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HomeMy WebLinkAboutItem 12f - Live Oak Pavement Rehabilitation Project DATE: July 6, 2021 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Philip A. Wray, Deputy Director of Development Services/City Engineer By: Kevin Merrill, Principal Civil Engineer SUBJECT: CONTRACT WITH GENTRY BROTHERS, INC. FOR THE PAVEMENT REHABILITATION OF LIVE OAK AVENUE BETWEEN SANTA ANITA AVENUE AND THE EASTERLY CITY LIMITS IN THE AMOUNT OF $1,083.045.23; AND ADOPT RESOLUTION NO. 7368 AMENDING THE CAPITAL IMPROVEMENT PROGRAM BUDGET AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $260,000, OFFSET BY A REDUCTION IN THE MEASURE R FUND Recommendation: Approve and Adopt SUMMARY As part of the City’s ongoing Pavement Management Program, the City annually appropriates Proposition C funding for arterial repaving projects. For the Fiscal Year 2019-20 Capital Improvement Program (“CIP”), the City Council appropriated funding for the rehabilitation of Live Oak Avenue between Santa Anita Avenue and the easterly City Limits. The Pavement Rehabilitation Project was advertised for bids in May 2021, and bids were opened on June 10, 2021. Nine (9) bids were received, and Gentry Brothers, Inc. submitted the successful low bid in the amount of $1,083,045.23. The low bid is higher than the available budget of $1.1 million when the standard 10% contingency is included; therefore, an additional appropriation of $260,000 is necessary to cover the shortfall. It is recommended that the City Council find the project categorically exempt pursuant to the requirements of the California Environmental Quality Act (“CEQA”), and authorize and direct the City Manager to execute a contract with Gentry Brothers, Inc. for the Pavement Rehabilitation of Live Oak Avenue between Santa Anita Avenue and the easterly City Limits, in the amount of $1,083,045.23, with a 10% contingency, and adopt Resolution No. 7368 Amending the Capital Improvement Program budget authorizing an additional appropriation in the amount of $260,000, offset by a reduction in the Measure R fund. Live Oak Avenue Pavement Rehab July 6, 2021 Page 2 of 4 BACKGROUND The City annually appropriates Proposition C funding for arterial street pavement projects. The City’s Pavement Management Program, which analyzes the existing condition of street pavement, has identified Live Oak Avenue between Santa Anita Avenue and the easterly City Limits as the highest priority arterial street for repair. The Pavement Condition Index (“PCI”) is used to indicate the general condition of pavement sections with a rating between 0 to 100, with 100 being excellent and 0 being completely failed. This segment of Live Oak Avenue has an average PCI rating as low as 28 for the eastbound direction, and 42 for the westbound direction. For the Fiscal Year 2019-20 CIP, the City Council appropriated $1.1 million in funding for the project. The rehabilitation will include removing and replacing isolated sections of pavement and grinding and resurfacing the entire street with 1-1/2 inches of new asphalt. The project includes other elements such as minor traffic signal improvements, curb and gutter, sidewalk, driveway, and corner ADA ramp repairs. On January 21, 2020, the City Council approved a Professional Services Agreement with Kreuzer Consulting Group for project design services. The final design was completed in early 2021. The engineer’s estimate for the project at that time was $1,100,000. The project design and bidding process was ultimately delayed due to the pandemic. DISCUSSION The project was advertised for bids in May 2021, and bids were opened on June 10, 2021. Bids were received from nine (9) prospective contractors with the following results: NAME AMOUNT Gentry Brothers Inc. $1,083,045.23 All American Asphalt $1,279,148.80 Sully Miller Contracting $1,308,000.00 Onyx Paving Co., Inc. $1,331,000.00 Vance Corporation $1,335,777.35 E C Construction $1,363,203.46 Excel Paving Co. $1,429,380.60 Hardy & Harper Inc. $1.589.000.00 Hillcrest Contracting, Inc. $1,747,925.30 After reviewing the bid documents, Gentry Brothers, Inc. was determined to be the lowest responsible bidder. Gentry Brothers has been in business for many years and is a very competent contractor. They have performed work for the City in the past with favorable results. Live Oak Avenue Pavement Rehab July 6, 2021 Page 3 of 4 Bid prices were noticeably higher than originally estimated just a few months ago. This appears to be happening throughout the construction industry where materials and labor shortages based on the impact of COVID-19 are now driving up the cost of construction. The engineer’s estimate typically falls somewhere in the middle of the bids, but in this case, it was near the low bid. The average construction bid price of the nine bidders is $1,387,387, approximately 25% above the estimate. Gentry Brothers is satisfied with their bid and is ready to move forward with the project. Because the project budget is $1,100,000, additional funds are necessary to cover the total project costs and the standard 10% contingency. Measure R funds are eligible for this work and available in the Measure R fund balance. Therefore, an additional appropriation of $260,000 from Measure R funds is proposed as part of this action, much of which is to cover the contingency, which may not ultimately be needed. ENVIRONMENTAL IMPACT This project is categorically exempt per Section 15301(c) of the California Environmental Quality Act (“CEQA”), as repair and maintenance of an existing highway or street. FISCAL IMPACT The project was budgeted in the 2019-20 Fiscal Year Capital Improvement Program with $900,000 in Proposition C funds, and $200,000 in Transportation Impact Fee funds, for a total of $1,100,000. The City Council previously approved a design contract for this project in the amount of $82,000. The revenue sources for this project have very specific limits of eligibility; therefore, the individual bid items must be separated by eligible funding source to evaluate the total costs per each budgeted fund. Based on the currently available budgeted funds, there is a shortfall of approximately $150,000 in Proposition C funds to cover the low bid. Adding the 10% contingency, the total additional appropriation needed is $260,000. Because additional Proposition C funds are limited, the additional appropriation is proposed to be allocated from the Measure R fund, which is eligible for this work. There is no shortfall for the Transportation Impact Fee-funded portion of the project and no General Funds are needed. RECOMMENDATION It is recommended that the City Council find the project categorically exempt pursuant to the requirements of the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute a contract with Gentry Brothers, Inc. for the Pavement Rehabilitation of Live Oak Avenue between Santa Anita Avenue and the easterly City Limits, in the amount of $1,083,045.23, with a 10% contingency, and adopt Resolution No. 7368 amending the Capital Improvement Program budget authorizing an supplemental appropriation in the amount of $260,000, offset by a reduction in the Measure R Fund. Live Oak Avenue Pavement Rehab July 6, 2021 Page 4 of 4 Attachments: Proposed Contract Resolution No. 7368 Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of Arcadia, sometimes hereinafter called “City,” and _________, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: LIVE OAK REHABILITATION IMPROVEMENTS PROJECT NUMBER 41853820 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 110 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ________ ($_____). Payment shall be made as set forth in the General Conditions. D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. E. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Performance Bond Contract - 2 Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Contract - 3 IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF ARCADIA By: Dominic Lazzaretto City Manager CONTRACTOR By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Stephen P. Deitsch City Attorney