HomeMy WebLinkAbout04 - Slurry Seal Program (Project No. 22R04) — Award of Contract No. 8710-1Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q4�:09 City Council Staff Report
April 12, 2022
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Andy Tran, Senior Civil Engineer, atran@newportbeachca.gov
PHONE: 949-644-3315
TITLE: Slurry Seal Program (Project No. 22R04) — Award of Contract
No. 8710-1
ABSTRACT:
Staff has received construction bids for the Fiscal Year 2021-22 Slurry Seal Program and
requests the City Council's approval to award the construction contract to American
Asphalt South, Inc. This year's project covers the Newport Heights and Cliffhaven
communities; and follows the annual concrete and pavement repair programs that are
currently in progress.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities
involving negligible or no expansion of use) of the CEQA Guidelines, because this
project has no potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No. 8710-1 to American Asphalt South, Inc. for the total bid price of
$977,352.00, and authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $100,000.00 (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. 22-049 appropriating $128,050.00 in increased
expenditures in Account No. 01201927-980000-22R04 from the Capital Improvement
Program unappropriated fund balance.
DISCUSSION:
The City of Newport Beach (City) maintains a Pavement Management Program to review,
monitor and recommend street pavement maintenance, rehabilitation and/or replacement
projects in an effort to keep the overall City street pavement condition at a Pavement
Condition Index rating of 80 or higher, as requested by City Council.
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Slurry Seal Program (Project No. 22R04) — Award of Contract No. 8710-1
April 12, 2022
Page 2
As part of this Pavement Management Program, the City performs necessary pavement
patching and crack sealing, and then applies an asphalt slurry seal to all residential and
collector streets, as well as a seal coat to City parking lots, generally every seven years.
Residential and collector streets are divided into seven areas; one area is slurry sealed
each year. This annual slurry seal project is an important part of the regular preventative
street maintenance and extends the life of the pavement, which in turn lowers the overall
life cycle cost, as well as improves the aesthetics and rideability of the City's streets.
At 10:00 a.m. on March 16, 2022, the City Clerk opened and read the bids for this project:
* Bid withdrawn by contractor due to critical estimating errors.
The City received six bids for this project. After the bid opening, the apparent low bidder,
DASH Construction Company, Inc., requested and was allowed to withdraw its bid due to
critical estimating errors made by its estimator when preparing the bid (Attachment B).
Additionally, after the bid opening, staff received a bid protest letter (Attachment C) from
the second lowest bidder, American Asphalt South, Inc., claiming that the apparent low
bidder was non-responsive.
Staff recommends awarding this construction contract to the second lowest bidder,
American Asphalt South, Inc. American Asphalt South, Inc. possesses a California State
Contractor's License Classification "A" and "C-12", as required by the project
specifications. A review of references for American Asphalt South, Inc. shows satisfactory
completion of similar contracts for the City and other municipalities. American Asphalt
South, Inc. successfully completed the Fiscal Year 2020-21 Slurry Seal Program for the
City as well.
The low bid was 0.8 percent above the Engineer's Estimate of $970,000. The disparity
between the bid and the Engineer's Estimate was minimal. Bid prices for mobilization,
slurry seal, crack seal, and traffic control were lower than the Engineer's Estimate;
however, because the bid prices for edge grinding and signing and striping were higher,
the overall bid was slightly above the Engineer's Estimate.
The proposed project includes distributing construction notices to affected residents and
businesses; clearing existing pavement of debris, soils, and other loose materials;
removing existing traffic striping, pavement markings, and raised pavement markers;
weed removal and crack sealing; edge grinding; placing asphalt slurry seal; placing
asphalt seal coat, installing new traffic striping and pavement markings; and other
incidental items of work necessary to complete the work within the Newport Heights and
Cliffhaven communities.
4-2
BIDDER
TOTAL BID AMOUNT
Low*
DASH Construction Company, Inc.
$ 817,777.00
2nd
American Asphalt South, Inc.
$ 977,352.00
3rd
Roy Allan Slurry Seal, Inc.
$ 1,050,785.00
4th
Pavement Coatings
$ 1,121,850.00
5th
All American Asphalt
$ 1,166,000.00
6th
Mission Paving and Sealing, Inc.
$ 1,209,500.00
* Bid withdrawn by contractor due to critical estimating errors.
The City received six bids for this project. After the bid opening, the apparent low bidder,
DASH Construction Company, Inc., requested and was allowed to withdraw its bid due to
critical estimating errors made by its estimator when preparing the bid (Attachment B).
Additionally, after the bid opening, staff received a bid protest letter (Attachment C) from
the second lowest bidder, American Asphalt South, Inc., claiming that the apparent low
bidder was non-responsive.
Staff recommends awarding this construction contract to the second lowest bidder,
American Asphalt South, Inc. American Asphalt South, Inc. possesses a California State
Contractor's License Classification "A" and "C-12", as required by the project
specifications. A review of references for American Asphalt South, Inc. shows satisfactory
completion of similar contracts for the City and other municipalities. American Asphalt
South, Inc. successfully completed the Fiscal Year 2020-21 Slurry Seal Program for the
City as well.
The low bid was 0.8 percent above the Engineer's Estimate of $970,000. The disparity
between the bid and the Engineer's Estimate was minimal. Bid prices for mobilization,
slurry seal, crack seal, and traffic control were lower than the Engineer's Estimate;
however, because the bid prices for edge grinding and signing and striping were higher,
the overall bid was slightly above the Engineer's Estimate.
