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HomeMy WebLinkAboutItem 10b - Stormdrain Repair Project STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: April 21, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Michael Kwok, Associate Civil Engineer SUBJECT: RESOLUTION NO. 7680 AMENDING THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR THE STORMDRAIN REPAIR PROJECT IN THE AMOUNT OF $58,757.50, OFFSET BY A REDUCTION IN THE CAPITAL OUTLAY FUND; AND APPROVE A CONTRACT WITH GRBCON, INC. FOR THE STORMDRAIN REPAIR PROJECT IN THE AMOUNT OF $144,325 CEQA: Exempt Recommendation: Adopt and Approve SUMMARY The Fiscal Year 2025-26 Capital Improvement Program provides for the removal and replacement of 220 linear feet of damaged 18-inch stormdrain pipe on Fallen Leaf Road. To ensure that the City is receiving the most competitive price and quality service for this work, a formal bid process was conducted. GRBCON, Inc. submitted the lowest responsive bid. Due to cost increases in labor and material in the marketplace, the bids came back higher than the current budget; however, it is essential that the work be completed to restore proper stormwater flow in the area and reduce the potential for flooding. It is recommended that the City Council adopt Resolution No. 7680 amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the Stormdrain Repair Project in the amount of $58,757.50, offset by a reduction in the Capital Outlay Fund; and approve, authorize, and direct the City Manager to execute a contract with GRBCON, Inc. for the Stormdrain Repair Project in the amount of $144,325, with a 10% contingency. Resolution No. 7680 Award Stormdrain Repair Project April 21, 2026 Page 2 of 4 BACKGROUND The Public Works Services Department (“PWSD”) owns and maintains various catch basins and storm drain lines throughout the City. During a recent storm, water was unable to properly drain from a curb opening catch basin on Fallen Leaf Road. City crews located the pipe in this catch basin and attempted to CCTV it. The CCTV camera could not get through the pipe, which indicates that the pipe is damaged and likely collapsed. Replacing the damaged pipe with a new reinforced concrete pipe will restore proper stormwater flow in that area and eliminate potential flooding. Approximately 220 linear feet of 18-inch stormdrain pipe will be removed and replaced as part of this project. The work is anticipated to begin in June 2026, and construction will take approximately one month to complete. A copy of the Project Location Map is shown on Exhibit “A”. DISCUSSION A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483, and bid packages were provided to contractors that perform this type of work. On March 10, 2026, the City Clerk received seven bids with the following results: Bidder Location Bid Amount GRBCON, Inc. Baldwin Park, CA $ 144,325 Ramona, Inc. Baldwin Park, CA $ 158,750 Wright Construction Engineering San Marcos, CA $ 177,500 Bali Construction, Inc. South El Monte, CA $ 178,500 J.A. Salazar Construction & Supply La Habra, CA $ 248,650 Kordich Construction, Inc. Cypress, CA $ 268,760 CEM Construction Corporation Montebello, CA $ 367,650 All bid documents were reviewed for content and the contractor’s background was investigated. Based on that review, it was determined that GRBCON, Inc. is the lowest responsive bidder. GRBCON, Inc. is qualified to complete the project as defined in the bid documents and has successfully completed similar projects on time and within budget for the Cities of Los Angeles and Norwalk. The City has previously contracted with GRBCON, Inc. and has been satisfied with their work. Resolution No. 7680 Award Stormdrain Repair Project April 21, 2026 Page 3 of 4 ENVIRONMENTAL ANALYSIS This project involves the replacement and minor alteration of an existing utility system with no expansion of the system, and therefore, qualifies as a Class 2 categorical exemption per Section 15302(2) of the California Environmental Quality Act (“CEQA”). FISCAL IMPACT The total cost for the Stormdrain Repair Project is $144,325. In addition, a standard 10% contingency of $14,432.50 is recommended to cover potential unforeseen costs or circumstances, bringing the potential total project cost to $158,757.50. Gas Tax (HUTA) Funds in the amount of $100,000 have been budgeted in the Fiscal Year 2025- 26 Capital Improvement Program Budget for the Stormdrain Repair Project. Staff reviewed all available funds to determine if additional Gas Tax (HUTA) Funds could be used for the additional appropriation. Gas Tax (HUTA) Funds are not available; therefore, a supplemental budget appropriation of $58,757.50 is being requested from the Capital Outlay Fund reserves to complete the project. This increase was not anticipated at the time of budget development and is largely due to the rising cost of labor and materials in the construction industry. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7680 amending the Fiscal Year 2025-26 Capital Improvement Program Budget, authorizing a supplemental budget appropriation for the Stormdrain Repair Project in the amount of $58,757.50, offset by a reduction in the Capital Outlay Fund; and approve, authorize, and direct the City Manager to execute a contract with GRBCON, Inc. for the Stormdrain Repair Project in the amount of $144,325, with a 10% contingency. Resolution No. 7680 Award Stormdrain Repair Project April 21, 2026 Page 4 of 4 Attachments: Resolution No. 7680 Exhibit “A” – Project Location Map Proposed Contract CITY OF ARCADIA STORMDRAIN REPAIR PROJECT PROJECT NO.: 33851726 BETWEEN CITY OF ARCADIA AND GRBCON, INC. CONTRACT Contract - 1 CONTRACT FOR THE CITY OF ARCADIA This CONTRACT, No. ________ is made and entered into this ____ day of ___________, 2026, by and between City of Arcadia, sometimes hereinafter called “City,” and GRBCON, INC., 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: Stormdrain Repair Project / Project No.: 33851726 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 30 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 ONE HUNDRED FORTY- FOUR THOUSAND, THREE HUNDRED TWENTY-FIVE DOLLARS, AND NO CENTS ($144,325.00). 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 GRBCON, INC. By: Signature Print Name and Title Attest: By: City Clerk By: Signature Print Name and Title Approved as to Form: Michael J. Maurer City Attorney