08.f. Street Resurfacing ProjectTO:
MEMORANDUM
CITYCOUNCIL dV
FROM: TERESA MCCLISH,.~OMMUNIN DEVELOPMENT DIRECTOR
BY: MIKE LINN, ASSISTANT CITY ENGINEER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN
ASPHALT SOUTH, INC. FOR CONSTRUC'TION OF 'THE 2012 STREET
RESURFACING PROJECT, PW 201 2-05
DATE: JUNE 26,2012
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the 2012 Street Resurfacing Project to American Asphalt
South, Inc. in the amount of $689,712;
2. Authorize the City Manager to approve change orders up to $25,000, for
unanticipated costs during the construction phase of the project (total
construction costs = $689,712 + $25,000 = $714,712);
3. Approve the proposed adjustments to Local Sales Tax expenditures; and
4. Appropriate an additional $30,000 for the project from the Local Sales Tax
balance.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
After funding appropriated for the digout project and other preparatory costs are
deducted, there is currently $468,000 in the pavement management capital
improvement program (CIP) budget for FY 2012-13, based upon the revised Local
Sales Tax 5-Year Plan approved by City Council at the April 10, 2012 meeting. 'This
includes $398,000 from Local Sales Tax funds and $70,000 from Urban State Highway
Account (USHA) funds. There was originally an additional $130,000 in Transportation
Fund revenues anticipated from being designated as a Federal urbanized area, which
was included in the CIP budget. However, staff has determined this funding source will
not become available until FY 2013-14.
Due to this reduction and bids well above estimates, a number of adjustments are
necessary to both the list of projects and revenues. After recommended streets are
deleted from the project, it will leave a remaining shortfall of approximately $240,000. It
Agenda Item 8.f.
Page 1
CITY COLlNClL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONS'rRUCTION OF THE 2012 STREET RESURFACING
PROJECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 2
is recommended that the following adjustments to Local Sales Tax Fund appropriations
be approved to address this shortfall:
Reduce costs for digouts by eliminating streets where slurry seal will be delayed $30,000
~el'ay and transfer funds for the FY 201 1-12 study on the Paulding Wall project $40,000
Transfer FY 201 1-12 funds for future property acquisition for Le Point St parking lot $60,000
Transfer FY 201 1-12 funds budgeted for miscellaneous engineering studies $5,000
Transfer excess FY 201 1-12 funds remaining from tree inventory project $40,000
Transfer from FY 2012-13 Street Maintenance due to projected savings $35,000
Appropriate funds from Local Sales Tax fund balance (will remain above 15%) $30,000
Total $240,000
The 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 manqgement
services.
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 201 0.
The item was presented to the City Council at the June 12, 2012 meeting. Concerns
were expressed regarding utilization of funds set aside for the Le Point Street parking
lot acquisition. Therefore, staff was directed to return with additional funding
alternatives.
ANALYSIS OF ISSUES:
On May 8, 2012, six bids were opened for the 2012 Street Resurfacing Project. The
lowest bid, from American Asphalt South, Inc. was in the amount of $888,980. Since
the bid prices were higher than originally intended (mostly due to the striping scope of
work), staff recommends awarding Schedules A, a portion of Schedule B (El Camino
Real to West Branch Street), D through L, and a portion of Schedule N (Mason Street
and Station Way) and delaying the performance of a portion of schedule B (E. Grand
Avenue to El Camino Real), Schedules C, M, a portion of Schedule N (Allen Street and
Cherry Avenue), 0, P and Q to future resurfacing projects. The revised scope of work
is as follows:
Street - To
Schedule A - Microsurfacing
Ash Street South Elm Street Walnut Street
Ash Street South Elm Street Alder Street
Agenda Item 8.f.
