TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: July 26, 2024
SUBJECT: FIND THE STREET REHABILITATION PROGRAM PROJECT
EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA), APPROVE THE PLANS AND
SPECIFICATIONS AVAILABLE AT THE OFFICE OF THE
CITY CLERK AND AT THE DAIS, AWARD OF A
CONSTRUCTION AGREEMENT TO ONYX PAVING
COMPANY, INC FOR STREET REHABILITATION PROGRAM
PROJECTS NO. 22-9271 AND 23-9271 IN THE LOW BASE
BID AMOUNT OF $7,171,000, AND REJECT ALL OTHER
BIDS; AWARD A PROFESSIONAL SERVICES AGREEMENT
FOR CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES TO Z&K CONSULTANTS IN THE AMOUNT OF
$199,996; AND AUTHORIZE THE PARKS AND PUBLIC
WORKS DIRECTOR/CITY ENGINEER TO APPROVE
CONTINGENCIES IN AN AMOUNT NOT TO EXCEED
$358,500
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Well-Maintained Infrastructure
BACKGROUND
The City’s 5-Year Capital Improvement Plan has annually included a street rehabilitation project each year since FY 2018-19 as part of the City Council’s priority initiative for well-maintained infrastructure. In 2022, staff proposed to combine two years’ worth of street rehabilitation program projects (FY Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
2022-23 and FY 2023-24) in an effort to maximize the City’s resources and help save on material costs due to economies of scale. Streets were selected based on the Council-adopted Pavement Management Plan, which provides a framework for street rehabilitation based on existing pavement conditions and anticipated cost of treatment.
The City’s civil engineering consultant, Nichols Consulting Engineers (NCE), prepared the plans, specifications and cost estimates for the project. The project’s scope of work includes construction of 26 street segments with rehabilitation treatments that include mill and overlay, surface reconstruction and full reconstruction recommended based on each street’s pavement condition and the results of the geotechnical investigation during design. The project plans are included as Attachment 6 to the report for reference. The project also includes the most extensive amount of concrete work to be completed as part of the street rehabilitation program to date with the removal and replacement of over 10,000 linear feet of curb and gutter, 4,100 square feet of driveway approaches, 1,300 linear feet of cross gutters and 49 curb ramps. As part of the adopted FY 2024-25 Capital Improvement Construction budget, two years’ worth of funding for FY 2022-23 and FY 2023-24 street rehabilitation projects are available.
DISCUSSION
Solicitation for Construction Bids
Upon completion of the Project Plans and Specifications, which are on file in the office of the City Clerk and present on the dais, the Public Works Department advertised the project for construction bids via the City’s online procurement platform. On July 15, 2024, a total of six bids were received for the Street Rehabilitation Project, as follows:
Bidder Base Bid
Onyx Paving Company, Inc..
Anaheim, CA $7,171,000.00
Sequel Contractors
Santa Fe Springs, CA $7,279,833.95
All American Asphalt
Corona, CA $8,269,222.00
Hardy and Harper, Inc.
Lake Forest, CA $8,670,000.00
Excel Paving
Long Beach, CA $9,155,931.70
Access Pacific, Inc.
Pasadena, CA $9,755,093.49
Engineer’s Estimate $6,774,282
A summary tabulation of each bidder’s complete bid schedule is also attached to this report. Pursuant to the Plans and Specifications, the lowest responsive, responsible bidder will be determined by the sum of the base bid only. The apparent low bidder, Onyx Paving Company, Inc., provided the lowest responsive and responsible Base Bid, provided satisfactory references, and is registered with the State Department of Industrial Relations.
Staff recommends award of a Construction Agreement for the Street Rehabilitation Program Project No. 22/23-9271 to Onyx Paving Company, Inc., in the low base bid amount of $7,171,000, plus a 5% contract contingency. The requested contingency will cover costs due to unforeseen site conditions and change orders for additional work requested by the City.
The total amount for the construction plus the construction contingency is $7,529,500. Once work has commenced, the project is scheduled to take 90 working days to complete.
The cost for this project is higher than originally anticipated due to 7 of the 26 total street segments, including portions of Orlando Road, Old Mill Road, Raleigh Road, Roanoke Road and Urmston Place, required full reconstruction.
The project also includes the most extensive amount of concrete work to be completed as part of the street rehabilitation program to date with the removal and replacement of over 10,000 linear feet of curb and gutter, 4,100 square feet of driveway approaches, 1,300 linear feet of cross gutters and 49 curb ramps. Additionally, costs have escalated significantly across the construction sector over the past few years.
Solicitation for Construction Management & Inspection Services Professional construction management and inspection services are recommended so that an experienced construction inspector is on site to oversee the actual construction and help deliver a successful project. As it pertains to proposals for the construction management services, California Government Code 4526 prescribes selection of architectural and engineering services be based on demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required, and does not authorize the selection of professional architectural and engineering services based solely on cost.
A Request for Proposal (RFP) was advertised via the City’s online procurement platform to invite qualified, interested firms to submit proposals for professional engineering services to provide construction management and inspection services. A total of three proposals were received on May 16, 2024.
Based upon careful review of the submitted proposals and interviews with each firm, staff recommends awarding a Professional Services Agreement to Z&K Consultants in the amount of $199,996. They were selected for this project based upon professional qualifications, staff experience, project approach to the scope of work, and adherence to quality and assurance standards. Z&K Consultants has extensive experience working on municipal projects, including 60 other street improvement projects for numerous cities throughout the region. They additionally have experience working in San Marino, as they have served as the project manager/construction manager for the previous two cycles of the City’s Annual Street Rehabilitation Project. As such, Z&K is very familiar with the community and how to ensure the project provides as little disruption as possible to residents while still moving at an efficient pace. Their familiarity with the City and community, as well as their professional qualifications and experiences on similar street improvement projects make them well-suited to manage the project.
Z&K Consultants also understands the importance of information management and is committed to disseminating key information to City staff, the public, and other stakeholders in a timely manner. As such, Z&K Consultants will prepare regular updates to ensure the City and relevant stakeholders stay informed during the project.
CEQA REVIEW
Pursuant to the California Environmental Quality Act (CEQA), this project is categorically exempt under Sections 15301(c) (Existing Facilities) and 15302 (Replacement or Reconstruction) because the streets comprising the project are existing facilities that will be located on the same site and within the current boundaries of the existing streets, and will have the same purpose and capacity as the original streets. Staff will prepare a Notice of Exemption for the project should it be approved.
FISCAL IMPACT & PROCUREMENT REVIEW
Bids for construction were solicited in accordance with the Public Contract Code and the City’s purchasing ordinance.
Staff estimates the project’s overall cost, combining the design/construction support, construction cost, construction management cost, and project contingency will be $7,729,496. See below for breakdown.
Item Cost
Construction Contract (Onyx Paving) $7,171,000
Construction Contingency (5%) $358,500
Construction
Management/Inspection (Z&K
Consultants)
$199,996
Total Project Cost $7,729,496
Various funding sources are available to use for this project, as detailed below:
Fund Name Amount
Capital Construction Fund (394) $4,113,496
CalRecycle Rubberized Asphalt
Grant
$91,000
Gas Tax (Fund 202) $1,230,000
Proposition C (Fund 215) $650,000
Measure R (Fund 243) $420,000
Measure M (Fund 247) $1,225,000
Total Revenues $7,729,496
The City’s adopted FY 2024-25 budget, including rollover of funds from prior years, has appropriated over $8,000,000 total for the street rehabilitation project in both the CIP fund and various special funds, as detailed above. The increase in costs from what was originally projected a few years ago can be attributed to the need for full reconstruction of multiple roadways, as well as the general cost escalation and inflation seen across the construction sector in the past few years.
The Finance Director has reviewed this staff report for compliance with San Marino Municipal Code §02.06.05.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council 1) find the project categorically exempt under the California Environmental Quality Act (CEQA) pursuant to Sections 15301(c) and 15302 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities exemption), 2) approve the Plans and Specifications available at the office of the City Clerk and at the dais, 3) award a Construction Agreement to Onyx Paving Company, Inc., 4) a Professional Services Agreement for construction management and inspection services to Z&K Consultants, and 5) authorize the Parks and Public Works Director/City Engineer to approve contract change orders and other contingencies in an amount not to exceed $358,500. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) find the Street Rehabilitation Program Project exempt from review under the California Environmental Quality Act (CEQA) pursuant to to Sections 15301(c) and 15302 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities exemption), 2) approve the Plans and Specifications available at the office of the City Clerk and at the dais, 3) award a Construction Agreement to Onyx Paving Company, Inc., for the Street Rehabilitation Program Project No. 22/23-9271 in the amount of $7,171,000, and reject all other bids 4) award a Professional Services Agreement for construction management and inspection services to Z&K Consultants in the amount of $199,996, and 5) authorize the Parks and Public Works Director/City Engineer to approve contract change orders and other contingencies in an amount not to exceed $358,500.”
ATTACHMENTS
1.Tabulation of all construction bids received
2. Proposal from Z&K Consultants
3. Cost Proposal from Z&K Consultants
4. Draft Construction Agreement with Onyx Paving Company, Inc.
5. Draft Professional Services Agreement with Z&K Consultants
6. Project Plans