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Staff Report
City Council
Item No. 6.C
Meeting Date: March 27, 2024
From: John Corella, Director of Engineering/Public Works Title: Contract with Petrochem Materials Innovation, LLC for Fiscal Year 2023 -24 Rubberized Emulsion Aggregate Slurry (REAS) Projects
City Council
RECOMMENDATION:
To approve a contract with Petrochem Materials Innovation, LLC. for $1,114,598.46 to supply and apply Rubber Emulsion Aggregate Slurry (REAS) on Panorama Neighborhood streets (C08681), Sunny Lane Neighborhood streets (C08682), and Victoria Drive Neighborhood streets (C08683), including traffic control, crack seal and striping replacement; and, approve a fifteen percent (15%) contingency in the amount of $167,189.54 for unforeseeable construction costs, making the total encumbrance $1,281,788.00; and, authorize the City Manager to execute the required contract documents; and, authorize the City Engineer to request bonds and insurance for the project, and issue the notice to proceed.
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 every five to seven years to prolong street life until a complete street reconstruction is necessary.
Additionally, REAS is a proven treatment preservation method embraced by large and small Cities in the west. As a result of this widely used product supplied by Petrochem Materials Innovation, LLC (PMI) , the City of Cathedral City and other Cities in the Coachella Valley are able to “piggyback” on PMI’s City of Los Angeles’s central mix contract prices, thus s ecure the lowest prices available in the Country for REAS . By piggybacking, 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.
REAS maintenance of roadways are an integral part of the City’s Pavement Management Program (PMP). The City’s Capital Improvement Program (CIP) reflects
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these PMP projects within each of its biennial fiscal years’ budgets. This past November 2023, several CIP construction and maintenance projects had to be reevaluated and reprioritized to include street maintenance and reconstruction of the areas affected by Tropical Storm Hilary in addition to reprogrammed routine maintenance.
DISCUSSION:
Staff is proposing to apply REAS to the following streets:
• Panorama Neighborhood Streets REAS Project (C08681)
o Adelina Road, Avenida La Vista, and Vista Chino (Alternate) • Victoria Drive Neighborhood Streets REAS Project (C08683) o Ashley Court, Bion Way, Brittany Court, and Suncrest Drive, Corregidor Drive, Eagle Canyon Drive, Judy Lane, Linda Way, Marcia Road, Vaquero Road, and Victoria Drive.
• Sunny Lane Neighborhood REAS Project (C08682)
o Papaya Lane, Pomegranate Lane, Sunny Lane, and Talbert Drive
Maps of the above cited REAS application areas are attached to this Staff Report and discussed further below.
Panorama Neighborhood Streets REAS Project (C08681)
The scope of work in the Panorama Neighborhood streets will include the application of Type II REAS. Crack sealing treatment will precede the REAS applications, and the street striping and marking will occur after the REAS work. This work was included in the FY 2026-27 CIP , but due to the impacts of Tropical Storm Hilary, this work was reprogrammed to be included with the FY 2023-24 Spring REAS Projects. This work is proposed to be funded with Senate Bill 1 - Road Maintenance and Rehabilitation Account (SB-1/RMRA) funding.
Vista Chino – Panorama Neighborhood Streets REAS Project Alternate According to the California Department of Transportation (Caltrans) road classification, Vista Chino is listed as a minor arterial road in the Federal Aid System of the Federal Highway Administration (FHWA). Currently, the Caltrans Emergency Relief Program (ER Program) Manager is evaluating the recently submitted Damage Assessment Form (DAF) that summarizes the damage caused by Tropical Storm Hilary on Vista Chino.
The DAF recommends a treatment consistent with the City’s pavement management program to rehabilitate Vista Chino to the same or a better pavement condition than it was prior to the Tropical Storm. For the City to receive funds for the rehabilitation of Vista Chino, the DAF requires approval from Caltrans and FHWA.
Thus, City Staff is including Vista Chino as an alternate street on the Panorama Neighborhood Streets REAS Project. Including Vista Chino in this REAS Project is intended to provide the minimum treatment necessary to extend Vista Chino’s pavement useful life. If the DAF is approved by both Caltrans and FHWA, Staff will exclude Vista Chino from the Panorama Neighborhood Streets REAS Project. As mentioned above, the treatments outlined with the DAF are more comprehensive and have a longer useful life than a REAS treatment.