Page 2
CITY COLlNClL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONSTRUCTION OF THE 2012 STREET RESURFACING
PROJECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 3
Elm Street (South) City Limit
Elm Street (South) Farroll Ave
Elm Street (South) The Pike
Schedule B - Microsurfacing
Brisco Road . El Camino Real
Schedule D - Microsurfacing
Camino Mercado West Branch Street
Oak Park Boulevard Farroll Ave
Schedule E - Microsurfacing
Huasna Road La Cresta Drive
Huasna Road Branch Street (East)
Huasna Road Stagecoach Road
Rosewood Lane Huasna Road
Schedule F - Microsurfacing
Mason Street (North) E. Branch Street
" Tally Ho Road James Way
Tally Ho Road Le Point Street
Schedule G - Slurry Seal
Branch Street (East) Mason Street
Schedule H - Slurry Seal
Chilton Street Oak Park Blvd
Hillcrest Drive Montego Street
Hillcrest Drive Sierra Drive
Montego Street Newport Avenue
Robles Place Sierra Drive
Robles Road El Camino Real
Sierra Drive Oak Park Blvd
Schedule I - Slurry Seal
Bakeman Lane Farroll Ave
Bakeman NE Farroll Ave
Bakeman NW Farroll Ave
Carmella Drive Carol Place
Del Sol Street The Pike
Dixson Street Oak Park Blvd
Golden West Place Farroll Ave
La Vista Court The Pike
Lancaster Drive The Pike
Noel Street End of Cul-de-sac
Paul Place The Pike
Russ Court Paul Place
Rice Court Bakeman Lane
Tierra Street The Pike
Wilson Court Bakernan Lane
Schedule J - Slurry Seal
Alder Street Cameron Court
Alder Street Farroll Ave
Beech Street Farroll Ave
Cameron Court Alder Street
Diana Place End of Cul-de-sac
The Pike
Ash Street
Farroll Ave
West Branch Street
Rancho Parkway
City Limit
City Limit
Stagecoach Road
La Cresta Drive
End of Culde-Sac
Le Point Street
Route 227
James Way
Huasna Road
Robles Road
El Carnino Real
Montego Street
End of Culde-Sac
End
End of Street
Hillcrest Drive
Farroll Ave
Bakeman NW
Bakeman NE
Farroll Ave
End of Cul-de-Sac
End of Culde-Sac
End of Culde-Sac
End of Cul-de-Sac
Elm Street (South)
Oak Park Blvd
Elm Street (South)
End of Cul-de-Sac
End of Culde-Sac
End of Street
End of Culde-Sac
Farroll Ave
Fair Oaks Ave
Fair Oaks Ave
Halcyon (South)
Farroll Ave
Agenda Item 8.f.
Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONSTRUCTION OF 'THE 2012 STREET RESURFACING
PROJECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 4
Garfield Place The Pike
Gaynfair Terrace The Pike
Magnolia Drive Sycamore Drive
Mulberry Lane Magnolia Drive
Pacific Pointe Way Elm Street (South)
Palm Court End of Cul-de-sac
Pecan Street Farroll Ave
Rogers Court End of Cul-de-sac
Sandalwood Ave Alder Street
Sycamore Court End of Cul-de-sac
Sycamore Drive Gaynfair Terrace
Sycamore Drive Magnolia Drive
Verde Place The Pike
Victoria Way Rogers Court
Schedule K - Slurry Seal
Alder Street Fair Oaks Ave
Dodson Way Alder Street
Maple Street Elm Street (South)
Maple Street Walnut Street
Pecan Place Fair Oaks Avenue
Pine Street Maple Street
Sunset Drive Elm Street (South)
Walnut Street Ash Street
Walnut Street Farroll Ave
Wallace Place Maple Street
Wood Place Dodson Way
Schedule L - Slurry Seal
Crown Hill East Branch Street
Crown Terrace Crown Hill
Harrison Street McKinley Street
Le Point Terrace Crown Hill
Le Point Terrace Crown Hill
May Street Crown Terrace
McKinley Street Crown Hill
Paseo Street May Street .
Schedule N - Microsurfacing
Mason Street (South) E. Branch Street
Mason Street (South) Nelson Street
Station Way Fair Oaks Ave
End of Cul-de-sac
Farroll Ave
End of Culde-Sac
Sycamore Drive
Elm Street (South)
Walnut Street
Fair Oaks Ave
Victoria Way
Halcyon Road (South)
Sycamore Drive
Halcyon Road (South)
Gaynfair Terrace
End of Culde-Sac
Garfield Place
East Grand Ave
Halcyon Road
Walnut Street
Alder Street
End
End of Culde-Sac
Alder Street
End of Street
Ash Street
End
End of Culde-Sac
Corbett Canyon Road
Le Point Street
End of Culde-Sac
End
East Branch Street
McKinley Street
May Street
Route 227
Nelson Street
Allen Street
Traffic Way
The following streets are eliminated from the scope of work and will be deferred to
future projects:
Street - To
Schedule B - Microsurfacing
Brisco Road East Grand Avenue Linda Drive
Brisco Road Linda Drive El Camino Real
Schedule C - Microsurfacing
Farroll Avenue City Limit Elm Street (South)
Agenda Item 8.f.
Page 4
CITYCOUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONSTRUCTION OF THE 2012 STREET RESURFACING
PRO.IECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 5
Farroll Avenue Elm Street (South)
Farroll Avenue Pecan Street
Farroll Avenue Halcyon Road (South)
Schedule I - Slurry Seal
Glenbrook Bakeman NE
Schedule M - Slurry Seal
Bridge Street Branch Street (East)
Garden Street Allen Street
Garden Street Allen Street
Nelson Street Traffic Way
Nelson Street Mason Street (South)
Noguera Place Myrtle Street
PC Railway Allen Street
PC Railway East Cherry Ave
Poole Street Traffic Way
Short Street Allen Street
Short Street Nelson Street
Trinity Ave Traffic Way
Village Court Trinity Ave
Whiteley Street Poole Street
Whiteley Street End of Street
Schedule N - Microsurfacing
Allen Street Traffic Way
Cherry Avenue (East) PC Railway
Cherry Avenue (East) Traffic Way
Schedule 0 - Slurry Seal
Brighton Avenue Oak Park Blvd.
