03. CIP 22-20 & 22-21 - Award Construction Contract for Residential Streeets Pavement Rehab.

Item No.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC

WORKS/CITY ENGINEER
D ATE: MAY 28, 2024
SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR THE RESIDENTIAL STREETS PAVEMENT REHABILITATION - AREAS 5 AND 7, CAPITAL IMPROVEMENT PROJECT (CIP) NO. 22-20 AND 22-21; AND FUNDING

ALLOCATION FOR THE COST SAVING PAVING PILOT PROJECT

EXECUTIVE SUMMARY
The City Council will consider awarding a contract to Onyx Paving Company, Inc. in the amount of $7,337,000 for the construction of the Residential Streets Pavement Rehabilitation - Area 5 and 7 Projects (Project), Capital Improvement Program (CIP) No. 22-20 and 22-21. These areas are recommended for improvement based on the City’s approved Pavement Management Program. The City Council will also consider approving a change order of $6,404 for the Cost Saving Pilot Project, which was used to evaluate paving methods for use in Downey’s future paving projects, including the Area 5 and 7 projects.

RECOMMENDATION
That the City Council:

1.Award a contract to Onyx Paving Company, Inc. in the amount of $7,337,000 for the Residential Streets Pavement Rehabilitation - Area 5 and 7 Projects, Capital Improvement Program (CIP) No. 22-20 and 22-21;

2.Approve a change order in the amount of $6,404 to the Cost Saving Pilot Project contract with Onyx Paving Company, Inc.; and

3.Authorize the City Manager or his designee to execute any change orders or additional scope of work for the Area 5 and 7 Projects up to an amount of $8,404,400, including contingency amount of 20 percent.

BACKGROUND
The City’s Pavement Management Program (PMP) is the primary tool used to prioritize street pavement rehabilitation projects throughout the City. The PMP evaluates, ranks, and prioritizes each City street segment based on surface conditions (cracking, surface failures, etc.), pavement structural strength, and other field observations. The PMP

APPROVED BY

CITY MANAGER

CAPITAL IMPROVEMENT PROJECT NO. 22-20 AND 22-21
RESIDENTIAL STREETS PAVEMENT REHABILITATION PROJECT – AREAS 5 AND 7 PAGE 2

systematically prioritizes areas for pavement rehabilitation through a 10-year work plan in which the City was divided into ten areas as shown on Attachment A.

The residential street segments in each area identified as priorities for improvements are either in a state of minor deterioration and can be inexpensively repaired with minor maintenance methods such as slurry seal, cape seal or overlay while other residential street segments identified are deteriorated to a state of disrepair beyond what ordinarily could be handled through routine street maintenance practices and must be reconstructed. Ultimately, the pavement rehabilitation on the residential street segments will raise the condition of the pavement to an acceptable standard and will extend the life of the infrastructure by 20 years.

ANALYSIS

Cost Saving Paving Pilot Project

Construction material and labor costs have risen by as much as 30% over the past 3 years. Through close monitoring of recent bids, conversations with paving contractors and pavement manufacturers, and a review of the DIR Prevailing Wage changes, the City has determined that construction costs are likely to stay at their current levels, and possibly continue to increase for the foreseeable future. In order to effectively rehabilitate the City’s roadway network in this current economic climate, local agencies must constantly look for cost-effective treatment methods. Given this, staff worked with its Project designer to come up with alternative pavement strategies that would still extend the life of the roadways while providing cost savings.

Through discussions with the designer, staff elected to utilize an Asphalt-Rubber Aggregate Membrane (ARAM) + Slurry Cape Seal treatment in lieu of a full reconstruction for several of the roadways within Area 5. ARAM + Slurry Cape Seal, which consists of the ARAM layer that is laid on the roadway surface followed by Slurry Cape Seal, is a proven treatment that has been utilized in Public Works projects for over 20 years and provides significant cost savings compared to full reconstruction, which consists of the removal of several inches of pavement and base, then placement of new asphalt pavement. While full reconstruction does provide a smoother driving surface and a visually better finish, ARAM treatments effectively bind together any surface defects and provide a new surface that greatly improves the rideability of the roadway while prolonging the life of the road for up to 15 years.

