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San Clemente, California
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AGENDA REPORT
CITY OF SAN CLEMENTE
CITY COUNCIL MEETING
CITY OF SAN CLEMENTE
Meeting Date: May 6, 2025 Agenda Item: 10I.
Submitted By: Public Works
Prepared By: Masako Hennequin, Associate Civil Engineer Ryan Kim, Senior Traffic Engineer
Dave Rebensdorf, Public Works Director / City Engineer
Subject:
..titl e
CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO ONYX PAVING COMPANY, INC. FOR THE SOUTH EL CAMINO REAL LANE
RECONFIGURATION AND BUFFERED BIKE LANE PROJECT FROM AVENIDA MENDOCINO TO SOUTH CITY LIMIT, FEDERAL PROJECT NO. CML-5274(039), FTIP NO. ORA 190914, CITY CIP PROJECT NO. 11308, IN AN AMOUNT NOT TO EXCEED $1,639,000, APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $848,900, AUTHORIZING THE CITY
MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT, AND MAKING FINDINGS UNDER ..body THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Fiscal Impact:
The estimated total construction cost of $2,068,900 is not within the approved budget of $1,220,000 from Account No.012-861-45300-000-11308. A supplemental appropriation of $848,900 is needed from the Gas Tax Fund to fund the project. There is available fund balance of approximately $5,500,000 within the Gas Tax Fund for this expenditure. A Federal Grant Congestion Mitigation and Air Quality (CMAQ) Program Fund of $1,075,000 was approved in November 2024. The grant funding will be distributed back to the City over the course of the project, reducing the total cost to the City Gas Tax Fund to $993,900.
Summary:
Before the City Council is the award of a construction contract to ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, and approval of a 10% ($163,900) project contingency, for the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project from Avenida Mendocino to South City Limit. Construction will result in a project that modifies the southerly segment of the South El Camino Real from four vehicle travel lanes to two vehicle travel lanes, a center turning lane, and new Class II bike lanes on each side of the street.
Background:
The project is identified in the City’s Bicycle and Pedestrian Master Plan, which was approved with the 2014 Centennial General Plan. The project was evaluated under CEQA in the Environmental Impact Report prepared for the 2014 Centennial General Plan (SCH No. 2013041021). The project is also included in OCTA’s Orange County Bike Connectors (OC Loops) Gap Closure Feasibility Study Segment 49C of El Camino Real (Corridor 49).
On November 7, 2018, City Council approved Resolution No. 18-42 (Attachment 2) including authorizing an application for funds from the Bicycle Corridor Improvement Program funded with 1 Attachment 3
Meeting Date: May 6, 2025 Agenda Item: 10I.
CITY OF SAN CLEMENTE
Congestion Mitigation and Air Quality Improvement Program funding under the fixing America’s Surface Transportation Federal Transportation Act for South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project.
On February 16, 2021, the City amended its General Plan (Resolution 21-003) to reclassify South El Camino Real from Avenida Mendocino to its southerly terminus at the South City Limit. The reclassification modified this South El Camino Real section from a Four-Lane Secondary Arterial to a Divided Collector. The City determined that these amendments to the General Plan did not constitute significant changes to the Project, the surrounding circumstances, or new information that created the potential for any new or more severe impacts that were not already evaluated and considered in the 2014 General Plan EIR, and that the amendments fell within the Class 1 exemption to CEQA review in any event. The project has also obtained a required OCTA amendment to the Orange County Master Plan of Arterial Highways (MPAH) to reclassify the roadway segment.
The project was budgeted in Fiscal Year 2020/21. The proposed design will keep the existing roadway width as required by the General Plan amendment to provide adequate emergency access during regional emergencies. This project will reconfigure travel lanes and create new Class II buffered bike lanes in the northbound and southbound directions by reducing travel lanes from four to two lanes with a continuous two-way left turn lane and/or exclusive left turn lane. This will reduce greenhouse gas emissions by providing more access for bicycle use and improving safety for bicycle riders and drivers. (See Attachment 3 for supporting documents.) Caltrans approved the federal funding on November 26, 2024, and the City must procure this project as soon as possible to submit the first invoice to Caltrans by May 26, 2025. Otherwise, the federal fund may be lost.
The project also includes asphalt pavement resurfacing and slurry sealing, concrete repair work on sidewalks, curb ramps, curb and gutter, cross gutter, driveway approaches, guardrail repair, utility adjustments, and installation of signs and striping.
