Item #03
Date: January 18, 2022
To: Mayor and City Council
From: Jim Schaad, City Manager
John Mallen, Consultant City Engineer
Subject: Award a Contract for Construction of the Improvements for the 5th Street Rehabilitation Recommendation:
Pass a Motion to adopt Resolution No. 2022-XX, awarding a contract in the amount of $3,058,362 with All American Construction, Inc. for the construction of the 5th Street Rehabilitation, Contract No. 21-01, Federal-Aid Project STPL-5009(030) based on the Improvement Plans and Contract Documents.
Rationale for Recommendation:
The City of Marysville circulated and publicly advertised in the Appeal Democrat newspaper on October 27th and November 3rd, 2021 a Notice to Bidders to receive bids based on the improvement plans and construction documents prepared by MHM Inc. dated August 21, 2021, Addendum No. 1 dated November 22, 2021, and Addendum No. 2 dated November 30, 2021. The City received five bids for this project on December 2, 2021, from All American Construction, Inc., Lamon Construction Co., Inc., DeSilva Gates Construction, Knife River Construction, and Teichert Construction. The lowest responsive bid received for the total project with was from All American Construction, Inc. in the amount of $3,058,362. This bid from All American Construction, Inc. also exceed the Federal Aid DBE participation project goal of 23.0%.
Background:
The project is located on 5th Street from the E Street intersection to the J Street intersection in Marysville. The rehabilitation of the 5th Street Corridor includes road structural rehabilitation from curb to curb with pedestrian accessibility improvements at all the intersections, driveways, and alley crossings, adding a pedestrian crossing signal at F Street, and upgrading the traffic signal at H Street for pedestrian access and additional turning movements. This project incorporates adding a 5th lane for better circulation with medians and left turn pockets at the intersections with H, G, and F Streets.
In 2016, the City secured a $700,000 State Transportation Improvement Program (STIP) funding with a local match for development of plans, specifications, and estimates (PS&E) to rehabilitate the 5th Street corridor. The local matching funds totaling $19,441 along with the grant $150,000 were expended during the PS&E phase of the project. The PS&E authorization had a budget surplus of $550,000 due to the 2nd Street PSR part of the budget was determined not to be feasible early in the process, and this surplus was be rolled into construction funding. The City applied for the SACOG 2019 State of Good Repair Program funding and was awarded $1,500,000 for the project construction. The City then applied for the SACOG 2021 Regional Program Maintenance & Modernization funding and was awarded the additional $1,000,000 for the project construction. The $2,500,000 in new funding and conversion of the $550,000 Item #03
balance of the PS&E funds was authorized with $3,050,000 of Federal-Aid funding for project construction through Caltrans Local Assistance and SACOG.
Discussion & Analysis:
The City will receive a total of $3,200,000 in grant funding for the 5th Street Project with all funds being secured through SACOG and being issued through Caltrans. With $150,000 being spent during the PS&E phase, the remaining $3,050,000 will be available for the construction phase. The City approved Resolution 2021-43 approving the Program Supplement Agreement for the construction phase of the project on October 19, 2021.
The contract amount is only $8,362 more than the allocated funds, but the original budget included additional cost during construction for construction management and inspection, and a contingency for additional costs from unforeseen items covered during construction. The project came in higher than originally estimated due to recent dramatic increases in the price of materials and inflation, but the bids were competitive, and it is not anticipated that is the project was rebid the at a later date the pricing would be any lower.
Depending on the actual amount of change orders during construction and the cost of construction administration, the actual project cost could exceed the construction budget by $200,000 to $458,000.
Any additional funds would need to come from the City’s Gas Tax Fund, Fund 21. The General Fund will not be affected by this contract.
Fiscal Analysis:
Contract $3,058,362
Contingency $305,638
Construction Management & Inspection $152,500
Construction Total $3,516,500
The estimated project cost is $3,516,500. This estimate includes 10% contingency and 5% for construction management budgeted for the project. If the contingency funds are not needed during construction, then the estimated project cost would be reduced to $3,210,862. The portion of the construction project not reimbursed by Caltrans would $8,362 plus the amount of the contingency spent and contract management and inspection costs which could be as high as $466,500. Any excess above the allocated grant funding of $3,200,00 will come from the fund balance in Fund 21, Gas Tax Fund. To reduce the potential costs, the City will try and keep the field change costs to a minimum and utilize City staff as much as possible for construction management.
Attachments:
1) Resolution 2022-XX
2) 12-1-21 Bid Summary
3) All-American Construction Inc. Bid
4) Plans for 5th Street Rehabilitation
5) Bid Specifications
6) Bid Specifications Addendum No. 1
7) Bid Specifications Addendum No. 2