Cathedral City Page 1 of 4 Printed on 4/10/2024
Staff Report
City Council
Item No. 6.A
Meeting Date: April 10, 2024
From: John Corella, Director of Engineering/Public Works Title: Award a Construction Contract to Hardy & Harper, Inc. for the Panorama Neighborhood Reconstruction Projects
City Council
RECOMMENDATION:
To award a construction contract to Hardy & Harper, Inc. in the amount of $636,000.00 to provide pavement reconstruction on the Panorama Neighborhood streets of Horizon Road (C08676), Los Gatos Road (C08677), Panorama Road (C08678), East-West Alley (C08679), and North -South Alley (C08680); and, approve a fifteen percent (15%) contingency in the amount of $95,400.00 for unforeseeable construction costs, making the total encumbrance $731,400.00; 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:
On August 20, 2023, Tropical Storm Hilary struck Southern California, the Coachella Valley, and, more specifically, Cathedral City, resulting in flooded roads, neighborhoods, and mud flows in various areas of Cathedral City. Runoff flood waters brought large amounts of sediment and debris, leaving many areas of the city flooded and covered in several feet of mud (soil) and debris.
The emergency work and clean -up efforts throughout the Panorama Neighborhood began on August 21, 2023, and was completed on March 20, 2024. Various contractors were hired to assist the city with the disaster recovery.
As a result of the emergency work, t he pavement on several residential streets and public alleys within the Panorama neighborhood were affected due to the flooding, the mud flows, and the heavy equipment used during the clean-up efforts.
According to the city’s pavement management consultant and the Pavement Management Program used to predict the asphalt deterioration on the city’s roadway network, the resulting level of deterioration within the streets affected by Tropical Storm Hilary deteriorated up to eight years faster, thus a reduction in the useful life of the
Cathedral City Page 2 of 4 Printed on 4/10/2024
pavement ranging up to 27%.
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.
On February 28, 2024, the City Council approved a resolution adopting the City’s FY 2024-2025 Capital Improvement Project (CIP) Plan's projects funded by Senate Bill 1 (SB-1) and approved a list of CIP projects that included segments of Horizon Road, Los Gatos Road, Panorama Road, East -West Alleyway, and North -South Alleyway. These streets and public alleys are within the Panorama Neighborhood and have been identified for a complete rehabilitation to restore the pavement condition.
City staff prepared the plans, specifications, and estimates (PS&E) for the following projects:
• Horizon Road from Vista Chino to Panorama Road (C08676) • Los Gatos Road from Fortuna Way to Date Palm Drive (C08677) • Panorama Road from Avenida Diosa to Avenida La Vista (C08678) • East-West Alley from Horizon Road to Date Palm Drive (C08679) • North-South Alley from Adelina Road to South end of Alley (C08680)
DISCUSSION:
On Sunday, March 3, 2024, the city advertised an invitation to bid, requesting qualified contractors to perform the described scope of work found in Bid No. B24 -61E, which includes the plans and specifications for these projects. This solicitation was made available to contractors for seventeen (17) calendar days and advertised in the following locations:
• Desert Sun- Published on March 3, 2024
• PlanIt Print Works- From March 3, 2024, Until March 20, 2024 • City’s Website- From March 3, 2024, until March 20, 2024
On March 20, 2024, the City received six (6) bid proposals for these projects. The following table ranks each qualified bidder by total price:
RANK CONTRACTOR AMOUNT
1 Hardy & Harper, Inc $636,000.00
2 Matich Corporation $663,679.00
3 Granite Construction Company $694,520.00
4 Onyx Paving Company, Inc. $696,000.00
5 Vance Corporation $798,850.52
6 IE General Engineering, Inc. $911,435.00
The bid tabulation prepared by the Engineering Division is attached to this report for reference.
Cathedral City Page 3 of 4 Printed on 4/10/2024
Based on the bids received, the lowest responsive and responsible bidder is Hardy & Harper, Inc. from Lake Forest, CA.
Engineering staff is recommending the City Council award a construction contract to Hardy & Harper, Inc. in the amount of $636,000.00 to provide pavement reconstruction on the Panorama Neighborhood streets of Horizon Road (C08676), Los Gatos Road (C08677), Panorama Road (C08678), East-West Alley (C08679), and North-South Alley (C08680); and, approve a fifteen percent (15%) contingency in the amount of $95,400.00 for unforeseeable construction costs, making the total encumbrance $731,400.00; 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.
All work will be performed within the existing city right-of-way. Construction is scheduled to start in May 2024, and is estimated to be completed by July 2024.
Environmental Analysis:
These projects are 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:
The Panorama Neighborhood Pavement Reconstruction projects are programmed in the FY 2023/2024 Capital Improvements Program (CIP) Budget to be funded from SB-1 funds and Assessment District (AD) 88-3 funds.
The bid opening for these projects was held on March 20, 2024, with the lowest bid in the amount of $636,000.00. The budget required for the construction of these projects will include the bid amount and a 15% contingency, in the amount of $95,400.00, thereby bringing the total construction budget for these projects to $731,400.00 as shown below.
Hardy & Harper, Inc (Contractor with lowest bid) $636,000.00 15% Contingency $95,400.00
Construction Total $731,400.00
These projects are proposed to be funded with available SB -1 funds (Fund 248) in the amount of $451,400.00, and AD 88-3 funds (Fund 348) in the amount of $280,000.00.
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.
Cathedral City Page 4 of 4 Printed on 4/10/2024
B-15: Develop a 5 -Year pavement maintenance strategy and funding plan to achieve a citywide Pavement Quality Index that ranks in the Top 3 of Coachella Valley cities.
ATTACHMENTS:
Panorama Neighborhood Pavement Reconstruction - Plans
Panorama Neighborhood Pavement Reconstruction- Bid Tabulation Panorama Neighborhood Pavement Reconstruction - Contract