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HomeMy WebLinkAbout06 - Slurry Seal Program — Award of ContractPORT CITY OF O � _ i NEWPORT BEACH City Council Staff Report <i FO RN April 23, 2019 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Ben Davis, Associate Civil Engineer, bdavis@newportbeachca.gov PHONE: 949-644-3317 TITLE: Slurry Seal Program — Award of Contract No. 7432-1 (19R04) ABSTRACT: Staff received construction bids for the Slurry Seal Program — FY2018/19 project and requests City Council's approval to award the construction contract to Roy Allen Slurry Seal, Inc. This year's project covers Eastbluff, Santa Ana Heights and Airport area communities and follows the annual concrete repair work that is currently in progress in these communities. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) Class 2, (reconstruction of existing facility involving negligible or no expansion of capacity) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project specifications; c) Award Contract No 7432-1 to Roy Allen Slurry Seal, Inc. for the total bid amount of $946,629.00; d) Establish a contingency of $95,000.00 (approximately 10 percent of total bid) to cover the cost of unforeseen work not included in the original contract; and e) Approve Budget Amendment No. 19BA-043 appropriating $168,600.00 from the General Fund Capital Projects unappropriated fund balance (cost savings from completed CIP projects) to Account No. 0121927-980000-19R04. FUNDING REQUIREMENTS: The Budget Amendment proposes a $168,600.00 increase in expenditure appropriations from General Fund Capital Projects unappropriated fund balance. 6-1 Slurry Seal Program — Award of Contract No. 7432-1 (19R04) April 23, 2019 Page 2 Upon approval of the proposed budget amendment, sufficient funding is available for the award of this contract. The following fund will be expensed: Account Description General Fund Proposed fund uses are as follows: Vendor Roy Allen Slurry Seal, Inc. Roy Allen Slurry Seal, Inc. Geocon West, Inc. Various Account Number Amount 01201927-980000-19R04 $ 1,074,000.00 Total: $ 1,074,000.00 Purpose Amount Construction Contract $ 946,629.00 Construction Contingency $ 95,000.00 Materials Testing $ 29,422.00 Printing & Incidentals $ 2,949.00 Total: $ 1,074,000.00 Staff recommends establishing $95,000.00 (approximately ten percent of total bid) for contingency purposes for unforeseen conditions associated with construction. DISCUSSION: The Slurry Seal Program is an essential part of the City's pavement preventative maintenance plan to correct minor deficiencies, prevent deterioration and prolong the life of the pavement in residential areas. This annual program covers the entire city over a seven-year cycle. This year's program includes the Eastbluff and Santa Ana Heights communities and the Airport area. At 10 a.m. on March 26, 2019, the City Clerk opened and read the bids for this project: The City received multiple bids for this project. The low bidder, Roy Allen Slurry Seal, Inc., possesses a California State Contractors License Classification "A" as required by the project specifications. A review of references for Roy Allen Slurry Seal, Inc. shows satisfactory completion of similar contracts for public agencies. The low bid was 14 percent above the Engineer's Estimate of $830,000.00. Staff has reviewed the bids and understands the increased cost. The unit price for a Type 1 slurry seal has been in the range of $0.09 to $0.13 per square foot with the estimate on this project at $0.11 per square foot. With the recent rise in oil prices, bids are also pressing upward. With approximately 3,800,000 square feet of slurry included in this year's project, a $0.02 per square foot increase over the estimate was the primary reason for the higher bid. 6-2 BIDDER TOTAL BID AMOUNT Low Roy Allen Slurry Seal, Inc. $ 946,629.00 2nd American Asphalt South, Inc. $ 976,475.00 3rd Pavement Coatings, Inc. $ 1,253,600.00 4th All American Asphalt, Inc. $ 1,429,840.54 The City received multiple bids for this project. The low bidder, Roy Allen Slurry Seal, Inc., possesses a California State Contractors License Classification "A" as required by the project specifications. A review of references for Roy Allen Slurry Seal, Inc. shows satisfactory completion of similar contracts for public agencies. The low bid was 14 percent above the Engineer's Estimate of $830,000.00. Staff has reviewed the bids and understands the increased cost. The unit price for a Type 1 slurry seal has been in the range of $0.09 to $0.13 per square foot with the estimate on this project at $0.11 per square foot. With the recent rise in oil prices, bids are also pressing upward. With approximately 3,800,000 square feet of slurry included in this year's project, a $0.02 per square foot increase over the estimate was the primary reason for the higher bid. 6-2 Slurry Seal Program — Award of Contract No. 7432-1 (19R04) April 23, 2019 Page 3 The work consists of distributing construction notices to affected residents and businesses; clearing existing pavement of debris, soils and other loose materials; removing existing traffic striping, pavement marking, and raised pavement markers; weed removal and crack sealing; edge grinding; placing asphalt slurry seal; installing new traffic striping, pavement markings, and raised pavement markers; and other incidental items of work necessary to complete the work within the Eastbluff and Santa Ana Heights communities and the Airport area. The Contractor will have forty (40) working days to complete the work. Public noticing and construction work is expected to begin early June as the weather warms. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) Class 2, (reconstruction of existing facility involving negligible or no expansion of capacity) 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). ATTACHMENTS: Attachment A — Location Map Attachment B — Budget Amendment 6-3 Attachment A JOHN WAYNE AIRPORT NOT TO SCALE SLURRY SEAL PROGRAM LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7432-1 1 4/23/2019 ATTACHMENT B City of Newport Beach BUDGET AMENDMENT 2018-19 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 19BA-043 AMOUNT:j $168,600.00 This budget amendment is requested to provide for the following: To increase expenditure appropriations from General Fund CIP unappropriated fund balance for the award of contract for the Slurry Seal Program (19R04). ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 012 350000 REVENUE ESTIMATES Ong Object Project EXPENDITURE APPROPRIATIONS Org Object Project 01201927 980000 19R04 Signed Signed: Financial Approval: F City Council Approval: City Clerk Amount Description Debit Credit General Fund CIP Fund Balance $168,600.00 " Description Description CIP Slurry Seal Program $168,600.00 * Automatic 41 _q-/� Date Date 6-5 Increase in Budgetary Fund Balance ANDX Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? B Yes No This budget amendment is requested to provide for the following: To increase expenditure appropriations from General Fund CIP unappropriated fund balance for the award of contract for the Slurry Seal Program (19R04). ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 012 350000 REVENUE ESTIMATES Ong Object Project EXPENDITURE APPROPRIATIONS Org Object Project 01201927 980000 19R04 Signed Signed: Financial Approval: F City Council Approval: City Clerk Amount Description Debit Credit General Fund CIP Fund Balance $168,600.00 " Description Description CIP Slurry Seal Program $168,600.00 * Automatic 41 _q-/� Date Date 6-5