For City Council Meeting March 12, 2024
TO: Honorable Mayor and City Council
FROM: David N. Carmany, City Manager
AUTHOR: Tim Sullivan, Director of Maintenance and Facilities
Title
Consideration of Award of a Construction Contract to Deark E&C Inc. in the Amount of $794,073 for Downtown Parking Lot Improvements at Riverside Ave and W. Rialto Ave
RECOMMENDATION:
Staff recommends that the City Council:
1. Award a Construction Contract to Deark E&C Inc. in the amount of $794,073 for Downtown Parking Lot Improvements, City Project No. 230801.
2. Authorize a Contract Change Order Request in the amount of $130,528 with Fountainhead Corporation pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Downtown Parking Lot Improvements, City Project No. 230801.
3. Authorize the City Manager to Execute all Related Documents.
(ACTION)
Body
BACKGROUND:
A paved parking lot is proposed on the northeast corner of S. Riverside Avenue and W. Rialto Avenue to support downtown businesses and patrons. The 18,000 square feet of paved area will include drive aisles, transitions, and 47 Parking spaces. Five of the 47 parking spaces will be ADA-compliant access parking, with two of those being electric vehicle charging accessible. Conduit will be stubbed out so that four of the 42 non-ADA parking spaces may be eventually become EV charging spaces. A bio-filtration system will be constructed in select planters to collect and treat stormwater runoff. Other improvements include the installation of lighting and landscaping. A monument sign is proposed at the northeast corner of S. Riverside Drive and W. Rialto Avenue and will be included as a stand-alone project.
Pursuant to their on-call contract for Professional Services, Harris & Associates, Inc. was issued a purchase order in the amount of $72,133 under the City Manager’s signature authority for the design of the parking lot. A task order authorization for an amendment to the purchase order was executed on November 14, 2023, in the amount of $67,626 under the City Manager’s signature authority for additional water quality management and geotechnical services related to design due to the addition of the impervious area.
On December 12, 2023, the City Council authorized the release of bids for Downtown Parking Lot Improvements, City Project No. 230801.
ANALYSIS/DISCUSSION:
On January 16, 2024, the City published the Notice Inviting Bids and released RFB No. 24-013 on PlanetBids.com for the Downtown Parking Lot Improvements, City Project No. 230801.
On February 16, 2024, the City received 12 bids, tabulated in Table 1 below:
Table 1
A complete bid summary is included as Attachment 1. The engineer’s estimate was $850,000. The lowest responsible and responsive bid was $794,073 submitted by Deark E&C Inc. Staff reviewed the bid and found Deark E&C Inc. to be properly licensed and qualified. Deark E&C Inc.’s Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 2. Staff recommends that the City Council accept the bid received from Deark E&C Inc. as the lowest responsible and responsive bid. A construction contract with Deark E&C Inc. for the project is included as Attachment 3.
Construction Management and Inspection
On April 12, 2022, the City Council approved an on-call agreement with Fountainhead Corporation (Fountainhead) for on-call construction management, inspection, and materials testing services for an initial Three (3) year term, with two (2) optional one (1) year extensions.
Staff has reviewed and recommends approval of the proposal provided by Fountainhead based on their experience overseeing projects of this magnitude similar in scope to the Project. A copy of their proposal is included as Attachment 4. Fountainhead has provided a fee proposal of $130,528 to provide the required construction phase services through the duration of the project. A copy of Fountainhead’s Disclosure Statement is included in Attachment 5.
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality (CEQA) include a list of classes of projects that have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15332, “In-Fill Development Projects,” Class 32 projects allow for the exemption of a project consistent with the applicable general plan designation and all applicable general plan policies, as well as with applicable zoning designation and regulation. The proposed project development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses that has no value, as a habitat for endangered, rare, or threatened species. The site can be adequately served by all required utilities and public services. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; therefore, the installation of a parking lot for Downtown Parking Lot Improvements, City Project No. 230801, is considered categorically exempt from CEQA. Staff will file a Notice of Exemption for the project.
GENERAL PLAN CONSISTENCY:
The City of Rialto General Plan establishes various guiding principles, goals, and objectives through which the City looks to improve the community and protect the quality of life for our residents. This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-11: Provide community facilities that adequately support established programs, can accommodate future needs, and are accessible to all members of the community.
The project also supports the City’s Economic Development Committee’s goal to improve parking in the Downtown area to support local businesses along Riverside Avenue.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The project is currently being funded by the Capital Projects Funds, Account No. 33007305-53001-230801, for $500,000. As of now, $140,000 has been expended or encumbered, leaving a remaining project budget balance of $360,000 for the construction and construction engineering costs.
Since the construction bids came in higher than initially estimated, staff recommends an additional $570,528 be appropriated from the Capital Projects Funds to accommodate additional budget for the construction contract and construction support services. The additional funds are currently available in the Capital Projects Fund, Account No. 33007305-53001, and do not require the adoption of a budget resolution.
Table 2 below shows the original budget, proposed appropriations, and revised project budget.
Table 2 - Project Budget
The award of the construction contract with Deark E&C Inc. will be funded by the Capital Projects Fund Account No. 33007305-53001-230801-05 for $794,073.
Furthermore, Construction Management and Inspection services with Fountainhead Corporation will be funded by Capital Projects Fund Account No. 33007305-53001-230801-16 in the amount of $130,528.
Licensing
A Business License Tax at the Professional Services rate in the amount of $854 based on the construction amount of $794,073 and $204 based on the $130,528 Construction Management & Inspection contract will be assessed.