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Staff Report
City Council
Item No. 7.B
Meeting Date: March 8, 2023
From: John Corella, Director of Engineering/Public Works Title: Contract with Petrochem Materials Innovation, LLC (PMI) for FY 22-23 REAS Projects
City Council
RECOMMENDATION:
To approve a contract with Petrochem Materials Innovation, LLC. for $1,038,633.92 to supply and apply Rubber Emulsion Aggregate Slurry (REAS) on La Pasada Neighborhood streets, Avenida Maravilla, Avenida La Paz, Avenida La Vista, and Date Palm Drive, including traffic control, crack seal and striping replacement; and, approve a fifteen percent (15%) contingency in the amount of $155,796.08 for unforeseeable construction costs, making the total encumbrance $1,194,430; and, authorize the City Manager to execute the required contract documents.
BACKGROUND:
Since 2015, the City of Cathedral City has used Rubberized Emulsion Aggregate Slurry (REAS) as the primary pavement maintenance surface treatment to preserve the asphalt on public streets because of its durability and longevity. The City utilizes REAS to preserve streets reconstructed five to seven years ago and to prolong older streets needing reconstruction in the next five to seven years.
In addition, the City has been able to “piggyback” and secure the lowest prices available for REAS by contracting with Petrochem Materials Innovation (PMI) and receive the same prices as the City of Los Angeles’ multi-year bid pricing structure contract. By piggybacking on City of Los Angeles’ contract, the City receives the same unit price per gallon for PMI’s material and equipment as the City of Los Angeles; thereby providing significant savings for Cathedral City.
DISCUSSION:
Staff is proposing to apply REAS on the following streets:
•La Pasada Neighborhood streets.
•Avenida Maravilla from Vista Chino to Ramon Road.
•Avenida La Paz from Vista Chino to 30th Avenue.
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•Avenida La Vista from Adelina Road to 30th Avenue.
•Date Palm Drive from Varner Road to the I-10 Interchange.
Maps of the REAS application areas are attached to this Staff Report.
La Pasada Neighborhood
The scope of work in the La Pasada Neighborhood will include Type II and Type III REAS according to the existing condition of the roads. Crack sealing treatment will precede the REAS applications, and the street striping and marking will occur after the REAS work.
This work is included in the FY 22-23 CIP budget and is proposed to be funded with Senate Bill (SB)-1/Road Maintenance and Rehabilitation Account (SB- 1/RMRA) funding.
Avenida Maravilla, Avenida La Paz, and Avenida La Vista The scope of work in Avenida Maravilla, Avenida La Paz and Avenida La Vista will include crack seal, Type II REAS application and the installation of street striping and markings.
The REAS treatment of these streets is included in the FY 22-23 CIP Budget and is proposed to be funded from the City’s Maintenance of Effort (MOE) account in the City’s General Fund.
Date Palm Drive (I-10 Interchange to Varner Road)
Date Palm Drive from Varner Road to the I-10 Interchange was proposed to be completed within the FY 23-24 and is now rescheduled for the FY 22-23 REAS Project.
The scope of work will include crack seal, Type II REAS application and the installation of street striping and markings. This segment of Date Palm Drive is proposed to be funded from the City’s MOE account from the City’s General Fund, PMI has evaluated the condition of the proposed streets with City Staff and has determined the REAS application will have an average spread ratio of approximately eleven square feet per gallon (11 Sq. Ft./gallon). Based on this evaluation and subsequent calculations, PMI prepared a cost estimate that includes the price of the slurry, machinery, and labor. The cost estimate also includes traffic control, notice to residents, crack seal and striping replacement.
City Staff and PMI will coordinate with local utilities and service providers, such as Burrtec and Sunline Transit, to accommodate service schedules with the work to be performed.
Staff requests City Council approve a contract with Petrochem Materials Innovation, LLC.
For:
•$1,038,633.92 to supply and apply REAS on the La Pasada Neighborhood streets, Avenida Maravilla, Avenida La Paz, Avenida La Vista and Date Palm Drive, including traffic control, crack seal and striping replacement, •fifteen percent (15%) contingency in the amount of $155,795.08 for unforeseeable construction costs,
•for an encumbrance totaling $1,194,429; and,
•authorize the City Manager to execute the required contract documents.
ENVIRONMENTAL ANALYSIS:
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No environmental impact. A slurry project is Categorically Exempt as it involves work on existing streets and is listed as a Class 1 Exemption under CEQA Guidelines §15301(c).
FISCAL IMPACT:
FY 2022-23 Capital Improvement Program (CIP) Plan
SB-1/RMRA Funding
La Pasada Neighborhood Street Rehabilitation Project
The FY 22-23 CIP amount of $650,000 from SB-1/RMRA funds was estimated for the work within the La Pasada Neighborhood Street Rehab Project. PMI’s proposal for this Project is in the amount of $424,009.35. Staff recommends including a 15% contingency of $63,601.65 for unforeseeable construction condition for a total estimated construction cost of $487,611.
MOE Funding
Avenida Maravilla, Avenida La Paz/La Vista, and Date Palm Drive Project PMI’s proposal for Avenida Maravilla, Avenida La Paz/La Vista, and the Date Palm Drive REAS Project is in the amount of $614,624.57. Staff also proposes including a 15% contingency of $92,194.43 for the Project for a total estimated construction cost of $706,819. The CIP FYs 22-23 budgeted amounts for the four Projects is $785,000 with General Fund (MOE) funds available for these Projects.
The overall PMI proposal to complete the FY 22-23 REAS Projects is $1,038,633.92. The total 15% contingency is $155,796.08, and the total estimated cost of the FY 22-23 REAS Projects is $1,194,430 as shown in the table below.
Project Funding
Source
CIP
Budget
PMI
Estimated
Amount
15%
Contingency
Total
La Pasada
Neighborhood
SB-1/RMRA
Fund 248
$650,000 $424,009.35 $63,601.65 $487,611
Avenida
Maravilla
FY 22-23
MOE Fund
100
$280,000 $273,440.40 $41,016.60 $314,457
Avenida La
Vista/La Paz
FY 22-23
MOE Fund
100
$225,000 $211,423.62 $31,713.38 $243,137
Date Palm
Drive
FY 22-23
MOE Fund
100
$280,000 $129,760.55 $19,464.45 $149,225
TOTALs $1,435,000 $1,038,633.92 $155,796.08 $1,194,430
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ATTACHMENTS:
Project Area Map
PMI Cost Estimate
PMI Agreement