Agenda #: 5.4
Meeting Date: April 2, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AWARD OF CONSTRUCTION AGREEMENT TO ONYX PAVING
COMPANY, INC. FOR THE AREA 3 RESIDENTIAL & COLLECTOR
STREETS REHABILITATION AND ARTERIAL STREET
REHABILITATION (GOLDEN SPRINGS DRIVE FROM GRAND
AVENUE TO AVENIDA RANCHEROS, GRAND AVENUE FROM
DIAMOND BAR BLVD TO EAST CITY LIMITS, AND STREETS WITHIN THE GATEWAY CORPORATE CENTER) PROJECT NO. SI24101 &
SI24103; THE GRAND AVENUE AT DIAMOND BAR BOULEVARD
DRAINAGE IMPROVEMENTS (PROJECT NO. PW23402); AND THE
COLD SPRING LANE GROUNDWATER DRAINAGE IMPROVEMENTS
(PROJECT NO. SI24101).
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
A. Determine that approving the Construction Agreement for the proposed Project is exempt from the California Environmental Quality Act pursuant to Section 15301(c) of the CEQA Guidelines;
B. Appropriate a total of $644,121 in additional funding from the following Funds - $452,100 Prop C Fund 207, $50,000 Prop A Fund 206, and $142,021 Measure W Fund 201, to fund the Project's contingency;
C. Approve the proposed adjustments to the CIP budget and establish a Project Payment Account containing sufficient funds from the current fiscal year budget; and
D. Approve, and authorize the City Manager to sign, a Construction Agreement with Onyx Paving Company, Inc. in the amount of $9,369,000, plus a contingency amount of $936,900, for Contract Change Orders to be approved by the City Manager, for a total authorization amount of $10,305,900.
FINANCIAL IMPACT:
The Fiscal Year 2023/24 Capital Improvement Program includes an approved budget for each component of the Project, identified under multiple project numbers, as detailed in the table below. In response to the bid/cost proposal received for the four (4) base bid schedules, a proposed adjustment to the corresponding funding sources is proposed below.
An additional $644,121 ($452,100 from Prop C, $50,000 from Prop A, and $142,021 from Measure W) is recommended to address the Project's expenses and contingency, as illustrated in the table below shown as "New Request".
Base Bids Approved Budget
(FY 2023/24 CIP)
Proposed
Adjusted
Budget
Encumbrance/
Expenses
Balance Per
Proposed
Adjusted
Budget
Residential & Collector Streets Rehabilitation Area 3 - Project No. SI24101 – (Base Bid “Schedule A”)
Measure M $1,200,000 $1,200,000 $1,200,000
Measure R Local
Return [$575K
transfer from
SI24103]
$600,000 $1,175,000 $2,375,000
Hauler Fees $250,000 $250,000 $2,625,000
Gas Tax [transfer
from SI24103]
$400,000 $3,025,000
RMRA [transfer from
SI24103]
$738,100 $3,763,100
Arterial Streets Rehabilitation Project No. SI24103 – (Base Bid “Schedule B”) RMRA $4,050,000 $3,311,900 $7,075,000
Prop C $2,500,000 $2,500,000 $9,575,000
Measure R Local
Return $575,000 $0 $9,575,000
Gas Tax $400,000 $0 $9,575,000
New Request:
Prop C
$452,100 $10,027,100
New Request:
Prop A
$50,000 $10,077,100
Grand Avenue at Diamond Bar Boulevard Drainage Improvements, Project No.
PW23402 – (Base Bid “Schedule C”)
Measure W $100,000 $60,521 $10,137,621
Measure W (Used for
Design)
($13,221) $10,124,400
Groundwater Drainage Improvements Phase 6 (Cold Spring Lane) – Under Project No.
SI240101 (Base Bid “Schedule D”)
Measure W [transfer
from PW23402] $39,479 $39,479 $10,163,879
New Request:
Measure W $142,021 $10,305,900
Construction
Contract - Onyx
Paving Company,
Inc.
($9,369,000) $936,900
Contingency (10%) ($936,900) $0
The contingency amount of $936,900 will only be used in the event of unforeseen circumstances that warrant a contract change order.
BACKGROUND:
On February 21, 2023, the City Council approved a Consulting Services Agreement with Nichols Consulting Engineers, Inc. (NCE) to lead the design work for the Area 3 Residential & Collector Streets Rehabilitation and Arterial Street Rehabs. This design effort also encompasses plans for the Americans with Disabilities Act (ADA) Curb Ramp Improvement Projects spanning across Area 3, 4, and 5 residential streets and arterials.
