CITY OF POMONA
COUNCIL REPORT
September 12, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: AUTHORIZE CHANGE ORDER CAPABILITY UP TO $250,000 FOR CONSTRUCTION CONTRACT WITH ALL AMERICAN ASPHALT FOR “PHILADELPHIA STREET REHABILITATION – FROM SAN ANTONIO AVENUE TO EAST CITY LIMIT (ECL)” RECOMMENDATION: It is recommended that the City Council take the following actions:
Authorize change order capability up to $250,000, exceeding 25 percent of the original contract amount, for the construction contract with All American Asphalt for “Philadelphia Street Rehabilitation – From San Antonio Avenue to East City Limit (ECL),” Project No. 428-2590-XXXXX-68577; and Authorize the City Manager, or designee, to execute change order documents EXECUTIVE SUMMARY:
Approval of the recommended action will allow for an amendment to Purchase Order #203567 with All American Asphalt up to $250,000 and allow for continued street rehabilitation along Philadelphia Street.
FISCAL IMPACT:
The fiscal impact is depicted in the following table:
Category
“Philadelphia Street Rehabilitation – From San Antonio Avenue to East City Limit (ECL),” Project No. 428-2590-XXXXX-68577 Beginning Budget
$746,958
Expenditures and Encumbrances as of 8/24/22
$472,860
Budget Available
$274,098
Change Order Capability Request
$250,000
Remaining Budget
$24,098
PUBLIC NOTICING REQUIREMENTS:
In accordance with Section 2-1003 - Formal Procedure of the City’s Purchasing Ordinance, an Invitation for Bids for construction of “Philadelphia Street Rehabilitation – From San Antonio Avenue to ECL,” Project No. 428-68577; “Buena Vista Avenue Rehabilitation – Mission Boulevard to 9th Street,” Project No. 428-68576; and “Mission Boulevard Rehabilitation – White Avenue to Towne Avenue,” Project No. 428-68574 was posted on the City’s electronic bidding platform, Planet Bids, on April 19, 2022. Notice was also posted in City Hall and Library. Bids were opened on May 19, 2022.
PREVIOUS RELATED ACTION:
On June 6, 2022, City Council awarded a construction contract to All American Asphalt for “Philadelphia Street Rehabilitation – From San Antonio Avenue to East City Limit (ECL),” Project No. 428-2590-XXXXX-68577; “Buena Vista Avenue Rehabilitation – Mission Boulevard to 9th Street,” Project No. 428-2590-XXXXX-68576; and “Mission Boulevard Rehabilitation – White Avenue to Towne Ave,” Project No. 428-2590-XXXXX-68574 (All Base Bids) in the amount of $4,119,411.
ENVIRONMENTAL IMPACT:
The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), in that the Projects consist of reconstructing existing streets.
DISCUSSION:
The project was intended to rehabilitate Philadelphia Street from San Antonio Avenue to the East City Limits. Steep increases in oil prices drove construction material prices up and, at the time of bidding of this project, it was unknown if prices were going to continue to climb. Therefore, the project scope was reduced to rehabilitate Philadelphia Street from San Antonio to Reservoir Street. However, prices have begun to stabilize, and the City would like to include a portion of Philadelphia Street east of Reservoir Street, as funds allow, potentially to the railroad tracks.
The City has $274,098 remaining in the project budget, as of August 24, 2022, and is asking for authority to execute change orders, as needed, up to $250,000 to continue the rehabilitation along Philadelphia Street, which exceeds 25 percent of the contract amount for this project as authorized by City Code Section 2-1003(1).
COUNCIL PRIORITIES & GOALS:
This item supports the June 21, 2021 City Council Priorities and Goals: Priority 5 – Infrastructure: Goal P – Improve condition of streets, alleys, and associated sidewalks.
ALTERNATIVE(S):
Staff does not recommend rebidding the planned work as All American Asphalt is already mobilized. If the Projects were rebid, then significant delay and potential cost increases could be the result.
Prepared by:
_____________________________
Shandy Dittman
Public Works Fiscal and Project Manager
Authorize Change Order Capability up to $250,000 for Construction Contract with All American Asphalt for “Philadelphia Street Rehabilitation – From San Antonio Avenue to East City Limit (ECL)”