CC 2024-10-22_09c Award 2024 Streets RepairItem 9.c.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director
BY: Shannon Sweeney, City Engineer
SUBJECT: Notice of Award, 2024 Streets Repair Project, PW 2024-01
DATE: October 22, 2024
RECOMMENDATION:
1) Award a construction contract for the 2024 Streets Repair Project to Papich
Construction, Inc. (Papich) for $3,999,889; and
2) Authorize the City Manager to approve change orders of 10% of the contract amount,
$399,989.90, for unanticipated costs during the construction phase of the 2024 Streets
Repair Project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The FY 2024-25 budget includes $4,430,000 for the Pavement Management Program
(PMP) consisting of the following funds: $390,000 of Regional SHA, $2,360,000 of the
general fund, $450,000 of SB 1 Funds, $966,833 of Measure-O 2006 Local Sales Tax
Fund, $204,207 of American Rescue Plan Act (ARPA), and $58,960 of CDBG.
Construction, contingency, and special materials testing costs total $4,495,083.90, which
exceeds the FY 2024-25 budget of $4,430,000 by $65,083.90. Carryover from FY 2023-
24 of over $1 million in unspent funds is sufficient to address this shortfall and will be
included in the FY 2024-25 First Quarter Financial Status Report.
BACKGROUND:
On May 23, 20231, the City Council directed staff to apply $3 million from excess reserves
in addition to the base amount of $1.25 million to pavement maintenance and repair for
FY 2024-25. Staff value engineered the information available in the 2022 PMP to provide
a recommended list of work to be done with available funds. In addition to critical point
strategy, staff considered other factors, including the cost efficiency of applying only one
kind of maintenance treatment, the management and staging efficiency of focusing on
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=74822b16-71f6-4fe0-aa17-
d79c53a03287&Agenda=PostMinutes&lang=English
Page 52 of 135
Item 9.c.
City Council
Notice of Award, 2024 Streets Repair Project, PW 2024-01
October 22, 2024
Page 2
locations on a neighborhood-basis rather than a single street-basis, economies of scale
that arise as a result of one large single project rather than multiple small ones, and the
bidding competitiveness that occurs when the City bids a larger project.
On January 23, 20242, staff presented a priority project list of neighborhood-based street
locations along with a commercial street (Station Way) that is in poor condition for the
2024 PMP. The recommended list from that staff report is shown below. Based on Council
direction, staff proceeded with project development for the top four locations listed in
Table 1.
Table 1: Recommended Priority List
The City worked with the design consultant to develop plans and specifications. The
engineer’s estimate as designed was $4,617,934.18. A Notice Inviting Bids was issued
on September 12, 2024. The Notice Inviting Bids was published in the local paper, posted
on the City’s website, and distributed to plan rooms.
Five bids were received by the bid opening date and time of October 1, 2024, 2:00 PM,
ranging from $3,999,899 to $5,894,610, as shown in Attachment 1. The low bid of
$3,999,889 with a 10% contingency of $399 ,989.90 totals $4,399,888.90.
Five consultants from the City’s on-call list were solicited for scope and fee for special
materials testing. Three declined to provide a proposal. The two proposals received by
the deadline of October 1, 2024, ranged from $95,195 to $154,673.
ANALYSIS OF ISSUES:
Based on the costs presented in Table 1 for all four priority projects, costs would have
exceeded the available budget by a substantial amount, with almost $1 million dedicated
to retrofitting curb ramps to meet current Americans with Disabilities Act (ADA)
2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=9743
Cost Based Cost Based Total Cost Cumulative Savings
on PMP on Testing Estimated Cost from PMP
Stagecoach $5,658,000 $2,266,000 44 $528,000 $2,794,000 $2,794,000 $2,864,000
Rancho Grande Ph 1 $2,874,000 $1,319,000 10 $120,000 $1,439,000 $4,233,000 $1,435,000
Brighton $2,518,000 $1,133,000 20 $240,000 $1,373,000 $5,606,000 $1,145,000
Station Wy $953,000 $664,000 4 $48,000 $712,000 $6,318,000 $241,000
Andre Dr $687,000 $395,000 8 $96,000 $491,000 $6,809,000 $196,000
Woodland $2,583,000 $2,317,000 20 $240,000 $2,557,000 $9,366,000 $26,000
Via La Barranca $649,000 $698,000 3 $36,000 $734,000 $10,100,000 -$85,000
I $15,922,000 $8,792,000 109 $1,308,000 $10,100,000 $10,100,000 $5,822,000
Cost of Curb
RampsLocation# of Curb
Ramps
Page 53 of 135
Item 9.c.
City Council
Notice of Award, 2024 Streets Repair Project, PW 2024-01
October 22, 2024
Page 3
regulations. Staff evaluated curb ramps in the project areas and determined that most
meet exception criteria that preclude the need to retrofit them. As a result, only 11 curb
ramps will be retrofit as part of this project, at a considerable cost savings.
The 2024 Streets Repair project contract time is 20 working days for the work on Station
Way, and concurrently, 80 working days for the entire project. Staff has had early contact
with both property owners and businesses on Station Way. The intent is for re-
construction of Station Way to be completed well before construction of the Traffic Way
Bridge, currently scheduled to begin in April 2025.
Due to timing constraints associated with Station Way for the Traffic Way Bridge Project,
efforts to reduce the overall costs of the Project through methods such as economies of
scale with neighboring jurisdictions were unable to be reached. However, staff will
continue to communicate with neighboring jurisdictions for opportunities to partner on
these efforts to potentially further reduce costs in the future.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
A. Staff’s recommendation:
1) Award a construction contract for the 2024 Streets Repair Project to Papich
Construction, Inc. (Papich) for $3,999,889; and
2) Authorize the City Manager to approve change orders of 10% of the contract
amount, $399,989.90, for unanticipated costs during the construction phase
of the 2024 Streets Repair Project;
B. Do not approve staff’s recommendations and request further information;
C. Modify staff’s recommendation and approve; or
D. Provide other direction to staff.
ADVANTAGES:
Completing the 2024 Streets Repair Project will extend the service life of the treated street
segments, reduce future costs and provide a smoother safer driving surface. New striping
will be installed, which will provide safer driving facilities.
DISADVANTAGES:
There will be traffic impacts to the traveling public during construction. Staff will require
traffic control to be in place during construction to minimize the impacts. The traveling
public, neighborhoods, and the businesses on Station Way will be given advanced notice
of the work. City and consultant inspectors will be at the site during construction to adjust
the traffic control as needed (driveway access, etc.).
ENVIRONMENTAL REVIEW:
The project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guideline Section 15301 covering the repair and maintenance of
Page 54 of 135
Item 9.c.
City Council
Notice of Award, 2024 Streets Repair Project, PW 2024-01
October 22, 2024
Page 4
existing streets, sidewalks, gutters and similar facilities.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the C ity’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Bid Opening Log Sheet
2. Proposed Agreement
Page 55 of 135
ATTACHMENT 1
Page 56 of 135
ATTACHMENT 2
Page 57 of 135
Page 58 of 135
Page 59 of 135
Page 60 of 135
Page 61 of 135
Page 62 of 135
Page 63 of 135
Page 64 of 135
Page 65 of 135
Page 66 of 135
Page 67 of 135
Page 68 of 135
Page 69 of 135
Page 70 of 135
Page 71 of 135
Page 72 of 135
Page 73 of 135
Page 74 of 135
Page 75 of 135
Page 76 of 135
Page 77 of 135
Page 78 of 135
Page 79 of 135
Page 80 of 135
Page 81 of 135
Page 82 of 135
Page 83 of 135
Page 84 of 135
Page 85 of 135
Page 86 of 135
Page 87 of 135
Page 88 of 135
Page 89 of 135
Page 90 of 135
Page 91 of 135
Page 92 of 135
Page 93 of 135
Page 94 of 135
Page 95 of 135
Page 96 of 135
Page 97 of 135
Page 98 of 135
Page 99 of 135
Page 100 of 135
Page 101 of 135
Page 102 of 135
Page 103 of 135
Page 104 of 135
Page 105 of 135
Page 106 of 135
Page 107 of 135
Page 108 of 135
Page 109 of 135
Page 110 of 135
Page 111 of 135
Page 112 of 135