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AGENDA BILL Agenda Item No. 5(G) Date: August 18, 2015 To: El Cerrito City Council From: Yvetteh Ortiz, Public Works Director/City Engineer Subject: 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16 ACTION REQUESTED Adopt a resolution for the following actions: 1) Approve plans for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; 2) Accept the two submitted bids; 3) Authorize the City Manager to award a contract, contingent on successful negotiations with Golden Bay Construction, Inc. (the lowest responsible bidder), for a deductive change order after undergoing a value engineering process which is not inconsistent with the revised budget for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; 4) Amend the Fiscal Year (FY) 2015-16 Adopted Budget to appropriate an additional $141,724 in funding including $60,000 in the Measure A Street Improvement Fund, $50,000 in the Measure J Return to Source Fund and $31,724 in Capital Improvement Fund for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; and 5) Amend the Capital Improvement Program and Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program per the above items. BACKGROUND The 2015 Slurry Seal and Curb Ramp Program is a component of the Measure A Annual Street Improvement and Street Access Modifications Programs within the City’s FY 2015-16 Capital Improvement Program. This project is intended to repair some twenty street segments, as shown in the attached map, which currently have minor to moderately distressed pavement. The work generally consists of repairing localized pavement failures, application of a slurry seal surface treatment, installation of thermoplastic striping and pavement markers, and installation of approximately forty new curb ramps. For bidding purposes and to allow flexibility of award within the project budget, the work was divided into a Base Bid and several Bid Alternates. The project was advertised for bid in the West County Times on June 15 and 22, 2015. Additionally, the notice along with a complete set of Contract Documents was sent to ---PAGE BREAK--- Agenda Item No. 5(G) Page 2 eight Builder and Construction Exchanges. The project was also posted on the City’s website. No addenda were issued. ANALYSIS Two bids were received on July 7, 2015 with the following results: Name and Location of Bidder Base Bid Alternate 1 - Lexington Alternate 2 – Norvell Grand Total Golden Bay Construction, Inc., Hayward $669,412.50 $40,956.50 $32,369.00 $742,738.00 VSS International, Inc., West Sacramento $724,095.00 $42,166.00 $32,231.00 $798,492.00 Engineer’s Estimate $551,000 $31,000 $22,000 $604,000 The Contract Documents stipulated that the low bidder was to be determined by the amount of the Base Bid. The low bidder is Golden Bay Construction, Inc. with a bid of $669,412.50 for the Base Bid. Their Base Bid is approximately 21.5% above the Engineer’s Estimate of $551,000, placing it outside the project budget. As with the previous project biddings, staff has considered various options: 1. Reject all bids, redesign the project, and go out to bid again. With prices rising, staff does not recommend this option as it would take longer and expose the City to even higher prices. 2. Award the project and rely on the value engineering process to reduce the total project costs through deductive change orders. Staff is recommending the value engineering through a deductive change order approach. Staff has worked with the designer on several value engineering options to lower the project costs, including re-programming one or more of the street segments to the next fiscal year’s annual programs. Staff believes there is a strong likelihood that a deductive change order can be negotiated successfully with the low bidder to reduce the contract costs. Because the City is still in the competitive bidding process, it cannot negotiate with any bidder. Therefore, we cannot know the actual value of a deductive change. Staff has conservatively estimated that approximately $115,000 can be deducted from the low bid through elimination of additive bid items, value engineering changes, and deductions. However, additional funding will be required to complete the project as noted below. STRATEGIC PLAN CONSIDERATIONS Award of the construction contract is consistent with the following El Cerrito Strategic Plan Goals: ---PAGE BREAK--- Agenda Item No. 5(G) Page 3 • Goal D – Develop and rehabilitate public facilities as community focal points, by addressing ongoing and deferred maintenance of facilities and infrastructure; and • Goal E – Ensure the public’s health and safety by providing a safe and accessible transportation system. 