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CC 2016-09-13_09e Award Contract 2016 Street Resurfacing MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC. FOR THE 2016 STREET RESURFACING PROJECT, PW 2016-08 DATE: SEPTEMBER 13, 2016 RECOMMENDATION: It is recommended the City Council: 1. Award a contract for the 2016 Street Resurfacing Project to American Asphalt South, Inc. in the amount of $75,374.03; 2. Authorize the Interim City Manager to approve change orders for 10% of the contract amount, $7,537.40 for unanticipated costs during the construction phase of the project (total construction costs = $75,374.03 + $7,537.40 = $82,911.43); and 3. Direct the City Clerk to file a Notice of Exemption. 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. Based on this budget plus $61,395 of Parking Improvement Funds for the Le Point Street Parking Lot overlay portion of the 2016 Street Repairs project, it is estimated that there will be enough funds to complete the Base Bid for both this 2016 Street Resurfacing and 2016 Street Repairs projects. REVENUE Pavement Management Fund FY 2015/16 Carry Over $ 35,000.00 FY 2016/17 Budget 870,000.00 Parking Improvement Fund 61,395.40 TOTAL REVENUE $ 966,395.40 Item 9.e. - Page 1 CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC. FOR THE 2016 STREET RESURFACING PROJECT, PW 2016-08 SEPTEMBER 13, 2016 PAGE 2 EXPENDITURES 2016 Street Resurfacing, Base Bid plus Contingencies $ 82,911.43 2016 Street Repairs, Base Bid plus Contingencies (Less Le Point Street Parking Lot) 679,782.40 Le Point Parking Lot plus Contingencies 61,395.40 Inspection, Advertisement, 17/18 Design 122,500.00 TOTAL EXPENDITURES $ 946,589.23 PROJECTED PAVEMENT MANAGEMENT FUND BALANCE $19,806.17 BACKGROUND: The 2016 pavement management projects were designed 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. In addition, two streets will receive full width pavement overlays and upgrades to thirteen (13) curb ramps as required under the Americans with Disabilities Act (ADA). 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 2016 Street Resurfacing projects included a schedule of streets in the base bid and two additive alternatives in the event favorable bids were received. The project specifications stipulated that contract award would be determined solely on the Base Bid. On September 2, 2016, three bids were received for the 2016 Street Resurfacing project. The lowest bid, from American Asphalt South, Inc., was in the amount of $75,376.03. Upon review of the bid, it was determined that there was a minor addition error for one of the Bid Line Items which resulted in a corrected Base Bid amount of $75,374.03. The project scope of work is as follows: Item 9.e. - Page 2 CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC. FOR THE 2016 STREET RESURFACING PROJECT, PW 2016-08 SEPTEMBER 13, 2016 PAGE 3 BASE BID (RECOMMENDED) Street From To Area B1 Robin Circle N Oak Park Blvd Meadowlark Drive Cardinal Court Robin Circle End of Street Quail Court Robin Circle End of Street Meadowlark Drive N Oak Park Blvd Robin Circle Area B6 Rosemary Lane w/o Sombrillo End of Street Salida Del Sol James Way End of Street Sombrillo Rosemary Lane Salida Del Sol Camino Mercado Camino Mercado West Branch Street w/o Walmart driveway ALTERNATES (NOT RECOMMENDED) Street From To Bid Alt 1 – Area B3 Clinton Court James Way End of Street Jenny Place James Way End of Street Le Canada James Way Asilo Street Rosemary Court La Canada End of Street Los Ciervos Vista Drive End of Street Los Ciervos Court Vista Drive End of Street Puesta Del Sol Los Ciervos Vista Drive Vista Drive s/o Los Ciervos Court La Canada Asilo Street Vista Drive Vista Drive Castillo Court Vista Drive End of Street Paraiso Court Asilo Street End of Street La Canada s/o Asilo Street Vista Drive Bid Alt 2 – Area B4 Via Las Aguilas Camino Mercado End of Street Dos Cerros Via Las Aguilas End of Street Calle Cuervo Via Las Aguilas End of Street Palos Secos Via Las Aguilas Rancho Parkway Refugio Court Rancho Parkway End of Street Item 9.e. - Page 3 CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT SOUTH, INC. FOR THE 2016 STREET RESURFACING PROJECT, PW 2016-08 SEPTEMBER 13, 2016 PAGE 4 The bid has been determined to be responsive and the bidder to be responsible. It is recommended a construction contract be awarded to American Asphalt South, Inc. The contract time is 60 working days. Work is expected to be completed in November and December 2016. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Award a construction contract to American Asphalt South, Inc. for the 2016 Street Resurfacing project; 2. Do not award a construction contract for the project; or 3. Provide direction to staff. ADVANTAGES: The consistent application of slurry seals 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 cycle. The recommendations maintain funding for the highest priority projects and minimize deferring improvement of streets in the City’s 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 the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301(c) covering the repair and maintenance of existing highways and streets. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Bid Opening Log Sheet 2. Notice of Exemption Item 9.e. - Page 4 Attachhment Noo. 1 Item 9.e. - Page 5 Attachhment Noo. 2 Item 9.e. - Page 6