CC 2016-08-23_09i Reject Bids 2016 Street Repairs
MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION TO REJECT BIDS FOR THE 2016 STREET
REPAIRS PROJECT, PW 2016-03
DATE: AUGUST 23, 2016
RECOMMENDATION:
It is recommended the City Council: 1) Reject all bids received for the subject project;
and; 2) Direct staff to solicit new bids after modifications are made to the bid schedule.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
An allocation of $870,000 is available in the Capital Improvement Program budget
pavement management program account for FY 2016/17. It is anticipated that
approximately $35,000 will be carried over from FY 2015/16 for a total available budget
of $905,000.
It is estimated that approximately $239,500 will be needed for the 2016 Street
Resurfacing project, construction management and inspection for both of the 2016
streets projects, and design of the 2017 streets projects, leaving $665,500 available for
construction and contingencies for this 2016 Street Repairs project (not including the Le
Point Parking Lot). The proposed improvements for the Le Point Parking Lot, which total
$51,549 plus contingencies, will be funded from the Parking Improvement Fund.
BACKGROUND:
Staff designed the 2016 pavement management projects to include separate projects
for Street Repairs and Street Resurfacing (slurry seals).
For the 2016 Street Repairs project, street surface repairs which involve the grinding
and repaving of isolated pavement failures are to be performed on several streets.
Dependent upon the encountered condition, additional material may need to be
removed from the roadway subgrade and stabilized as needed. The roadway structural
section is then rebuilt through the placement and compaction of base rock and asphalt
pavement. Two streets, Oro Drive and Collado Corte, are included in the project that will
receive full width pavement overlays. These two road segments have deteriorated to the
point that a routine slurry seal surface treatment would not be an adequate resurfacing.
Item 9.i. - Page 1
CITY COUNCIL
CONSIDERATION TO REJECT BIDS FOR THE 2016 STREET REPAIRS PROJECT,
PW 2016-03
AUGUST 23, 2016
PAGE 2
Additionally, because pavement overlays are considered an alteration of a street under
the Americans with Disabilities Act (ADA), the work triggers the City’s obligation to
provide ADA compliant curb ramps where pedestrian walkways intersect the resurfaced
street. Therefore, curb ramps are provided on these two streets. A total of thirteen (13)
curb ramps are required to be upgraded as part of the overlay work on Oro Drive and
Collado Corte due to this Federal requirement.
For the 2016 Street Resurfacing project, a slurry seal application will be applied to the
street segments that received repairs as part of the 2016 Street Repair project.
Since resurfacing contractors are typically not equipped to perform roadway repairs or
reconstruction, it is prudent to have the work separated into two projects to be
performed by two prime contractors. That helps eliminate the need for a prime
contractor to hire subcontractors and pass along potential mark-up costs to the City.
ANALYSIS OF ISSUES:
The 2016 Street Repair and the 2016 Street Resurfacing projects included a schedule
of streets in the base bid and two additive alternates in the event favorable bids were
received. The project specifications stipulated that contract award would be determined
solely on the Base Bid.
On August 12, 2016, five bids were received for the 2016 Street Repairs project. The
apparent low bidder did not include Area B1 of the Base Bid and, therefore, was
deemed non-responsive. Based on the total pavement budget available, it is estimated
that there will not be enough funds to complete the Base Bid for both projects should
the second low bidder be considered.
Total Budget Available $ 905,000
2016 Street Repairs Bid (w/Contingencies) 781,800
2016 Street Resurfacing (w/Contingencies) 138,000
Const Mgt / Inspection / Advertise / Copies 61,500
2017 Street Projects Design 40,000
Budget Shortfall $ 116,300
Therefore, it is recommended that the City Council reject all bids and direct staff to
modify the Base Bid in the bid package and rebid the 2016 Street Repair project.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Reject all bids and direct staff to solicit new bids after modifications are made to
the bid schedule;
2. Reject all bids and direct staff to solicit new bids with the current bid schedule;
Item 9.i. - Page 2
CITY COUNCIL
CONSIDERATION TO REJECT BIDS FOR THE 2016 STREET REPAIRS PROJECT,
PW 2016-03
AUGUST 23, 2016
PAGE 3
3. Award a construction contract to the second low bidder and appropriate
$116,300 from General Fund reserves; or
4. Provide direction to staff.
ADVANTAGES:
Modifying the bid schedule may yield more competitive pricing without significant
impacts to the project objectives.
DISADVANTAGES:
Rejecting the bid and rebidding the project will delay the project further into the fall and
winter months.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from California Environmental Quality Act (CEQA)
pursuant to CEQA guidelines Section 15301(c) for repairs and maintenance of existing
streets.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in accordance with Government Code Section 54954.2.
Attachment:
1. Bid Opening Log Sheet
Item 9.i. - Page 3
Attachhment Noo. 1
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