Existing Roadway Project Location Map
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Meeting Date: May 6, 2025 Agenda Item: 10I.
CITY OF SAN CLEMENTE
On January 23, 2025, staff published a Notice Inviting Bids in the SC Times, reached out to local contractors, and published a bid solicitation on PlanetBids. Bids were opened on February 27, 2025, and the results are presented in Table 1 Bid Summary below. Bids ranged from $1,639,000 to $1,889,465. A bid was received by local contractor Diamond Construction & Design, and staff analyzed the local vendor preference amount per San Clemente Municipal Code section
3.40.030(E). According to the local vendor preference calculation, Diamond Construction & Design’s bid of $1,705,654 is less than 107% of the apparent low bid of $1,639,000 submitted by ONYX Paving Company, Inc., making Diamond Construction and Design the apparent low bidder; however, Diamond Construction’s bid was non-responsive.
This federally funded project requires a Disadvantaged Business Enterprise Requirement (DBE) of 22%. The Caltrans DBE Program is intended to ensure a level playing field and to foster equal opportunity in federal-aid contracts. Caltrans LAPM Exhibits 15-G and 15-H provided in the PlanetBids bid package require that the Prime Contractor list the CONSTRUCTION CONTRACT DBE COMMITMENT and PROPOSER/CONTRACTOR GOOD FAITH EFFORTS, respectively.
Failure of the Prime Contractor to meet Caltrans LAPM could result in loss of project funding.
Staff carefully reviewed and evaluated all required bid forms submitted by contractors and found that Diamond Construction and Design did not meet the DBE requirements per the Caltrans 2025 Local Assistance Procedures Manual (LAPM), providing zero percent DBE commitment in LAPM Exhibit 15-G and not providing any good faith efforts in LAPM Exhibit 15-H. Additionally, LAPM Exhibit 12-B, Part 2: Bidder’s List of Subcontractor (DBE and Non-DBE) required the contractor to “list all subcontractors who provided a quote or bid but were not selected to participate as a subcontractor on this project.” Diamond Construction and Design left LAPM Exhibit 12-B (Part 2) completely blank.
The LAPM states that failure to commit to achieving the DBE contract goals or demonstrate good faith efforts to do so is among the reasons a bid may be considered non-responsive and be precluded from reading. (See Attachment 4 for LAPM Exhibits 15-G, 15-H, and 12-B submitted by Diamond Construction and Design.) Staff believes that failure to meet DBE contract goals or demonstrate good faith efforts in compliance with the LAPM is a material bid defect that cannot be waived because it would potentially give a competitive advantage and result in the City’s loss of grant funding.
Diamond Construction and Design’s bid also had two other minor defects (expiration of City business license and discrepancy between the written bid price and the numerical bid price). It is discretionary whether the City insists on strict conformance to all bid requirements; trivial irregularities that do not result in any unfair competitive advantage can be waived.
Based on the findings above, staff recommends that Diamond Construction and Design’s bid for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project be rejected as non-responsive.
The next lowest bidder, ONYX Paving Company, provided a DBE commitment of 22.05%, which exceeds the DBE goal of 22%. ONYX Paving Company also demonstrated and submitted all supporting documents of Good Faith Effort. (See Attachment 5 for LAPM Exhibits 15-G and 15-H submitted by ONYX Paving Company.) Therefore, staff recommends that the City Council find 3 Meeting Date: May 6, 2025 Agenda Item: 10I.
CITY OF SAN CLEMENTE
that the lowest responsive and responsible bidder is ONYX Paving Company, Inc. of Anaheim, California, with a total bid amount of $1,639,000.
Table 1. Bid Summary
Company Name Company Location Amount
ONYX Paving Company, Inc. Anaheim, CA $1,639,000.00
All American Asphalt Corona, CA $1,724,427.10
Diamond Construction & Design San Clemente, CA (*Note 1) $1,705,954.00
Diamond Construction & Design San Clemente, CA $1,725,954.00 PALP dba Excel Long Beach, CA $1,783,437.80
LC Paving & Sealing Escondido, CA $1,837,743.20
R.J. Noble Company Orange, CA $1,889,464.90
(*Note 1: Total Bid Price in Numerical Form was $1,725,954, however Total Bid Price in Written Form was read as $1,705,954. Per the specifications bid form, the written price prevails in case of discrepancy between the written price and the numerical price.) Based on the lowest responsive bid, the total estimated project construction cost is $2,068,900, as summarized below:
Table 2. Cost Summary
Construction Management, Inspection, and Material Testing $ 266,000 Construction $1,639,000
Contingency (10%) $ 163,900
Total Estimated Construction Cost $2,068,900
As required by state law and City policy, the ONYX Paving Company will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 6). Project plans and specifications are on file in the City Clerk’s office.
