For City Council Meeting [September 14, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request City Council to Reject All Bids Received for the Riverside Avenue from I-10 to the City’s South Boundary, City Project No. 180807 and Award a Professional Services Agreement to Southstar Engineering and Consulting, Inc. in the amount of $100,000 for Construction Management Support Services, Phase 1.
(ACTION)
Body
BACKGROUND:
The City of Rialto uses a pavement management program to evaluate pavement condition and prioritize pavement rehabilitation projects. Based on the pavement management program and the available budget, the City prepared a list of streets to be included in the 2020/2021 Street Overlay & Reconstruction Project.
On April 28, 2020, the City Council adopted Resolution No. 7605 and approved a list of Projects for Fiscal Year 2020/2021 Funded by SB 1: The Road Repair and Accountability Act of 2017, that included the Street Overlay and Reconstruction of Riverside Avenue from I-10 to the City’s South Boundary.
On August 11, 2020, the City Council adopted the Fiscal Year 2020/2021 Budget and Capital Improvement Project List which included the 2020/2021 Street Overlay & Reconstruction Project. During the adoption of the FY20/21 Budget, City Council requested Public Works staff to provide a project status update and timeline of all proposed CIP projects.
On September 22, 2020, Staff provided a status update of all proposed CIP projects which included the Street Overlay and Reconstruction of two priority segments of Riverside Avenue: (1) SR 210 Freeway south to Foothill Boulevard, and (2) I-10 Freeway south to the City’s southerly limit.
Also on September 22, 2020, the City Council awarded a Professional Services Agreement to Advanced Civil Technologies (ACT) in the amount of $1,823,986.50 for design of the 2020/2021 Street Overlay & Reconstruction Project, City Project Nos. 180807 and 210804. This work includes design of the reconstruction of the two segments of Riverside Avenue, as well as an additional 157 street segments throughout the City with poor pavement condition.
Advanced Civil Technologies’ (ACT) design work included geotechnical investigation of the existing pavement and subgrade conditions. ACT evaluated alternative pavement rehabilitation methods and made recommendations to the City regarding the selected pavement design. In addition to pavement reconstruction, the project includes reconstruction of curb ramps and cross gutters, and the upgrade of signs, striping, and pavement markings to current California Manual on Uniform Traffic Control Devices (CA MUTCD) standards.
Earlier this year, in March / April 2021, the U.S. House of Representatives announced an opportunity for local agencies, including cities, to submit Community Project Funding Requests to their federal legislators as part of the Federal Fiscal Year 2022 Budget Process. These funding requests represented a return of federal “earmarks” that have been absent from the federal budget cycle for over 10 years. At that time, the City of Rialto submitted a request for $3,000,000 towards the costs for reconstruction and
On June 8, 2021, the City Council authorized the release of request for bids for the 2020/2021 Street Overlay & Reconstruction Project, City Project Nos. 180807 (Riverside Avenue from I-10 to the City’s South Boundary) and 210807 (Riverside Avenue from SR-210 to Foothill Boulevard).
On July 15, 2021, the City was advised that its funding request of $3,000,000 for reconstruction and repair Riverside Avenue from I-10 south to the southerly City limits was selected by U.S. Senator Padilla as one of a limited number funding requests he submitted into the federal budget process. Currently, the City’s funding request is included in the Transportation, Housing and Urban Development (THUD) Appropriations Act that is scheduled for further legislative review this Fall. While there is no guarantee that the final THUD Appropriations Act will include the City’s funding request, at this time the potential exists for the funding to be included in the final form of the Act to be approved in December 2021.
ANALYSIS/DISCUSSION:
Construction Bids
On June 11, 2021, the City released RFB No. 21-048 for the 2020/2021 Street Overlay & Reconstruction Project, Riverside Avenue from I-10 to the City’s South Boundary, City Project No. 180807 and posted the project on the City of Rialto website and the PlanetBids.com website. On June 18 and 24, 2021, the Notice Inviting Bids was published in the San Bernardino County Sun.
On July 22, 2021, the City received four (4) bids, tabulated in Table 1 below:
Table 1
The engineer’s estimate was $7,300,000. The lowest responsible and responsive bid was $7,686,000 submitted by Sully-Miller Contracting Company of Brea, CA, within 5% of the engineer’s estimate. Staff reviewed the bid and found Sully-Miller Contracting Company to be properly licensed and qualified.
