CITY COUNCIL STAFF REPORT
August 20, 2024 {{section.number}}f
AWARD AND AUTHORIZE A CONTRACT, APPROVE PROJECT CONTINGENCY, CHANGE
ORDERS AND ADDITIONAL BUDGET APPROPRATION FOR THE STREET PREVENTATIVE MAINTENANCE FY 2023-24 ANNUAL PROGRAM
RECOMMENDATION:
Award and authorize the City Manager to execute a contract with Engineering Construction Company, Inc. in a form approved by the City Attorney in the amount of $789,998 for construction of the Street Preventive Maintenance (Fiscal Year 2023-24 Annual Program) project; approve a 15% project contingency of $118,499.70; amend the FY 2024-25 Budget and appropriate an additional $348,047.70 for expenditure from the Highway User Tax Account (HUTA) Funds; authorize the City Manager to execute change orders within the project budget; and, find that the project is categorically exempt from environmental review under Class 1 of the state CEQA Guidelines section 15301, Existing Facilities (14 CCR 15301).
BACKGROUND:
This project is part of an ongoing maintenance program designed to extend the life of asphalt roadways by applying a slurry seal, a thin (approximately one-eighth of an inch thick) layer of sand and emulsified asphalt mixture that rejuvenates the existing asphalt surface. Every fiscal year, approximately one-seventh of Coronado’s streets and parking lots are rehabilitated by removing old roadway striping and pavement markings, filling cracks wider than a quarter inch, applying a Type I slurry coat, and repainting roadway striping and markings.
Additionally, alleys adjacent to treated streets will have fire lane stripes repainted in conjunction with each year’s slurry seal project. Some locations have been identified for asphalt dig-outs, curb and gutter and driveway apron removal and replacement, which are necessary to improve drainage and replace damaged asphalt and concrete.
A map of the areas included in this preventive maintenance project are included in Attachment 1 of this report. No new pavement markings were identified for this area in the City’s Active Transportation Plan or recommended by staff.
ANALYSIS:
Bids were advertised on July 11th, 2024 and opened on August 7th, 2024, with the following results:
BIDDER BID
Quality Construction and Engineering Inc. $789,998.00
Pavement Coatings Co. $957,847.00
American Asphalt South, INC. $972,146.40
YBS Construction Engineering $2,314,210.00
Staff reviewed the bid package, insurance, and bonding for Quality Construction and Engineering Inc. In accordance with the Standard Specifications for Public Works Construction, Quality Construction and Engineering Inc. was determined to be the lowest responsible and responsive bidder. Public contracting laws require the City to award the contract to the lowest responsible and responsive bidder, which, in this case, is Quality Construction and Engineering Inc.
FISCAL IMPACT:
The Street Preventive Maintenance was approved as part of the FY 2023-24 Capital Improvement Program (CIP) with a total project budget of $600,000, comprising $100,000 in TransNet funds and $500,000 in HUTA funds. To date, a total of $51.25 has been spent for newspaper advertisements.
To complete the project, an additional appropriation of $348,047.70 from HUTA Funds 201/202 is necessary. As of June 30, 2024, the estimated year-end balance for both budget units was $644,672. If the additional appropriation is approved, the remaining balance will be reduced to approximately $296,624. Any remaining funds after project completion will be returned to the same accounts.
It is recommended that the project be funded as follows:
PROJECT BUDGET
TransNet Fund $100,000
HUTA Fund $500,000
(Less) Expenses to Date ($51)
Total Remaining Budget $599,949
Construction Contract Award $789,998.00
Contingency (≈15%) $118,499.70
Materials Testing (≈5%) $39,499.00
Total Project Cost Estimate $947,996.70
Additional Appropriation Required
(HUTA Fund 2013200/2023200) $348,047.70
ALTERNATIVE:
The City Council may elect to reject all bids and cancel/postpone the project.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Categorically exempt per California Environmental Quality Act (CEQA) Guideline; Class 1, Existing Facilities.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Project Scope and Location Map - Street Preventive Maintenance Project Submitted By: Public Services and Engineering Department / Mike McCall