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AGENDA BILL Agenda Item No. 5(C) Date: February 3, 2015 To: El Cerrito City Council From: Yvetteh Ortiz, Public Works Director/City Engineer Subject: 2014 Pavement Rehabilitation Project, City Project No. C3074, Federal Project No. RSTP 5239(024) ACTION REQUESTED Adopt a resolution for the following actions: 1) Approve plans for the 2014 Pavement Rehabilitation Project, City Project No. C3074; 2) Reject one submitted bid from Interstate Grading and Paving, Inc. as non- responsive; 3) Accept the six remaining submitted bids; 4) Authorize the City Manager to execute a contract in the amount of $664,200 with Gallagher & Burk, Inc. and to approve change orders in an amount not to exceed $53,136 for the construction of the 2014 Pavement Rehabilitation Project; and 5) Amend the Capital Improvement Program/Annual Program of Maintenance and Improvement pursuant and the Fiscal Year 2014-15 Adopted Budget to appropriate an additional amount of $69,000 in the Measure A Street Improvement Fund (Fund 211) for the 2014 Pavement Rehabilitation Project, City Project No. C3074. BACKGROUND The 2014 Pavement Rehabilitation Project considered pavement repairs for five street segments including Colusa Avenue from Terrace Drive to Errol Drive, Fairmount Avenue from Colusa Avenue to Richmond Street, Manila Avenue from Richmond Street to Kearney Avenue, Arlington Boulevard from Arbor Drive to Villa Nueva Drive, and Central Avenue from San Pablo Avenue to Santa Clara Avenue. The work generally consists of asphalt concrete overlay, removal and replacement of City street trees, reconstruction of limited sections of existing curb, gutter, sidewalk, and driveways that have been displaced by tree roots, construction or reconstruction of curb ramps, and installation of thermoplastic striping and pavement markers. For bidding purposes and to allow flexibility of award within the project budget, the work on the five street segments were divided into a Base Bid that included Colusa Avenue, Fairmount Avenue, and Manila Avenue, Bid Alternate Number 1 that included Arlington Boulevard and Bid Alternate Number 2 that included Central Avenue. The removal and replacement of street trees, notably along Manila Avenue, is being done under a separate contract with West Coast Arborist and work has begun. ---PAGE BREAK--- Agenda Item No. 5(C) Page 2 A Notice Inviting Bids for the project was advertised in the West Contra Costa Times on November 17 and 24, 2014. Additionally, the notice along with a complete set of Contract Documents was sent to eight Builder and Construction Exchanges. The project was also posted on the City’s website. Subsequently, one addendum was issued and all plan holders were notified. ANALYSIS Seven bids were received on December 16, 2014. One bid received from Interstate Grading and Paving, Inc. did not include two required pages from the bid proposal. The two omitted pages included important contractual provisions along with required company signatures. Interstate’s bid without these pages would allow them to escape liability and therefore provide an unfair advantage. Staff is requesting Council to consider this bid non-responsive. The following are the results for the remaining six bids: Name and Location of Bidder Base Bid - Colusa, Fairmount, Manila Alternate 1 - Arlington Alternate 2 – Central Grand Total Gallagher & Burk, Inc., Oakland $533,940.00 $130,260.00 $181,138.00 $845,338.00 MCK Services, Concord $537,613.04 $156,907.20 $210,635.75 $905,155.99 Ghilotti Bros, San Rafael $565,411.61 $118,709.40 $204,057.25 $888,178.26 Maggiora & Ghilotti, San Rafael $595,282.95 $145,663.00 $227,431.28 $968,377.23 C.F. Archibald Paving, Redwood City $623,011.02 $98,241.00 $154,472.00 $875,724.02 Team Ghilotti, Petaluma $691,237.00 $136,881.00 $194,444.50 $1,022,562.50 Engineer’s Estimate $589,770.00 $114,994.00 $164.526.00 $869,290.00 The Contract Documents stipulated that the low bidder was to be determined by the amount of the Base Bid. The low bidder is Gallagher & Burk, Inc. with a bid of $533,940 for the Base Bid, which is approximately 9.5% below the Engineer’s Estimate of $589,770. Their bid of $130,260 for Bid Alternate Number 1 is approximately 13% above the Engineer’s Estimate of $114,994. The combined low bid total for the Base ---PAGE BREAK--- Agenda Item No. 5(C) Page 3 Bid and Alternate Number 1 of $664,200 is 5.8% below the Engineer’s Estimate of $704,764. Since the project includes a federal grant from the One Bay Area Grant (OBAG) Program, the low bidder is required to make a good faith effort to incorporate the services of Disadvantaged Business Enterprises (DBEs) in their bid for completing the project. The City determined a DBE goal of 4.7% of the total construction cost for this project was obtainable. The low bid exceeded the City’s DBE goal by including a commitment of 6.3% of work to be performed by DBEs. As shown below, the total project expenditures are projected to result in a funding shortfall of $69,000. This shortfall is due to increases in construction prices over the last few years since the project was first developed. The project was value-engineered to reduce construction costs and the Engineer’s Estimate was adjusted to reflect recent bids. As such, staff believes the low bid to be a good value worthy of funding of Alternate Number 1 for Arlington Boulevard. We are considering other lower-cost design options for Central Avenue and therefore not recommending award of Alternate Number 2 at this time. Staff recommends that City Council award a construction contract in the amount of $664,200 for the Base Bid plus Alternate Number 1 to Gallagher & Burk, Inc. as the lowest responsive and responsible bidder. STRATEGIC PLAN CONSIDERATIONS Award of the construction contract is consistent with El Cerrito Strategic Plan Goal D – Develop and rehabilitate public facilities as community focal points. Specifically, it fulfills a portion of the “Develop a plan to address ongoing and deferred maintenance of facilities and infrastructure.” ENVIRONMENTAL CONSIDERATIONS The project is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) because the project is a repair to an existing facility involving negligible or no expansion of use beyond that presently existing. More specifically, restoration or rehabilitation of deteriorated or damaged facilities to meet current standards of public health and safety, unless it is determined that the damage was substantial and resulted from an environmental hazard such as an earthquake, landslide, or flood, is exempt from CEQA. Additionally, Caltrans, which provides oversight for federally-funded projects, reviewed compliance with the National Environmental Policy Act (NEPA) and determined that the project has no significant impacts on the environment as defined by NEPA and therefore the project is categorically excluded from the requirements of preparing an environment assessment or environmental impact statement. FINANCIAL CONSIDERATIONS The 2014 Pavement Rehabilitation Project is included in the Fiscal Year (FY) 2014-15 Capital Improvement Program/Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program. It is funded through a $630,000 ---PAGE BREAK--- Agenda Item No. 5(C) federal grant from the One Bay Area Grant (OBAG) Program with matching and additional funds of $311,000 provided by the Measure A Street Improvement Fund for a total project budget of $941,000. Staff is recommending an additional appropriation of Measure A funds of $69,000 for construction of the project. The Measure A Street Improvement Fund began the fiscal year with a fund balance of approximately $71,000. The project expenditure budget is summarized below and includes contingency of 8o/o for contract change orders. A Preliminary Engineering & Design Phase $130,550 B Construction and Closeout Phase $879,450 Construction Contract $664,200 Construction Contract Contingency $53,136 Inspect, Test & Admin $143,370 West Coast Contract $18,744 Funding of $863,831 for the 2014 Pavement Rehabilitation Project, C3074 is included in the City's FY 2014-15 Adopted Budget in an allocation from the Measure A Street Improvement Fund within the Capital Improvement Program/ Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program. An amendment to the FY 2014-15 Adopted Budget is required to appropriate $69,000 in this year's Measure A Street Improvement Fund (211) within the Capital Improvement Program/ Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program. LEGAL CONSIDERATIONS The City Attorney has reviewed the proposed actions and found that legal considerations have been addressed. Scott Hanin, City Manager Attachments: 1. Resolution Page4 ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 RESOLUTION NO. 