That the City Council:
A. Approve Plans and Specifications for Annual Residential Street Rehabilitation Fiscal Year 2019-2020 and Fiscal Year 2021-2022, City Project No. 1-R-20; and

B. Award a construction contract for Annual Residential Street Rehabilitation Fiscal Year 2019-2020 and Fiscal Year 2021-2022, City Project No. 1-R-20 to American Asphalt South Inc., of Riverside, California in the amount of $598,427.50 and reject all other bids; and

C. Authorize the City Manager to execute an agreement with American Asphalt South, Inc., California in the amount of $598,427.50 and authorize staff to issue a purchase order to American Asphalt South, Inc., of Riverside, California in the amount of $718,113.00, which includes a 20 percent contingency.

The Annual Residential Street Rehabilitation FY19-20 & FY 21-22 consists of the mobilization, preparation and implementation of storm water “best management practices,” traffic control, roadway slurry seal, pavement reconstruction, striping and markings, and all associated work as identified on the construction drawings. The project will include approximately 1,142,000 square feet of roadway slurry seal throughout various residential neighborhoods.

On Thursday, October 27, 2022, at 3:00 P.M., the City received five bids with the following results:
 

American Asphalt South Inc. (American Asphalt South) submitted the lowest responsible bid in the amount of $598,427.50, which is lower than the Engineer’s estimate of $820,000.  In addition, American Asphalt South's references have been checked and were found to be satisfactory.  American Asphalt South has completed similar projects for the Cities of Newport Beach, Palm Springs, Temecula, Santee, and Loma Linda.  There is no record of excessive change order requests initiated by American Asphalt South and it maintains a valid Contractor’s License.

This project is included in the Fiscal Year 2022-2023 Capital Improvement Program (CIP) with a total available budget of $1,756,573, which is sufficient to fund construction costs, inspection services, and material testing expenses. The Measure M2 Fair Share funds will be utilized first, and any remaining project cost will be applied to gas tax funds.  In the event there are any funds remaining after the completion of this project, staff will recommend they be reallocated by Council to fund other roadway rehabilitation projects in La Habra at a future date. There are sufficient budgeted funds available for this project; therefore, there is no need for additional appropriation at this time. 

RN 1.7 Street System Improvement
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.