Public Works Agency
www.santa-ana.org/public-works
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 19, 2024
TOPIC: Alley Improvements Program
AGENDA TITLE
Award a Construction Contract to Towo Enterprise Inc. for the Alley Improvements Program (No. 24-6910) (General Fund)
RECOMMENDED ACTION
1. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,970,000, which includes $1,576,000 for the construction contract, $236,400 for contract administration, inspection, and testing, and a $157,600 project contingency for unanticipated or unforeseen work due to the complexity and extensive scope of this project.
2. Award a construction contract to Towo Enterprises Inc., the lowest responsible bidder, in accordance with the base bid and bid alternates in the amount of $1,576,000, subject to change orders, for construction of the Alley Improvements Program (No. 24-6910), for a term beginning November 19, 2024 and ending upon project completion, and authorize the City Manager to execute the contract.
3. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2024-9 was filed for Project No. 24-6910.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Public Works Agency (PWA)’s Engineering Services Division is responsible for the administration and oversight of all Capital Improvement Projects throughout the city.
The Alley Improvements Program, one of the City’s projects, aims to reconstruct these alley corridors with new concrete pavement, improving drainage and upgrading both their functionality and aesthetics. The City has an extensive network of 30 miles of alleys and staff has identified 14 miles of asphalt alleys that are in need of full reconstruction. The City Council has approved an annual budget allocation of $1.5 million of Local Sales Tax (Measure X) revenue toward the Alley Improvement Program.
Alley Improvements Program
November 19, 2024
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This project will reconstruct a total of six alleys, spanning three neighborhoods (Exhibit 1).
Specifically, the Alley Improvements Program (Project No. 24-6910) will consist of excavation, grading, removal of asphalt concrete pavement, installing Portland cement concrete alley pavement, sidewalk and driveway approaches with curb and gutter, adjusting utility covers to finished grade, striping, and signage. Based on current construction bids, the approximate cost to deliver alley reconstruction improvements is $3.3 million per mile. The total estimated need to complete the balance of alley improvements is approximately $44.5 million and will be completed in 30 or more years based on current funding.
Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, the City notified a total of 55 regional vendors via PlanetBids, many of which are Santa Ana based. Furthermore, staff specifically reached out to Santa Ana vendors to encourage their participation in bids. A total of nine bids were received. Zero bids were received from Santa Ana contractors.
As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on August 26, 2024 and September 2, 2024. The project was also advertised in PlanetBids from August 28, 2024 to September 19, 2024. Bids were received electronically via PlanetBids on September 19, 2024. No bid protest was submitted by any of the bidders during the bid protest period.
Bid Results Summary
Rank Bidder’s Name Location Base Bid
1 Towo Enterprise Inc Fullerton, CA $1,576,000
2 Onyx Paving Company, Inc. Anaheim, CA $1,727,000
3 Excel Paving Co Long Beach, CA $1,739,950
4 Hamel Concrete, Inc. Murrieta, CA $1,770,994
5 U.S. Builders & Consultants Irvine, CA $1,794,197
6 AM Concrete, Inc. Thousand Oaks, CA $1,797,450
7 Vido Samarzich, Inc. Rancho Cucamonga, CA $2,014,650
8 EBS General Engineering, Inc. Corona, CA $2,175,925
9 Bedrock Group, Inc. La Canada, CA $2,695,300
A total of nine bids were received and nine were deemed responsive. Towo Enterprise Inc. submitted the lowest responsive base bid and bid alternates in the amount of $1,576,000. As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to Towo Enterprise Inc. (Exhibits 2 and 3).
Alley Improvements Program
November 19, 2024
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7 4
Project Delivery
To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes a budget allocation for construction administration, inspection, and testing. Construction administration and inspection may be performed by either Staff or consultants and includes construction management, inspection of the Contractor’s work to ensure contract compliance, workmanship and quality, materials testing, and implementation of the labor requirements.
Any of the allocated construction administration funds not spent are considered project savings and are returned to the respective fund balance upon close out of the project.
As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $1,970,000.
Project Item Total
Construction Contract Bid Amount $1,576,000
Construction Administration $126,080
Inspection $78,800
Testing $31,520
Project Contingencies $157,600
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $1,970,000
ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review pursuant to Section 15301(c) of the CEQA Guidelines for projects consisting of repairs and minor alterations of existing pedestrian facilities.
The proposed project continues to meet these parameters of the CEQA Guidelines, and Categorical Exemption Environmental Review No. ER-2024-9 was filed for Project 24- 6910 (Exhibit 5).
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $1,970,000. All funds are available for expenditure in Fiscal Year 2024-2025.
Any remaining balances not expended at the end of the fiscal year will be carried forward into Fiscal Year 2025-26.
The proposed contract authorizes staff a maximum of 10% in contingencies for construction contract change orders. Staff will return to the City Council for authorization and appropriation of additional contingency if necessary.
Alley Improvements Program
November 19, 2024
4 6
7 4
Fiscal
Year
Accounting Unit
– Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
CURRENT BUDGET
2024-25 01117660-66220
(24-6910)
General
Fund
Public Works-Road
Maintenance,
Improvements Other
Than Buildings
$1,388,771
REALLOCATION
2024-25
01117660-66220
(From 23-6910 to
(24-6910)
General
Fund
Public Works-Road
Maintenance,
Improvements Other
Than Buildings
$581,229
TOTAL $1,970,000
EXHIBIT(S)
1. Location Map
2. Bid Proposal
3. Construction Contract
4. Cost Analysis
5. Environmental Determination
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager