FOR THE COUNCIL MEETING OF JUNE 20, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Public Works
SUBJECT: Award of Professional Services Agreements for Municipal Improvements Job-Order Pavement Repairs
Description:
The City Council will consider awarding Professional Services Agreements for Municipal Improvements Job -Order Pavement Repairs to V. Lopez Jr. & Sons, Inc. , Main Line Engineering Construction, Inc., and to R. Burke Corporation to provide additional resources to repair and replace hot-mixed asphalt on existing street segments and emergency repairs, as deemed necessary.
Environmental Notice: The City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential f or causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
RECOMMENDATIONS:
1. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to V. Lopez Jr. & Sons, Inc.
2. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to Main Line Engineering Construction, Inc.
3. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to R. Burke Corporation.
BACKGROUND:
The City maintains approximately 53,000,000 square feet of pavement throughout the City. The intent of these contracts is to provide additional resources to make repairs to existing street segments and emergency repairs, as the City deems appropriate. In 2 general, the work consists of repair and replacement of hot -mixed asphalt on existing street segments, as required.
DISCUSSION:
The City’s Pub lic Works Engineering Division utilizes four methods to construct City projects in the most cost-effective and efficient manner possible. The four methods used are: Formal Bidding, Informal Bidding, Job -Order Construction Contracting, and construction performed by in-house City crews. Job-Order Construction Contracting has proven to be an effective method and useful tool to construct and implement routine City projects.
On April 11, 2022, a Formal Bid was issued and advertised through the City website. In addition, notification emails were sent to firms who expressed interest in providing street repairs services for the City. The publicly advertised call for bids contained a Bid Schedule, where upon bidders were required to list rates for routine constructi on items.
These rates cover repair, replacement, upgrade, and construction of street improvements.
For the purpose of awarding these Job-Order Contracts, the basis for determining the low bidder is the Total Base Bid. The Base Bid establishes prices for the various bid items that may be used in the execution of project work orders during normal construction hours.
The Alternate Additive Bid establishes an adjustment factor to be applied to bid items that would be used in the execution of work orders that must be performed outside of normal work hours, typically to reduce impacts to traffic or utility operations.
Three (3) bids were received by Clerk’s Office on May 20, 2023.
Firm and Location
V. Lopez Jr. & Sons, Inc., Santa Maria, CA
Main Line Engineering Construction, Inc., Lompoc, CA
R. Burke Corporation, San Luis Obispo, CA
Since this contract is based upon unit prices and not a specific project, an Engineer’s Estimate was not prepared for comparison. The bid amounts submitted by all three firms are comparable with the previous Job-Order Contract prices adjusted for inflation.
The proposed Professional Services Agreements would be managed by the Engineering Division. Individual project task orders will be issued based on the firm’s expert ise, workload capacity, services to be performed, schedule requirements, and unit rates submitted in their proposal. All task orders will be issued based on an agreed -upon, written scope of work, implementation schedule, and maximum fee arrangement negotiated on a project-by-project basis.
The contracts shall remain in effect for all written work orders issued by the City during a 24-month period beginning with the effective date of the Notice to Proceed or until the exhaustion of the contract limit, which ever occurs first. These contracts do not give the 3 contractors exclusive rights to perform all work done for the City. Certain projects may be performed by City crews or be issued for bid proposals throughout the term of the contract, even if such contracts include this same type of work.
Alternative(s)
The City Council could decide not to award these Professional Services Agreements for pavement repairs and direct staff to issue a Formal Bid for each project individually.
However, this alternative is not recommended as there is a significant backlog of street repairs. Further, having pre-approved, on-call and as-needed firms readily available will enhance the efficiency and timeliness of project delivery, as multiple projects can be concurrently designed.
Fiscal Considerations
This action does not appropriate any funding. Any projects constructed under this job order contract will be fully funded by Capital Improvement Program projects approved by the City Council as part of the annual budget process. There is no minimum dollar value of work guaranteed under this contract, and assignment of work orders is at the sole discretion of the City.
Fees for Job -Order Pavement Repairs will be based on a project -by-project basis and directly charged to individu al project budgets. Each project is separately approved and budgeted by the City Council. The City is under no obligation to expend any funds under these Professional Services Agreements.
Impact to the Community
The community will benefit by the City being able to respond to and address deficiencies on City streets, resulting in a higher quality of life and driving experience for residents and visitors to the community.
Other Agency Review
No other agency review is necessary or anticipated.
ATTACHMENTS
Attachment A- Professional Services Agreement_V Lopez_2023-06-20 Attachment B- Professional Services Agreement_Main Line_2023-06-20 Attachment C- Professional Services Agreement_R Burke_2023-06-20