HomeMy WebLinkAbout06 - Arterial Highway Pavement Repair ProgramTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
November 28, 2017
Agenda Item No. 6
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Frank Tran, Civil Engineer, ftran(a).newportbeachca.gov
PHONE: 949-644-3340
TITLE: Arterial Highway Pavement Repair Program — Award of Contract
No. 7185-1 (18R03)
ABSTRACT:
Staff has received construction bids for the Arterial Highway Pavement Repair Program
project and is requesting City Council's approval to award the contract to All American
Asphalt.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15301 Class 1 (c) (maintenance of existing public facilities
involving negligible or no expansion of use);
b) Approve the project drawings and specifications;
c) Approve Budget Amendment No. 18BA-021 transferring $304,000 in project savings
Account No. 12101-980000-15R17 to Account No. 12101-980000-18R03;
d) Award Contract No. 7185-1 to All American Asphalt for the total bid price of
$497,497.00, and authorize the Mayor and City Clerk to execute the contract; and
e) Establish a contingency of $50,000 (approximately 10%) to cover the cost of
unforeseen work not included in the bid price.
FUNDING REQUIREMENTS:
Upon approval of the proposed Budget Amendment, there will be sufficient funding in the
following account for the award of this contract:
Account Description Account Number Amount
Gas Tax 12101-980000-18R03 $517,000.00
Total: $517,000.00
6-1
Arterial Highway Pavement Repair Program — Award of Contract No. 7185-1 (18R03)
November 28, 2017
Page 2
Proposed uses are as follows:
Vanrinr
All American Asphalt
Geocon West, Inc.
Various
DISCUSSION:
Purpose
Construction Contract
Pavement Testing
Printing and Incidentals
Amount
$497,497.00
18,000.00
1,503.00
Total: $517,000.00
At 9 a.m. on November 13, 2017, the City Clerk opened and read the following electronic
bids for this project:
BIDDER TOTAL BID AMOUNT
n/a Hardy & Harper, `+ $355,000.00*
Low All American Asphalt $497,497.00
2 The R.J. Noble Company $585,700.00
3 Excel Paving $759,335.00
* Hardy & Harper, Inc. submitted a written request to withdraw from this project citing a
clerical error on Bid Item #11 was made on its bid.
This CIP project was originally scoped and designed back in March 2017 to assist the
Municipal Operations Department (MOD) with the patching of failing pavement areas on
arterial highways. The project was also a directed effort intended to reduce the backlog
of areas needing attention as well as undertaking proper preventative maintenance.
During the recent bid package preparation, design staff conducted additional outreach
and review to incorporate the latest feedback from the community, MOD street
maintenance staff as well as from Public Works inspectors. This outreach led to an
increased scope of pavement patching work beyond the original CIP scope. Public Works
believes that a good portion of the increased pavement patching needs resulted from last
years above normal rainfall after many years of drought. Including this additional patching
work in the project provides a good value to the City's street system, which includes
prolonging pavement life, reduced future costs, being prepared for the upcoming rainy
season and reduced motorist frustration with potholes. The final bid package includes
asphalt repairs, paving, deep patching and asphalt cap replacement on MacArthur
Boulevard, Newport Coast Drive, San Joaquin Hills Road and Spyglass Road.
The low bid amount is 17% higher than the Engineer's Estimate of $425,000. Public
Works staff performed a detailed review of the bid, the bid items, engineers estimate and
spoke to low bidder and other prospective bidders. The bid received from All American
appears to be within marketplace conditions for this work and is cost competitive. Also
noteworthy, the original estimates did not include new effects associated with the recent
California State Gas Tax increases, which raised the costs of diesel and vehicle
registrations, which in turn has raised the overall cost of trucking, equipment and
materials. These cost increases are in the process of being worked into construction
estimates/budgets and construction cost escalations.
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Arterial Highway Pavement Repair Program — Award of Contract No. 7185-1 (18R03)
November 28, 2017
Page 3
As discussed above, the amount of pavement patching work included in the current bid
package is higher than originally estimated primarily as a result of last year's very wet
winter. In addition to the additional work, some urgent pavement repairs using on-call
paving contracts was also completed over the last three months utilizing this CI patching
fund. As such, staff is also requesting approval of a budget amendment from the State
Gas Tax account to provide the necessary funding in order to award the recommended
construction contract to All American Asphalt for the Arterial Highway Pavement Repair
Program.
The low bidder, All American Asphalt, possesses a California state contractor's license
classification "A" as required by the project specifications. A check of the contractor's
references indicates satisfactory completion of similar projects for City of Newport Beach
and other public agencies. All American Asphalt also completed the Ocean Boulevard
and Poppy Avenue street improvement project (C-6189) for the City earlier this year.