Downey has not utilized the ARAM method for local roadway rehabilitation projects in the past and, therefore, elected to perform a pilot project on a street within Area 5 to observe the results. Tristan Drive between Buckles Street and Fontana Street was chosen as a candidate for the Project given its poor Pavement Condition Index (PCI) and several roadway patches that have caused the road to have an uneven surface. Additionally, the length of this segment was short enough to allow the City to construct the test strip in a

CAPITAL IMPROVEMENT PROJECT NO. 22-20 AND 22-21
RESIDENTIAL STREETS PAVEMENT REHABILITATION PROJECT – AREAS 5 AND 7 PAGE 3

relatively short period of time and determine if it would be successful for use in the upcoming residential paving projects.

In order to complete the project and have enough time to observe the results prior to beginning the Area 5 project, the City reached out to three contractors with the plans, specifications, and expedited schedule for the project. Onyx Paving Company, Inc. (Onyx), was the only contractor who responded and could meet the City’s schedule.

On March 20, 2024, the City entered into an agreement with Onyx to construct the Cost Saving Pilot Project for $52,985. The project value fell under the City Manager’s approval authority and was awarded administratively per Chapter 3 of the City of Downey’s Purchasing Policy. After the first day of construction, it was discovered that additional preparation work would need to be performed to effectively utilize the ARAM treatment method for this street segment. In order to maintain the project timeline, work proceeded per the original schedule and the project was completed by April 11, 2024 for a total cost of $81,404.00. This increased the costs above the City Manager’s approval threshold of $75,000 and, therefore, requires the City Council’s approval of a change order to the contract for an amount of $6,404.

Staff has monitored the condition of the test strip on Tristan Avenue and has found that it has performed well under all traffic conditions, including occasional heavier loads from street sweeping and solid waste hauling trucks. As a result, it has been selected as a treatment cost saving measure for the Area 5 and 7 Projects.

Area 5 & 7

On February 27, 2024, the City Council approved plans and specifications and granted authority to advertise the Project for bids (Attachment B). The proposed work consists of various pavement rehabilitation strategies, concrete repairs, and ADA improvements within the Area 5 and Area 7 regions as shown on the plans in Attachment B.

However, during the design process, staff determined that this would not be enough funding to cover the full, original scope of the Area 5 and Area 7 projects. In order to save costs, staff implemented the following changes:

• Removed All Slurry Seal and Cape Seal Streets. This work will be done in a standalone project. Approximately 12 miles of streets requiring slurry seal treatment were removed and will be addressed in Fiscal Year 2024-2025. These streets are already considered in good condition and the slurry seal treatment is recommended to prolong the surface of the street and prevent the degradation of the road. This work is typically done by subcontractors and is therefore subject to a markup by the prime contractor of anywhere from 10 to 20 percent. By separating it into a future standalone project, the work would be done by the prime and therefore not be subject to a markup, thus saving up to 20 percent of the cost.

CAPITAL IMPROVEMENT PROJECT NO. 22-20 AND 22-21
RESIDENTIAL STREETS PAVEMENT REHABILITATION PROJECT – AREAS 5 AND 7 PAGE 4

• Combined the Area 5 and Area 7 Projects. Staff typically constructs each Area as a standalone project, however, combining projects allows the City to leverage economies of scale by creating a project with larger construction quantities than would be typically required by a pavement rehabilitation projects which focuses on only one Area.

• Implemented the ARAM + Slurry Cape Seal System. As discussed above, this system prolongs the life of the street by 15 years while eliminating the need for heavy removals, hauling and disposal of construction spoils, and installation of several inches of new pavement. The success of the Cost Saving Paving Pilot Project gave staff confidence that this system, which has not been implemented in Downey, will be effective in rehabilitating our streets while saving costs.

The Project was advertised in the Downey Patriot on April 24, 2024, and May 2, 2024, and published in various trade publications. On May 14, 2024, the City received and publicly opened 5 bids ranging from $7,337,000.00 to $9,306,000.00.

The bid results were as follows:

CONTRACTOR LOCATION BASE BID
AMOUNT
Onyx Paving Company, Inc. Anaheim $ 7,337,000.00
Sequel Contractors, Inc. Santa Fe Springs $ 7,997,612.60 R.J. Noble Company Orange $ 8,184,749.21
All American Asphalt Corona $ 8,618,202.73
Hardy & Harper Lake Forest $ 9,306,000.00

Due to the above-mentioned changes, it resulted in favorable bids that were under the FY 2023-2024 budgeted project amount of $11,735,800 for the two roadway rehabilitation projects.

