AGENDA STAFF REPORT. CEO CONCUR COUNTY COUNSEL REVIEW CLERK OF THE BOARD Pending Review Approved Agreement to Form Discussion 3 Votes Board Majority

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1 AGENDA STAFF REPORT Agenda Item ASR Control MEETING DATE: 04/01/14 LEGAL ENTITY TAKING ACTION: Board of Supervisors BOARD OF SUPERVISORS DISTRICT(S): 2 SUBMITTING AGENCY/DEPARTMENT: John Wayne Airport (Approved) DEPARTMENT CONTACT PERSON(S): Alan L. Murphy (949) SUBJECT: P204 Bristol St. Slope Stabilization-Award Construction Contract CEO CONCUR COUNTY COUNSEL REVIEW CLERK OF THE BOARD Pending Review Approved Agreement to Form Discussion 3 Votes Board Majority Budgeted: Yes Current Year Cost: $215,119 Annual Cost: FY $1,514,193 Staffing Impact: No # of Positions: Sole Source: N/A Current Fiscal Year Revenue: N/A Funding Source: Airport Construction Fund 281: 100% County Audit in last 3 years No Year of Audit Prior Board Action: 12/10/13 #23, 3/27/12 #32 RECOMMENDED ACTION(S): 1. Consent to relieve Future DB International, Inc. from its bid pursuant to Section 5101(a) of the Public Contract Code. 2. Award construction contract to Earth Construction & Mining in the amount of $1,729,312 for the Bristol Street Slope Stabilization project, and authorize the Chair to execute the contract. 3. Direct the Clerk of the Board to return bid bonds or other guarantees to unsuccessful bidders. SUMMARY: John Wayne Airport (JWA) requests that the Board (i) consent to relieve Future DB International, Inc from its bid pursuant to Section 5101(a) of the Public Contract Code, (ii) award a construction contract to Earth Construction & Mining in the amount of $1,729,312 to construct the Bristol Street Slope Stabilization project, (iii) authorize the Chair to execute the contract, (iv) direct the Clerk of the Board to return the Bidder s Bond(s) or other guarantees to the unsuccessful bidder(s) after contract execution; and make CEQA findings. Page 1

2 BACKGROUND INFORMATION: The southern boundary of JWA is North Bristol Street, and its adjacent slope is referred to as the Bristol Street Slope. The slope, which parallels North Bristol Street, is approximately 1,500 feet long and its maximum height above street grade is approximately 20 feet. An 8-foot high airport security fence exists on the top of the Bristol Street Slope. The Bristol Street Slope has exhibited erosion problems for many years. During the rainy season, soil from the slope has eroded onto Bristol Street, causing street maintenance and safety problems. In addition, erosion can potentially undermine the security fence foundation. The Project will improve the stability of the slope and also improve the visual aesthetics along the south boundary. On August 23, 2011, the Board approved the first issuance of the plans and specifications and authorized JWA to advertise for bids for this project. On November 9, 2011 eight bids were received and publicly opened by the Clerk of the Board. In review of the bids, JWA determined that all bids should be rejected. On March 27, 2012 the Board rejected all bids. Subsequent to the Board s rejection of bids, JWA has modified the bid documents, and made revisions to allow for a competitive bidding environment. A specific modification to the bid documents includes the provision that JWA will furnish the specified block for this project. This modification will allow for a competitive bidding condition among qualified contractors, and will potentially realize some cost savings to the County. On December 10, 2013, the Board approved the plans and specifications prepared by DMC Design Group, and authorized JWA to advertise for bids for the project. Five bids were received and opened by the Clerk of the Board on January 15, The bids are summarized on Exhibit A- Bid Recap Sheet. The cost differential between the apparent low bidder and the engineers estimate can be attributed to the shift in the construction market bidding environment and the industry wide increase in material, equipment, and labor cost. CONSENT TO WITHDRAWAL OF BID BY FUTURE DB INTERNATIONAL, INC: On January 20, 2014 JWA received a request from Future DB International, Inc. to withdraw their bid in the amount of $1,062,675 pursuant to Public Contract Code Section Relief of Bidders Act. In its request, Future DB International, Inc. informed JWA that the foregoing bid amount was incorrect due to a clerical error. Specifically, the mistake was made in filling out the bid, and the companies bid runner placing the wrong amount in bid line item-1. The clerical error identified by Future DB International results in a $600,000 difference between the intended bid amount and the actual amount. JWA and Counsel have reviewed Future DB International s request and have determined that the request meets the requirements of Public Contract Code section 5101 because a mistake was made. Written notice was given within five working days after the bid opening specifying in sufficient detail how the mistake was made. The mistake resulted in a materially different bid amount, and the mistake was made in filling out the bid form rather than a mistake in judgment. Therefore JWA requests that the Board of Supervisors allow Future DB International to withdraw their bid and have their bid bond returned, and further Page 2

3 recommend that the contract be awarded to the second lowest responsible, responsive bidder Earth Construction & Mining. CONTRACT AWARD AMOUNT JWA recommends that the Board award the construction contract for the Bristol Street Slope Stabilization project to Earth Construction & Mining, the lowest responsible and responsive bidder, in the amount of $1,729,312, and direct the Clerk of the Board to return the bid bonds or other guarantees to the unsuccessful bidders. CEQA COMPLIANCE: The subject project was previously determined to be Categorically Exempt from the California Environmental Quality Act (CEQA) per Section (Class 1) of the CEQA Guidelines which provides for the exemption of projects involving minor alterations to existing facilities, on August 23, 2011 when it was originally approved. Based upon prior Board action, no new CEQA find or NOE is required for the action taken herein. FINANCIAL IMPACT: There are sufficient funds in the Airport Construction Fund 281 to accomplish this project. STAFFING IMPACT: N/A EXHIBIT(S): Exhibit A: Bid Recap Sheet ATTACHMENT(S): Attachment A: Construction Contract Page 3

4 Exhibit A Bid Recap Sheet P204 - JWA Bristol Street Slope Stabilization Bidders Bid 1. Earth Construction & Mining, Garden Grove, CA $ 1,729, Excel Paving Company, Long Beach, CA $ 1,749, Peterson Chase, Irvine, CA $ 1,756, C. W. Crosser Construction,Anaheim, CA $ 1,798, Future DB International Inc, Irvine, CA (Bid Withdrawal Requested) $ 1,062, Engineer Estimate $ 1,146, Page 1 of 1

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