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08.e. Citywide Digout ProjectMEMORANDUM TO: CITY COUNCIL FROM: mc/ TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO FERRAVANTI GRADING & PAVING FOR CONSTRUCTION OF THE CITYWIDE DIGOUT PROJECT, PW 2012-03 DATE: MAY 8,2012 RECOMMENDATION: It is recommended the City Council: 1. Award a contract for construction of the Citywide Digout Project to Ferravanti Grading & Paving in the amount of $244,300; 2. Authorize the City Manager to approve change orders for 10% of the contract amount, $24,430, for unanticipated costs during the construction phase of the project (total construction costs = $244,300 + $24,430 = $268,730); and 3. direct the City Clerk to file a Notice of Exemption. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is currently $186,585 remaining in the Capital Improvement Program budget for FY 2011-13. An additional $570,000 is programmed in FY 2012-13 for a total of $756,585. Staff anticipates receiving additional transportation funding from the recent designation of the South SLO County region as an urbanized area, which is hoped to provide the amount needed to fully fund the improvements. Work will be scheduled to expend no more than is budgeted in FY 2011-12. The slurry seal project bid will be structured so that only the number of streets will be awarded in the contract that can be funded by the budget. Part-time contractual construction management staff will oversee the construction. BACKGROUND: "Digouts" are defined as the removal of asphalt and base materials to the roadway subgrade, usually resulting from water intrusion or the lack of compaction during the original construction. Dependent upon the encountered condition, additional material Agenda Item 8.e. Page 1 CITYCOUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO FERRAVANTI GRADING & PAVING FOR CONSTRUCTION OF 'THE CITYWIDE DIGOUT PROJECT, PW 201 2-03 MAY 8,2012 PAGE 2 may need to be installed to stabilize the subgrade. The roadway structural section is then rebuilt through the placement and compaction of base rock and asphalt pavement. This work is being performed in preparation of roadway resurfacing applications, such as slurry sealing and microsurfacing, which provides a membrane over the roadway surface. Since the slurry seal and microsurfacing contractors are typically not equipped to perform roadway reconstruction, it is prudent to have the work performed by a company geared to perform asphalt paving. ANALYSIS OF ISSUES: On April 25, 2012, seven bids were opened for the Citywide Digout Project. The lowest bid, from Ferravanti Grading & Paving, was in the amount of $244,300. Staff has determined the bid to be responsive and recommends the award of a construction contract to Ferravanti Grading & Paving. The digout work is proposed as preparation for the Pavement Management Program work to be performed later in the summer. The contract time is 30 calendar days. Work is expected to begin immediately after Memorial Day. This work, along with the Greenwood Tract project, represents a substantial improvement in the City's scheduling of street improvements. Historically, the City has struggled to complete street projects in the fiscal year budgeted. These projects will result in completion of the major street work budgeted in FY 2012-13 within the first quarter of the fiscal year. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve staffs recommendations to award a construction contract to the lowest responsive bidder; 2. Do not award a construction contract for the project at this time; or 3. Provide direction to staff. ADVANTAGES: Performance of the asphalt digouts will provide a stable surface to facilitate the application of microsurfacing and slurry sealing on a separate project later in the year. Performing the digouts will enable the City to administer the remaining work in the Pavement Management Program during the summer months. Use of digouts reduces project costs by addressing areas with the most significant repair needs prior to microsurfacing or slurry seal application, which reduces the need for a more costly full reconstruction project. DISADVANTAGES: No disadvantages are identified at this time. Agenda Item 8.e. Page 2 CITY COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO FERRAVANTI GRADING & PAVING FOR CONSTRUCTION OF THE CITYWIDE DIGOUT PROJECT, PW 2012-03 MAY 8,2012 PAGE 3 ENVIRONMENTAL REVIEW: The project is categorically exempt from CEQA pursuant to Guidelines Section 15301 (c). PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted on Thursday, May 3, 2012. The agenda and staff report was posted on the City's website on Friday, May 4, 2012. No public comments were received as of the time of preparation of this report. Attachments: 1. Bid Tabulations 2. Notice of Exemption Agenda Item 8.e. Page 3 SUBMITTED BY: Ferravanti Paving Paso Robles, CA R. Burke Corporation San Luis Obispo, CA Granite Construction Co. Santa Barbara, CA V. Lopez, Jr. & Sons Santa Maria, CA Quincon, Inc. Grover Beach, CA CalPortland Construction Santa Maria, CA Attachment No. 1 BID OPENING LOG SHEET CITY OF ARROYO GRANDE DEADLINE: APRIL 25,2012,2:00 PM Brough Construction, Inc. Arroyo Grande, CA CITYWIDE DIGOUT PROJECT TOTAL $244,300.00 c: Director of Community Development Assistant City Engineer City Manager Agenda Item 8.e. Page 4 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 300 East Branch Street Arroyo Grande, CA 93420 El County Clerk County of San Luis Obispo County Government Center San Luis Obispo, CA 93408 Project Title: Citwvide Diaout Proiect PW 2012-03 Project Location - Specific: Selected streets throuahout the Citv in accordance with the adopted Pavement Manauement Plan recommendations Project Location - City: Arrovo Grande Project Location - County: San Luis Obis~o Description of Project: Name of Public Agency Approving Project: Citv of Arrovo Grande - Communitv Development De~t. Name of Person or Agency Carrying Out Project: Michael Linn. P. E. Exempt Status: (check one) Ministerial (Section 12080(b)(l); 15268); Declared Emergency (Sec. 21 080(b)(3); 15269(a)); Emergency Project (Sec. 21080(b)(4); 15269(b)(c)); El Categorical Exemption. State type and section number: Section 153011~1 Statutory Exemptions. State code number: Reasons Why Project Is Exempt: Suburade repairs to exsitina asphalt concrete streets. Lead Agency Contact Person: Michael Linn. P. E. Area Code/Telephone/Extension: (8051 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? 13 Yes No Signature: Date: Teresa McClish Community Development Director El Signed by Lead Agency Date received for filing at OPR: Signed by Applicant Agenda Item 8.e. Page 5 THIS PAGE INTENTIO NALLY LEFT BLANK Agenda Item 8.e. Page 6