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Victoria Drive Neighborhood Streets REAS Project (C08683) The scope of work in the Victoria Drive Neighborhood streets will include the application of Type II REAS. Crack sealing treatment and asphalt patch work will precede the REAS applications, and the street striping and markings will occur after the REAS work.
This work was included in the FY 2025-26 CIP budget. This work is proposed to be included with the FY 2023-24 Spring REAS Projects and is proposed to be funded with a combination of Measure A and Assessment District (AD) 2003-01 funds.
Sunny Lane Neighborhood Streets REAS Project (C08682)
The scope of work in the Sunny Lane Neighborhood streets will include the application of Type II REAS. Crack sealing treatment and asphalt patch work will precede the REAS applications, and the street striping and markings will occur after the REAS work.
This work is included in the FY 2023-24 CIP budget and is proposed to be funded with Measure A funds.
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 eight square feet per gallon (8 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, asphalt patching, 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 and access with the work to be performed.
Staff requests City Council to approve a contract with Petrochem Materials Innovation, LLC. for $1,114 ,598.46 to supply and apply Rubber Emulsion Aggregate Slurry (REAS) on Panorama Neighborhood streets (C08681), Sunny Lane Neighborhood streets (C08682), and Victoria Drive Neighborhood streets (C08683), including traffic control, crack seal and striping replacement; and, approve a fifteen percent (15%) contingency in the amount of $167 ,189.54 for unforeseeable construction costs, making the total encumbrance $1,281 ,788.00; and, authorize the City Manager to execute the required contract documents; and, authorize the City Engineer to request bonds and insurance for the project, and issue the notice to proceed.
ENVIRONMENTAL ANALYSIS:
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:
Panorama Neighborhood Streets REAS Project
The original FY 2026-27 CIP amount of $720,000 from City’s General Funds was estimated for the REAS work within the Panorama Neighborhood. In conjunction w ith the October 2023 CIP reevaluation, City Staff is now proposing to perform maintenance
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this fiscal year ( FY 2023-24) and to utilize SB -1/RMRA funds for this Project in the amount of $226,889.02.
Victoria Drive Neighborhood Streets REAS Project
The original FY 2025-26 CIP amount of $485,000 from City’s SB -1/RMRA account was estimated for the REAS work within the Victoria Drive Neighborhood. In conjunction with the 2023 CIP reevaluation, City Staff is now proposing to perform maintenance this fiscal year (FY 2023-24) and utilize Assessment District (AD) 2003-01 for streets within the AD in the amount of $636,298.32, and Measure A funds for streets outside of the AD in the amount of $77,226.51.
Sunny Lane Neighborhood Streets REAS Project
The REAS work within the Sunny Lane Neighborhood was estimated in the CIP in the amount of $150,000 to be funded from the City’s FY 2023 -24 Maintenance of Effort (MOE) requirement. In conjunction with the 2023 CIP reevaluation , City Staff is proposing to utilize Measure A funds in the amount of $174,184.61 for this Project.
The overall PMI proposal to complete the FY 2023-24 REAS Projects is $1,114,598.46.
A 15% contingency is proposed amounting to $167,189.54, and thus the total estimated cost of the FY 2023-24 REAS Projects is $1,281,788 as shown in the table below.
PMI Cost Proposal $1,114,598.46
15% Contingency $ 167,189.54
Construction Total Estimate $1,281,788.00
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.
Project Funding
Source
PMI Estimated
Amount
Panorama Neighborhood SB-1/RMRA
Fund 248 $115,396.03
Panorama Neighborhood - Alternate SB-1/RMRA
Fund 248 $111,492.99
Victoria Drive Neighborhood Measure A
Fund 243 $77,226.51
Victoria Drive Neighborhood (AD) AD 2003-01
Fund 352 $636,298.32
Sunny Lane Neighborhood Measure A
Fund 243 $174,184.61
TOTAL $1,114,598.46
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ATTACHMENTS:
FY 23-24 Spring REAS Project Area Map
PMI Cost Estimate
PMI Contract