Schedule P - Slurry Seal
White Court Ridegeview Way
Ridegeview Way White Court
Schedule Q - Microsurfacing
Corbett Canyon Road Route 227
Pecan Street
Halcyon Road (South)
End of Cul-de-sac
Bakeman NW
Traffic Way
Ide Street
East Cherry Street
Mason Street (South)
End of Cul-de-sac
End of Cul-de-sac
End of Street
Allen Street
Mason Street (South)
Nelson Street
End of Street (creek)
End of Street
End of Cul-de-sac
Nelson Street
Poole Street
Garden Street
Branch Mill Road
PC Railway
Courtland Street
End of Cul-de-sac -
Tally Ho Road . -
City Limit
Staff has determined the bid to be responsive and recommends the award of a
construction contract to American Asphalt South, Inc. in the revised amount of
$705,094. Please note that the deletion of schedules does not affect the order of the
bidders and American Asphalt South, Inc. remains the lowest responsive bid for the
revised scope of work.
The contract time is 30 calendar days. Work is expected to begin in early August and
complete in September.
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
Agenda Item 8.f.
Page 5
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONSTRUCTION OF THE 2012 STREET RESURFACING
PROJECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 6
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
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.
The recommendations for adjustments to Local Sales Tax expenditures were based on
transferring funds from lower priority projects and those not identified in the Critical
Needs Action Plan. Acquisition of the Le Point Street parking lot property was originally
planned to be funded by the Redevelopment Agency. When the Redevelopment
Agency was dissolved, partial funding was transferred from the Car Corral by limiting
those improvements to resurfacing, which would be paid for from the Downtown Parking
Fund. 'The lease on the Le Point Street Parking Lot property will expire.in 2021. It is
anticipated that $500,000 to $700,000 will eventually be needed based upon current
values. The funding program can be extended beyond 2021 through'debt service if
necessary.
As part of the FY 2012-1 3 budget report, a new 5-Year Plan is proposed~for Local Sales
Tax funds. In order to address the funding loss to the Le Point Street Parking Lot, it
includes a recommendation to begin budgeting funds for property acquisition in FY 14-
15; which would be increased each year. Based on the recommended 5-Year Plan, it is
anticipated that sufficient funding would be accumulated by the expiration of the lease.
Therefore, utilizing available funding now for street improvements will help reduce future
costs and increase available revenue by preventing more costly street repairs.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration: .
1. Approve staff's recommendations to award a construction contract to the lowest
responsive bidder for the 2012 Street Resurfacing Project and .the proposed
adjustments to Local Sales Tax expenditures;
2. Approve the 2012 Street Resurfacing Project, but maintain funding reserved for
the Le Point Street Parking Lot property acquisition and instead defer streets in
Schedule L, Sunset Drive from Schedule K, and Mason Street from Schedule N;
3. Approve the 2012 Street Resurfacing Project, but maintain funding reserved for
the Le Point Street Parking Lot property acquisition and instead defer projects to
connect the existing drop inlet at Platino Lane and Oro Drive to the nearest drop
inlet downstream and construction of an underground drainage system to collect
and discharge underground water at Miller Way;
4. Do not award a construction contract for the project; or
5. Provide direction to staff.
Agenda Item 8.f.
Page 6
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO AMERICAN ASPHALT
SOUTH, INC. FOR CONSTRUCTION OF 'THE 2012 STREET RESURFACING
PROJECT AND APPROPRIATE FUNDS FOR SHORT STREET IMPROVEMENTS
JUNE 26,2012
PAGE 7
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 slight inconvenience to the traveling public as vehicles are rerouted when the
surface treatments are applied. The recommendations delay savings for acquisition of
the Le Point Street Parking Lot property, as well as other budgeted projects.
ENVIRONMENTAL REVIEW: '.
The project is categorically exempt from CEQA pursuant to Section 15301 (c).
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted on Thursday, June 21,2012. The agenda and staff report was
posted on the City's website on Friday, June 22, 2012. No public comments were
received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
Agenda Item 8.f.
Page 7
Attachment No. 1
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
SUBMITTED BY:
Graham Contractors, Inc.
San Jose, CA
DEADLINE: MAY 8, 2012, 2:00 PM
2012 STREET RESURFACING PROJECT
Roy Allan Slurry Seal, Inc.
Santa Fe Springs, CA
Valley Slurry Seal Co.
Sacramento, CA
TOTAL
$1,038.142.95
California Pavement Maintenance Co., Inc. $1,012,005.87
Sacramento, CA
~merican Asphalt South, Inc.
Fontana, CA
Asphalt Maintenance Company of California $1,146,979.06
Visalia, CA
c: Director of Community Development
Asslstant City Engineer
City Manager
Agenda Item 8.f.
Page 8