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Home My WebLink About3/3/2004 - STAFF REPORTS (4) DATE: March 3, 2004 TO: City Council FROM: Director of Public Works/City Engineer 2003/2004 ANNUAL SLURRY SEAL RECOMMENDATION: It is recommended that the City Council consider the following two actions: 1. Award contract to American Asphalt South, Inc., in the amount of$271,056.85 for Bid Schedule A and Bid Schedule B, for the 2003/2004 Annual Slurry Seal, City Project 03-15; and 2. Approve Contract Change Order No. 1 fora decrease of$119,928.46,fora reduced total contract amount of $151,128.39, for the 2003/2004 Annual Slurry Seal, City Project 03-15. SUMMARY: Award of this contract will provide for installation of a slurry seal on City streets within Section 14, and Vista Chino from Gene Autry Trail to the east city limit; approval of Contract Change Order No. 1 will allow the project to proceed with currently budgeted funds. BACKGROUND: The Public Works Department oversees the maintenance of the City's street system. Each year, the Department assembles a capital project to continue its Slurry Seal Program on various City streets. Last year, the Department identified those streets within Sections 14 and 19, as well as Vista Chino, east of Gene Autry Trail, as those streets requiring a slurry seal consistent with the Department's schedule of maintenance. Unfortunately, the City was unable to award the entire contact for the scheduled streets, and due to lack of sufficient funds, completed a slurry seal program only of those streets located within Section 19. This year, we intended to "catch up" on last year's slurry seal program, which includes the streets within Section 14, as well as Vista Chino from Gene Autry Trail to the east City limits. Unfortunately, this year's capital improvement budget of$200,000 only allowed for the Department to move forward with slurry sealing these streets which were scheduled last year, and not for any slurry sealing of additional streets which are due to be scheduled this year. Previously, Council was advised that this fact represents a challenge that the Department continues to face each year, as the budget for street maintenance and improvement projects is limited to gas tax and Measure A revenue which is restricted and decreasing in relation to rising costs to perform street maintenance and improvement projects. The specifications forthis project were prepared by City staff, and on January 21, 2004,the City Council approved and adopted the specifications for this project, and authorized advertisement for construction bids. The project consists of two Bid Schedules: Bid Schedule A represents slurry seal of Vista Chino, from Gene Autry Trail to the east city limits; and Bid Schedule B represents slurry seal of City streets within Section 14. 2003/2004 Annual Slurry Seal March 3, 2004 Page 2 On January 27 and February 2, 2004, the project was advertised for bids, and at 2:00 P.M. on February 10, 2004,the Department of Procurement and Contracting received bids from the following contractors: Contractor Bid Sch A Bid Sch B Total American Asphalt South, