HomeMy WebLinkAboutStaff Report 3.C 7/21/2014Agenda Item #3.0
DATE: July 21, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dar' St. y t Director, Public Works and Utilities
Larry Zimmer, P.E. — Manager, Capital Projects Division
SUBJECT: Resolution Approving the Project Budget and Authorizing Award of Contract for
the 2014 Various Streets Maintenance Project
RECOMMENDATION
It is recommended that the City Council approve the project budget and authorize the award of
contract for the 2014 Various Streets Maintenance Project.
BACKGROUND
This is the first pavement restoration project proposed by the City for many years that is not
designed to meet the narrow design objectives dictated by the Caltrans grant funding programs
such as the State Transportation Program (STP) and Congestion Management and Air Quality
(CMAQ) grants. While the total available funds are insufficient to support an annual pavement
restoration program sufficient to arrest confined degradation of the City streets, this project is
intended to use modern capital pavement maintenance techniques such as micro seals, cape seals,
and rubberized asphalt as cost effective alterations to mill and fill overlays and street
reconstruction. As additional funding may become available, it is critical that the City has gained
experience using these modern methods and demonstrated their effectiveness in extending the
longevity of existing pavement. The project consists of applying microsurfacing, conventional
cape seals, and a three layer paving treatment utilizing a rubberized ashpalt on various arterial
and collector streets in Petaluma, including related activities such as installing traffic control;
removing and replacing traffic stripes, pavement markings, and pavement markers. This project
will reduce the continued degredation of the City's streets.
The streets were selected to provide the most cost effective improvements for the entire
pavement system and to provide the most benefit to the traveling public. The Base Bid, includes
Petaluma Boulevard North, Magnolia Avenue, Bodega Avenue/Washington Street, East D
Street, East Madison Street, and Gumwood Lane/Wood Lane. Bid Alternate #1 includes Corona
Road, Caulfield Lane, and McDowell Boulevard South and Bid Alternate #2 includes a small
segment Maria Drive. The work addresses areas of significant need which are not eleigible for
any federal or state grant money.
Agenda Review:
City Attorney Finance Director City ManagerQ�--- 1
The proposed action meets Council Goal: "Plan for and implement priority capital projects as
funding permits".
DISCUSSION
Staff issued a Notice Inviting Bids on June 12, 2014. Three bids received on June 25, 2014, as
shown below:
Name of Bidder
Base Bid
Bid
Alternate #1
Bid
Alternate #2
Grand Total
Telfer Highway
Technologies
$515,435.00
$70,437.50
$175,082.50
S 760,955.00
California Pavement
Maintenance Company
$580,881.50
$71,974.00
$182,006.75
$ 834,862.25
VSS International, Inc.
$608,000.00
$100,000.00
$323,000.00
$1,031,000.00
Engineer's estimate
$349,000.00
$55,512.50
$67,887.50
$ 472,355.00
Council previously approved a total project budget of $561,000 in the FY 14/15 Budget, funded
by the Street Maintenance 2411 Fund without grant contribution.
The project bids exceeded the engineer's estimate because the scope is significantly smaller than
projects used by staff for cost comparison. While a unit cost increase was anticipated due to the
size of the project, the size of that increase was underestimated. Additionally, as all of the
bidders were from contractors specializing in pavement sealcoats, the cost for typical
construction work such as pavement dig outs and traffic control were also much higher than
estimated.
This project will utilize the City's Street Crew to prepare areas of pavement for the contractor's
work. Because of the relatively high bid costs of pavement repairs such as "cut outs" and asphalt
patching work, the City crews will perform this work, thus allowing the pavement sealing
specialty contractor to do more of the needed protective coating work.
Staff recommends City Council authorize the City Manager to enter into contract for the 2014
Various Streets Maintenance Project with the apparent low bidder, Telfer Highway
Technologies, and to include Bid Alternate #1. Staff further recommends that the project budget
be increased to accommodate the scope. Construction is tentatively scheduled to begin in August
2014, and is expected to last approximately twenty working days.
FINANCIAL IMPACTS
The proposed action will require an additional $100,000 from the Street Maintenance 2411 Fund
for design, construction management/inspection, and construction. The current fund balance for
the Gas and Street Funds are sufficient to support the increase for two reasons. First, the State
recently amended their HUT (AKA, gas tax) projection to the City with a $200,000 increase.
Second, several other CIP projects slated for Gas & Street funds have come in below estimates
or were delayed.
Staff recommends an increase in the amount of Street Maintenance 2411 Funds used for the
project by $100,000 and an increase in total project budget to $661,000.
The following is the proposed project budget:
Uses
Total Project
Bud et.
Desi Environmental*
HP-roiket,Cost
Construction Contract
$
542,000
Construction Mana ement/Testin
$
19,000
CIP Overhead
$
2,000
Proiect Contingency
$
-
$
54,000
TOTAL
$
561,000
$
661,000
Funding Sources
Street Maintenance Fund
$
561,000
$
661,000
TOTAL
$
561,000
$
661,000
ATTACHMENTS
I. Resolution
2. Vicinity Map
Attaclnnent 1
RESOLUTION APPROVING THE PROJECT BUDGET AND
AUTHORIZING THE AWARD OF CONTRACT FOR THE 2014 VARIOUS
STREETS MAINTENANCE PROJECT TO TELFER HIGHWAY TECHNOLOGIES.
WHEREAS, City staff has prepared construction bid documents and advertised for
construction of this Project; and
WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code,
California Public Contract Code Section 20162 and other applicable law, City staff solicited bids
for the Project; and
WHEREAS, the Project was bid on June 25, 2014, and three (3) bids were received and
opened in accordance with applicable law; and
WHEREAS, the lowest bid for the Project was from Telfer Highway Technologies for
$585,872.50; and
WHEREAS, staff has determined that Telfer Highway Technologies' bid satisfies the
bidding requirements for the Project; and
WHEREAS, staff has verified that Telfer Highway Technologies possesses a valid
California Contractor's License, Class A, number 984141 that qualifies Telfer Highway
Technologies to perform the Project; and
WHEREAS, the Project has a Categorical Exemption pursuant to the California
Environmental Quality Act ("CEQA") pursuant to Article 19, Section 15303, of Title 14 of the
California Code of Regulations ("CEQA Guidelines").
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Approves the Project Budget in the amount of $661,000 including a contingency of
$54,000, and
2. Authorizes the transfer of funds from Street Maintenance 2411 Funds up to $661,000 into
the 2014 Various Streets Maintenance CIP Project account, and
2. In accordance with the City of Petaluma Charter and Municipal Code, California Public
Contract Code Section 20162 and other applicable law, waives any and all non-
conformance in the bid of Telfer Highway Technologies for the 2014 Various Streets
Maintenance Project, and finds the bid of $585,872.50 to be the lowest responsive bid,
and further finds that Telfer Highway Technologies is the lowest responsible bidder, and
3. Awards the contract for the Various Streets Maintenance Project to Telfer Highway
Technologies in the amount of $585,872.50, conditioned on Telfer Highway
Technologies timely executing the project contract and submitting all required
documents, including but not limited to, executed bonds, certificates of insurance, and
endorsements, in accordance with the project bid documents, and
4
4. Directs staff to issue a notice of award to Telfer Highway Technologies, and
5. Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by Telfer Highway Technologies of the signed
project contract and all other required documents, including but not limited to, executed
bonds, certificates of insurance, and endorsements, in accordance with the project bid
documents.
Attachment 2
2014 VARIOUS STREETS MAINTENANCE PROJECT
PROJECT NO. C16101303
LOCATION MAP
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LAKEVILLE HIGHWAY
IL
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