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Consent
Item No. 10.
MEETING DATE: 01/17/2023
 
TO: HONORABLE MAYOR AND COUNCILMEMBERS
 
FROM: JIM SADRO, CITY MANAGER
By:  Elias Saykali, Public Works Director

 
SUBJECT:
AWARD CONTRACT TO ONYX PAVING COMPANY, INC. FOR CONSTRUCTION OF COMMUNITY CENTER PARKING LOT IMPROVEMENTS, CITY PROJECT NO. 1-B-21

RECOMMENDATION:


That the City Council:
A.  Approve Plans and Specifications for Community Center Parking Lot Improvements, City Project No. 1-B-21;

B.  Award a construction contract for Community Center Parking Lot Improvements, City Project No. 1-B-21 (Project) to Onyx Paving Company, Inc., of Anaheim, California, in the amount of $411,000 and reject all other bids;

C.  Authorize the City Manager to execute an Agreement with Onyx Paving Company, Inc., of Anaheim, California in the amount of $411,000 and authorize staff to issue a purchase order to Onyx Paving Company, Inc., of Anaheim, California in the amount of $493,200, which includes a 20 percent contingency; and,

D.  Approve the reallocation of $163,651 of CDBG Funds to cover additional Project construction costs, inspection, and materials testing for the Community Center Parking Lot Improvements, City Project No. 1-B-21.

DISCUSSION:

The proposed Community Center Parking Lot Improvements, City Project 1-B-21 consists of: the reconstruction of sidewalks, curb & gutter, and other concrete improvements; asphalt concrete pavement reconstruction; the installation of lighting poles, electrical conduits, conductors, and pull boxes, new landscaping and irrigation, and all associated work as identified on the Project Plans, and Specifications.

On Thursday, January 5, 2023, the City received five (5) bids for this project with the following results:
NO. CONTRACTOR TOAL BID RESPONSIVENESS
1 SNZ CONTRACTORS, INC. $310,524.00 NON-RESPONSIVE
2 CT&T CONCRETE PAVING, INC. $394,508.00 NON-RESPONSIVE
3 ONYX PAVING COMPANY, INC. $411,000.00 RESPONSIVE
4 HARDY AND HARPER, INC. $485,000.00 RESPONSIVE
5 FALKON CONSTRUCTION, INC. $492,212.42 NON-RESPONSIVE
 
The lowest apparent bidder was SNZ Contractors, Inc.  However, after a thorough review of the bids received, SNZ Contractors, Inc., failed to include the required Community Development Block Grant (CDBG) documents, therefore, their bid was deemed non-responsive. The second lowest bidder, CT&T Concrete Paving, Inc., and the fifth lowest bidder, Falkon Construction, Inc. were also non-responsive as they also failed to submit the required CDBG documents. 
 
 

Onyx Paving Company, Inc. (Onyx), the third-lowest bidder, submitted a bid in the amount of $411,000.  Onyx's bid included all the required CDBG documents and their bid was found to be responsive. Staff reviewed Onyx's references and found them to be satisfactory.  In addition, Onyx recently completed a paving project in La Habra as part of the FY19-20 Alley Improvement Project, and staff found their work performance to be satisfactory.  Staff found no record of excessive change order requests by Onyx, and they currently possess a valid Contractor's License.

In order to fully fund this proposed project and cover construction costs that are higher than originally estimated due to inflationary factors, higher labor costs, and material shortages that continue to affect capital construction projects throughout the industry, staff is requesting an additional appropriation of $163,651 from available CDBG funding to cover the updated cost of this project.  If approved by the City Council, the revised total project budget will be $731,724.

FISCAL IMPACT/SOURCE OF FUNDING:

This project is included in the Fiscal Year 2022-2023 Capital Improvement Program (CIP) with a total approved budget as follows:
 
No. FUNDING SOURCE FY 2021-2022 ADOPTED BUDGET ADDITIONAL APPROPRIATION REQUEST TOTAL PROJECT FUNDING
1 Source: CDBG FUND.

Uses:
  • Demolition
  • Design
  • Const.
  • Inspection & Material Testing
$321,323
 
  • $140,506
  • $38,018
  • $142,800
  • $0
$163,561
 
  • $0
  • $0
  • $103,561
  • $60,000
$484,974
 
  • $140,506
  • $38,018
  • $246,461
  • $60,000
2 Source: CDBG FUND.

Uses:
  • Demolition
  • Design
  • Const.
  • Inspection & Material Testing
$246,750
 
  • $0
  • $0
  • $246,750
  • $0
$0
 
  • $0
  • $0
  • $0
  • $0
$246,750
 
  • $0
  • $0
  • $246,750
  • $0
  TOTAL PROJECT FUNDING $568,073 $163,651 $731,724
 
The Project's first phase consisted of the demolition of a structure, clearing and grubbing of the lot. This phase was completed in June 2021. To date, approximately $178,524 of the total project budget has been expended and a project balance of $389,549 in available funding remains. Therefore, in order to fully fund costs associated with construction, inspection, and material testing, staff requests the reallocation of previously committed CDBG funds in the amount of $163,651.

If approved, $130,000 from the Alley Improvements 2021 (Area 7) and $33,651 from the Alley Improvements 2022 (Area 8) Project will be reallocated to the Community Center Parking Lot Improvements, City Project No. 1-B-21. As part of the FY2023-24 proposed budget, staff anticipates programming new CDBG funding received as part of that budget cycle to replenish funding necessary to complete the Alley Area 7 and Alley Area 8 projects.  Alley Area 7 is currently under design and Alley Area 8 has not yet been started.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

GENERAL PLAN RELEVANCE:
P1.2 Off-Street Parking
W 1.7 Landscaping
LU5.4 Sustainable
LU7.5 Walkable Neighborhoods
LU7.6 Neighborhood Connectivity
LU7.8 Safety
LU9.4 Streetscapes
AT3.3 Accessible Facilities
WS2.3 Water Efficient Landscaping

City Council Goals and Objectives:
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective B - Maintain and upgrade City buildings, facilities, and parks
Objective C - Maintain streets, alleys, sidewalks, and curb ramps citywide

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