City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: AWARD BID NO. 7996 FOR THE CONSTRUCTION OF FISCAL YEAR 2022/23 ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 STREET MAINTENANCE IMPROVEMENTS TO ALL AMERICAN ASPHALT OF CORONA, CALIFORNIA, IN THE AMOUNT OF $13,449,317; AUTHORIZE PROJECT FUND TRANSFERS ISSUES:
Award Bid No. 7996 for the construction of Fiscal Year 2022/23 Road Repair and Accountability Act of 2017 Street Maintenance Improvements to All American Asphalt of Corona, California, in the amount of $13,449,317; authorize a fund transfer in the amount of $1,505,631.17 in surplus Measure A funds from the Monroe Street Resurfacing project account; and authorize a fund transfer in the amount of $800,000 in surplus Gas Tax funds from the Berry Street Widening Gas Tax project account.
RECOMMENDATIONS:
That the City Council:
Award a construction contract for Bid No. 7996 for FY 2022/23 Road Repair and Accountability Act of 2017 Street Maintenance Improvements to All American Asphalt of Corona, California, in the amount of $13,449,317; Authorize the City Manager, or designee, to execute the construction contract with All American Asphalt, including making minor and non-substantive changes, subject to the availability of budgeted funds; By at least five affirmative votes, authorize the Chief Financial Officer, or designee, to transfer $1,505,631.17 in surplus Measure A funds from the Monroe Street Resurfacing project account to the Major Streets Rehabilitation project account; and By at least five affirmative votes, authorize the Chief Financial Officer, or designee, to transfer $800,000 in surplus Gas Tax funds from the Berry Street Widening project account to the Minor Street Rehabilitation project account.
BACKGROUND:
On April 28, 2017, the California Governor signed Senate Bill 1, which is referred to as the Road Repair and Accountability Act of 2017 (SB-1), to address basic road maintenance, rehabilitation, and critical safety needs on the state highway and local street networks. SB-1 is funded by gallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees. The taxes may adjust in future years proportionally to inflation.
The California State Controller’s Office deposits various portions of these revenues into the State’s Road Maintenance and Rehabilitation Account (RMRA). A percentage of the RMRA funds are apportioned by formula to eligible cities and counties under Streets and Highways Code Section 2032(h) as part of the SB-1 Local Street and Roads Program (LSRP).
On September 6, 2022, the City Council adopted Resolution No. 23899 to approve the Fiscal Year 2022/23 Project list to be completed using the projected Fiscal Year (FY) 2022/23 SB-1 revenues.
On May 7, 2016, the City Council approved the City’s two-year Capital Improvement Program Budget for Fiscal Year 2016-18 which included funding for providing maintenance improvements on Monroe Street from Lincoln Avenue to Arlington Avenue.
On April 10, 2018, the City Council awarded a construction contract as part of Bid 7523 to construct maintenance improvements on Monroe Street between Magnolia Avenue and California Avenue to accommodate a County of Riverside storm channel project on Monroe Street north of Magnolia Avenue. The improvements were constructed utilizing a portion of the Monroe Street Resurfacing Project Measure A funds and included resurfacing the Monroe Street frontage road, and new planting, irrigation, and a decorative walking path over the new concrete channel.
The Public Works Department (Public Works) received increased Measure Z allocations for maintenance projects throughout the City. The remaining segments of Monroe Street between Lincoln Avenue and Arlington Avenue were completed as separate projects utilizing Measure Z funds. The intent was to reallocate the remaining surplus Monroe Street Resurfacing Measure A funds at a future date.
On June 16, 2020, the City Council approved the FY 2020/2021 Capital Improvement Plan Budget which included funding for the widening of Berry Road between Bush Avenue and Pear Street.
On February 21, 2023, the City Council awarded a construction contract as part of Bid 7906 to construct improvements at various locations including the widening of Berry Road from Bush Avenue to Pear Street. The complexity of the project resulted in corresponding increased project costs, so the utilization SB-1 funds were determined to be a more suitable funding source for the widening improvements. The intent was to reallocate the originally budgeted Berry Street project Gas Tax funds to traditional maintenance improvements.
DISCUSSION:
On August 2, 2023, the Purchasing Division released Bid No. 7996 for FY 2022/23 SB-1 Street Maintenance improvements (Project) through the City’s formal bidding platform Planet Bids to perform the following work at various locations throughout the City (Attachment 1):
Rehabilitate 3.1 miles on the following Arterial streets:
Magnolia Avenue from Hole Avenue to Jackson Street
Madison Street from Indiana Avenue to Victoria Avenue
Victoria Avenue from Washington Street to Horace Street Resurface 4.7 miles of minor streets within 7 neighborhoods.
Reconstruct 0.9 miles of alleys to address resident requests regarding rideability and drainage.
Provide 5.0 miles of slurry preservation.
Reconstruct the median at Orange Terrace Parkway and Hillsdale Road to create a turn pocket thereby addressing resident requests for improved vehicular access.
Reconstruct damaged concrete curbs, gutters, sidewalks, driveways, and non-compliant pedestrian ramps throughout all maintenance locations.