The work necessary to complete this contract includes repairing the existing pavement
on various arterials throughout the city as shown on the Location Map. This contract also
includes isolated dig -outs, asphalt grind and overlay, pruning tree roots and installing tree
root barriers, installing traffic striping, pavement markings and raised pavement markers.
Pursuant to the contract specifications, the Contractor will have 30 consecutive working
days to complete the work.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301 Class 1 (c) (maintenance
of existing public facilities involving negligible or no expansion of use ) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item). The Notice Inviting Bids was
advertised in the City's official publication and in construction industry publications.
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Hardy & Harper, Inc.'s Letter of Intent to Withdraw Bid
Attachment C — Budget Amendment
6-3
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ARTERIAL HIGHWAY PAVEMENT REPAIR PROGRAM CITY OF NEWPORT BEACH
LOCATION MAP PUBLIC WORKS DEPARTMENT
C-7185-1 11/28/17
Attachment B
caw�race n
STMT LIC. Nttntber 215952
1312 EAST %VARINER AVENUE
Obb-•- SANTA ANA, CA 92.705
(714) 444-18,51 • I'AX (714;' 444-21801
November 14t", 2017
Frank Tran, PE
Civil Engineer
City of Newport Beach
Public Works Department
RE: Arterial Highway Pavement Repair Program C-7185-1
Letter of Intend to Withdraw Contractor's Bid
To Whom it May Concern
This is to confirm our telephone conversation earlier, November 14th, 2017, in which Corey Kirschner gave
notice to and advised you of the existence mistake on this bid submitted for "Arterial Highway Pavement
Repair Program C-7185-1" that bid on November 13th, 2017 at 9:00 AM. Hardy & Harper, Inc respectfully
request to be withdrawn from this project, unfortunately, due to a clerical error on item number (11) "Cold Mill
Asphalt Concrete Pavement" in which was written in unit price of $0.50. However, written unit price should've
been $1.50; therefore causing a $83,000.00 discrepancy. We apologized for an inconvenience this may cause,
we hope this error will not cast a shadow of doubt on our ability to bid and/or construct for future Newport
Beach projects.
If you have any questions feel free to contact Corey Kirschner, Estimator, at (714) 240-2170
Thank you,
Stev irschn — ice President
6-5
ATTACHMENT C
City of Newport Beach
BUDGET AMENDMENT
017-18
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estirnwes
Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
�[ from existing budget appropriations
from additional estimated revenues
from unappropriated fund balance
EXPLANTATION:
This budget amendment is requested to provide for the following:
NO. BA- 18BA-021
AMOUNT:j $304,000.00
To transfer expenditure appropriations from the Newport Blvd 32nd St Modification Project to the
Arterial Highway Pavement Repair Program.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Object
121 300000
REVENUE ESTIMATES
l=Il_ v'-bjec?
EXPENDITURE APPROPRIATIONS
Org/Object 12101-980000-15R17
Org/Object
Org/Object 12101-980000-18R03
Org/Object
Amount
Description Debit Credit
Description
Description
_...............
Gas Tax - CIP - Newport Blvd 32nd St $304,000.00
E -15R17 -Unassigned -121 -Unassigned
Gas Tax - CIP - Arterial Hwy Pavement $304,000.00
E -18R03 -Construct -121 -Unassigned
financial Approval: Finance Director
Signed- Cy_
Adminlstfative Approval: City Manaoer
Signed:
City Council Approval: City Clerk
Automatic System Ent
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Daft
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Date
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
}{
No effect on Budgetary Fund Balance
ONE-TIME?
�]
Yes
No
To transfer expenditure appropriations from the Newport Blvd 32nd St Modification Project to the
Arterial Highway Pavement Repair Program.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Object
121 300000
REVENUE ESTIMATES
l=Il_ v'-bjec?
EXPENDITURE APPROPRIATIONS
Org/Object 12101-980000-15R17
Org/Object
Org/Object 12101-980000-18R03
Org/Object
Amount
Description Debit Credit
Description
Description
_...............
Gas Tax - CIP - Newport Blvd 32nd St $304,000.00
E -15R17 -Unassigned -121 -Unassigned
Gas Tax - CIP - Arterial Hwy Pavement $304,000.00
E -18R03 -Construct -121 -Unassigned
financial Approval: Finance Director
Signed- Cy_
Adminlstfative Approval: City Manaoer
Signed:
City Council Approval: City Clerk
Automatic System Ent
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Daft
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DalSa
Date