CITY COUNCIL STAFF REPORT
October 1, 2024 {{section.number}}e
CONDUCT A BID PROTEST HEARING (IF REQUESTED), REJECT THE BID PROTEST,
AUTHORIZE THE CITY MANAGER TO AWARD A CONSTRUCTION CONTRACT FOR THE
STREET PREVENTATIVE MAINTENANCE ANNUAL PROGRAM, AND EXECUTE CHANGE
ORDERS WITHIN THE PROJECT BUDGET
RECOMMENDATION:
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); conduct a bid protest hearing (if requested) and reject the bid protest filed by Pavement Coatings Company; authorize the City Manager to award a contract to Quality Construction Engineering, Inc. (QCE) in a form approved by the City Attorney in the amount of $789,998, for the Street Preventive Maintenance Annual Program project; and authorize the City Manager to execute change orders within the project budget.
BACKGROUND:
The Street Preventive Maintenance project is a key component of the City’s ongoing infrastructure program aimed at extending the life of asphalt roadways. This program applies a slurry seal – a thin layer of sand and emulsified asphalt – to refresh existing pavement surfaces. Each year, approximately one-seventh of Coronado’s streets and parking lots undergo rehabilitation including removing old striping and markings, filling larger cracks, applying a Type I slurry coat, and repainting striping and markings. Adjacent alleys also have their fire lane markings repainted.
In addition, certain areas require asphalt dig-outs and limited curb, gutter, and driveway apron repairs to enhance drainage and replace deteriorated surfaces. No new pavement markings or updates have been identified by staff for this section, nor recommended in the City’s Active Transportation Plan.
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
The second lowest bidder, Pavement Coatings Company, submitted a bid protest on August 15, 2024, claiming that Quality Construction Engineering, Inc. (QCE) had not properly notarized its bidder’s bond; and that the “Non-collusion Declaration,” was signed by an individual not identified on QCE’s Corporate Statement of Information filed with the California Secretary of State.
City staff reviewed these claims, along with QCE’s response, which included a Limited Power of Attorney (POA) statement dated May 13, 2024, substantiating the signatory on the non-collusion affidavit as an authorized staff member. Staff also contacted the Harco National Insurance Company, the issuer of the bid bond, to verify its validity. Staff, in collaboration with the City Attorney, found the protest concerns to be without merit and recommends the rejection of the bid protest. Pavement Coatings Company has been notified of staff’s findings and advised to attend this City Council meeting and request to speak on this item should they wish to continue to pursue their bid protest.
Staff has 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 Annual Program was approved as part of the FY 2024-25 Capital Improvement Program (CIP) with an available total project budget of $1,200,000, with $300,000 in TransNet funds and $900,000 in HUTA funds. To date, a total of $51.25 has been spent for newspaper advertisements. It is recommended that the project be funded as follows:
PROJECT BUDGET
TransNet Fund $300,000
HUTA Fund $900,000
(Less) Expenses to Date ($51)
Total Remaining Budget $1,199,949
Construction Contract Award $789,998
Contingency (≈20%) $157,999
Materials Testing (≈5%) $39,499
Total Project Cost Estimate $987,496
Estimated Project Balance
$252,003
ALTERNATIVE:
The Council may choose to uphold the bid protest and award a construction contract to the next lowest, responsive bidder; the City Council may also 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
2. Pavement Coatings Company Bid Protest
3. QCE Response to Bid Protest
Submitted By: Public Services and Engineering Department / Mike McCall