The lowest responsive and responsible bidder is Onyx Paving Company, Inc., with a Base Bid amount of $7,337,000 (Attachment C). Staff reviewed the bid proposal and references provided by Onyx Paving Company, Inc. and found that Onyx Paving Company, Inc. has satisfactorily completed projects for the Cities of Downey, Arcadia, Whittier, Riverside, Diamond Bar, and others. Onyx Paving Company, Inc.'s state contractor's license is "current and active," and this contractor is registered with the California Department of Industrial Relations (DIR) for Labor Compliance. Staff recommends that the City Council award a contract to Onyx Paving Company, Inc. for the construction of Residential Streets Pavement Rehabilitation - Area 5 and 7 Projects (Project), Capital Improvement Program (CIP) No. 22-20 and 22-21.

CAPITAL IMPROVEMENT PROJECT NO. 22-20 AND 22-21
RESIDENTIAL STREETS PAVEMENT REHABILITATION PROJECT – AREAS 5 AND 7 PAGE 5

Construction is anticipated to begin in June 2024 and be completed in September 2024.

This Project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301(c), Existing Facilities.

CITY COUNCIL PRIORITIES

Quality of Life, Safety & Infrastructure

FISCAL IMPACT

Approval of the recommended actions will result in an expenditure of $8,810,804, including a 20% contingency amount in the event of any necessary change orders during project construction. When including the project scope of work for engineering design, inspection, testing, and construction management, the total cost for the project is approximately $9,856,806. These total costs and the budgeted Capital Improvement Program (CIP) funds to cover them are shown in the following tables:

Description Amount
Design $440,000
Construction Contract $7,337,000
Construction Contract Contingencies (20%) $1,467,400
Construction Inspection $222,406
Soils and Materials Testing $160,000
Construction Engineering and Contract
Administration $230,000
Change Order for Tristan Avenue Pilot Project $6,404
Total Estimated Project Cost: $9,856,806

There are sufficient fund balances for the recommended actions, as shown in the table below.

Account
No. Funding Source Amount
58-1-6876 Fund 58 (Measure M Bond) $177,336
32-1-6877 Fund 32 (Senate Bill 1) $300,000
38-1-6877 Fund 38 (Vehicle Impact Fee) $2,230,000
56-1-6877 Fund 56 (Measure R Local Return) $750,000
57-1-6877 Fund 57 (Measure M Local Return) $790,000
58-1-6877 Fund 58 (Measure M Bond) $830,300
58-1-6879 Fund 58 (Measure M Bond)
Transfer from CIP 22-23 - Area 6 $2,244,701

CAPITAL IMPROVEMENT PROJECT NO. 22-20 AND 22-21
RESIDENTIAL STREETS PAVEMENT REHABILITATION PROJECT – AREAS 5 AND 7 PAGE 6

59-1-6879 Fund 59 (Measure R Bond)
Transfer from CIP 22-23 - Area 6 $3,637,135
58-1-6823
Fund 58 (Measure M Bond)
Transfer from CIP 3rd Street Pavement Rehabilitation
Project
$201,328
56-1-6832
Fund 56 (Measure R Local Return)
Transfer from CIP Annual Citywide Traffic Striping of
Roadways
$80,000
57-1-6624 Fund 57 (Measure M Local Return)
Transfer from CIP Miscellaneous Bridge Repairs $95,000
56-1-6787 Fund 56 (Measure R Local Return)
Transfer from CIP Entry Monument Signs $75,000
56-1-6843
Fund 56 (Measure R Local Return)
Transfer from CIP Citywide Median Landscape
Enhancements
$25,000
32-1-6906
Fund 32 (Senate Bill 1)
Transfer from CIP Lakewood Boulevard Pavement
Rehabilitation
$200,000
57-1-6896
Fund 57 (Measure M Local Return)
Transfer from CIP Traffic Signal at Ardis
Ave./Charlemagne Ave. and Foster Road
$100,000
Total Estimated Project Cost: $11,735,800

ATTACHMENTS

Attachment A – Project Location Map
Attachment B – Plans
Attachment C – Bid Summary

ATTACHMENT A

CITY OF DOWNEY

PUBLIC WORKS DEPARTMENT

RESIDENTIAL STREET PAVEMENT
REHABILITATION PROJECT AREA 5
CAPITAL IMPROVEMENT PROJECT NO. 22-20
CIP NO. 22-20

RESIDENTIAL STREET PAVEMENT REHABILITATION PROJECT
AREA 5
A

SS
CIP NO. 22-20

RESIDENTIAL STREET PAVEMENT REHABILITATION PROJECT
AREA 5
TRISTAN DR MULLER ST 5TH ST

CIP NO. 22-20