RESOLUTION NO. 2931
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAFTER TO
COOPERATE WITH THE COUNTY OF KERN
WHEREAS, the U.S. Department of Housing and Urban Development has identified this City as authorized to be included in the County of Kern’s Community Development Block Grant program entitlement pursuant to Title I of the Housing and Community Development Act of 1974, as amended, (hereinafter the “Act”); and
WHEREAS, HUD has notified the County of Kern that it is a participant in the HOME Investment Partnerships program as defined in Title II of the Cranston-Gonzales National Affordable Housing Act of 1990, as amended; and
WHEREAS, HUD has notified the County of Kern that it is a participant in the Emergency Solutions Grant Program; and
WHEREAS, the Act requires the execution of a Cooperation Agreement between this City and the County of Kern; and
WHEREAS, such Agreement allows this City’s population to be included with the County of Kern’s in determining a basic annual Community Development Block Grant, HOME Investment Partnerships program, and Emergency Solutions Grants program grant amounts; and WHEREAS, it is the intention of this City to enter into such Agreement with the County of Kern to cooperate in undertaking, or assist in undertaking, essential community renewal and lower income housing assistance activities in the incorporated area of this City.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Shafter, California, as follows:
1. Elects to participate in the Community Development Block Grant, HOME Investment Partnerships programs, and Emergency Solutions Grants programs for the three program years commencing with 2024-2025 and continuing through 2026-2027 in accordance with the regulations by the Act;
2. Directs the City Manager to sign the required Agreements; and
3. Authorizes Gabriel A. Gonzalez, City Manager from this City to execute and/or perform all other appropriate acts necessary to accomplish the purpose of the Resolution.
PASSED AND ADOPTED this 20th of June, 2023.
_______________________________
Chad Givens, Mayor
ATTEST:
_______________________________
Yazmina Pallares, City Clerk
APPROVED AS TO FORM:
______________________________
Marco A. Martinez, City Attorney
MANAGEMENT REPORT
CITY OF SHAFTER
CITY COUNCIL REPORT
MEETING DATE: June 20, 2023
FROM: Gabriel A. Gonzalez, City Manager
PREPARED BY: Bob Meadows, Business Development Director SUBJECT: APPROVAL OF MASTER AGREEMENT WITH KOSMONT
AGENCY FOR HOTEL FEASIBILITY STUDY AND DEVELOPER
ADVISORY SERVICES IN THE AMOUNT NOT-TO-EXCEED
$35,000.
RECOMMENDATION
Council find action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines; and authorize the City Manager to sign and accept the Master Agreement with Kosmont Companies for a Hotel Feasibility Study and Developer Advisory Services.
BACKGROUND
The City of Shafter retained Kosmont Companies in March 2023 for real estate advisory services in connection with business / developer attraction, including high-level market analysis, development of marketing collateral, and setting up prospect meetings for the ICSC Conference in Las Vegas. Those meetings revealed better potential than expected for future business and created the need for the Hotel Feasibility Study and Developer Advisory services proposed in this Master Agreement. The ED Ad Hoc Committee supports these actions to assist in the City's efforts to attract hotels to the area.
ANALYSIS
The Hotel Feasibility Study is the first request of hotels considering expansion into a new area. It will provide both a response to current contacts and a resource for future prospects. The Request for Qualifications/Proposal for developer services ensures collaboration with a qualified and compatible developer for future City projects.
FISCAL IMPACT
The Hotel Feasibility Study cost of $10-15,000 will be funded from available Professional Services funds in the current 2022-2023 Economic Development Department Budget. The Request for Qualifications/Proposal for Developer Advisory Services will be funded from the $100,000 one-time expense approved by the City Council on May 31, 2023 as part of the 2023-2024 Budget.
CEQA ANALYSIS
The action is not defined as a “project” per Section 15378(b)(4) of the CEQA Guidelines because the action is the approval of a master agreement for a feasibility study and
APPROVAL OF MASTER AGREEMENT WITH KOSMONT AGENCY FOR HOTEL FEASIBILITY STUDY AND DEVELOPER ADVISORY SERVICES IN THE AMOUNT NOT-TO-EXCEED $35,000. - 2 -
advisory services and therefore, it is the creation of a governmental funding mechanism that does not involve any commitment to a specific project that can result in a potentially significant impact and not subject to CEQA.
APPROVED BY THE CITY ATTORNEY
Yes
ALTERNATIVES
Staff does not recommend any alternative to this proposed action.
NEXT STEPS
Upon approval of the recommendation, the City and Kosmont will sign the Master Agreement and Kosmont will begin the Hotel Feasibility Study process and preparation of the Request For Qualifications form to share with prospective developers.
ATTACHMENTS
1. Kosmont Master Agrmt Hotel Developer Services
336 Pacific Avenue, Shaftel California 93263
June 7,2023
Ken K. Hira, President
Kosmont Companies
1601 N. Sepulveda Blvd.,#382
Manhattan Beach, CA 90266
Re: Letter Agreement for Hotel Feasibility Study and RFQ/P Developer Solicitation Dear Mr. Hira,
PARTIES: This letter shall be our agreement ("Leffer Agreement") regarding the Hotel Feasibility Study and RFQ/P Developer Solicitation described below ("Services") to be provided by Kosmont Companies ("Contractor") as an independent contractor to the City of Shafter ("City") for the City's Future Hotel and Retail Development Project ("Project"). Contractor is retained as an independent contractor and is not an employee of the City.
SERVICES; SCHEDULE oF PERFzRMANCE: The Services to be provided are more particularly described in the Scope of Services attached hereto as Exhibit "4" and incorporated herein by reference. Services on the Project shall begin immediately and be completed by December 31,2023 (raTe expiration date), unless extended by the City in writing.
Sr¿¡,lo¿nn oF CARE: Contractor shall perform all Services under this Letter Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California, and consistent with all applicable laws.
Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications, training, and approvals of whatever nature that are legally required to perform the Services, including a City Business License, State Water Resources and/or Regional Water Quality Control Board permits and training, that such licenses and approvals shall be maintained throughout the term of this Letter Agreement, copies of which shall be provided on request.
REPRESENTATI2NS oF C)NTRACT)R. Contractor represents as follows:
(a) If required by the jurisdiction where this Agreement is to be performed, Contractor has a business license or business tax registration.
(b) Contractor maintains a business location that is separate from the business or work location of City.
(c) Contractor is customarily engaged in an independently established business of the same nature as that involved in the work performed under this Agreement. (d) Contractor actually contracts with other businesses or cities to provide the same or similar services and maintains a clientele without restrictions from the City. (d) Contractor advertises and holds itself out to the public as available to provide the same or similar services.
(BB&K: 2013)
I tóv¿.uuvuu'l+tó¿JJ t.¿
City Manager
(661) 746-5000
Fax (661) 746-0607
Finance
(661) 746-5001
Fax (661) 746-1002
Human Resources
(661) 746-5003
Fax (661) 746-2645
Planning/Building/En gineering
(661) 746-5002
Fax 16â1) 74â-9125 Page 508 of 518
City of Shafter
Kosmont Companies
Letter Agreement for Hotel Feasibility Study and RFQ/P Developer Solicitation June 7,2023
Sunsrtrurto¡v oF KEv PERSINNEL' Contractor has represented to City that certain key personnel will perform and coordinate the Services under this Letter Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Contractor cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Letter Agreement for cause. The key personnel for performance of this Letter Agreement are as follows: Ken K. Hira and Robert Travis.
CouprNs¿rtou.' Compensation for the above services shall be based on the actual amount of tirne spent in adequately performing the Services and shall be billed at the hourly rate(s) of Compensation described in the Contractor's rate sheet attached hereto as paft of Exhibit A and incorporated herein by reference. The total compensation shall not exceed $15,000 for Task 1 and $20,000 for Task 2 without written approval of City Manager. Contractor's invoice shall include a detailed description of the Services performed. Invoices shall be submitted to the City monthly as performance of the Services progresses. City shall review and pay the approved charges on such invoices in a timely manner.