Although the low bid received is within budget and within 5% of the engineer’s estimate, the City Manager is recommending the City Council reject all bids at this time for the following important reasons:
1) The potential appropriation of $3,000,000 from U.S. Senator Padilla’s funding request in the THUD Appropriations Act represents 40% of the construction cost and will allow the City to redirect those funds to another important segment of Riverside Avenue (Metrolink south to San Bernardino Ave.);
2) To the extent federal funds are appropriated to Rialto’s transportation project, these federal funds will flow through the California Department of Transportation (Caltrans) as the Lead Agency on behalf of the Federal Highway Administration (FHWA) from which these federal funds are obligated in the THUD Appropriations Act. Caltrans is responsible for ensuring these local federally funded transportation projects comply with all FHWA federal regulations, including compliance with the federal National Environmental Policy Act (NEPA). The City thus far has not initiated the process with Caltrans to “federalize” the project as it has not yet had federal funds appropriated to it; however, with the potential of this federal funding appropriation it will be necessary for the City to “federalize” the project, coordinate with Caltrans in compliance with federal NEPA regulations, and incorporate all federal regulations, including DBE participation by bidders and federal minimum wage and labor compliance requirements into the bid specifications for the project. More importantly, with federal funding appropriated to this project, the City cannot receive reimbursement of costs with federal funds through Caltrans unless and until Caltrans has formally authorized the City to proceed with construction. This authorization will not occur until the federal funds are officially appropriated and obligated to Rialto, and the City has complied with Caltrans review and federal NEPA clearance.
3) The current design includes removal of existing asphalt concrete and underlying base material through “Full Depth Reclamation” where the roadway is reconstructed with recycled asphalt concrete used in the underlying section, and new asphalt hot rubber mix paving. The method of construction of any roadway reconstruction will require closing of traffic lanes, leading to significant disruption to traffic. Given this roadway carries a high volume of truck traffic, the extent of this construction will lead to major traffic delays for an extended period of time. However, the design also includes reconstruction of the intersections of Riverside Avenue and Agua Mansa Road, Riverside Avenue and Resource Drive, Riverside Avenue and Santa Ana Avenue, and the segment of Riverside Avenue from south of Slover Avenue to the UPRR Bridge with rigid Portland Cement Concrete (PCC) pavement. The design using PCC pavement in the intersections was made with the expectation the rigid pavement (often used on freeways) will withstand the impact of heavy truck traffic leading to an extended life for the roadway. Attachment 1 depicts the scope of the pavement repairs along the segment of Riverside Avenue. However, construction of PCC pavement comes at a cost through the extended construction process while the PCC pavement cures (minimum 7 days). The City Manager has concern that the construction method with PCC pavement will lead to even further traffic disruptions and delays during construction, and the routing of truck traffic through these intersections while quadrants of the intersections “cure” for 7-10 days will be practically impossible. Rejecting the bids will allow the City Manager to consult with Staff and the design professionals to reassess the selection of PCC pavement, and confirm if the more traditional Full Depth Reclamation may be utilized to reduce traffic impacts during construction. On this item, the City Manager is requesting the second action with this item, to award a Professional Services Agreement with Southstar Engineering and Consulting, Inc., to perform a full constructability review of the design and evaluate construction phasing and sequencing in the context of the high volume of truck traffic that utilize this segment of Riverside Avenue on a daily basis.
For these reasons, Staff recommends that the City Council reject all bids, to allow Staff the opportunity to coordinate with Caltrans to “federalize” the project in anticipated of the federal funding appropriation, and to re-evaluate the design of the roadway reconstruction using PCC pavement.
However, there is a risk and an important caveat to this recommendation: There is no guarantee the City’s request for $3,000,000 in federal funds will be approved. Moreover, if the federal funds are appropriated, it is anticipated that the funds will not be obligated to Caltrans for programming until Spring 2022, and will ultimately delay the City with proceeding with construction of this project until Summer / Fall 2022 at the earliest based on Staff’s experience with “federalizing” transportation projects through coordination with Caltrans and securing Caltrans’ NEPA clearance.
Construction Management Support Services
On June 25, 2021, the City released Request for Proposal (RFP) No. 21-054 and posted on PlanetBids.com and the City’s website. The RFP scope included construction management, inspection, community outreach, labor compliance, and geotechnical and materials testing services for the 2020/2021 Street Overlay & Reconstruction Project, City Project Numbers 180807 and 210807.
