June 4, 2024, Item #20DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway June 4, 2024 Honorable Mayor and Members of the City Council Robert Manis, Development Services Director fffi, Alex Ubaldo, P.E., Principal Civil Engineer /&\ (858) 668-4602 or [email protected] ~-CITY COUNCIL Second Extension of the Fiscal Year 2024-25 Street Maintenance Project Contract with American Asphalt South, Inc., Bid No. 22-013, and Determination the Project is Categorically Exempt from the California Environmental Quality Act The Fiscal Year (FY) 2024-25 Street Maintenance project consists of placement of Type II emulsion aggregate slurry on streets within pavement management area Zone 7, along with raising water, sewer, and monument lids flush to grade. On June 21, 2022, the FY 2022-23 Street Maintenance project was awarded to American Asphalt South, Inc. The contract documents include a provision that allows for the contract to be extended. This is the second of two allowable extensions. Recommended Action: It is recommended the City Council: 1) Award the second extension of the FY 2022-23 Street Maintenance project contract for the FY 2024-25 Street Maintenance project to American Asphalt South, Inc., in the amount of $1,436,071.77 and authorize the City Manager to execute the contract (Attachment A); 2) Approve an appropriation in the amount of $9,283.19 to the FY 2024-25 Street Maintenance project (ST029), funded by the transfer from the Streets Fund (2110), to cover the cost of slurry seal treatment at the Crosthwaite Yard; and 3) Make a determination the project is Categorically Exempt from the California Environmental Quality Act (CEQA). Discussion: The City is currently divided into eight pavement maintenance zones that have traditionally been on a rotating annual maintenance schedule. American Asphalt South, Inc., successfully executed and completed both the FY 2022-23 Street Maintenance project in pavement management Zone 5 and FY 2023-24 Street Maintenance project in pavement management Zone 6. For this second and final extension to the contract, new unit prices were submitted as required by the contract documents. The new unit prices have been reviewed and accepted by staff. The scope of work is consistent with last 1 of 6
June 4, 2024, Item #20year's scope and the new unit prices remain competitive within the expected escalation rates. All other provisions for the FY 2022-23 Street Maintenance contract will remain in effect. The scope of this year's project includes slurry seal treatments on public streets within pavement management area Zone 7 (see Attachment B). The work will be performed on arterial and collector streets in the South Poway Business Park. This work has been coordinated with the FY 2023-24 Street Overlay project also occurring in Zone 7. The Street Overlay project will remove and replace failed sections of asphalt pavement, and the Street Maintenance project will follow immediately after. On May 7, 2024, the City Council adopted a resolution identifying this project to be funded with Road Maintenance and Rehabilitation Account (RMRA) funds under the Road Repair and Accountability Act (SB1 ). The City is projected to receive $1,245,196.00 in RMRA funds. On May 7, 2024, the City Council also adopted the TransNet Local Street Improvement Program List of Projects, including $315,000.00 in funding identified for the FY 2024-25 Street Maintenance project. These combined resolutions provide the total budget of $1,560,196.00 for the FY 2024-25 Street Maintenance project. The project also includes slurry seal treatment at the City's Crosthwaite Yard. Funding for this portion of the work is not eligible for RMRA or TransNet reimbursement. The cost will therefore be covered by the transfer of $9,283.19 from the Streets Fund (2110) into the project account. Environmental Review: The proposed asphalt/concrete pavement rehabilitation of existing City streets with the FY 2024-25 Street Maintenance project is Categorically Exempt from the CEQA as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves maintenance of existing streets and parking lots with no expansion of use. Fiscal Impact: The project is funded by $1,245,196.00 of FY 2024-25 RM RA fund revenues, $315,000.00 of FY 2024-25 Trans Net 30% (Maintenance) fund revenues, and $9,283.19 transfer from the Streets Fund (2110) to the FY 2024-25 Street Maintenance project (ST029). Appropriation of the RM RA and TransNet funds is included as part of the proposed FY 2024-25 Capital Improvement Project (CIP) budget, which will be presented for adoption at the June 18th City Council meeting. The budget of $1,569,479.19 includes the cost for the construction contract, construction contingency allowance, and the cost for required special inspections. With the recommended fund transfer in this report, and the upcoming adoption of the CIP budget, there will be sufficient funds in the FY 2024-25 Street Maintenance project account (ST029) to cover the construction costs of the project. Public Notification: None. Attachments: A. Second Amendment to the Contract B. Zone 7 Location Map 2 of 6
