Agenda #: 5.8
Meeting Date: July 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: CONSTRUCTION AGREEMENT WITH PTM GENERAL ENGINEERING SERVICES, INC. FOR THE INTERSECTION SAFETY
IMPROVEMENTS PROJECT (CIP# TI24301) FUNDED UNDER THE
STATE HIGHWAY SAFETY IMPROVEMENT PROGRAM.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
A. Determine that approving the proposed Project is exempt from the California Environmental Quality Act pursuant to Section 15301(c) of the CEQA Guidelines; B. Adopt Resolution No. 2024-28 approving the design plans and specifications for the Intersection Safety Improvements Project (CIP# TI24301); and C. Approve, and authorize the Mayor to sign, the Construction Agreement with PTM General Engineering Services, Inc., in the amount of $251,355, plus a contingency amount of $50,271 for Contract Change Orders, to be approved by the City Manager, for a total authorization amount of $301,626.
FINANCIAL IMPACT:
The FY 23/24 Capital Improvement Program (CIP) Budget included $336,500 for the Intersection Safety Improvements Project’s design and construction. The submitted bid, including a 20% contingency, ensures budget adherence and readiness for any unforeseen circumstances.
The City receives State’s Highway Safety Improvement Program (HSIP) Funds on a reimbursement basis. As shown in the table below:
Intersection Safety
Improvements Project (CIP
#TI24301)
Budget
Encumbrance
/
Expenditures
Balance
HSIP Grant from the State $302,850 $302,850
Transportation Development Act
(TDA); the City’s local match $33,650 $336,500
Design Service (provided by Fehr
& Peers, on-call) $33,600 $302,900
Construction Cost (PTM General
Engineering Services, Inc.) $251,355 $51,545
Construction Contingency (20%) $50,271 $1,274
Project Balance $1,274
The $50,271 contingency allocated for the construction agreement with PTM General Engineering Services, Inc. will only be utilized if unforeseen circumstances necessitate a contract change order. If unused, this amount will be returned to the respective fund balance upon project completion.
BACKGROUND/DISCUSSION:
Using a separate grant funding from the State, the City developed a Local Roadway Safety Plan (LRSP) in compliance with Federal regulations outlined by the State of California. The LRSP serves as a local counterpart to the State's Strategic Highway Safety Plan (SHSP), targeting specific safety requirements within our locality. It comprises a prioritized list of enhancements and strategies aligned with both local needs and the broader statewide safety blueprint.
Recognizing the availability of grant opportunities, notably the HSIP Cycle 11 Grant, which required an LRSP, staff formulated a comprehensive project blueprint that met all grant prerequisites. After approval of the award of the grant in the amount of $302,850 (with the City matched amount of $33,650), the Department of Transportation (DOT) allocated $27,540 in State funds for the Preliminary Engineering (PE) phase/design phase, effective October 1, 2023. This was followed by the approval of an Administering Agency-State Agreement accepting the PE per State requirements at the January 16, 2024 Council meeting, with final approvals from DOT received in February 2024.
The Project proposes improvements at nine (9) signalized intersections (see attached Vicinity Map). The original engineer’s estimate of the Project was $150,000. Therefore, the Public Works Director/City Engineer was authorized to approve the plans and specifications, not requiring Council action. The Project was advertised for bids on PlanetBids on May 14, 2024, with a bid opening scheduled for May 29, 2024. However, no bids were received. Staff then reached out to several potential contractors who had expressed interest in bidding. Upon follow-ups with the contractors, it was found that some contractors decided not to bid, citing ongoing commitments that prevented their participation. Staff consulted with the City Attorney regarding the possibility of negotiating a contract with a contractor without further bidding. The City Attorney confirmed that this approach is permissible under State Law and our Municipal Code Section 3.25.050 (f).
Staff reached out to PTM General Engineering Services, Inc. (PTM), who has previous experience working with Diamond Bar’s traffic improvement projects, and requested a bid proposal. Upon receiving the negotiated bid from the contractor, our team reviewed the bid items alongside the design consultant. Following careful consideration, the consultant confirmed that the bid unit prices were reasonable, particularly given the rising costs of materials and labor. The final negotiated contract amount of $251,355 was agreed upon. This new proposal requires Council action on both the approval of plans and specifications, and the approval and award of the construction agreement.
Staff verified PTM's contractor state license and confirmed its validity. Additionally, references were checked, and outstanding feedback was received regarding their previous work with other cities and agencies, including the City of Monterey Park and Caltrans District #12 and District #8.
Upon issuance of the Notice to Proceed, PTM will carry out all the required work within a timeframe of thirty (30) working days, pending equipment procurement lead times.
The project schedule is tentatively set as follows:
Award of Contract: July 2024
Start of Construction: August 2024
Completion of Construction: September 2024 (pending equipment procurement lead times)
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. 5.8.a Resolution No. 2024-28
2. 5.8.b PTM Construction Agreement
3. 5.8.c Plans & Specifications
4. 5.8.d HSIP - Vicinity Map