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HomeMy WebLinkAboutStaff Report 5.D 08/06/2018DATE: August 6, 2018 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Da`n St�J E — Director, Public Works & Utilities Jeff 9tutsman, P.E. — Senior Civil Engineer, Public Works & Utilities SUBJECT: Resolution Authorizing Award of Contract for the Lakeville Highway Channelization Project to American Asphalt Repair and Resurfacing Company, Inc. RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Authorizing Award of Contract for the Lakeville Highway Channelization Project to American Asphalt Repair and Resurfacing Company, Inc. BACKGROUND The City's Public Works and Police departments have long recognized the need to resolve safety issues on Lakeville Highway at Pine View Way, an in -town segment of State Highway 116 (SR 116). The project will upgrade the intersection of Lakeville Highway at Pine View Way with new signage, installation of radar speed feedback signs, and new striping and markings to delineate a dedicated right turn lane onto Pineview Way from Lakeville Highway and acceleration lanes on Lakeville Highway for both eastbound and westbound directions. This location was a low priority on Caltrans' project list because of Caltrans' project load and lack of funding. Therefore, the City took the lead and applied for funding to complete the safety improvements. The City was awarded a Highway Safety Improvement grant for the design and construction of channelization improvements on SR 116 at Pine View Way in the amount of $185,400. The City Council accepted the Cycle 5 Highway Safety Improvement Program Grant on December 3, 2012. The federal Highway Safety Improvement Program is administered through Caltrans and required significant paperwork, environmental studies and oversight by Caltrans to meet the grant requirements. Although the project is within the City limits, Lakeville Highway is owned and maintained by Caltrans and the project was designed to meet the Highway Design Standards and required a Caltrans Encroachment Permit for construction. During the five-year design process to bring this project to construction, City have met with many different Caltrans employees, each responsible for an aspect of the highway design, in order to receive the necessary approvals for the Caltrans encroachment permit and grant requirements. This project was bid on May 24, 2018, and the low bid was $226,120. The City Council rejected that bid on July 16, 2018. The project was rebid in June 2018, and one bid was received in response on July 5, 2018. Although this contract award is $41,302 higher than the Engineer's estimate, it is $41,818 less than the rejected bid and staff recommends proceeding with the project. It is unknown when Caltrans would make the highway safety improvements. Additionally, construction costs have increased in the time since the grant was awarded. The proposed actions meet Council goal: "Plan for and implement priority capital projects as funding permits." DISCUSSION The base bid includes the restriping and slurry seal within the entire project limits, and the installation of new signage and radar speed feedback signs. Name of Bidder Business Location Total Base Bid American Asphalt Repair and Resurfacing Company, Inc. Hayward, CA $184,302.00 Engineer's Estimate N/A $143,000.00 The responsible and only bidder, American Asphalt Repair and Resurfacing Company, Inc., has performed work for the City of Petaluma, and has performed similar public works projects. American Asphalt Repair and Resurfacing Company, Inc. possesses the necessary California Contractor's License, Class A, number 439591, which expires on 5/31/2019, to perform the work. It is recommended that the Council award the base -bid contract only to American Asphalt Repair and Resurfacing Company, Inc., for $184,302.00. Construction will be scheduled to begin as soon as practical and be completed in about one month. The contract documents require completion within thirty (30) working days. The project is categorically exempt from both the National Environmental Protection Act and the California Environmental Quality Act because it performs maintenance and minor upgrades to an existing facility project. FINANCIAL IMPACTS Project C16101309 is included in the FY 18/19 CIP with an approved project budget of $215,000, funded by Highway Safety Improvement Program (HSIP) and Street Maintenance Fund. The HSIP will fund direct project costs up to the grant limit of $226,000 of which $84,000 has already been expended during design, leaving $142,000 for the construction phases. The City's required 10 percent match and overhead costs of $97,141 are an increase from the CIP budget and will require a budget augmentation of $24,141 from the street maintenance fund, which has adequate reserves to meet this need. N Additional grant funding will be requested of Caltrans. However, Caltrans has not been quick to identify additional grant funds within the HSIP program and the City may have to wait for the upcoming fiscal year budget process to see if they allocate more money to the project. In the meantime, or if the request is denied, the budget augmentation is needed to make the proposed contract award. ATTACHMENTS 1. Resolution 3 FY 18/19 CIP Revised Project Budget Construction Contract $165,000 $184,302 Construction Management $27,000 $30,409 Contingency $17,000 $18,430 CIP Overhead $6,000 $6,000 Total $215,000 $239,141 Funding Sources Street Maintenance Funds (Includes 10% Local Match $73,000 $97,141 State HSIPL $142,000 $142,000 TOTAL $215,000 $239,141 Additional grant funding will be requested of Caltrans. However, Caltrans has not been quick to identify additional grant funds within the HSIP program and the City may have to wait for the upcoming fiscal year budget process to see if they allocate more money to the project. In the meantime, or if the request is denied, the budget augmentation is needed to make the proposed contract award. ATTACHMENTS 1. Resolution 3 Attachment 1 RESOLUTION AUTHORIZING AWARD OF CONTRACT FOR THE LAKEVILLE HIGHWAY CHANNELIZATION PROJECT TO THE AMERICAN ASPHALT REPAIR AND RESURFACING COMPANY, INC. 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 14 and 21, 2018, and one (1) bid was received and opened on July 5, 2018, in accordance with applicable law; and WHEREAS, the responsive bid for the Project was submitted by American Asphalt Repair and Resurfacing Company, Inc., from Hayward, CA for $184,302; and WHEREAS, staff has determined that the Contractor's bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that Contractor possesses a valid California Contractor's License, Class A, number 439591 that is appropriate for the work to be performed for the Project; and WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act ("CEQA") and Title 14, the California Code of Regulations ("CEQA Guidelines"), Section 15301, because the project consists of the operation, repair, maintenance or minor alteration of existing public structures involving negligible or no expansion of use beyond that previously existing. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 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 American Asphalt Repair and Resurfacing Company, Inc. for the Lakeville Highway Channelization Project, finds the bid of $184,302 to be the lowest, responsive bid and further finds that American Asphalt Repair and Resurfacing Company, Inc., is the lowest responsible bidder. L! 2. Awards the contract for the Lakeville Highway Channelization Project No. C 161013 09 to American Asphalt Repair and Resurfacing Company, Inc., in the amount of $184,302, the amount of the lowest responsive bid, conditioned on American Asphalt Repair and Resurfacing Company, Inc.'s 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. 3. Authorizes a construction contract contingency of $18,430. 4. Directs the City Manager to include a budget augmentation for an additional $24,141 from the Street Maintenance Fund to this project in the next regular budget adjustment process. 5. Authorizes and directs the City Manager to execute the project contract documents on behalf of the City.