On July 20, 2021, the City received nine (9) proposals from the following firms, listed in alphabetical order:
• AECOM Technical Services, Inc., Los Angeles, CA
• Albert A. Webb Associates, Riverside, CA
• Berg & Associates, Inc., San Pedro, CA
• KOA Corporation, Monterey Park, CA
• PdM Consulting, Inc., Oceanside, CA
• Southstar Engineering and Consulting, Inc., Riverside, CA
• TKE Engineering, Inc., Riverside, CA
• Transtech Engineers, Inc., Chino, CA
• Willdan Engineering, San Bernardino, CA
The City assembled an evaluation panel to review proposals and conduct interviews. The evaluation panel included two City staff members and a staff member with Riverside County. The City follows a qualifications-based selection process.
The panel evaluated the nine (9) proposals and shortlisted the five (5) top firms, AECOM Technical Services, Albert A. Webb Associates, Berg & Associates, Southstar Engineering and Consulting, and TKE Engineering. Evaluation criteria included project understanding, scope of work, staff qualifications, firm qualifications, and project schedule.
On August 19, 2021, the evaluation panel conducted interviews with shortlisted firms. Firms were evaluated based on overall project understanding, understanding of critical project issues, team member experience, communication and community outreach, task management, and quality control.
Based on the interviews, staff recommends selecting Southstar Engineering and Consulting, Inc., (Southstar), to provide the requested services related to this segment of Riverside Avenue (I-10 south to Southerly City Limit). A copy of the proposal submitted by Southstar is included as Attachment 2.
Based on the City Manager’s preference to utilize Southstar to perform a constructability review of the design, including evaluation of how the PCC pavement can be constructed in phases while ensuring movement of heavy volumes of truck traffic, Staff recommends awarding the agreement to Southstar at this time to ensure the design of the project is fully vetted prior to re-bidding.
The full scope of services to be provided by Southstar for the Project will be at a total fee of $1,243,369 equivalent to 16% of the construction bid amount of $7,686,000 and is within the range of expected costs for these services on a complex transportation project. However, the City Manager recommends the services be limited to pre-construction phase services, including a thorough constructability review requiring collaboration with the design professional, and commencement of public outreach and coordination with logistics warehouses and businesses, for an initial budget of $100,000. The Professional Services Agreement (PSA) and Disclosure Statement are included as Attachments 3 & 4, respectively.
At the time the Project is re-bid and presented to City Council for award, a request will be presented to amend the PSA with Southstar to add the full scope of services and increase the contract fee accordingly.
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental quality (CEQA) include a list of classes of projects that have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with 14 CCR Section 15301 “Existing Facilities”, Class 1 projects consist of the repair, maintenance, or minor alteration of existing structures and facilities; therefore, the 2020/2021 Street Overlay & Reconstruction Project, City Project Nos. 180807 and 210807 are considered categorically exempt from CEQA. Staff has prepared and filed a Notice of Exemption for the project; a copy is included as Attachment 5.
In the event the project receives a federal funding appropriation, the City will be required to comply with the provisions of the federal NEPA process with Caltrans as the Federal Lead Agency on behalf of FHWA. Caltrans will require the City to obtain professional environmental services to prepare technical studies subject to Caltrans review and approval to document the level of NEPA clearance required for this project. Staff estimates the City will incur costs of up to $100,000 to perform these services to obtain Caltrans’ NEPA clearance. In order to expedite the process to “federalize” this project, the City Manager requests City Council authorization to approve a professional services agreement to an environmental firm selected through the City’s normal procurement process in an amount not to exceed $100,000.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action at this time will not affect the Operating Budget.
Capital Improvement Budget Impact
The Professional Services Agreement with Southstar Engineering and Consulting, Inc. in the amount of $100,000 will be funded from Measure I Fund, Account 201-500-4310-3001-180807-23.
Licensing
A Business License tax at the Professional Services rate in the amount of $104 will be paid by Southstar Engineering and Consulting, Inc. prior to execution of the Purchase Order.
RECOMMENDATION:
Staff recommends that the City Council:
1. Reject all bids received for the Riverside Avenue from I-10 to the City’s South Boundary, City Project No. 180807;
2. Award a Professional Services Agreement to Southstar Engineering and Consulting, Inc. in the amount of $100,000 for Construction Management Support Services, Phase 1;
3. Delegate authority to the City Manager to approve a professional services agreement to an environmental firm to perform environmental analysis and coordinate with Caltrans to “federalize” the project and obtain NEPA clearance through Caltrans as otherwise required to obtain future authorization to proceed with construction of the project with federal funds; and
4. Authorize the City Manager to execute all necessary documents.