PREVAILING W¿crs: Contractor is aware of the requirements of California Labor Code Section 1120, et seq., and 1770, ef seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the perfotmance of other requirements on "public works" and "rnaintenance" projects, if applicable, the Services are being performed as parl of an applicable "public works" or oomaintenance" project, as defined by the Prevailing Wage Laws, and if applicable, the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Letter Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Seruices available to interested parties upon request and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnif,, and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
If the Services are being performed as part of an applicable "public works" or "maintenance" project, then pursuant to Labor Code Sectiot"ts 1725.5 and 1111.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations.
Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements.
INSURANCE.' Contractor shall provide proof of commercial general liability and automobile insurance to the City in amounts and with policies, endorsements and conditions required by the City for the Services. If Contractor is an employer or otherwise hires one or more employees during the term of this Project, Contractor shall also provide proof of workers' compensation coverage for such employees which meets all requirements of state law.
TERMINATI)N.' The City may terminate this Letter Agreement at any time with or without cause. If the City finds it necessary to tenninate this Letter Agreement without cause before Project completion, Contractor shall be entitled to be paid in full for those Services adequately completed prior to 7 7 802.00000u4 5 82337 .2
(BB&K: Update 2013)
City of Shafter
Kosmont Companies
Letter Agreement for Hotel Feasibility Study and RFQ/P Developer Solicitatiorr June 7,2023
the notification of termination. Contractor may terminate this Letter Agreement only upon 30 calendar days' written notice to the City only in the event of City's failure to perform in accordance with the terms of this Letter Agreement through no fault of Contractor.
INDEMNIFICATIzN: To the fullest extent permitted by law, Contractor shall defend, indemniff and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to properly or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor's Services, the Project or this Letter Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys' fees and other related costs and expenses.
Notwithstanding the foregoing, to the extent Contractor's Services are subject to Civil Code Section 2182.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, orwillful misconduct of the Contractor. Contractor's obligation to indemnifl, shall survive expiration or termination of this Letter Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, or volunteers.
Ltws & Rncut¿rtous; Euprcvna/L¿BoR CERTTFT:ATTzNS: Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all CallOSHA requirements; all emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD), the California Air Resources Board (CARB) or other governmental agencies; and all water quality laws, rules and regulations of the Environmental Protection Agency, the State Water Resources Control Board, the Los Angeles Regional Water Quality Control Board and the City. By executing this Letter Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time.
Contractor shall maintain records of its compliance, including its verification of each employee, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours, The City shall not be responsible for any costs or expenses related to Contractor's compliance with the requirements. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants performing any work relating to the Project or this Letter Agreement to make the same verifications and comply with all requirements and restrictions provided herein. Contractor's failure to cornply or any material misrepresentations or omissions relating thereto shall be grounds for terminating this Letter Agreement for cause. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers' Compensation or to undeftake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. Finally, Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment in violation of state or federal law. As provided for in the indemnity obligations of this Letter Agreement, Contractor shall indemniry City against any alleged violations of this paragraph, including, but not limited to, any fines or penalties imposed by any governmental agency.
7 7 802.00000\24 s82337 2
(BB&K: Update 2013)
City of Shafter
Kosmont Companies
Letter Agreement for Hotel Feasibility Study and RFQ/P Developer Solicitation lune 7,2023
GovnnNmc Ltw; VrNu¿; Gov¿nNunNT CIDE Ct¿tu Coupu¿Ncn ATTqRNEvS' FEES:
This Letter Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Letter Agreement, the action shall be brought in a state or federal court situated in Los Angeles County, State of California. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Letter Agreement, the prevailing pafty shall be entitled to recover all reasonable fees and costs incurred, including reasonable attorneys' fees, as determined by the court.
Asslc¡¡uøNr; Aur,¡vnunur: Contractor shall not assign, sublet, or transfer this Letter Agreement or any rights under or interest in this Letter Agreement without the written consent of the City, which may be withheld for any reason. This Letter Agreement may not be modified or altered except in writing signed by both parties. Except to the extent expressly provided for in the tennination paragraph, there are no intended third-parfy beneficiaries of any right or obligation of the Parties.
ENTIRE Acaøour,¡,¡r; Co¡vsrnucnoN & Ctpnous: This is an integrated Letter Agreement representing the entire understanding of the parties as to those matters contained herein and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. Since the Parties or their agents have participated fully in the preparation of this Letter Agreement, the language of this Letter Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. The captions of the various paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Letter Agreement.
7 7 802.00000u4 5 82337 .2
(BB&K: Update 2013)
City of Shafter
Kosmont Companies
Letter Agreement for Hotel Feasibility Study and RFQ/P Developer Solicitation June 7,2023
If you agree with the terms of this Letter Agreement, please indicate by signing and dating where indicated below. An original, executed copy is enclosed for your records.
CITY OF SHAFTBR
Approved by Attest
Gabriel A. Gonzalez
City Manager
KOSMONT COMPANIES
Reviewed and Accepted by Contractor
Ken K. Hira, President
Kosmont Companies
Date
Yazmina Pallares
City Clerk
7 7 802. 00000u4 5 82337 .2
(BB&K: Update 2013)
koSfn
Exh¡b¡t A
Memorandum
Gabriel Gonzalez, City Manager, City of Shafter
Bob Meadows, Business Development Coordinator, City of Shafter Ken K. Hira, President, Kosmont Companies
Robert Valenti, Vice President, Kosmont Companies
June 4,2023
Ongoing Advisory - Hotel Feasibility Study and RFQ/P Developer Solicitation
To:
From
Date:
Subject:
I. BACKGROUND
The City of Shafter ("City" or "Client") retained Kosmont Companies ("Kosmont" or "Consultant") in March 2023 îor real estate advisory services in connection with business / developer attraction for commercial areas in the City. These services included a high-level analysis of the market conditions and opportunity sites in the City, the development of marketing collateral to market the City and opportunity sites, and business / developer attraction services at the ICSC Conference May 22 - 23,2023 in Las Vegas. While at the Conference, Kosmont and the City held meetings with retailers, brokers, developers and hotel chains who are interested in the City. Hotel chains expressed that a feasibility study would help to advance a hotel project in the City.
As requested by the City, Kosmont proposes a time sensitive Work Plan and Budget Authorization to assist with continued economic development and real estate advisory services following the ICSC Conference.
II. WORK PLAN
Approach to Tasks: The prospective assignment and consulting seruices that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "design ated" positio n.
Task 1: Hotel Feasibility Study
Suþúask 1.1: Kickoff Meeting
Kosmont will participate in a virtual kick-off meeting with City to establish objectives and obtain information on potential hotel sites.
Subfask 1.2: Hotel Market Demand Analysis
Kosmont will gather key market metrics from CoStar and Smith Travel Research (STR) that includes historic hotel average daily rates (ADR), occupancy, revenue per available room 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
work ptan ror Hotet Feas¡b,,t,
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(RevPAR), existing supply of room nights, demand for room nights, regional construction activity and/or other factors such as visitor data from Placer.ai that may inform market potential for hospitality uses.
Kosmont will gather research on key hotel location factors (lot size, frontage, traffic volume, regional access, local demand drivers). Kosmont will review hotel properties in the submarket to understand available amenities, such as restaurants, lounges, conference meeting facilities in the hotel market competitive set. Kosmont will evaluate key market supply and demand data to assess general feasibility for hotel development and identify suitable sites.
Suöfask 1.3: Pro Forma lllustration
Budget permitting, Kosmont can prepare a high level illustrative pro forma to demonstrate the supportable investment value for a hotel project, as compared to typical hotel development costs.
Report
Kosmont will expeditiously prepare a draft summary report in PowerPoint format, that summarizes our research, analysis and recommendations and present a final report virtually.
Task 2: Developer RFQ/P Advisory
Kosmont understands that the City is interested in hotel developer solicitation. Kosmont can assist City with initial Request for Qualifications / Proposals (RFQ/P) and developer vetting / due diligence. This can include preparing or providing peer-review editing of RFQ/P for sites, as appropriate, subject to Surplus Land Act (SLA) process for City-owned properties. Kosmont can also help evaluate submittals, request additional information and assist with initial developer negotiations.
