CC 2013-08-27_08.g. Award Contract - 2013 Street ResurfacingTO:
FROM:
BY:
MEMORANDUM
CITY COUNCIL
GEOFF ENGLISH, PUBLIC WORKS DIRECTO~
MIKE LINN, ASSISTANT CITY ENGINEER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN
ASPHALT SOUTH, INC. FOR CONSTRUCTION OF THE 2013 STREET
RESURFACING PROJECT, PW 2013-08
DATE: AUGUST 13, 2013
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the 2013 Street Resurfacing Project to American Asphalt
South, Inc. in the amount of $304,725;
2. Authorize the City Manager to approve change orders for 5% of the contract
amount, $15,236 for unanticipated costs during the construction phase of the
project (total construction costs= $304,725 + $15,236 = $319,961); and
3. Appropriate $45,706 from the Sales Tax Fund. Funds not used for potential cost
over-runs will be returned to the fund balance. (total construction costs =
$304,725.07 + $15,236.00 = $319,961.07 x 5% = $45,706); and
4. Direct the City Clerk to file a Notice of Exemption.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The Pavement Management Fund in the 2013/2014 Capital Improvement Program
Budget includes $1,261,019 for the 2013 Street Resurfacing Project, the 2013 Citywide
Digout Project, and the paving portion of the Fair Oaks Waterline and Street
Rehabilitation Project.
The street resurfacing project requires significant staff time, but is a top priority in the
City's Critical Needs Action Plan. Funding is included in the project budget for
construction management services. However, the amount of funding for the resurfacing
project does not allow for adequate contingency funding for potential project cost over-
runs. Typically, staff requests 10% contingency for capital improvement projects. Due
to the nature of the street resurfacing projects and a history of limited cost over-runs for
similar projects, staff is requesting a 5% contingency for this project.
Item 8.g. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC.
FOR CONSTRUCTION OF THE 2013 STREET RESURFACING PROJECT PW 2013-08
AUGUST 13, 2013
PAGE2
To include all schedule and bid portions of the Pavement Management projects and to
provide a 5% contingency, staff is requesting the authorization to allocate $45,706 from
Sales Tax. Staff does not anticipate using this full amount and funds not used for
potential cost over-runs will be returned to the Sales Tax fund balance.
PROJECT FUNDING SUMMARY
EXPECTED PROJECT EXPENDITURES
Expenditure Original
Contract: Dia-outs-Cal Portland Construction $ 766,041
Contract: Street Resurfacing-American $ 304,725
Inspection Services @ 5% $ 53,538
Contingency (5% of Contract price-$53,538) $ 53,528
TOTAL PROJECT EXPENDITURES $ 1,177,832
PROJECT FUNDING
I
Pavement Manaaement (FY 13-14) $ 819,335
Pavement Management (Carry over FY 12-13) $ 441,684
Pavement Management (Fair Oaks: Halcyon to Alder) $ (128,893)
TOTAL PROJECT REVENUES $ ' 1,132,126
PROJECT BALANCE OF FUNDS $ (45,706)
BACKGROUND:
The scope of work involves the application of a surface membrane; a Type II slurry seal
for residential streets and Type II microsurfacing on arterial and collector streets. Since
the membrane applications completely cover the roadway, striping and pavement
markings will also be performed. ·Staff developed the project scope of work to
correspond to the recommendations of the Pavement Management Master Plan,
adopted by Council in September 2010. Street improvements were identified as the
City's highest priority unfunded need when the Local Sales Tax measure was approved
in 2006. Since then, the City has made significant progress in addressing the worst
streets in the City. The City has established a goal of improving all streets on a 7-year
cycle.
ANALYSIS OF ISSUES:
It is important to emphasize again the general pavement management strategy that the
City has been pursuing since the Local Sales Tax measure was approved. It includes
an effort to concurrently improve some of the worst streets each year, while also
providing maintenance to those streets that are in good condition. This sometimes
results in confusion by the public when they see streets improved, while there are
others in worse condition. However, since street reconstruction work is so expensive,
the City would fall further behind each year if all the funds were invested in ~those
Item 8.g. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC.
FOR CONSTRUCTION OF THE 2013 STREET RESURFACING PROJECT PW 2013-08
AUGUST 13, 2013
PAGE3
projects. Under the current strategy, more streets are brought up to good condition
each year, while preventative maintenance is provided to those in good condition to
avoid more expensive treatments in the future. On August 30, 2013, six bids were
opened for the 2013 Street Resurfacing Project. The lowest bid, from American Asphalt
South, Inc. was in the amount of $304,725. The project scope of work is as follows:
Street Name From To Surface SF Treatment
Schedule A -Villal!:e Area
Allen Street Traffic Way Garden Street Micro Surfacing 76,248
Cherry A venue Traffic Way PC Railway Place Micro SurfaCing 38,135
Cherry A venue PC Railway Branch Mill Road Micro Surfacing 51,000
Cross Street Allen Street Ide Street Slurry Seal 26,400
Garden Street East Cherry Ave Ide Street Slurry Seal 49,760
Hawkins Court End of Cul-de-Sac Cross Street Slurry Seal 5,320
Ide Street Whiteley Street Garden Street Slurry Seal . 38,400
Mason Street E. Branch Street Nelson Street Micro Surfacing 22,212
Mason Street Nelson Street Allen Street Micro Surfacing 33,408
Nelson Street Traffic Way Mason Street (South) Micro Surfacing 34,940
Nelson Street Mason Street (South) End of Cul-de-Sac Micro Surfacing 24,876
Noguera Place End of Cul-de-Sac Myrtle Street Slurry Seal . 13,896
PC Railway Place East Cherry Ave Allen Street Slurry Seal 14,760
PC Railway Place Allen Street End of Street Slurry Seal 4,200.
Poole Street Traffic Way Mason Street (South) Slurry Seal 30,000
Poole Street Mason Street (South) Whitely Street Slurry Seal 4,824
Short Street Allen Street Nelson Street Slurry Seal 32,904
Short Street Nelson Street End of Street (creek) Slurry Seal 10,980
Whitely Street Poole Street Nelson Stret Slurry Seal 23,256
Whitley Street End of Street Poole Street Slurry Seal 14,400
Whitley Street Nelson Street End of Street (creek) Slurry Seal 15,120
Schedule B -Bril!:hton and Fair View
Bricltton Ave Oak Park Blvd Courtland Street Slurry Seal 27,120
Fair View Drive East Grand Ave Bri!!hton Ave Slurry Seal 40,248
Schedule C -Fair Oaks Avenue
Fair Oaks Ave Halcyon Road (South) Woodland Drive Micro Surfacing 47,400
Fair Oaks Ave Elm Street (South) Pecan Street Micro Surfacing 71,400
Fair Oaks Ave Pecan Street S. Halcyon Rd. Micro Surfacing 84,000
Schedule D -Halcvon Road
Halcyon Pike Fair Oaks Micro Surfacing 90,000
Halcyon Fair Oaks Grand Micro Surfacing 82,560
Halcyon Grand El Camino Micro Surfacing 63,600
Schedule E -East Grand Avenue
East Grand A venue Halcyon Road El Camino Real Micro Surfacing 134,368
Item 8.g. - Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC.
FOR CONSTRUCTION OF THE 2013 STREET RESURFACING PROJECT PW 2013-08
AUGUST 13, 2013
PAGE4
Staff has determined the bid to be responsive and recommends the award of a
construction contract to American Asphalt South, Inc. in the amount of $304,725.07.
The contract time is 30 calendar days. Work is expected to begin in October and
complete in November.
The primary reason the project is over budget is that it was recently determined the City
is responsible for paving East Grand Avenue over the bridge instead of Caltrans. As a
result, repaving of this segment was added to the project.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staffs recommendations to award a construction contract to American
Asphalt South, Inc. for the 2013 Street Resurfacing Project;
2. Do not award a construction contract for the project; or
1 3. Provide direction to staff.
ADVANTAGES:
The consistent application of slurry seals and microsurfacing is part of a yearly
maintenance program essential to ensure the integrity of the City's roadway network.
The program is designed to apply maintenance treatments to every street in the City on
an ongoing seven year cycle. The recommendations maintain funding for the highest
priority projects and minimize deferring improvement of streets in the approved
pavement management program.
DISADVANTAGES:
There is a temporary inconvenience to the traveling public as vehicles are rerouted
when the surface treatments are applied.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15301 (c).
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, August 8, 2013. The agenda and
staff report was posted on the City's website on Friday, August 9, 2013. No public
comments were received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
2. Notice of Exemption
Item 8.g. - Page 4
Attachment No. 1
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
DEADLINE: JULY 30, 2013 -3:00 PM
Street Resurfacing Project
SUBMITTED BY:
Roy Allen Slurry Seal, Inc.
Santa Fe Springs, CA
lntermountain Slurry Seal
French Camp, CA
Graham Contractors, Inc.
San Jose, CA
Central Valley Engineering & Asphalt, Inc.
Roseville, CA
VSS International
West Sacramento, CA
American Asphalt South, Inc.
Fontana, CA
, Deputy City Clerk
c. Director of Public Works
Director of Community Development
Assistant City Engineer
City Manager
TOTAL
$429,496. 76
$370,370.00
$383,470.90
$412,277.68
$399,204.00
$304,725.07
Item 8.g. - Page 5
Attachment No. 2
Notice of Exemption
To: Office of Planning and Research
1440 Tenth Street, Room 121
Sacramento, CA 95814
From: (Public Agency) City of Arroyo Grande
l!I County Clerk
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: 2013 Street Resurfacing Project. PW 2013-08
Project Location -Specific: Various roadwavs throughout the Citv
300 East Branch Street
Arroyo Grande, CA 93420
Project Location -City: A"ovo Grande Project Location -County: San Luis Obispo
Description of Project: Perform placement of Slurry Sea/ and Microsurfacing surface maintenance
treatments to selected streets throughout the Citv
Name of Public Agency Approving Project: Citv of A"ovo Grande -Public Works Department
Name of Person or Agency Carrying Out Project: --=G=e=o.:.:..ff-=E:.:..:n.,..gl=is...,h.__ ________ _
Exempt Status: (check one)
D Ministerial (Section 12080(b)(1); 15268);
D Declared Emergency (Sec. 21080(b)(3); 15269(a));
D Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
l!I Categorical Exemption. State type and section number: -=S=ec=t=io""'"n_,1-=5=3=-01,_,,~=-c).__ __________ _
D Statutory Exemptions. State code number: ----------------------
Reasons Why Project Is Exempt: Application of maintenance surface coatings to Citv streets
Lead Agency
Contact Person: Michael Linn, P.E. Area CodefTelephone/Extension: (805) 473-5444
If filed by Applicant:
1. Attach a certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? l!I Yes D No
Signature: ------------
Geoff English
Public Works Director
l!I Signed by Lead Agency
D Signed by Applicant
D
Date: _____ _
Date received for filing at OPR:
Item 8.g. - Page 6