HomeMy WebLinkAbout04 - Street Pavement Repair Program — Award of Contract No. 7929-1 (21R03)Q SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
January 12, 2021
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Andy Tran, Senior Civil Engineer, atran@newportbeachca.gov
PHONE: 949-644-3315
TITLE: Street Pavement Repair Program — Award of Contract No. 7929-1
(21 R03)
Staff has received construction bids for the Street Pavement Repair Program project and
requests City Council's approval to award the construction contract to PALP Inc., dba
Excel Paving Company. This project will rehabilitate deteriorated asphalt pavement at
the following various isolated locations: MacArthur Boulevard, (Airport area) 15th Street,
23rd Street, Flagship Road, Dana Road, Newport Shores community, Balboa Peninsula
and East Coast Highway.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities
involving negligible or no expansion of use) of the CEQA Guidelines, because this
project has no potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No. 7929-1 to PALP Inc., dba Excel Paving Company, for the total bid
price of $323,938, and authorize the Mayor and City Clerk to execute the contract;
and
d) Establish a contingency of $81,000 (approximately 25 percent of total bid) to cover the
cost of additional pavement rehabilitation areas and/or unforeseen work not included
in the original contract.
FUNDING REQUIREMENTS:
Sufficient funding is available in the current Capital Improvement Program budget for the
award of this contract. The following funds will be expensed:
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Street Pavement Repair Program — Award of Contract No. 7929-1 (21 R03)
January 12, 2021
Page 2
Account Description
Neighborhood Enhancement
General Fund
Water Enterprise
Wastewater Enterprise
Proposed funding uses are as follows:
Vendor
Excel Paving Company
Excel Paving Company
Geocon West, Inc.
Various
DISCUSSION:
Account Number
BIDDER
Amount
53601-980000-21R03
$
400,000
01201927-980000-21 R03
$
7,200
70201-980000-21 R09
$
5,500
71101-980000-21R09
$
6,300
Total:
$
419,000
Purpose
5th
Amount
Construction Contract
$
323,938
Construction Contingency
$
81,000
Materials Testing
$
12,025
Printing & Incidentals
$
2,037
Total:
$
419,000
At 10 a.m. on December 10, 2020, the City Clerk opened and read the bids for this project:
The City received six bids for this project. The low bidder, Excel Paving Company,
possesses a California State Contractor's License Classification "A" as required by the
project specifications. A review of references for Excel Paving Company shows
satisfactory completion of similar contracts for the City and other municipalities.
The low bid was 33.2 percent below the Engineer's Estimate of $485,000. The disparity
between the bid and the Engineer's Estimate was attributed to cost of asphalt concrete.
The favorable bid price for this item was significantly less than the estimated unit price.
All bids were close and competitive.
The proposed project includes reconstructing portions of streets that have deteriorated
asphalt concrete pavement, lowering and raising manholes, replacing water valves boxes
and lids, replacing and resetting survey monuments boxes and restriping the street.
Associated with the current COVID-19 pandemic, there is currently a decrease in overall
economic activity as well as a corresponding decrease in the cost of crude oil. This
appears to be putting downward pressure on various construction costs, lending to very
attractive bid prices in some construction sectors.
4-2
BIDDER
TOTAL BID AMOUNT
Low
PALP, Inc. dba Excel Paving Company
$
323,938.00
2nd
Hardy and Harper, Inc.
$
337,000.00
3rd
All American Asphalt
$
337,183.00
4th
RJ Noble Company
$
353,297.30
5th
Sequel Contractors, Inc.
$
356,386.00
6th
On x Paving Company, Inc.
$
377,000.00
The City received six bids for this project. The low bidder, Excel Paving Company,
possesses a California State Contractor's License Classification "A" as required by the
project specifications. A review of references for Excel Paving Company shows
satisfactory completion of similar contracts for the City and other municipalities.
The low bid was 33.2 percent below the Engineer's Estimate of $485,000. The disparity
between the bid and the Engineer's Estimate was attributed to cost of asphalt concrete.
The favorable bid price for this item was significantly less than the estimated unit price.
All bids were close and competitive.
The proposed project includes reconstructing portions of streets that have deteriorated
asphalt concrete pavement, lowering and raising manholes, replacing water valves boxes
and lids, replacing and resetting survey monuments boxes and restriping the street.
Associated with the current COVID-19 pandemic, there is currently a decrease in overall
economic activity as well as a corresponding decrease in the cost of crude oil. This
appears to be putting downward pressure on various construction costs, lending to very
attractive bid prices in some construction sectors.
4-2
Street Pavement Repair Program — Award of Contract No. 7929-1 (21 R03)
January 12, 2021
Page 3
To take advantage of these low bid prices as received in this project bid, as well as to
address additional pavement areas needing pavement replacement/repair, staff
recommends establishing an $81,000 (approximately 25 percent of total bid) contingency
amount to add additional areas of pavement replacement/repair and/or address
unforeseen conditions associated with construction.
Pursuant to the Contract Specifications, the Contractor will have 45 consecutive working
days to complete the work. Work is scheduled to start in February 2021.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1, (maintenance
of existing public facilities involving negligible or no expansion of use), of the CEQA
Guidelines, because this project has no potential to have a significant effect on the
environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Location Map
4-3
�^ ATTACHMENT A
JOHN WAYNE
AIRPORT
NOT TO SCALI
STREET PAVEMENT
REPAIR PROJECT
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-7929-1 1 1/12/2021