The proposed project includes distributing construction notices to affected residents and
businesses; clearing existing pavement of debris, soils, and other loose materials;
removing existing traffic striping, pavement markings, and raised pavement markers;
weed removal and crack sealing; edge grinding; placing asphalt slurry seal; placing
asphalt seal coat, installing new traffic striping and pavement markings; and other
incidental items of work necessary to complete the work within the Newport Heights and
Cliffhaven communities.
4-2
Slurry Seal Program (Project No. 22R04) — Award of Contract No. 8710-1
April 12, 2022
Page 3
Pursuant to the Contract Specifications, the contractor will have 40 consecutive working
days to complete the work. Work is scheduled to start in June 2022 after the Newport
Mesa Unified School District schools recess for summer.
The project plans and specifications will be available for review at the April 12, 2022 City
Council meeting or upon request.
FISCAL IMPACT:
Due to the higher bid cost of some of the estimated items, an additional $128,050.00 will
need to be allocated toward the project. Upon approval of the proposed Budget
Amendment, sufficient funding will be available from the current Capital Improvement
Program budget for the award of this contract. The Budget Amendment appropriates
$128,050.00 in increased expenditure appropriations from the Capital Improvement
Program (CIP) Fund unappropriated fund balance. The following funds will be expensed.
Account Description
General Fund
Proposed fund uses are as follows:
Vendor
American Asphalt South, Inc.
American Asphalt South, Inc.
Leighton Consulting, Inc.
Various
Account Number Amount
01201927-980000-22R04 $ 1,122,000.00
Total: $ 1,122,000.00
Purpose
Amount
Construction Contract
$
977,352.00
Construction Contingency
$
100,000.00
Materials Testing
$
42,139.00
Printing & Incidentals
$
2,509.00
Total:
$
1,122,000.00
Staff recommends establishing $100,000.00 (approximately 10 percent of total bid) for
contingency purposes and unforeseen conditions associated with construction.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1, (maintenance
of existing public facilities involving negligible or no expansion of use), of the CEQA
Guidelines, because this project 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 — DASH Construction Company, Inc. Bid Withdrawal
Attachment C — American Asphalt South, Inc. Bid Protest
Attachment D — Budget Amendment No. 22-049
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ATTACHMENT A
JOHN WAYNE
AIDDADT
VICINITY MAP
NOT TO SCALE
SLURRY SEAL PROGRAM
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-8710-1 1 4/12/22
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ATTACHMENT B
DASH Construction Company, Inc
March 17, 2022
Dear Mike Sinacori,
We have now confirmed that our bid estimate for project City of
Newport Beach - Slurry Seal Program (Contract No. 8710-1)
contained critical errors by our estimator. We would like to take the
opportunity to withdraw from this bid and looking forward to serve
the honorable city of Newport Beach in near future. We really
appreciate it.
Sincerely Yours,
Majid (Max) Hajizadeh
DASH Construction company Inc.
Operational Manager
Lic #: 869505
A, B, C8, C13, C15, C23, C27, C33, C36, C60
Tel: (818) 274-8097
8110 Remmet Ave. Unit 9
Canoga Park, CA 91304
Dashconstructioninc@gmail.com
am
American Asphalt
South, Inc.
March 16, 2022
City of Newport Beach
100 Civic Center Dr
Newport Beach, CA 92660
Attn: Patricia Carpenter
ATTACHMENT C
Re: Bid Protest Letter; SLURRY SEAL PROGRAM CONTRACT NO. 8710-1
American Asphalt South, Inc. wishes to submit a protest of the apparent low bidder, Dash
Construction Company Inc. on the above referenced bid.
Based upon no listing of subcontractors they have provided for this project they did not
include a Licensed Slurry Seal Contractor to place the Slurry Seal on this contract. To the
best of our knowledge, they do not have any equipment, crews or experience placing
slurry seal themselves. In addition, if they are intending to subcontract out the slurry seal
for this project, then they would not be performing at least 50% of the work with their
own forces as required in the Greenbook Section 3.2 Self -Performance. Also Section 1-
6.2 subcontractor listing.
Consequently, we feel that they have submitted a deceitful bid to the City of Newport
Beach, and they should be disqualified.
We look forward to your response.
Sincere ,
Jeff Petty
President
www.americanasphaltsouth.com
Lic. # 784969
MAILING ADDRESS: P.O. BOX 310036 • FONTANA, CA 92331 • PHYSICAL ADDRESS: 19792 EL RIVINO ROAD • RIVERSIDE, CA 92509 • (909) 427-8276 • FAX (909) 427-8279
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ATTACHMENT D
�tiW PART
City of Newport Beach
> BUDGET AMENDMENT
c 'F 2021-22 BA#: 22-049
Department: Public Works
ONE TIME: ❑� Yes ❑No
Requestor: Raymund Reyes
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: Dates Ar1/;--.2,
2 COUNCIL APPROVAL REQUIRED lCity Clerk: Date
EXPLANATION FOR REQUEST:
To increase expenditure appropriations to fund the Slurry Seal Program from the Capital Improvement Program ❑from existing budget appropriations
unappropriated Fund Balance. ❑from additional estimated revenues
❑✓ from unappropriated fund balance
REVENUES
Fund #
Org
Object Project Description
Increase or (Decrease) $
Subtotal $
EXPENDITURES
Fund #
Org
Object Project Description
Increase or (Decrease) $
012
01201927
980000 221104 STREET - CIP EXPENDITURES FOR GL
128,050.00
Subtotal $ 128,050.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
012
300000
GENERAL FUND CAPITAL PROJECTS - FUND BALANCE CONTROL
(128,050.00)
Subtotal $ (128,050.00)
Fund Balance Change Required
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