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Staff Report
City Council
Item No. 6.C
Meeting Date: February 28, 2024
From: John Corella, Director of Engineering/Public Works Title: Award Construction Contract to Granite Construction for the Via De Anza Street Improvements Project - Phase III, CIP No.
C08841
City Council
RECOMMENDATION:
To award a construction contract to Granite Construction Company in the amount of $1,016,000 for the construction of Via de Anza Street Improvements Project Phase III (C08841) and approve a fifteen percent (15%) contingency in the amount of $152,400 for any unforeseeable construction costs; and, approve a budget adjustment in the amount of $303,803 by allocating funds from the Local Streets and Roads Program (SB1) with account number 248 -100-150-156-8800-8802; and, authorize the City Manager to execute the contract documents; and, authorize the City Engineer to request bonds and insurance for the Project, and issue the Notice to Proceed.
BACKGROUND:
The Via De Anza Street Improvements Project was identified as a FY 2021 -2022 Capital Improvement Project (CIP). During the design phase of the Project, the Coachella Valley Water District (CVWD) Staff advised City Staff they would need to install a new water main on the east side of Via De Anza Street between Dinah Shore Drive and Ortega Road prior to the construction of the City’s Street improvement Project. As a result, this new water pipeline altered the originally proposed Via De Anza Street Improvement Project. While the Project was originally set to be constructed in one phase, CVWD’s request required that the Project be divided into three (3) phases.
The Via De Anza Street Improvements Project – Phase I consisted of constructing street improvements along the west side of Via De Anza between Dinah Shore Drive and Olancha Road, including minor infill improvements on Via Altamira and Olancha Road. The Phase I Project was completed in March 2023.
The Via De Anza Street Improvements Project – Phase II consisted of constructing street improvements along the east side of Via De Anza between Dinah Shore Drive and Olancha Road. In coordination with the Coachella Valley Water District (CVWD), the Project also featured the construction of water main improvements within the Phase
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II Project limits. The Phase II Project was completed in November 2023.
The Via De Anza Street Improvements Project – Phase III (Project) is the remaining phase of th is Project identified in the FY 2023 -2024 Community Block Development Grant (CDBG) Annual Action Plan (AAP) under the category of public improvements.
The Project is located along the east side of Via De Anza between Olancha Road and Ortega Road and on the Arrowhead Road cul-de-sac to the east of Via De Anza Street (a Project Location Map is attached).
The Project consists of constructing a sidewalk, curb, gutter, ADA -compliant curb ramps, driveways, and the installation of new asphalt concrete . Additionally, private improvements, including reconstructing garden walls, mailboxes, and driveway improvements, will be placed to conform to the existing right of way and necessary setbacks.
On August 10, 2022, the City Council authorized the Director of Public Works to execute Task Order 09 for Engineering Design Services for Via De Anza Street Improvements Project - Phases II and III to NAI Consulting, Inc. (NAI). The d esign for the Via De Anza Street Improvements Project – Phase III commenced in May 2023.
Via De Anza Street Improvements Project - Phase III required coordination between the City and CVWD to include the replacement and relocation of a domestic water main within the Project limits. CVWD prepared Plans, Specifications, and Estimates (PS&E) for the water main relocation and appurtenances according to CVWD’s design standards. The CVWD PS&E were incorporated together with the PS&E prepared for the street improvements. The combined project design including street and water improvements was completed in January 2024.
Both agencies agreed that the street and water main projects should be constructed simultaneously under one contract. The City is the lead agency in this construction effort and is requesting that CVWD reimburse the City for 100% of the water main replacement work within the combined project.
A staff report recommending the execution of the reimbursement agreement between the City and CVWD for the relocation and replacement of the water main is separately included in this February 28, 2024, City Council meeting agenda.
