DATE: June 20, 2023
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: Jan Balanay, Senior Engineering Assistant
SUBJECT: CONTRACT WITH ONYX PAVING COMPANY, INC. FOR THE FISCAL YEAR 20 22-23 PAVEMENT REHABILITATION PROJECT IN THE
AMOUNT OF $1,525,000, WITH A 10% CONTINGENCY
CEQA: Exempt
Recommendation: Approve
SUMMARY
As part of the City ’s Capital Improvement Program (“CIP”), the Public Works Services Department (“PWSD”) is preparing to rehabilitate the asphalt pavement on various streets in the C ity. The streets were identified in the Pavement Management Program and based on their usage and Pavement Condition Index (“PCI”) , have the greatest need for rehabilitation . To ensure that the City is receiving the most competitive prices and quality service for this work, the PWSD conducted a formal bid process and Onyx Paving Company, Inc. submitted the lowest responsive bid.
It is recommended that the City Council approve, authorize, and direct the City Manager to execute a contract with Onyx Paving Company, Inc. for the Fiscal Year 202 2-23 Pavement Rehabilitation Project in the amount of $1,525,000, with a 10% contingency.
BACKGROUND
The PWSD is responsible for the maintenance and repair of approximately 147 miles of paved streets within the City. As part of the City’s Pavement Management Program, the condition of all City streets are inspected and rated on a scale of 0- 100. This rating system is called the Pavement Condition Index (“PCI”) and is used to help determine which streets require asphalt pavement rehabilitation. Streets with scores below 40 are ‘failing’ and streets with scores between 40 and 60 are considered in poor/fair condition.
According to the Citywide Pavement Management Program , the following street segments have the highest need for repaving:
• Cambridge Drive from Baldwin Avenue to Harvard Drive – PCI of 40 • Sycamore Avenue from Santa Anita Avenue to Highland Oaks Drive - PCI of 40
Contract for the Fiscal Year 2022-23 Pavement Rehabilitation Project June 20, 2023
• Encanto Drive from Altura Road to Golden West Avenue - PCI of 39 • Norman Avenue from First Avenue to Second Avenue - PCI of 35 • Norman Avenue from Second Avenue to Fourth Avenue - PCI of 32
It should be noted that PCI scores alone do not determine which streets should be repaved. For instance, the City also takes considers the traffic volume of streets before determining repaving. It is also more cost-effective to repave streets prior to their PCIs lowering to very poor condition and requiring more resources to repair . The current range of PCI for the specified streets require grind and overlay rehabilitation; however, if the PCI of these streets drop even lower, more extensive rehabilitation such as full pavement reconstruction would be required to repair. Full reconstruction costs are much higher than grind and overlay work. A copy of the Project Location Map detailing the segments listed above is attached as Exhibit “A”.
DISCUSSION
The project involves the repair of any localized potholes and failed pavement, grinding the edges of the pavement adjacent to the gutters to transition the new pavement to the existing gutter, replacing broken curb and gutter as necessary, and installing new ADA - compliant curb ramps at the intersections . The new pavement surface will utilize recycled rubber in the pavement mix to help reduce future cracking and to add strength to the asphalt pavement ; the rubber in t he pavement mixture also helps reduce road noise. Following the intended repairs, the condition of these street sections should be raised to a PCI of 100.
A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483 and bid packages were provided to contractors that perform this type of work. On May 23, 2023, the City Clerk’s office received four bids with the following results:
Bidder Location Base Bid Amount
Onyx Paving Company, Inc.
Sequel Contractors, Inc.
Hardy & Harper, Inc.
Anaheim, CA
Santa Fe Springs, CA
Lake Forest, CA
$ 1,525,000.00
$ 1,765,808.50
$ 1,798,000.00
All American Asphalt Corona, CA $ 2,158,088.00
Bid documents were reviewed for content and the contractor’s background was also investigated. Based on this review, it has been determined that Onyx Paving Company, Inc. is the lowest responsive bidder and is qualified to complete the project . Onyx Paving Company, Inc. has successfully completed similar projects on time and within budget for local and regional agencies in California such as the Cities of Dana Point, Downey, Irvine, La Mirada, Laguna Niguel, Rancho Cucamonga, Riverside, South El Monte, and Tustin. Onyx Paving Company, Inc. also successfully completed the Fiscal Year 2021-22 Pavement Rehabilitation Project for the City of Arcadia.
Contract for the Fiscal Year 2022-23 Pavement Rehabilitation Project June 20, 2023
ENVIRONMENTAL ANALYSIS
This project is a Class 1 exemption pursuant to California Environmental Quality Act (“CEQA”) Section 15301 Existing Facilities. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment , or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.
FISCAL IMPACT
Funds in the amount of $2,050,000 have been budgeted in the Fiscal Year 2022-23 CIP for the Pavement Rehabilitation Project. The total cost for the Fiscal Year 202 2-23 Pavement Rehabilitation Project is $1,525,000. With the request for a 10% contingency, the total potential project cost would be $1,677,500.
RECOMMENDATION
It is recommended that the City Council determine this project is a Class 1 exemption under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute a contract with Onyx Paving Company, Inc. for the Fiscal Year 2022-23 Pavement Rehabilitation Project in the amount of $ 1,525,000, with a 10% contingency.
Attachments: Exhibit “A” - Project Location Map
Proposed Contract
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2022/23 PAVEMENT REHABILITATION PROGRAM
PROJECT NO.: 33854023
PROJECT LOCATION MAP - EXHIBIT "A"
PROJECT
LOCATION
CITY OF ARCADIA
2022/2023 PAVEMENT REHABILITATION PROJECT
PROJECT NO.: 33854023
BETWEEN
CITY OF ARCADIA
AND
ONYX PAVING COMPANY, INC.
CONTRACT
Contract - 1
CONTRACT FOR THE
CITY OF ARCADIA
This CONTRACT, No. ________ is made and entered into this ____ day of _______, 2023, by and between City of Arcadia, sometimes hereinafter called “City,” and Onyx Paving Company, Inc., sometimes hereinafter called “Contractor.”
WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:
A. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:
2022/2023 Pavement Rehabilitation Project / Project No.: 33854023 The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
B. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within Ninety (90) calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
C. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ONE MILLION, FIVE HUNDRED TWENTY-FIVE THOUSAND DOLLARS AND NO CENTS ($1,525,000.00). Payment shall be made as set forth in the General Conditions.
D. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Special Conditions , Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
E. COMPONENT PARTS OF THE CO NTRACT. The “Contract Documents” include the following:
Notice Inviting Bids
Instructions to Bidders
Bid Form
Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Performance Bond
Contract - 2
Payment (Labor and Materials) Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract s hall supersede any prior agreement of the parties.
F. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.
G. INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions.
H. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at dir.ca.gov and which must be posted at the job site.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
Contract - 3
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
CITY OF ARCADIA
By:
Dominic Lazzaretto
City Manager
ONYX PAVING COMPANY, INC.
By:
Signature
Print Name and Title
Attest:
By:
City Clerk
By:
Signature
Print Name and Title
Approved as to Form:
Michael J. Maurer
City Attorney