For City Council Meeting [November 27, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to Award a Construction Contract to Matich Corporation in the Amount of $3,637,964.93 for the Annual Street Overlay Project, City Project No. 180804; and Authorize Issuance of a Purchase Order to Willdan Engineering in the Amount of $151,348.00 for On-Call Construction Management and Inspection Services.
(ACTION)
Body
BACKGROUND:
On November 26, 2013, the City Council adopted a pavement maintenance prioritization policy that states: Given the City’s current backlog of deteriorated street pavement condition on major arterials and secondary thoroughfares, those streets carrying higher traffic volumes should be selected for pavement maintenance over those streets carrying lower traffic volumes.
On October 24, 2017, the City Council approved a 5th Amendment to the Professional Services Agreement with Harris & Associates in the amount of $99,967 for the 2017/18 Annual Street Overlay Project, City Project No. 180804.
Public Works staff coordinated with Harris & Associates on preparation of the construction plans, specifications, and estimates for the Project. The design work included geotechnical investigation of existing pavement and subgrade conditions based upon visual inspection of surface conditions and core samples obtained for each of the streets. The work also included evaluation of alternative pavement rehabilitation methods and their life cycle costs. The selected rehabilitation methods generally include full depth asphalt reconstruction; and cold milling followed by new overlay pavement. In reconstruction areas, the removal depth will vary from 5.0 to 8.2 inches below the existing pavement surface. At this depth, staff does not anticipate relocation of underground utilities; however, the project scope includes some vertical adjustment of surface items including manholes and valve covers. The City notified the utility companies, and the Contractor shall protect existing facilities during construction.
In accordance with the priorities pursuant to the City’s pavement maintenance policy, the project consists of the following street segments and pavement rehabilitation methods:
A project location map is included as Attachment 1.
On August 14, 2018, the City Council authorized the release of Request for Bid No. 19-005 for the 2017/18 Annual Street Overlay Project, City Project No. 180804.
ANALYSIS/DISCUSSION:
On September 20, 2018, the City released Request for Bid No. 19-005 for the 2017/18 Annual Street Overlay Project, City Project 180804, and published the Notice Inviting Bids in the San Bernardino County Sun; on the City of Rialto website, and on the PlanetBids website.
On October 11, 2018, the City received five (5) bids, tabulated in Table 1 below:
Table 1
A full bid summary is included as Attachment 2. The engineer’s estimate ranged from $3,100,000 to $3,200,000. The lowest responsible and responsive bid was $3,637,964.93 from Matich Corporation of San Bernardino, CA. Staff reviewed the bid, references, and contractor’s license, and found Matich Corporation to be properly licensed and qualified. The Disclosure Form, Contractor’s License, and DIR Registration documents are included as Attachment 3. Matich Corporation was the contractor for the City’s two previous Street Overlay Projects both with favorable outcomes. On this basis, staff recommends that City Council accept the bid received from Matich Corporation as the lowest responsible and responsive bid. A construction contract with Matich Corporation for the project is included as Attachment 4.
Additionally, staff negotiated the scope and fee with Willdan Engineering to provide construction management, inspection and materials testing services for the proposed project. These services are provided through the on-call construction management/program management contract with Willdan Engineering. The number of working days associated with the construction management and inspection services for the proposed project is specified at 80 working days. The proposal reflecting the negotiated scope and fee is included as Attachment 5. The cost of the Construction Management and Inspection services amounts to approximately 3.6% of the estimated total project cost and this is consistent with the industry average range of cost for these services and this type of work.
The tentative schedule for the project is as follows:
Contract Award: November 27, 2018
Begin Construction: January 7, 2018
Complete Construction: June 11, 2019
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality Act (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 public structures or facilities; therefore, the 2017/18 Street Overlay Project, City Project No. 180804 is considered categorically exempt from CEQA. Staff has filed a Notice of Exemption for the project, included as Attachment 6.
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 complies with the following City of Rialto General Plan Goal and Policy:
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 approved this staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
Table 1 shows the adopted budget for the project.
Table 1
Funds are budgeted and available to cover the construction bid amount of $3,637,964.93 as follows:
The purchase order with Willdan Engineering in the amount of $151,348.00 for on-call construction management and inspection services will be charged to Gas Tax Fund Account No. 202-500-4317-3001-180804-16.
Licensing
A Business License tax at the Professional Services rate in the amount of $3,704.00 based on the construction amount of $3,637,964.93 will be assessed against the project and paid by interoffice transfer.
A Business License tax at the Professional Services rate in the amount of $229.00 will be paid by Willdan Engineering prior to execution of the Purchase Order.
RECOMMENDATION:
Staff recommends that the City Council:
• Award a Construction Contract to Matich Corporation in the Amount of $3,637,964.93 for the Annual Street Overlay Project, City Project No. 180804.
• Authorize Issuance of a Purchase Order to Willdan Engineering in the Amount of $151,348.00 for On-Call Services for Construction Management and Inspection.