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. FINANCIAL CONSIDERATIONS Funding of $640,000 for the 2015 Slurry Seal and Curb Ramp Program is included in the Adopted FY 2015-16 Capital Improvement Program and Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program. Funding is allocated as follows: • $570,000 for the Annual Street Improvement Program, C3027 from the Measure A Street Improvement Fund; and • $70,000 for the Annual Street Access Modifications Program, C3024 from the Measure J Return to Source Fund. Staff is recommending an additional appropriation of $141,724; $60,000 in the Measure A Street Improvement Fund, $50,000 in the Measure J Return to Source Fund and $31,724 in the Capital Improvement Fund. Funding from the Capital Improvement Fund will be reimbursed by BART for pavement impacts resulting from the Earthquake Safety Program construction. These additional appropriations will increase the total construction budget to $781,724. The estimated project expenditures are summarized below and include contingency of approximately 10% for contract change orders. Construction Phase Cost Construction Contract $628,000 Construction Contract Contingency $65,000 Construction Inspection, Materials Testing & Management $82,500 Miscellaneous (printing, postage, etc.) $6,224 Total $781,724 ---PAGE BREAK--- Agenda Item No. 5(G) LEGAL CONSIDERATIONS The City Attorney has reviewed the proposed actions and found that legal considerations have been addressed. Reviewed by: 1JI Scott Hanin, City Manager Attachments: 1. Resolution 2. Project Locations Map Page 4 ---PAGE BREAK--- Agenda Item No. 5(G) Attachment 1 RESOLUTION 2015–XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO APPROVING PLANS FOR THE 2015 SLURRY SEAL AND CURB RAMP PROGRAM, CITY PROJECT NO. C-3027.16; ACCEPTING THE TWO SUBMITTED BIDS; AND AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT TO GOLDEN BAY CONSTRUCTION, INC. IN AN AMOUNT TO BE DETERMINED AFTER UNDERGOING A VALUE ENGINEERING PROCESS FOR THE 2015 SLURRY SEAL AND CURB RAMP PROGRAM PROJECT; AMENDING THE FISCAL YEAR 2015-16 ADOPTED BUDGET TO APPROPRIATE AN ADDITIONAL $141,724 ACROSS MEASURE A STREET IMPROVEMENT, MEASURE J RETURN TO SOURCE AND CAPITAL IMPROVEMENT FUNDS FOR THE 2015 SLURRY SEAL AND CURB RAMP PROGRAM, CITY PROJECT NO. C3027.16; AND AMENDING THE CAPITAL IMPROVEMENT PROGRAM AND ANNUAL PROGRAM OF MAINTENANCE AND IMPROVEMENT PURSUANT TO MEASURE A STREET IMPROVEMENT PROGRAM WHEREAS, the 2015 Slurry Seal and Curb Ramp Program Project considered pavement repairs for some twenty (20) street segments; and WHEREAS, the work generally consists of repairing localized pavement failures, application of a slurry seal surface treatment, installation of thermoplastic striping and pavement markers, and installation of approximately forty new curb ramps; and WHEREAS, a Notice Inviting Bids for the project was advertised in the West Contra Costa Times on June 15 and 22, 2015, sent to eight Builder and Construction Exchanges, and posted on the City’s website and two bids were received on July 7, 2015; and WHEREAS, the lowest responsible bidder was Golden Bay Construction, Inc. whose total base bid, in the amount of $669,412.50, was 21.5 percent above the Engineer’s Estimate, exceeding the projects budget; and WHEREAS, staff intends to pursue value engineering options to reduce project costs without jeopardizing any of the critical elements of the project; and WHEREAS, funding of $640,000 for the 2015 Slurry Seal and Curb Ramp Program is included in the Adopted Fiscal Year (FY) 2015-16 Capital Improvement Program and Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program, and includes allocations of $570,000 for the Street Improvement Program, C3027 from the Measure A Street Improvement Fund and $70,000 for the Street Access Modifications Program, C3024 from the Measure J Return to Source Fund; and WHEREAS, an amendment to the FY 2015-16 adopted budget is required to meet the estimated expenditures of $781,724 for construction of the project; and ---PAGE BREAK--- Agenda Item No. 5(G) Attachment 1 WHEREAS, the City has the authority to authorize the City Manager to award the contract for this project pursuant to the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that it hereby: 1) Approves plans for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; 2) Accepts the two submitted bids; 3) Authorizes the City Manager to award a contract, contingent on successful negotiations with Golden Bay Construction, Inc. (the lowest responsible bidder), for a deductive change order after undergoing a value engineering process which is not inconsistent with the revised budget for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; 4) Amend the FY 2015-16 Adopted Budget to appropriate an additional $141,724 in funding including $60,000 in the Measure A Street Improvement Fund, $50,0000 in the Measure J Return to Source Fund and $31,724 in Capital Improvement Fund for the 2015 Slurry Seal and Curb Ramp Program, City Project No. C3027.16; and 5) Amend the Capital Improvement Program and Annual Program of Maintenance and Improvement pursuant to Measure A Street Improvement Program per the above items. BE IT FURTHER RESOLVED, that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on August 18, 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: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on August XX, 2015. Cheryl Morse, City Clerk APPROVED: Mark Friedman, Mayor ---PAGE BREAK--- Agenda Item No. 5(G) Attachment 2