DISCUSSION:
On Wednesday, January 17, 2024, 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 -six (26) calendar days and advertised in the following publications:
• Desert Sun – Published on January 17 and January 24, 2024 • La Prensa Hispana – Published on January 30, 2024
• Planit Print Works
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• City’s Website
On February 12, 2024, the City received seven (7) bid proposals for this Project. Based on the bids received Granite Construction Company (Granite) of Indio, CA, is the lowest responsive bidder. A Bid Tabulation is attached for reference. The following table ranks each qualified bidder by total price:
RANK CONTRACTOR AMOUMT
1 Granite Construction Company (Indio, CA) $ 1,016,000.00 2 Universal Construction & Engineering (Palm Desert, CA) $ 1,115,659.10 3 IE General Engineering (Wildomar, CA) $ 1,120,303.75
4 LC Paving & Sealing Inc (Escondido, CA) $ 1,145,067.75 5 Riverside Construction (Riverside, CA) $ 1,152,600.00 6 Onyx Paving (Anaheim, CA) $ 1,498,699.00
7 Hillcrest Contracting (Corona, CA) $ 1,536,041.95
The Engineer’s Estimate for the construction of both the street and water main improvements is $1,059,107.50. Granite’s bid construction amount is lower than the Engineer’s Estimate for the construction of the Project.
The Engineering Staff is recommending the City Council award a construction contract to Granite Construction Company in the amount of $1,016,000 for the construction of Via de Anza Street Improvements Project Phase III (C08841) and approve a fifteen percent (15%) contingency in the amount of $152,400 for any unforeseeable construction costs; and approve a budget adjustment in the amount of $303,803 by allocating funds from the Local Streets and Roads Program (SB1) with account number 248-100-150-156-8800-8802; and authorize the City Manager to execute the contract documents; and authorize the City Engineer to request bonds and insurance for the Project, and 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 Exempt under the California Environmental Quality Act (CEQA), Section 15301 for “Existing Facilities.”
FISCAL IMPACT:
A summary of the Project construction cost is shown below:
Bid Schedule A – Street Improvements: Cathedral City $ 581,000 Bid Schedule B – Water main Improvements: CVWD $ 435,000 Bid Construction Cost $1,016,000
15% Contingency $ 152,404
Total Construction Cost $1,168,400
Bid Schedule A– Street Improvements: Cathedral City
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Granite's bid for the Project's street improvement portion is in the amount of $581,000.
The City’s FY 2023 -2024 CIP shows that CBDG funds in the amount of $429,597 are programmed to construct the street portion of the Project. To account for the difference between the CDBG funding amount and the bid proposal, Staff is proposing to allocate available SB1 funds in the amount of $151,403 to fulfill the contract amount. Staff is also proposing to consider the 15% contingency in the amount of $152,400 from the same SB1 funding.
Thus, Staff is requesting a reallocation of available SB -1 in the amount of $303,803 from the SB1 Fund (248-100-150-156-8800-8802) to complete the Project.
Bid Schedule B – Water Main Improvements: CVWD
Granite's bid for the Project's water improvement portion is in the amount of $435,000.
A 100% Reimbursement Agreement with CVWD in the amount of $ 435,000 representing the construction cost for the replacement of the domestic water main, will be fully executed after the City awards the construction contract for the Project. This portion of the Project will be funded from the Capital Improvement Project (CIP) Fund (331). CVWD originally allocated a total of $478,000 in their FY 2023/2024 budget towards its portion of the Project. (Note: CVWD has provisions to pay additional costs if the original cost estimate is exceeded).
The following table summarizes the funding for the Project:
Project Description Fund Account Number Amount
Street Improvements CDBG 251-100-150-156-8800-8802 $ 429,597 Street Improvements SB1 248-100-150-156-8800-8802 $ 151,403 Water Main Improvements CIP 331-100-150-156-8800-8802 $ 435,000 15% Contingency SB1 248-100-150-156-8800-8802 $ 152,400 Total Amount $1,168,400
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:
MAP - Via De Anza Street Improvements
Via De Anza Bid Tabulation
Granite - Contract + Insurance