engineering support. Utilizing the original design team, would also minimize potential change orders and expedite responses/answers to RFI’s and submittals during construction.
Due to the critical scope of this Project, the condition to complete the construction on time, and minimal disruption to the DBC operation, staff is recommending that the City Council finds an exception to the requirement in the City’s Purchasing Ordinance. Such exceptions being that satisfactory fee proposals/bids cannot be reasonably obtained and that as the Project designer, HAI is the best qualified firm for the proposed scope of work.
A revised proposal, dated 8/16/2022, was submitted by HAI for $227,890 (See Exhibit A in the attached HAI First Amendment) to provide construction management services for the Project.
The project schedule is tentatively set as follows:
Award of Contract September 20, 2022
Construction Start October 2022
Construction Completion February 2023
LEGAL REVIEW:
The City Attorney has reviewed and approved the Agreements as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 4.7.a Contruction Agreement with Wright Construction Engineering Corp.
2. 4.7.b First Amendment to Consultant Service Agreement with Hushmand Associates, Inc.
3. 4.7.c Map - Evaluation Area