Install new signing and striping throughout all maintenance locations.
Install 2 new traffic circles on Howard Avenue at Pleasant Street and Howard Avenue at Cottage Street to address neighborhood requests for traffic calming.
The City did not schedule a pre-bid job walk. Prior to bid opening, there were two (2) questions and answers posted to PlanetBids by prospective bidders and the City posted one (1) addenda. Upon bid closing on September 12, 2023, out of the 65 prospective bidders, six (6) bids were received for the construction of the Project (Attachment 2). The lowest bidder was deemed non-responsive due to not bidding on all of the bid specifications and non-submittal of bid bond. The next lowest, responsive bid received was from All American Asphalt in the amount of $13,449,317.00 which is 18% over the engineers estimate. Material and labor costs have significantly increased in the past 12 months and rebidding the project could garner lower bids, but it is not guaranteed.
Bidder
Amount:
Ranking
ABCO Development Corporation
$498,000.00
Non-Responsive
All American Asphalt
$13,449,317.00
1 Onyx Paving Company, Inc.
$13,639,000.00
2 R.J. NOBLE COMPANY
$13,772,123.25
3 Nationwide Contracting Services, Inc
$14,394,196.20
4 Hardy & Harper, Inc
$15,250,000.00
5 The Purchasing Manager concurs that the recommended action to award is in compliance with Purchasing Resolution 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 6 – Infrastructure, Mobility and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
It aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Riverside is transparent and makes decisions based on sound policy, inclusive community engagement, involvement of City Boards & Commissions, and timely and reliable information. Activities and actions by the City serve the public interest, benefit the City’s diverse populations, and result in greater public good. The proposed improvements are part of a more significant endeavor to improve the City’s roadway network and quality of life for residents and visitors. This project delivers rehabilitation to streets undertaken by Resolution 23899 adopted by City Council on September 6, 2022.
Equity –Public works strives to improve the City’s roadway network to provide safe and reliable transportation to all areas of the City. Additionally, staff meets with each City Council member to discuss goals, budgets, recommendations for street improvements, and obtain feedback on the requests received from their constituents. This project will improve pedestrian and bicycle infrastructure and enact traffic calming measures within disadvantaged communities (as designated by CalEnviroscreen 4.0) which have been identified as experiencing some of the highest pollutant burdens statewide.
Fiscal Responsibility – Riverside is a prudent steward of public funds and ensures responsible management of the City’s financial resources while providing quality public services to all. Public Works responsibly manages a variety of funding sources to complete projects included in the City’s Capital Improvement Program. Public Works is a prudent steward of public funds and construction projects are always awarded to the lowest responsive bidders.
Innovation – Riverside is inventive and timely in meeting the community’s changing needs and prepares for the future through collaborative partnerships and adaptive processes. This project exemplifies established methods of street improvements.
Sustainability & Resiliency – Riverside is committed to meeting the needs of the present without compromising the needs of the future and ensuring the City’s capacity to persevere, adapt and grow during good and difficult times alike. The construction materials specified for these projects are considered best practices in the industry. The use of rubberized and recycled material greatly benefits the environment, reducing wasted storage, providing extra layers of protection, and adding longevity to our resurfaced streets.
FISCAL IMPACT:
The total fiscal impact of the action is $13,449,317. The estimated total project cost including design engineering, construction, contingencies, and contract administration is itemized in Table 1 below. With the transfer of the Measure A and Gas Tax funds indicated in Table 2 below, sufficient funds will be available in the expenditure accounts shown in Table 3 below.
Table 1 – Project Costs
Task
Amount
Design Engineering (In House)
$227,908.50
Consultant Design Services (Coring, Utility Potholing and Soil Testing) $37,774.50
Construction Contract (All American Asphalt)
$13,449,317.00
Construction Contingencies
$150,000.00
Construction Engineering, Inspection, and Survey (In House) & Construction Materials Testing (From Approved Professional Consultants Panel) $135,000.00
Total
$14,000,000.00
Table 2 – Project Funds Transfers
Fund
Project
Account
Amount
Measure A
Monroe – Lincoln to Arlington
9893730-440313
($1,505,631.17)
Gas Tax
Berry Widening to Bush Ave
9913827-440223
($800,000.00)
Total Reduction
($2,305,631.17)
Measure A
Major Streets Rehabilitation
9888030-440313
$1,505,631.17
Gas Tax
Minor Streets Rehabilitation
9888427-440223
$800,000.00
Total Additions:
$2,305,631.17
Table 3 – Project Funding
Fund
Project / Program Task
Account
Amount
Gas Tax
RMRA Rehab & Traffic Improvements
9915123-440237
$6,290,000
Gas Tax
Minor Streets Rehab
9888427-440223
$800,000
City Funds
Major Streets Rehab
9888040-440301
$4,000,000
Measure A
Major Streets Rehab
9888030-440313
$2,910,000
Total
$14,000,000
Prepared by: Alex Ramirez, Senior Engineer
Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Project Location Map
Bid Award Recommendation
Presentation
Bid 7996 – Contract Award ● Page 2