III. BUDGET
The budget for Task 1 of this Work Plan ranges $10,000 - 15,000 and Task 2 ranges $15,000 - 20,000, based on professional services (hourly) fees as shown on Attachment A. Budget may be increased by City request at any point in time.
Kosmont is appreciative of the opportunity to continue to work with the City on exciting projects and opportunities. Thank you.
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CAg0266 I ph 424.2971070 I www.kosmont.com
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June 4,2023
ATTACHMENT A
Kosmont Companies
2023 Public Agency Fee Schedule
Professional Services
Chairman & CEO
President
Sr. Vice PresidenVSr. Advisor/Sr. Managing Director
Vice PresidenUProject Advisor
Senior Project Analyst
Project AnalysUProject Research
Assistant Project AnalysUAssistant Project Manager
Project Promotion/Graphics/GlS Mapping Services
ClericalSupport
Additional Expenses
ln addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) ProjecUMarket data sources for support of evaluation and analysis e.9., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) lf Kosmont retains Third Party Vendor(s) for Client (with Client's advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant's attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.9., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
. Charqes for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.
Rafes shall remain in effect until December 31, 2023
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, C490266 I ph 424.2971070 I www.kosmont.com $445.00/hour
$385.00/hour
$350.00/hour
$225.00/hour
$195.00/hour
$165.00/hour
$125.00/hour
$ 95.00/hour
$ 70.00/hour
MANAGEMENT REPORT
CITY OF SHAFTER
CITY COUNCIL REPORT
MEETING DATE: June 20, 2023
FROM: Gabriel A. Gonzalez, City Manager
PREPARED BY: Alex Gonzalez, Associate Engineer
SUBJECT: AWARD A CONSTRUCTION AGREEMENT TO GRIFFITH
COMPANY, INC. FOR THE LERDO HIGHWAY
RECONSTRUCTION PROJECT FROM VALLEY STREET TO
SHAFTER AVENUE (CIP PROJECT ST00036)
RECOMMENDATION
Council find the requested action is exempt from the California Environmental Quality Act; accept the bids received for the Lerdo Highway Reconstruction Project Valley St – Shafter Ave (ST00036); and authorize the City Engineer to issue a Notice of Award and Notice to Proceed to Griffith Company for the Base Bid plus Alternate Bid.
BACKGROUND
The Capital Improvement Program for Fiscal Year 2023-2024, drafted for City Council approval at tonight's meeting, includes $1 million for improving Lerdo Highway between Shafter Avenue and Valley Street. The work scope includes full pavement reconstruction and ADA-compliant crosswalks and access ramps. Various drive approach, sidewalk, and curb replacements are also planned.
The Council authorized staff to release the project for formal bidding this past May. Bidders were instructed to provide a base bid that covers a stretch of the roadway between Shafter Avenue and Wall Street, plus an alternate bid to add the remaining stretch westerly to Valley Street. Having an added alternate bid strategy allows the Council flexibility to award a smaller-scale project should costs for the entire project scope significantly exceed the budget the City is willing to commit. The alternate cost to add should be considered only for the contractor submitting the lowest responsive base bid.
A total of three (3) bids were received and publicly opened on June 9, 2023. The bid results are as follows:
Contractor Base Bid Price Alternate Bid Price Total Bid Price Griffith Company $519,735.00 $452,735.00 $972,470.00
Burtch Construction $547,092.00 $567,520.00 $1,114,612.00 Bowman Asphalt, Inc. $571,180.00 $452,483.00 $1,023,663.00
ANALYSIS
AWARD A CONSTRUCTION AGREEMENT TO GRIFFITH COMPANY, INC. FOR THE LERDO
HIGHWAY RECONSTRUCTION PROJECT FROM VALLEY STREET TO SHAFTER AVENUE (CIP PROJECT ST00036)
- 2 -
Griffith Company, Inc. (Griffith) submitted the confirmed lowest responsive base bid valued at $519,735 with an alternate bid of $452,735, meaning their cost for the complete project scope is $972,470. They have successfully performed past street improvement projects for the City, most recently the 2022 Poso Street and Storm Drain Improvement Project, completed earlier this year.