June 4, 2024, Item #20Reviewed/Approved By: Wendy Kaserman Assistant City Manager 3 of 6 Reviewed By: Alan Fenstermacher City Attorney City Manager
June 4, 2024, Item #20SECOND AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF POWAY AND AMERICAN ASPHALT SOUTH, INC. P .0. BOX 7 427 RIVERSIDE, CA 92513 This SECOND Amendment to Contract (the "Second Amendment") is made effective June 5, 2024, by and between the City of Poway, a municipal corporation (the "City") and American Asphalt South, Inc. (the "Contractor") to extend the term of that certain City of Poway Unit Price Contract to the 2022-2023 Street Maintenance project dated June 22, 2022 (the "Contract"). RECITALS A. The City and Contractor entered into the Contract for a term that began on June 22, 2022, and which was originally to expire on June 21, 2023. B. Under the conditions of the 2022-2023 Street Maintenance project Special Provisions, Section 2-15, Contract Length, the parties by mutual consent can extend the agreement by up to two (2) one-year periods. C. The City and Contractor entered into the First Amendment for a term that began on April 5, 2023 and expires on June 30, 2024. D. The parties now wish to extend the term of the Contract to June 30, 2025. NOW, THEREFORE, in consideration of the mutual benefits to be derived thereupon, the parties agree to amend the Contract as follows: 4 of 6 1. For the period of June 14, 2023, through June 30, 2024, the title of the project shall be changed from the "2022-2023 Street Maintenance" project to the "2024-2025 Street Maintenance" project, (the "2024-2025 Project"). Except for work to cure any defaults in work performed under the Contract during its initial term, all work to be performed between the effective date and expiration date of this Contract extension shall be for the 2024-2025 Project. 2. The Construction Contract for the 2024-2025 Project, attached to this Extension as Attachment 1, shall apply to all work performed for the 2024-2025 Project. 3. The Bonds for Material and Labor and for Faithful Performance, attached to this Extension as Attachments 2 and 3, respectively, shall apply to all work performed for the 2024-2025 Project. 4. The Guaranty for the 2024-2025 Project, attached to this Extension as Attachment 4, shall apply to all work performed for the 2024-2025 Project. 5. The Worker's Compensation Insurance Certificate dated _____ , attached to this Extension as Attachment 5, shall apply to all work performed for the 2024-2025 Project. ATTACHMENT A
June 4, 2024, Item #20Second Amendment American Asphalt South, Inc. Page 2 6. The Unit Price Proposal for the 2024-2025 Project, together with the Bid Schedule, collectively attached to this Extension as Attachment 6, shall apply to all work performed for the 2024-2025 Project. 7. The List of Subcontractors for the 2024-2025 Project, attached to this Extension as Attachment 7, shall apply to all work performed for the 2024-2025 Project. 8. The Worker Classifications for the 2024-2025 Project, attached to this Extension as Attachment 8, shall apply to all work performed for the 2024-2025 Project. 9. The Non-Collusion Affidavit for the 2024-2025 Project, attached to this Extension as Attachment 9, shall apply to all work performed for the 2024-2025 Project. 10. The Street List, Vicinity Map, and Trash Collection Route Map for the 2024-2025 Project, attached to this Extension as Attachment 10, shall apply to all work performed for the 2024-2025 Project. 11. The Addendum to Section 4-4 and 7-5 attached to this Extension as Attachment 11, shall apply to all work performed for the 2024-2025 Project. Except as otherwise expressly provided above, all the provisions of the Contract between the City of Poway and American Asphalt South, Inc., effective June 5, 2024, as extended by the second amendment, shall remain in full force and effect. IN WITNESS WHEREOF the parties have caused the Contract to be executed as follows: BY: DATED Jeff Petty President American Asphalt South, Inc. BY: DATED Chris Hazeltine City Manager City of Poway ATTEST: DATED Carrie Gallagher City Clerk City of Poway 5 of 6
June 4, 2024, Item #201,700 3.400 5.100 Feet 6 of 6 N A ATTACHMENT B ZONE 7 OVERLAY PROJECT MAP