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Staff Report
City Council
Item No. 6.E
Meeting Date: June 28, 2023
From: John Corella, Director of Engineering/Public Works Title: Award a Contract to Granite Construction Company for the Date Palm Drive Pavement Rehabilitation Project, CIP 8840 City Council
RECOMMENDATION:
To award a construction contract to Granite Construction Company, in the amount of $4,668,436 for the construction of Date Palm Drive Pavement Rehabilitation Project and approve a 8 percent (8%) contingency in the amount of $401,564.00 for any unforeseeable construction costs that may be incurred, thereby, bringing the total construction budget for this Project to $5,070,000.00; and approve the allocations of available FY 2023/2024 Tribal Transportation Program (TTP) Funds from the Agua Caliente Band of Cahuilla Indians (ACBCI) in the amount of $5,000,000; available FY 2023/2024 Cal-Recycle Grant Funds in the amount of $70,000 for the construction of the Project; and, authorize the City Manager to execute the required contract documents (attached); and, to authorize the City Engineer to request bonds and insurance for the Project and to issue the Notice to Proceed.
BACKGROUND:
Date Palm Drive is a primary economic and lifeline corridor for the City of Cathedral City and serves as the City’s only north/south truck route. The corridor is relied on by the public, and others for commerce, residential, regional circulation, and other uses. It interconnects with major arterials passing through adjacent jurisdictions, connects to U.S.
Interstate 10 (I-10) and East Palm Canyon Drive. The Date Palm Drive corridor is identified as essential roadway to the Agua Caliente Band of Cahuilla Indians (ACBCI) community and is placed on the Tribal Transportation Program (TTP) which allocates funding for roadway improvements.
In August of 2019, an Intergovernmental Memorandum of Understanding (MOU) between the City and the ACBCI established the use of TTP funds for the design, construction, and maintenance of public roads classified as Tribal Reservation Roads.
Under the MOU, the Tribe will provide up to $5.0 million over a 10 year-period toward road construction projects. In furtherance of the MOU, on November 30, 2022, the City and the ACBCI entered into a Subcontractor Services Agreement (SSA) which established
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the scope of work, procedures, terms, and termination date, necessary for the Date Palm Drive Pavement Rehabilitation Project.
On November 09, 2022, City Council authorized the City Manager to execute an agreement with HR Green Pacific, Inc. for the Engineering Design Services of the Date Palm Drive Pavement Rehabilitation Project. The Project limits are along Date Palm Drive between Ramon Road and Gerald Ford Drive. The project consists of the installation of 6-inches of asphalt pavement, repairs of sidewalks, curb and gutter, reconstruction of non-compliant ADA curb ramps, signage, striping, and the construction of concrete approach lanes at signalized intersections. The project also includes the construction of concrete approach lanes at the intersection of Date Palm Drive and 30th Avenue.
On December 05, 2022, the City was awarded $70,000 from the California Department of Resources Recycling and Recovery (CalRecycle) Rubberized Pavement Grant Program. This CalRecycle grant program pays up to $10.00 per ton for the use of rubberized asphalt concrete (RAC) used on Project. The Project will use approximately 7,000 tons of RAC.
DISCUSSION:
On Friday, May 26, 2023, the City advertised an invitation to bid, requesting qualified contractors to perform the described scope of work found in the Bid Specifications and Plans for this Project. This solicitation was made available to contractors for twenty-five (25) calendar days and advertised in the following publications:
•Desert Sun – Published on May 26, 2023, and June 2, 2023 •Planit Print Works
•City’s Website
In an effort to maximize the project scope within the available budget, City Staff decided to implement additive alternatives, in addition to the base bid of the project. The base bid is along Date Palm Drive, between Ramon Road and Dinah Shore Drive, and includes the intersection at 30th Avenue and Date Palm Drive.
The additive alternatives are as follows:
•Additive Alternate A: Dinah Shore Drive – Market Place •Additive Alternate B: Market Place – 35th Avenue
•Additive Alternate C: 35th Avenue – Gerald Ford Drive
On June 20, 2023, the City received one (1) bid proposal for this Project. Based on the bid received, the lowest responsive bidder to the base bid of the Project is Granite Construction Company (Granite) of Indio, California.
The following table lists the qualified bidder by total price:
CONTRACTOR BASE BID AMOUNT
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Granite Construction Company $4,668,436
The selected contractor bid amount on the additive alternates are as follows:
•Additive Alternate A - $ 899,444
•Additive Alternate B - $1,530,730
•Additive Alternate C - $1,855,936
Based on the base bid amount the City will not proceed with the additive alternates. The lowest responsive bid from Granite is 25% above the Engineer’s Estimate for the Project, which was $3,720,564.00. For bid items such as “Mobilization”, “Work Area Traffic Control”, and “Cold-In-Place Recycled Pavement” the contractor appears to have found significantly more work than the design engineer. The bid item “Asphalt Rubber Hot Mix (ARHM) Overlay” was estimated using recent projects; however, increases in cost since the estimate was prepared appear to be impacting this line item. These four bid items account for the majority of the price increase over the Engineer’s Estimate.
Staff reached out to the non-bidding plan holders and found that due to the specialized scope of improvements, bidders found it difficult to perform the specifications required for 51% of the work as the prime contractor required for public projects. Rebidding the Project would delay the Project and would not guarantee lower bids.
Engineering Staff is recommending the City Council award a construction contract to Granite Construction Company, in the amount of $4,668,436 to construct the Project. Staff is also recommending the approval of an 8 percent (8%) contingency in the amount of $401,564 for any unforeseeable construction costs that may be incurred, thereby, bringing the total construction budget for this Project to $5,070,000; and authorize the City Manager to execute the required contract documents (attached); and, to authorize the City Engineer to request bonds and insurance for the Project and to issue the Notice to Proceed.
ENVIRONMENTAL ANALYSIS:
The project is categorically excluded under the National Environmental Policy Act (NEPA) process for federally funded projects per 24CFR58.35 (a)(1), and Categorically Exemot under the California Environmental Quality Act (CEQA), Section 15301 for “Existing Facilities”.
FISCAL IMPACT:
The construction bid amount from Granite Construction Company is $4,668,436, and Staff is recommending an additional 8% contingency for any unforeseeable construction costs in the amount of $401,564 bringing the total construction budget for this Project to $5,070,000.
Bid Construction Cost $4,668,436
Contingency (8%) $401,564 Total
Construction Cost $5,070,000
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Staff is recommending the Project to be funded through the committed $5 Million in TTP funds from the Agua Caliente Band of Cahuilla Indians (ACBCI), and $70,000 from the CalRecycle Rubberized Pavement Grant as follows:
TTP Funds from Agua Caliente Band of Cahuilla Indians $5,000,000 CalRecycle Rubberized Pavement Grant $ 70,000
Total Funds $5,070,000.00
Staff recommends the allocations of available FY 2023/2024 TTP Funds from the Agua Caliente Band of Cahuilla Indians (ACBCI) in the amount of $5,000,000; and available FY 2023/2024 Cal-Recycle Grant Funds in the amount of $70,000 for the construction of the Project.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
Bid Analysis
Contract Documents 1300