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.