A budget of $1,050,000 would cover Griffith's bids, construction contingencies, and estimated inspection and testing services. Public Works plans to complete the project before the school resumes for nearby schools.
FISCAL IMPACT
Provided the Fiscal Year 2023-2024 budget is adopted at tonight's meeting, CIP Project ST00036 will have $1,000,000 in funding for this project. Approximately $466,000 of this funding comes from the State of California Road Maintenance and Rehabilitation Account, with the remaining balance coming from other routine funding sources. Covering the recommended budget of $1,050,000 requires an additional $50,000 in CIP street project funding reserves.
CEQA ANALYSIS
Per Section 15302 of the California Environmental Quality Act (CEQA) Guidelines, the action is exempt because the improvements proposed will reconstruct the existing road section and concrete improvements but will substantially serve the same purpose.
APPROVED BY THE CITY ATTORNEY
Not Applicable
ALTERNATIVES
The Council can direct staff to award only the base bid that constructs a smaller-scaled project to preserve CIP street funding for other projects or to reduce the traffic disruptions during construction. A second alternative for preserving street funding is to defer the entire project, which requires a rejection of all bids. While this project is costly to construct and will involve traffic disruptions, its completion will significantly enhance the condition and safety of the roadway for motorists and pedestrians. Provided a construction contract is authorized tonight, Public Works should be able to develop a schedule for completing this project to at least avoid conflicts with school traffic. Alternative action is not recommended.
NEXT STEPS
Once authorization to award has been approved, a notice of award will be issued and staff will review the insurance requirements, execute a contract and issue a notice to proceed.
ATTACHMENTS
1. Bid Results - Lerdo Hwy Reconstruction - Valley St. to Shafter Ave.
A.
ITEM DESCRIPTION QTY UNITS Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost A1 HMA 3/4" TYPE A, PG64-10 2477 TONS $ 97.00 $ 240,269.00 $ 110.00 $ 272,470.00 $ 106.00 $ 262,562.00A2 FULL DEPTH GRIND/12" REMOVAL 33021 SF $ 1.35 $ 44,578.35 $ 2.55 $ 84,203.55 $ 1.80 $ 59,437.80A3 SUBGRADE PREP 33021 SF $ 0.40 $ 13,208.40 $ 0.25 $ 8,255.25 $ 1.20 $ 39,625.20A4 FOG SEAL 33021 SF $ 0.10 $ 3,302.10 $ 0.10 $ 3,302.10 $ 0.08 $ 2,641.68A5 DEMO/REPLACE CURB & GUTTER 731 LF $ 60.65 $ 44,335.15 $ 79.00 $ 57,749.00 $ 73.00 $ 53,363.00A6 DEMO/REPLACE SIDEWALK 2294 SF $ 10.20 $ 23,398.80 $ 13.00 $ 29,822.00 $ 13.00 $ 29,822.00A7 DEMO/REPLACE RESIDENTIAL DRIVE APPROACH 1368 SF $ 16.65 $ 22,777.20 $ 21.00 $ 28,728.00 $ 16.00 $ 21,888.00A8 REPLACE TRAFFIC LOOPS 7 EA $ 900.00 $ 6,300.00 $ 1,130.00 $ 7,910.00 $ 900.00 $ 6,300.00A9 ADJUST FACILITIES TO GRADE (LARGE) 1 EA $ 3,500.00 $ 3,500.00 $ 2,268.00 $ 2,268.00 $ 1,700.00 $ 1,700.00 A10 TRAFFIC STRIPING 1 LS $ 7,100.00 $ 7,100.00 $ 8,919.10 $ 8,919.10 $ 7,100.00 $ 7,100.00A11 TRAFFIC CONTROL 1 LS $ 55,000.00 $ 55,000.00 $ 25,126.00 $ 25,126.00 $ 30,000.00 $ 30,000.00A12 CONSTRUCTION SURVEYING 1 LS $ 5,000.00 $ 5,000.00 $ 5,276.00 $ 5,276.00 $ 10,300.00 $ 10,300.00A13 PERMIT AND INSPECTION FEE ALLOWANCE 1 LS $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00A14 MOBILIZATION 1 LS $ 50,466.00 $ 50,466.00 $ 12,563.00 $ 12,563.00 $ 45,940.32 $ 45,940.32 Subtotal 519,735.00 $ Subtotal 547,092.00 $ Subtotal 571,180.00 $ B.