At the February 20, 2024, meeting, the City Council approved the plans and specifications for the Area 3 Residential & Collector Streets Rehabilitation and Arterial Street Rehabilitation (Golden Springs Drive from Grand Avenue to Temple AvenueAvenida Rancheros, Grand Avenue from Diamond Bar Boulevard to easterly City limits, and streets within the Gateway Corporate Center), Grand Avenue Drainage Improvement, and Cold Springs Lane Groundwater Improvement projects. The technical specifications for the drainage/groundwater improvements were combined with the street improvements plans as one bid package for cost-effectiveness.
ANALYSIS:
The City’s Area 3 is located to the south of Pathfinder Road, spanning both the western and eastern sides of Diamond Bar Boulevard and the SR 57 freeway. The Project encompasses approximately 17 center miles of residential and collector streets, necessitating treatments such as slurry seal, chip seal, and asphaltic concrete (AC) overlay. Additionally, it involves addressing isolated areas of damaged AC pavement as determined by field assessments. Furthermore, the Project includes approximately 6 centerline miles of various segments along major arterials, notably Golden Springs Drive from Grand Avenue to Temple Avenue-Avenida Rancheros, Grand Avenue from Diamond Bar Boulevard to the easterly City limits, and streets within the Gateway Corporate Center (Gateway Center, Copley Dr, Bridgegate Dr). Please refer to Attachment 2 for the Vicinity Map.
Lane closures and construction activities along Golden Springs Drive, Grand Avenue, and streets within the Gateway Corporate Center will be authorized between 8:30 AM and 4:30 PM. While Public Works construction typically commences at 7:30 AM, Golden Springs Drive and Grand Avenue experience significant daily weekday traffic during both morning and evening peak hours. By delaying construction until 8:30 AM, we aim to minimize disruptions to the morning commuter traffic while ensuring that construction crews can work efficiently throughout the day to meet construction deadlines.
Additionally, the project team has carefully assessed the potential impacts of construction near school areas and will collaborate with the contractor to initiate work on both the drainage and groundwater improvements away from school traffic until affected schools are out for summer vacation, starting on May 30, 2024. This proactive approach will help mitigate disruptions and ensure the safety of students and commuters alike.
The Project was advertised for bids on February 21, 2024, with an engineer’s estimate of $8.66 million. The bid opening date was set for March 19, 2024, and the Project was formatted into four base bid schedules:
Base Bid “Schedule A”: Residential & Collector Streets Rehabilitation (Area 3 – CIP# SI24101.
Base Bid “Schedule B”: Arterial Street Rehabilitation (Golden Spring Dr. from Grand Avenue to Temple Avenue-Avenida Rancheros; Grand
Avenue from Diamond Bar Boulevard to the easterly City
limits, and streets within the Gateway Corporate Center – CIP# SI24103).
Base Bid “Schedule C”: Grand Avenue Median Drainage Improvement Project (Grand Avenue at Diamond Bar Boulevard)– CIP# PW23402
Base Bid “Schedule D”: Cold Spring Lane Groundwater Drainage Improvement – CIP#SI24101
Seven (7) bid proposals were received. Onyx Paving Company, Inc. was the lowest responsible bidder with a Base Bid (A thru D) in the amount of $9,369,000.00.
The results for the bids are shown below:
Company Base Bid
1. Onyx Paving Company, Inc. $9,369,000.00
2. Hardy & Harper, Inc. $9,378,000.00
3. Copp Contracting, Inc. $9,382,596.49
4. All American Asphalt $9,749,863.15
5. Sequel Contractors, Inc. $9,845,460.40
6. R.J. Noble Company $10,190,133.07
7. Nationwide Contracting Services, Inc. $14,746,046.00 Staff has verified that Onyx Paving Company, Inc. holds a valid contractor license and has reputable experiences with similar projects. The tentative schedule of the Project is as follows:
Award Construction Contract April 2, 2024
Start Construction May 2024
Completion of Construction September 2024
Environmental Review
Staff has determined that this Project is exempt from the California Environmental Quality Act (CEQA) provisions pursuant to the California Code of Regulations, guidelines for the implementation of the CEQA, Section 15301(c) under Class 1 Existing Facilities, existing highways and streets.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a Construction Agreement with Onyx Paving Company, Inc.
2. 5.4.b Vicinity Map