CITY OF POMONA
COUNCIL REPORT
May 15, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: RESOLUTION TO AMEND THE FY 2022-23 CIP BUDGET AND AWARD CONSTRUCTION CONTRACT TO VIDO SAMARZICH, INC. IN THE AMOUNT OF $5,287,075 FOR “HOLT AVENUE CORRIDOR IMPROVEMENTS,” PROJECT NO. 428-2590-XXXXX-68575 RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2023-75 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA TO AMEND THE FY 2022-23 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY RELEASING AND UNAPPROPRIATING $300,000 OF PROPOSITION C FUNDS AND $535,297 OF SERIES “BI (AX/AI)” BOND PROCEEDS – D4 FROM “HOLT AVENUE (EAST) RECONSTRUCTION,” PROJECT NO. 428-2590-XXXXX-71050, AND $1,200,000 OF PROPOSITION C FUNDS FROM “HOLT AVENUE (WEST) RECONSTRUCTION,” PROJECT NO. 428-2590-XXXXX-71047, AND APPROPRIATING THESE FUNDS AND $701,661 OF MEASURE M FUND BALANCE TO “HOLT AVENUE CORRIDOR IMPROVEMENTS,” PROJECT NO. 428-2590-XXXXX-68575; Award a construction contract to Vido Samarzich, Inc. for construction improvements for “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575, in the amount of $5,287,075; Find that the project referenced above is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 in that the project consists of the operation, repair, and maintenance of existing streets; and Authorize the City Manager, or his designee, to execute the contract, and related documents, subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY:
Approval of Resolution No. 2023-75 (Attachment No. 1) will re-appropriate funding from “Holt Avenue (East) Reconstruction,” Project No. 428-2590-XXXXX-71050 and “Holt Avenue (West) Reconstruction,” Project No. 428-2590-XXXXX-71047 to “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575. It will also appropriate $701,661 of available Measure M fund balance to “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575.
FISCAL IMPACT:
Approval of this action will amend the FY 2022-23 CIP budget and award a construction contract in the amount of $5,287,075, to Vido Samarzich, Inc. The fiscal impact is summarized in the table below:
Category
Holt Avenue Corridor Improvements, Project No. 428-2590-XXXXX-68575 Holt Avenue (East) Reconstruction, Project No. 428-2590-XXXXX-71050 Holt Avenue (West) Reconstruction, Project No. 428-2590-XXXXX-71047 Beginning Budget
$5,022,041
$2,766,785
$13,399,748
Appropriation/(Unappropriation) of Prop C
$1,500,000
($300,000)
($1,200,000)
Appropriation/(Unappropriation) of Series “BI(AX/AI)” Bond Proceeds – D4 $535,297
($535,297)
-
Appropriation of Measure M Funds
$701,661
-
-
Revised Budget
$7,758,999
$1,931,488
$12,199,748
Expenses/Encumbrances as of April 26, 2023
($1,224,759)
($1,731,488)
($3,356,935)
Award Contract to Vido Samarzich, Inc.
($5,287,075)
-
-
Remaining Available Balance
$1,247,165
$200,000
$8,842,813
PUBLIC NOTICING REQUIREMENTS:
In accordance with Section 2-1003 – Formal Procedure of the City of Pomona’s (City) Purchasing Ordinance, an Invitation for Bids (IFB #2023-07) for the construction services, as-needed for “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575 was posted on the City’s electronic bidding platform, Planet Bids, on March 2, 2023. Bids were opened on April 10, 2023.
PREVIOUS RELATED ACTION:
On April 18, 2022, City Council adopted Resolution No. 2022-66 amending the FY 2021-22 Capital Improvement Program Budget by creating a new CIP Project, “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575 (Project), and accepting Clean California Local Grant Funds.
On June 6, 2022, City Council adopted Resolution No. 2022-91 to authorize the City to enter into a Restricted Grant Agreement with the California Department of Transportation (CalTrans) through the Clean California Local Grant Program (Clean CA) for Project, and to authorize the City Manager, or designee, to sign the necessary documents to receive the funding.
ENVIRONMENTAL IMPACT:
The Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, in that the Project consists of the creation of the operation, repair, and maintenance of existing streets.
DISCUSSION:
On March 2, 2023, Invitation for Bids (IFB) No. 2023-07 for the Project was issued on the City’s electronic bidding platform, Planet Bids. The solicitation notified 669 potential bidders, of which 66 bidders downloaded the IFB, resulting in the City receiving four (4) proposals. Staff reviewed the proposals and deemed that the lowest responsive and responsible bid for the total base bid work, in the amount of $5,278,075, was submitted by Vido Samarzich, Incorporated. All received bids are presented in the table below:
Bidders
Bid
1 Vido Samarzich, Inc.
$5,278,075
2 Los Angeles Engineering, Inc.
$6,008,830
3 KASA Construction, Inc.
$6,590,050
4 All American Asphalt
$6,984,105
If awarded, Vido Samarzich, Inc. will provide and install construction improvements for the Project per the plans and specifications as provided in the IFB No. 2023-07 bid package.
The Project requires additional funding from the Holt Avenue (East) Reconstruction Project, Project No. 71050 and the Holt Avenue (West) Reconstruction Project, Project No. 71047 in order to be fully funded and be ready for construction improvements and contract award. Bids for the Project came in higher than was estimated at the time of the Clean CA grant application. The City received $4.9 million from the Clean CA grant for this Project. However, due to significant increases in materials and fuel costs, the Project needs additional funding. Due to the constraints and requirements of the Clean CA grant, work on this Project must begin as soon as possible to meet the completion deadline of June 2024. Therefore, it is necessary to appropriate the required funding as soon as possible to award the construction contract. The funding unappropriated from Holt Avenue (West) Reconstruction will be re-appropriated during the FY 2023-2024 Capital Improvement Program Budget update out of anticipated availability of FY 2023-24 Proposition C allocations. The Project accomplishes much of the same improvements that the Holt Avenue (East) Reconstruction Project will provide, in that it will provide medians and infrastructure along Holt Avenue from Garey Avenue to San Antonio Avenue, and improve parkways and beautification along Holt Avenue from Garey Avenue to Mills Avenue. Funding for Holt Avenue (East) Reconstruction will be replenished as funds become available.
COUNCIL PRIORITIES AND GOALS:
This item supports the following 2021-22 City Council Priorities and Goals: Goal P: Improve condition of streets, alleys, and associated sidewalks.
Prepared by:
Shandy Dittman
Public Works Fiscal and Project Manager
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2023-75
Amending the FY 2022-23 CIP Budget and Awarding Contract to Vido Samarzich, Inc. for “Holt Avenue Corridor Improvements,” Project No. 428-2590-XXXXX-68575