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Consent
Item No. 7.
| MEETING DATE: 10/16/2023 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Elias Saykali, Public Works Director |
| SUBJECT: | APPROVE AWARD OF CONTRACT TO LEGION CONTRACTORS, INC., FOR THE VISTA GRANDE PARK IMPROVEMENT PROJECT, CITY PROJECT NO. 2-P-22
|
RECOMMENDATION:
That the City Council:
A. Approve the Plans and Specifications for the Vista Grande Park Improvement Project, City Project No. 2-P-22;
B. Award a construction contract for the Vista Grande Park Improvement Project, City Project No. 2-P-22 to Legion Contractors, Inc., of Irvine, California, in the amount of $9,998,043.55 and reject all other bids;
C. Authorize the City Manager to execute an agreement with Legion Contractors, Inc., and issue a purchase order in the amount of $10,997,848; which includes a 10 percent contingency; and,
D. Re-purpose and allocate additional funding in the amount of $2,612,535 from various funding sources to fully fund construction, inspection, and materials testing services associated with the Vista Grande Park Improvement Project, City Project No. 2-P-22.
DISCUSSION:
It has been a longtime goal of the City to improve and expand recreational opportunities at Vista Grande Park, one which included several years of planning, various studies, park design options, and public input. This City-owned site consists of 17.7 acres of undeveloped land at 1100 West Lambert Road. The site was formerly operated as an Orange County-owned landfill, which has been closed for several decades. On July 15, 2019, after receiving public input and considering design options, the City Council approved a family-oriented recreational park design for Vista Grande Park.
Park amenities include: open play fields, a walking and running path, exercise stations, roadways and parking areas, playground equipment, an art wall, a food truck circle, an amphitheater, a drought tolerant demonstration garden, landscaping/irrigation, installation of stormwater drainage basins, tree planting, a gazebo, a volleyball court, a basketball/futsal court, picnic tables and other park amenities. The project will also make modifications to the landfill gas control system and the installation of a new landfill cap to meet regulatory agency requirements such as the California Regional Water Board (Santa Ana RWQCB), CalRecycle, and the local environmental enforcement agency (LEA).
After several years of planning, staff is ready to award a contract for the construction of Vista Grande Park. In June 2023, the City released a Notice of Inviting Bids for the construction of Vista Grande Park. On August 30, 2023, staff received the following bids:
Park amenities include: open play fields, a walking and running path, exercise stations, roadways and parking areas, playground equipment, an art wall, a food truck circle, an amphitheater, a drought tolerant demonstration garden, landscaping/irrigation, installation of stormwater drainage basins, tree planting, a gazebo, a volleyball court, a basketball/futsal court, picnic tables and other park amenities. The project will also make modifications to the landfill gas control system and the installation of a new landfill cap to meet regulatory agency requirements such as the California Regional Water Board (Santa Ana RWQCB), CalRecycle, and the local environmental enforcement agency (LEA).
After several years of planning, staff is ready to award a contract for the construction of Vista Grande Park. In June 2023, the City released a Notice of Inviting Bids for the construction of Vista Grande Park. On August 30, 2023, staff received the following bids:
| No. | Contractor | Total Bid |
| 1 | Legion Contractors, Inc., Irvine, Ca | $9,998,043.55 |
| 2 | KASA Construction, Chino, Ca | $10,967,334.50 |
| 3 | Nationwide Contracting Services, Huntington Beach, Ca | $11,426,535.36 |
| 4 | PUB Construction, Diamond Bar, Ca | $16,173,160.39 |
Staff reviewed the lowest bid from Legion Contractors, Inc. (Legion), and found their bid to be responsive. Staff reviewed Legion's references and found their record of performance to be satisfactory, with no record of excessive or unreasonable change order requests initiated by the Contractor. On September 14, 2023, staff sent a Notice of Intent to Award to all bidders notifying them that the City will be recommending a contract award to the lowest responsive bidder (Legion).
On September 24, 2023, the City received a formal bid protest letter from the second-lowest bidder, KASA Construction, against the lowest bidder, Legion. KASA Construction claimed that Legion failed to list qualified and experienced subcontractors, failed to list the years of experience from the subcontractors, and that the lack of a corporate seal on the bid should be grounds to deem the low bidder as non-responsive and/or non-responsible. Staff reviewed KASA Constructions' claims, and after consultation with the City Attorney's Office, the City found that the protest claims had no merit and were thus rejected.
Therefore, staff recommends that the City Council award a construction contract to Legion Contractors, authorize the City Manager to execute an agreement (Attachment No.1), and re-allocate additional funding in the amount of $2,612,535 from various sources to fully fund construction, construction management, inspection, and material testing services as required by the Project.
FISCAL IMPACT/SOURCE OF FUNDING:
The Project is included in the Fiscal Year (FY) 2023-2024 Capital Improvement Program (CIP) with a total approved budget of $8,184,962. Due to the higher than anticipated cost of this project, staff requests that the City Council appropriate additional funds to cover the full cost of construction, inspection, and material testing for this project. To cover the budget shortfall, staff is proposing the following:
- Allocate available unused funds from capital projects that are close to completion and/or completed and re-purpose funds from previously earmarked capital projects that have not started in the amount of $1,807,494; and,
- Approve a new allocation from the General Capital Fund in the amount of $805,041.
The source of funds for the proposed amended Project budget will be as follows:
| Funding Source | Approved FY 23/24 Budget |
Re-purpose of Unused Funds |
Proposed New Allocation |
Proposed FY 23/24 Amended Budget |
|---|---|---|---|---|
| Park Grants (Prop 68) | $3,000,000 | $0 | $2,000,000 | $5,000,000 |
| Park Acquisition Funds | $100,000 | $1,189,494 | $0 | $1,289,494 |
| Cal Recycle Grant | $750,000 | $0 | $0 | $750,000 |
| St. Jude Grant | $40,000 | $0 | $0 | $40,000 |
| Refuse Fund | $4,017,198 | $0 | $0 | $4,017,198 |
| Water Enterprise | $277,764 | $0 | $0 | $277,764 |
| Capital Projects Fund | $0 | $618,000 | $805,041 | $1,423,041 |
| Totals | $8,184,962 | $1,807,494 | $2,805,041 | $12,797,497 |
On September 14, 2023, the City received notification from the Grants Office of California State Parks in Sacramento that the City was a successful grant applicant and was awarded an additional $2,000,000 in Proposition 68 funding for our Vista Grande Park Improvement Project, bringing our total amount of Proposition 68 funding for the Project to $5,000,000.
In addition to the acceptance and allocation of the new Proposition 68 grant funding, staff are requesting an additional Capital Projects Fund allocation in the amount of $805,041 and the re-purposing of Capital Project funds in the amount of $1,807,494, from the following projects:
| CIP No. | Capital Projects | Re-Purpose Amount | Funding Source |
| I 5 | Parking Lot Improvements | $120,000 | General Capital Project |
| I 6 | Security Cameras at Brio and Oeste Park | $120,000 | Park Acquisition |
| IP 12 | Home Demolition at 107 E. 2nd Street | $70,000 | General Capital Projects |
| IP 13 | New Parking Lot at 222 S. Euclid Street | $428,000 | General Capital Projects |
| IP 14 | Montwood Park Safety Lighting Installation | $125,000 | Park Acquisition |
| IP 18 | Security Cameras at Estelli and Portola Park | $163,000 | Park Acquisition |
| IP 20 | Loma Norte Restroom | $300,000 | Park Acquisition |
| IP 21 | Sports Park Renovations at Esteli Park and La Bonita Park, 5 Scoreboards | $100,000 | Park Acquisition |
| IP 25 | Old Reservoir Park Improvements | $381,494 | Park Acquisition |
| TOTAL | $1,807,494 |
The amounts indicated for design support, construction management, inspection, and material testing services are only estimated at this time. Staff is currently soliciting proposals from engineering firms to provide such services. The budget for these services will be adjusted accordingly once staff recommends a contract award to the most qualified firm.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
General Plan Relevance:
ED 9.1 Balanced Fiscal Practices
LU 2.6 Places that Support Healthy Lifestyles
LU 3.1 Sustainable Development Pattern
LU 3.6 Connected Greenways Network
LU 5.4 Sustainable Sites and Land Development
LU 8.3 Parks and Open Space Amenities
LU 3.7 Integrated and Cohesive Development
AQ 1.1 Ambient Air Quality Standards
AQ 1.2 Greenhouse Gas Emission Targets
AQ 2.8 Emissions Reduction
WS 1.8 Use of City Water and Domestic Water Facility Construction
WS 2.1 Water Conservation Standards and Programs
OS 2.4 Park Types
OS 2.14 Healthy Parks
OS 2.15 Accessible Features
It is also consistent with the following City Council FY 23/24 Goals and Objectives:
Goal 2 - Management of Public Revenues and Fiscal Assets
Objective C - Identify and pursue funding opportunities for City capital projects
Objective H - Pursue grant funding opportunities where and when possible to supplement and/or replace direct funding
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective B - Maintain and upgrade City parks
ED 9.1 Balanced Fiscal Practices
LU 2.6 Places that Support Healthy Lifestyles
LU 3.1 Sustainable Development Pattern
LU 3.6 Connected Greenways Network
LU 5.4 Sustainable Sites and Land Development
LU 8.3 Parks and Open Space Amenities
LU 3.7 Integrated and Cohesive Development
AQ 1.1 Ambient Air Quality Standards
AQ 1.2 Greenhouse Gas Emission Targets
AQ 2.8 Emissions Reduction
WS 1.8 Use of City Water and Domestic Water Facility Construction
WS 2.1 Water Conservation Standards and Programs
OS 2.4 Park Types
OS 2.14 Healthy Parks
OS 2.15 Accessible Features
It is also consistent with the following City Council FY 23/24 Goals and Objectives:
Goal 2 - Management of Public Revenues and Fiscal Assets
Objective C - Identify and pursue funding opportunities for City capital projects
Objective H - Pursue grant funding opportunities where and when possible to supplement and/or replace direct funding
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective B - Maintain and upgrade City parks