2015-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO APPROVING PLANS FOR THE 2014 PAVEMENT REHABILITATION PROJECT; REJECTING ONE SUBMITTED BID FROM INTERSTATE GRADING AND PAVING, INC. AS NON-RESPONSIVE; ACCEPTING THE SIX REMAINING SUBMITTED BIDS; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT IN THE AMOUNT OF $664,200 WITH GALLAGHER & BURK, INC. AND TO APPROVE CHANGE ORDERS IN AN AMOUNT NOT TO EXCEED $53,136 FOR THE CONSTRUCTION OF THE 2014 PAVEMENT REHABILITATION PROJECT; AND AMENDING THE CAPITAL IMPROVEMENT PROGRAM/ANNUAL PROGRAM OF MAINTENANCE AND IMPROVEMENT PURSUANT AND THE FISCAL YEAR 2014-15 ADOPTED BUDGET TO APPROPRIATE AN ADDITIONAL AMOUNT OF $69,000 IN THE MEASURE A STREET IMPROVEMENT FUND (FUND 211) FOR THE 2014 PAVEMENT REHABILITATION PROJECT, CITY PROJECT NO. C3074 WHEREAS, the 2014 Pavement Rehabilitation Project considered pavement repairs for five street segments including Colusa Avenue from Terrace Drive to Errol Drive, Fairmount Avenue from Colusa Avenue to Richmond Street, Manila Avenue from Richmond Street to Kearney Avenue, Arlington Boulevard from Arbor Drive to Villa Nueva Drive, and Central Avenue from San Pablo Avenue to Santa Clara Avenue; and WHEREAS, the work generally consists of asphalt concrete overlay, removal and replacement of City street trees, reconstruction of limited sections of existing curb, gutter, sidewalk and driveways that have been displaced by tree roots, construction or reconstruction of curb ramps, and installation of thermoplastic striping and pavement markers; and WHEREAS, for bidding purposes and to allow flexibility of award within the project budget, the work on the five street segments were divided into a Base Bid that included Colusa Avenue, Fairmount Avenue and Manila Avenue, Bid Alternate Number 1 that included Arlington Boulevard and Bid Alternate Number 2 that included Central Avenue; and WHEREAS, a Notice Inviting Bids for the project was advertised in the West Contra Costa Times on November 17 and 24, 2014, sent to eight Builder and Construction Exchanges, and posted on the City’s website; and WHEREAS, seven bids were received on December 16, 2014 and one bid received from Interstate Grading and Paving, Inc. did not include two required pages from the bid proposal that included important contractual provisions along with required company signatures; and WHEREAS, the Contract Documents stipulated that the low bidder was to be determined by the amount of the Base Bid, and Gallagher & Burk, Inc. submitted the ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 lowest Base Bid of $533,940, which is approximately 9.5% below the Engineer’s Estimate; and WHEREAS, the lowest responsive, responsible bidder was Gallagher & Burk, Inc. and their combined bid for the Base Bid and Alternate Number 1 is $664,200, which is 5.8% below the Engineer’s Estimate; and WHEREAS, the 2014 Pavement Rehabilitation Project is included in the Fiscal Year (FY) 2014-15 Capital Improvement Program/Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program and is funded through a $630,000 federal grant from the One Bay Area Grant (OBAG) Program with matching and additional funds of $311,000 provided by the Measure A Street Improvement Fund for a total project budget of $941,000; and WHEREAS, the Measure A Street Improvement Fund began the fiscal year with a fund balance of approximately $71,000. NOWTHEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito: 1) Approves plans for the 2014 Pavement Rehabilitation Project, City Project No. C3074; 2) Rejects one submitted bid from Interstate Grading and Paving, Inc. as non- responsive; 3) Accepts the six remaining submitted bids; 4) Authorizes the City Manager to execute a contract in the amount of $664,200 with Gallagher & Burk, Inc. and to approve change orders in an amount not to exceed $53,136 for the construction of the 2014 Pavement Rehabilitation Project; and 5) Amends the Capital Improvement Program/Annual Program of Maintenance and Improvement pursuant and the Fiscal Year 2014-15 Adopted Budget to appropriate an additional amount of $69,000 in the Measure A Street Improvement Fund (Fund 211) for the 2014 Pavement Rehabilitation Project, City Project No. C3074. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on February 3, 2015 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on February 3, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor