For City Council Meeting [July 25, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Tim Sullivan, Director of Maintenance and Facilities
Title
Request City Council to 1) Award a Construction Contract to Baker Electric Inc. in the Amount of $609,162 for the Willow Avenue and San Bernardino Avenue Traffic Signal and Lighting Improvements Project, City Project No. 230805; and 2) Authorize the Acting City Manager to Execute all Related Documents.
(ACTION)
Body
BACKGROUND:
The intersection of Willow Avenue and San Bernardino Avenue currently operates as a non-signalized intersection.
On March 8, 2022, the City Council approved a First Amendment to the Purchase and Sale Agreement by and between the Successor Agency to the Rialto Redevelopment Agency, the City of Rialto, and NewMark Merrill Companies, Inc. relating to the sale of 15.09 acres located west of Riverside Avenue and North of Valley Boulevard. The Amendment obligated the City to design, construct, and install a new, complete, and operational traffic signal at the San Bernardino Avenue and Willow Avenue intersection at its own cost and expense.
On August 9, 2022, City Council adopted Resolution No. 7956, adopting the Fiscal Year 2022/2023 through 2026/2027 Measure I Five Year Capital Improvement Plan and Expenditure Strategy, which included the Willow Avenue and San Bernardino Avenue Traffic Signal and Lighting Improvements Project in the amount of $400,000.
On May 9, 2023, the City Council authorized the release of bids for the Willow Avenue and San Bernardino Avenue Traffic Signal and Lighting Improvements Project.
ANALYSIS/DISCUSSION:
On May 30, 2023, the City published the Notice Inviting Bids and released RFB No. 23-038 on PlanetBids.com for the Willow Avenue and San Bernardino Traffic Signal and Lighting Improvements Project, City Project No. 230805.
On June 29, 2023, the City received seven (7) bids, tabulated in Table 1 below:
Table 1
A complete bid summary is included as Attachment 1. The engineer’s estimate was $500,000. The lowest responsible and responsive bid was $609,162 submitted by Baker Electric Inc. Staff reviewed the bid and found Baker Electric Inc. to be properly licensed and qualified. Baker Electric 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 Baker Electric Inc. as the lowest responsible and responsive bid. A construction contract with Baker Electric Inc. for the project is included as Attachment 3.
Construction Management and Inspection
On April 12, 2022, the City of Rialto entered into an agreement with Fountainhead Corporation for “On-Call” Construction Management and Inspection services.
Staff has requested a proposal from Fountainhead Corporation for the Construction Management and Inspection and Material Testing Services for the Willow Avenue at San Bernardino Traffic Signal Project. Staff is proposing a Purchase Order with Fountainhead in the amount of $89,400. The purchase order will be issued under the City Manager’s authority in the amount not to exceed $100,000.
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 14 CCR Section 15301 “Existing Facilities,” Class 1 projects consist of the repair, maintenance, or minor alteration of existing structures and facilities; therefore, the installation of a traffic signal and street lighting for Willow Avenue & San Bernardino Avenue Signal and Lighting Improvements, City Project No. 230805 is considered categorically exempt from CEQA. Staff has prepared and will file a Notice of Exemption for the project, included as Attachment 4.
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 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report and Construction Contract.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The project is currently funded by Measure I Fund, Account No. 201-500-4310-3001-230805, in the amount of $400,000. The current expended and encumbered project funding is $52,540, leaving a remaining and unexpended project budget balance of $347,460 in the account for the Construction and Construction Engineering costs.
Since the construction bids came in higher than initially estimated, staff recommends that an additional $412,752 be appropriated from the Measure I Funds to accommodate additional budget for the administration, construction contract, and construction support services. Table 1 below shows the original budget, proposed appropriations, and revised project budget.
Table 1 - Revised Project Budget
The award of the construction contract with Baker Electric Inc. will be budgeted and available from the Measure I Fund Account No. 22014310-53001-230805-05 in the amount of $609,162. Additionally, the construction budget has a 10% contingency to cover any unforeseen expenses that may arise during construction.
Furthermore, a purchase order for Construction Management and Inspection services with Fountainhead Corporation will be issued from Measure I Fund Account No. 22014310-53001-230805-15 in the amount of $89,400. The approval of this purchase order is within the authority of the City Manager.
Licensing
A Business License Tax at the Professional Services rate in the amount of $679 based on the construction amount of $609,162 and $154 based on the $89,400 Purchase Order will be assessed.
RECOMMENDATION:
Staff recommends that City Council:
1. Award a Construction Contract to Baker Electric Inc. in the amount of $609,162 for the Willow Avenue and San Bernardino Traffic Signal and Lighting Improvements Project, City Project No. 230805; and
2. Authorize the Acting City Manager to Execute all Related Documents.