B1 HMA 3/4" TYPE A, PG64-10 1718 TONS $ 97.00 $ 166,646.00 $ 159.00 $ 273,162.00 $ 100.00 $ 171,800.00 B2 FULL DEPTH GRIND/12" REMOVAL 22900 SF $ 1.35 $ 30,915.00 $ 2.55 $ 58,395.00 $ 1.80 $ 41,220.00B3 SUBGRADE PREP 22900 SF $ 0.40 $ 9,160.00 $ 0.35 $ 8,015.00 $ 0.90 $ 20,610.00B4 FOG SEAL 22900 SF $ 0.10 $ 2,290.00 $ 0.10 $ 2,290.00 $ 0.08 $ 1,832.00B5 DEMO/REPLACE CURB & GUTTER 1143 LF $ 56.25 $ 64,293.75 $ 75.00 $ 85,725.00 $ 68.00 $ 77,724.00B6 DEMO/REPLACE SIDEWALK 4568 SF $ 10.15 $ 46,365.20 $ 13.00 $ 59,384.00 $ 12.00 $ 54,816.00B7 DEMO/REPLACE RESIDENTIAL DRIVE APPROACH 771 SF $ 16.65 $ 12,837.15 $ 21.00 $ 16,191.00 $ 21.00 $ 16,191.00B8 DEMO/REPLACE COMMERCIAL DRIVE APPROACH 695 SF $ 17.35 $ 12,058.25 $ 23.00 $ 15,985.00 $ 22.00 $ 15,290.00B9 ADJUST FACILITIES TO GRADE (LARGE) 1 EA $ 1,500.00 $ 1,500.00 $ 2,268.00 $ 2,268.00 $ 1,700.00 $ 1,700.00 B10 TRAFFIC STRIPING 1 LS $ 2,500.00 $ 2,500.00 $ 3,140.00 $ 3,140.00 $ 2,500.00 $ 2,500.00B11 TRAFFIC CONTROL 1 LS $ 55,000.00 $ 55,000.00 $ 25,126.00 $ 25,126.00 $ 8,800.00 $ 8,800.00B12 CONSTRUCTION SURVEYING 1 LS $ 5,000.00 $ 5,000.00 $ 5,276.00 $ 5,276.00 $ 6,000.00 $ 6,000.00B13 MOBILIZATION 1 LS $ 44,169.65 $ 44,169.65 $ 12,563.00 $ 12,563.00 $ 34,000.00 $ 34,000.00 Subtotal 452,735.00 $ Subtotal 567,520.00 $ Subtotal 452,483.00 $ Total Bid Price 972,470.00 $ Total Bid Price 1,114,612.00 $ Total Bid Price 1,023,663.00 $ Name Item Name Item Name Item
Harker Striping &Signage Inc Traffic Striping
Harker Striping &
Signage Striping
Harker Striping &Signage
Striping, Traffic Control,Mobilization
Cen‐Cal Construction Concrete Cen‐Cal Construction Concrete Cen‐Cal Construction Minor Concrete Loop Electric Loops Loop Electric Loop Detector Loop Electric Inc Vehicle Detector Loops Pavement RecyclingSystems Inc Full Depth Grind
Subcontractors
Griffith Company Burtch Construction Bowman Asphalt Inc 2023 Lerdo Highway Reconstruction Project
LERDO HIGHWAY RECONSTRUCTION (WALL ST. - SHAFTER AVE.)
ALTERNATE BID ITEMS (VALLEY ST. - WALL ST.)
Subcontractors Subcontractors