Item #01
Date: July 21, 2023
To: Mayor and City Council
From: Vincenzo S. Corazza, Public Works Director
John Mallen, Consultant City Engineer
Jim Schaad, City Manager
Subject: Award a Contract for Construction of the Improvements for the 2023 Measure C / SB 1 Pavement Project
Recommendation:
Pass a Motion to 1) adopt Resolution No. 2023-XX, awarding a contract in the amount of $3,336,937.60 with Lamon Construction Co., for the construction of the 2023 Measure C / SB 1 Pavement Project, Contract No. 23-01, based on the Improvement Plans and Contract Documents and 2) authorize the City Manager to execute a memorandum of understanding with Yuba County for cost sharing of Bid Schedule E – 14th St. (Phase 1 – Levee to Railroad Overcrossing) – FDR-C/ Overlay.
Rationale for Recommendation:
The City of Marysville circulated and publicly advertised in the Appeal Democrat newspaper on June 23, 2023 and June 30, 2023 a Notice to Bidders to receive bids based on the improvement plans and construction documents prepared by MHM Inc. dated June 23, 2023. The City received four (4) bids for this project on July 17, 2023, from Lamon Construction Co, All-American Construction, Inc., Knife River Construction, and DeSilva Gates Construction LLC. The lowest responsive bid received for the total project, base bid, was from Lamon Construction Co. in the amount of $2,601,533.60.
Background:
The 2023 Measure C / SB 1 Pavement Project is a city-wide effort to address the failing roadway system of Marysville using two major funding sources: General and Senate Bill 1 (SB 1) funding.
Measure C was passed by the voters in 2016 to enact a 1% sales tax for general municipal purposes, such a fire safety, police protection and emergency response services, traffic safety, streets and sidewalks repair, park improvements and maintenance, reducing debt and rebuilding financial reserves. Measure C revenues once collected are placed in the City’s general fund. The measure C tax initiative will sunset 10 years after enacted (expires on October 31, 2026). Measure C revenues have allowed significant investment by the City for the purposes listed above and have made it possible in part to fund the street projects recommended in this recommendation.
Senate Bill (SB) 1 of 2017, created the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the state highway system and the local street and road system.
The Road Maintenance and Rehabilitation Account (RMRA) was created as a place to deposit various funds for the program. A percentage of RMRA funding is apportioned by formula to Item #01
eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
On May 12, 2023, Staff submitted a “Status of Streets Projects” memorandum to City Council detailing the different funding mechanisms to complete paving projects.
On May 16, 2023, Council approved Resolution 2023 – 16 adopting the list of roadway paving projects to be funded by SB 1
On June 6, 2023, Staff made a presentation to Council titled “Streets Projects Update” illustrating the different funding mechanisms, both tax and grant based, as well as showing project maps of streets targeting to be paved in the short term and long term.
On June 20, 2023, Council adopted the City’s FY 23-24 Budget that included several million dollars of General and SB 1 funds in capital expenditures for Streets rehabilitation and preventative maintenance.
On June 23, 2023 Staff advertised the 2023 Measure C / SB 1 Pavement Project and bids were opened on July 13, 2023.
On July 17, 2023 at 2:00 PM, Staff closed the bid solicitation and opened the bids publicly at City Hall.
On July 19, 2023, Yuba County provided a Memorandum of Understanding detailing a cost sharing agreement to contribute $120,000 towards the project for Bid Schedule E – 14th St. (Phase 1 – Levee to Railroad Overcrossing) – FDR-C/ Overlay. This represents 55% of the project cost.
Discussion & Analysis:
There are several roadway sections planned for construction primarily using General and SB 1 funds. The bid package has roadways that need to be overlaid, repaved, recycled or otherwise reconstructed as well as roadways that require preventative maintenance measures in order to slow the deterioration of the roadway sections and extend their lives and curtail expensive reconstruction. The bid package for roadway segments that are slated the 2023 Paving project include:
Item #01
The add-alternate, or contingency list, can be added to the award should bid prices come in under the engineer’s estimate.
General funds are readily available while SB 1 funds are received monthly from the State of California. As of February 2023, the current SB 1 fund balance is $472,229, with projected FY23/24 receipts of $326,035, making approximately $881,956 available by the end of next fiscal year. Combined with the General Fund allocation of $3.7 Million, SB 1 funds can be deployed should there be unforeseen additional expenses beyond the recommended 10% contingency.
Based on the bids received, staff is recommending award for the Base Bids, Schedules A thru G, and Addalternative Bid Schedules 2 thru 5, with the understanding that Bid Schedule 3 (A Street) will be completed at a future date after California Water Service (CalWater)’s watermain project is completed.
Staff recommends that Add-alternative Bid Schedule 1 (E. 22nd St from Cheim to Hall) not be awarded since a grant from the Sacramento Area Council of Governments (SACOG) Maintenance & Modernization Grant will pay for construction of this segment. Should the SACOG programming of this funding be too far out in the future (e.g. 5 years), Staff may consider proposing a change order to have this segment of E. 22nd St completed using City funding.
Legal Review:
The City Attorney has reviewed the draft agreement with Lamon Construction Co and the draft Memorandum Of Understanding with Yuba County and has approved both as to form.
Alignment with City Goal(s)
Goal #3: Improve Infrastructure – as this project seeks to improve the pavement condition of the City’s roadway infrastructure.
Goal #4: Enhance Public Safety – as this project seeks to increase response time by improving the pavement condition of the City’s roadway infrastructure.
Fiscal Analysis:
Contract $ 3,336,937.60
Yuba County Contribution to 14th St $ (120,000.00)
Contingency (10%) $ 333,693.76
Construction Management & Inspection (5%) $ 166,846.88
Construction Total $ 3,717,478.24
The estimated project cost is $3,717,478.24. 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 $3,383,784.48.
Attachments:
Item #01
1) Resolution 2023-xx To Award Project
2) Bid Results
3) Apparent Low Bidder
4) Project Plans
5) Project Specifications
6) Project Addendum 1
7) Project Addendum 2
8) Project Addendum 3
9) Estimated Contract Costs
10) MOU with Yuba County