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`q44:09 City Council Staff Report
April 25, 2023
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Andy Tran, Senior Civil Engineer, [email protected] PHONE: 949-644-3315
TITLE: Street Pavement Repair Program (Project No. 23R03) — Reject All Bids for Contract No. 8942-1
ABSTRACT:
The City of Newport Beach (City) recently advertised the Street Pavement Repair Program (FY 2022-23) project and received six bids. All of the bids were significantly higher than the engineer's estimate. Staff recommends the City Council reject all bids and direct staff to re -advertise this project with next fiscal year's Street Pavement Repair Program.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Reject all bids received for Contract No. 8942-1 and direct staff to return all bid bonds; and
c) Direct staff to re -advertise the Street Pavement Repair Program (FY 2022-23) with next fiscal year's contract.
DISCUSSION:
The Public Works Department administers the Street Pavement Repair Program annually to address deteriorated ashalt pavement at various isolated locations. This year's contract focuses on Irvine Terrace and several other communities in Corona del Mar, south of East Coast Highway. Proposed improvements generally consist of removing the failed asphalt pavement, recompacting the subgrade, and reconstructing the asphalt pavement.
The Street Pavement Repair Program precedes the annual Slurry Seal Program. 6-1
Street Pavement Repair Program (Project No. 23R03) —
Reject All Bids for Contract No. 8942-1
April 25, 2023
At 10 a.m. on March 9, 2023, the City Clerk opened and read the bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
3Sixty Innovation, Inc.
$ 1,235,529.95
2nd
Excel Paving
$ 1,254,840.00
3rd
On x paving Company, Inc.
$ 1,272,000.00
4th
All American Asphalt
$ 1,328,823.10
5th
Hardy & Harper, Inc.
$ 1,478,000.00
6th
R.J. Noble Company
$ 1,714,170.00
The City received six bids for this project. The low bid, submitted by 3Sixty Innovation, Inc., was 30 percent above the Engineer's Estimate of $950,000.00. Due to the high bid prices, staff recommends rejecting all bids and re -advertising this contract in the fall of 2023. This contract would then be combined with next year's Street Pavement Repair contract and constructed as one larger project. Combining the two contracts may result in cost savings due to economy of scale.
The FY 2022-23 Slurry Seal Program will also be postponed since this work needs to be done after the completion of isolated pavement repairs. Similarly, the FY 2022-23 Slurry Seal Program will be combined with next fiscal year's slurry seal contract and constructed as one larger project.
FISCAL IMPACT:
The adopted Capital Improvement Program budget for this project will be rebudgeted to Fiscal Year 2023-24, and combined with next year's planned work efforts. Funding for this street pavement repair project is budgeted from State Gas Tax.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Location Map
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ATTACHMENT A
OSTREET PAVEMENT REPAIR LOCATIONS
STREET PAVEMENT REPAIR PROGRAM
(FY 2022-23)
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-8942-1 23R03 4/25/23
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