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Consent
Item No. 14.
| MEETING DATE: 09/19/2022 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Elias Saykali, Public Works Director |
| SUBJECT: | AWARD CONTRACT TO SUPERIOR PAVING COMPANY INC., DBA UNITED PAVING COMPANY, FOR CONSTRUCTION OF ALLEY NO. 27, 45, AND 86 IMPROVEMENT, FISCAL YEAR 2020-2021, CITY PROJECT NO. 2-R-20
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RECOMMENDATION:
That the City Council:
A. Approve Plans and Specifications for Alley No. 27, 45, and 86 Improvement Fiscal Year 2020-2021, City Project No. 2-R-20; and
B. Award a construction contract for Alley No. 27, 45, and 86 Improvement, Fiscal Year 2020-2021, City Project No. 2-R-20 (Project) to Superior Paving Company Inc., dba United Paving Company, of Corona, California, in the amount of $275,555 and reject all other bids; and
C. Approve an appropriation of $60,000 of available Community Development Block Grant (CDBG) Funds to fully fund the Project; and,
D. Authorize the City Manager to execute an Agreement with Superior Paving Company Inc., dba United Paving Company of Corona, California, in the amount of $275,555, and authorize staff to issue a purchase order to Superior Paving Company Inc., dba United Paving Company, of Corona, California in the amount of $330,666, which includes a 20 percent contingency.
DISCUSSION:
The City of La Habra Alley Master Plan (Plan) includes the construction of improvements in Area 6 during Fiscal Year 2020-2021 (Attachment 2). Area 6 consists of a series of alleys located between La Habra Boulevard and 2nd Avenue and between Wallace Street and McPherson Street, as well as alleys located between La Habra Boulevard and Florence Avenue and between Lois Street and Cypress Street. As part of the Alley No. 27, 45, and 86 Improvement FY 2020-21 Project (Project), the following Alleys will be improved:
- Alley 27 is located south of Erna Avenue and west of Orange Street.
- Alley 45 is located south of First Avenue between Aldrich Street and Cypress Street.
- Alley 86 is located west of Euclid Street and north of First Avenue.
The Project includes mobilization, preparation and implementation of storm water "best management practices;" traffic control; construction survey and monument perpetuation; excavation and disposal; pavement cold milling; asphalt concrete (AC) pavement resurfacing; removal and construction of concrete alley approaches, sidewalks, longitudinal gutters, and curbs and gutters; adjustment of utility covers to grade; and additional associated work as identified on the Project's plans and specifications.
The City received three (3) bids with the following results:
The City received three (3) bids with the following results:
| No. | CONTRACTOR | TOTAL BID |
| 1 | Superior Paving Company Inc. dba United Paving Company | $275,555 |
| 2 | E.C. Construction Company | $296,170 |
| 3 | Hardy and Harper Inc. | $819,000 |
Superior Paving Company Inc., dba United Paving Company (United Paving Company), submitted the lowest responsive bid in the amount of $275,555, which is approximately 25% higher than the Engineer’s estimate. Staff found that bids for the project trended above budget levels due to the recent surge affecting material prices, such as oil, gas, and concrete, as well as escalating labor costs.
Staff checked United Paving Company's references and found their record of performance was satisfactory and no record of excessive change order requests. Additionally, United Paving Company has completed similar projects for the City of Chino Hills, Walnut Valley School District, and Riverside Unified School District.
Staff recommends that the City Council approve and authorize the City Manager to execute an Agreement (Attachment 1) with Superior Paving Company Inc., dba United Paving Company, and authorize staff to issue a purchase order in the amount of $330,666, which includes a 20% contingency.
Staff has reviewed the current budget and after taking into account cost related to project design ($69,782), the construction cost ($330,666), and Inspection and Material Testing expenses ($64,000) the estimated total project cost is $464,448. Therefore, staff is requesting an additional appropriation of $60,000 from available CDBG funding eligibile for this type of project to cover the additional expenses. If approved by Council, the revised total project budget will be $464,448.
| No. | Project Task | Project Cost |
| 1 | Construction Cost + 20% Contingency | $330,666 |
| 2 | Design Services | $69,782 |
| 3 | Inspection and Material Testing Expenses | $64,000 |
| Total Revised Budget | $464,448 |
FISCAL IMPACT/SOURCE OF FUNDING:
Funding for Alley No. 27, 45, and 86 Improvements, Fiscal Year 2020-2021, Project No. 2-R-20 is included in the approved in the Fiscal Year 2020-2021 CIP Budget in the amount of $404,448. Budget funding sources include $204,448 from CDBG, $100,000 from Gas Tax, and $100,000 from Measure M2 Fair Share.
In order to fully fund the Project, staff is requesting an additional appropriation of $60,000 from available CDBG Fiscal Year 2022-2023 funds. The requested funds will cover construction inspection and material testing expenses. Any funds remaining after the completion of this project will become available for other eligible CIP projects. If approved, the revised total project budget, with the additional proposed funding allocation, will be as follows:
| No. | Funding Sources | FY 2021-2022 Budget | FY 2022-2023 Appropriation | Total |
|---|---|---|---|---|
| 1 | CDBG Funds | $204,448 | $60,000 | $264,448 |
| 2 | Gas Tax Funds | $100,000 | $0 | $100,000 |
| 3 | M2 Fair Share Funds | $100,000 | $0 | $100,000 |
| Total | $404,448 | $60,000 | $464,448 |
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
RN 1.1 Regional Transportation Plan
RN 1.7 Street System Improvements
RN 1.8 Safe Street Design
City Council Goals and Objectives
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective C - Maintain streets, alleys, sidewalks, and curb ramps citywide
RN 1.7 Street System Improvements
RN 1.8 Safe Street Design
City Council Goals and Objectives
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective C - Maintain streets, alleys, sidewalks, and curb ramps citywide