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Item 4BCITY OF SOUTHLAKE MEMORANDUM (February 19, 2013) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Award construction contract to HQS Construction, LLC for the improvements to the McPherson Branch channel in the amount of $507,815 Action Requested: Award construction contract to HQS Construction, LLC for the improvements to the McPherson Branch channel in the amount of $507,815 Background Information: In 2007, City Council approved a design contract for the McPherson Branch Connector Road. The reason for this contract was to provide shared access for the two shopping centers between Village Center Drive and Kimball Avenue because of altered traffic patterns as a result of the FM 1709 median project. The intent was to have the two shopping centers participate in the construction of the connector road. To date, the shopping centers have not been willing to make the commitment. Part of the connector road design is to extend the box culverts and improve the drainage channel between the two centers. Public Works would like to move forward with the drainage and channel improvements. These improvements will allow room for the connector road when and if the two shopping centers are willing to participate in the cost of construction for the connector road as well as provide aesthetic improvements to the area. The channel improvements consist of the following major project components: extension of the 5 span 8-foot x 4-foot box culvert, articulate concrete block armoring of the channel sides and bottom and landscape and irrigation Six (6) bids were received on January 29, 2013. The bids have been reviewed by Halff Associates, Inc. and city staff and are tabulated as follows: BIDDER BID AMOUNT HQS Construction, LLC $507,815.00 Canary Construction $536,335.00 Humphrey & Morton Construction $585,587.00 Fain Group $625,128.00 2L Construction $630,787.00 North Star Construction $677,675.00 The low bid was approximately 3% lower than the engineer's estimate of $523,865. Halff Associates, Inc. recommends award of the contract to the low bidder, HQS Construction, LLC. The City Staff concurs in this recommendation Financial Considerations: The recommended contract award amount is $ 507,815. Funds are available in the Stormwater Utility Fund for the McPherson Branch . The current available project budget for the channel improvements is $624,000. Strategic Link: The improvements to the McPherson Branch Channel links to the city's strategy map relative to focus areas of Infrastructure and Performance Management and Service Delivery. The specific corporate objectives that are met by this construction project are to invest to provide and maintain high quality public assets, and improve performance and delivery of operational processes. Citizen Input/ Board Review: N/A Legal Review: This is the standard construction services contract that has been previously reviewed by the City Attorney. Alternatives: The Council may award the contract to HQS Construction, LLC or reject all bids. Supporting Documents: Location Map Recommendation Letter Bid Tabulation Staff Recommendation: Award construction contract to HQS Construction, LLC for the improvements to the McPherson Branch channel in the amount of $507,815 Staff Contact: Robert H. Price, P.E., Public Works Director Gordon J. Mayer, Jr., P.E., City Engineer Steven D. Anderson, P.E., CFM, Civil Engineer mom HALFF mom February 6, 2013 AVO 27045 Mr. Steve Anderson, P.E. City Engineer City of Southlake 1400 Main Street, Suite 320 Southlake, Texas 76092 McPherson Branch Drainage Channel Improvement Project Dear Mr. Anderson, Bids were opened on the above -referenced project on Tuesday, January 29, 2013 at the City of Southlake. Six (6) bids were received, and they ranged from a low bid of $507,815.00 to a high bid of $677,675.00. HQS Construction submitted the low bid, and Canary Construction was second with a bid of $536,335.00. We contacted Renee Burke with the City of Plano, Stephen Brainerd with the City of McKinney, and Chris Flannigan with the City of Allen to verify HQS Construction qualifications. Ms. Burke and Mr. Brainerd are currently with their respective city's Parks Department, and Mr. Flannigan is with the City of Allen Engineering Department. One issue of concern is that none of the above references knew of HQS Construction. When I mentioned that Hashim Rasul submitted the Bid Proposal, all of the people we contacted knew him from the business "Irracon". It is unclear whether they simply changed the name of their company or were acquired by HQS. We called their banking reference, Shobhu Karia with BBVA Compass Bank, and she stated that they have been in good standing with the bank for approximately 20 years and she knew of them as both Irracon and HQS. Ms. Burke stated that they had performed well on their projects in Plano, the issues that arose were "not their fault" and that they had adapted well. Mr. Flannigan stated that it had been 8 to 10 years since he had worked with Irracon, and in fact had worked with Hashim's father Shahid. He remembered them doing a good job, and taking responsibility and initiative in areas where the construction plans they were working with were lacking. Mr. Brainerd had the only semi -negative report, stating that they had completed their project on time but it took extra City effort to ensure this. None of the references had any liquidated damages against Irracon. Lastly, Halff contacted Hashid Rasul and asked him if his company had resources available to start work around the middle of March and achieve substantial completion within the 90 days specified HALFF ASSOCIATES, INC. 4000 FOSSIL CREEK BLVD TEL (817) 847-1422 WWW HALFFCOM FORT WORTH, TX 76137-2720 FAX (817) 232-9784 in the contract. Mr. Rasul assured us they were ready to go and did not anticipate any problems meeting that schedule. In conclusion, aside from the Irracon/HQS name oddity, we did not receive any report that leads us to believe HQS cannot successfully complete the project. Based on our research, it is the opinion of HalffAssociates, Inc. there is no apparent reason to disqualify the bid proposal of HQS Construction for the McPherson Branch Channel Improvements. Please call me at (817) 847-1422 if you have any questions or comments. Sincerely, HALFF ASSOCIATES, INC. Josh Logan, PE Design Engineer j\\\}\/!\\/}/\////\m \\\}\\\\l