Council Options:
Reject Diamond Construction & Design’s bid as non-responsive and adopt Resolution No. 25- 53 (Attachment 1), awarding the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project contract to ONYX Paving Company, Inc. as the lowest responsive and responsible bidder, approving a supplemental appropriation in the amount of $848,900 from the Gas Tax Fund, authorizing the City Manager to execute a construction contract in an amount not to exceed $1,639,000, approving a 10% project contingency of $163,900, and making findings under the California Environmental Quality Act. Waive all Diamond Construction & Design’s bidding irregularities based on a finding that the defects were trivial and did not result in any competitive advantage, award the South El Camino Real Lane Reconfiguration and Buffered Bike Lane Project contract to Diamond Construction and Design, Inc., approve a supplemental appropriation in the amount of 4 Meeting Date: May 6, 2025 Agenda Item: 10I.
CITY OF SAN CLEMENTE
$930,000 from the Gas Tax Fund, authorize the City Manager to execute a construction contract in an amount not to exceed $1,705,954, approve a 10% project contingency of $170,595, and make findings under the California Environmental Quality Act. The estimated total construction cost will increase by $74,000 to be $2,142,549 and the project may no longer qualify for federal funding.
Modify and adopt Resolution No. 25-53.
Continue the item and direct staff to provide additional information. Do not adopt Resolution No. 25-53 and put the project on hold.
NOTE: Per the 2025 Local Assistant Procedures Manual (LAPM), the Local Public Agency must submit the first invoice by May 26, 2025 to avoid being classified as inactive and jeopardize federal funding. Unsuccessfully award the construction contract on May 6, 2025 may cause loss of federal funds.
Environmental Review/Analysis:
This Project was previously fully analyzed and considered as part of the 2014 Centennial General Plan EIR (SCH No. 2013041021), and none of the conditions set forth in Public Resources Code section 21166 or CEQA Guidelines section 15162 apply that would require the City to prepare subsequent or supplemental environmental analyses of the Project. There are no changes to the Project, the circumstances surrounding the Project, or new information that indicate that the Project would have any new or more severe environmental impacts beyond those that were analyzed in the 2014 EIR. Additionally, the Project was previously determined to be exempt from the California Environmental Quality Act (CEQA) under Class 1 (Repair and Maintenance of Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines. A Notice of Exemption was filed with the County of Orange Recorder’s Office on February 7, 2025 for this Project. (See Attachment 7.)
Recommended Actions:
..recommendation
Staff recommends that the City Council adopt Resolution No. 25-53, which will:
1. Make findings under the California Environmental Quality Act that no further environmental review is required;
2. Approve a supplemental appropriation of $848,900 from the Gas Tax Fund into Account No. 012-861-45300-000-11308;
3. Reject Diamond Construction & Design, Inc.’s bid as non-responsive and Award the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML5274(039), FTIP No. ORA 190914, City CIP Project No. 11308, contract to ONYX Paving Company, Inc. as the lowest responsive and responsible bidder;
4. Authorize the City Manager to execute a contract with ONYX Paving Company, Inc. in an amount not to exceed $1,639,000, in a form substantially similar to Contract No. 25-19 5 Meeting Date: May 6, 2025 Agenda Item: 10I.
CITY OF SAN CLEMENTE
(Attachment 6) for the South El Camino Real Lane Reconfiguration & Buffered Bike Lane Project, Federal Project No. CML-5274(039), FTIP No. ORA 190914, City CIP Project No. 11308; and
5. Approve a 10% construction contingency of $163,900 for this project. r..end
Attachment:
1. Resolution No. 25-53
2. Staff Report dated November 7, 2018
3. Supporting Documents
4. Diamond Construction and Design LAPM Exhibits 15-G, 15-H, and 12-B
5. ONYX Paving Company LAPM Exhibits 15-G and 15-H
6. Contract No. 25-19
7. Notice of Exemption
Notification:
All bidders.
6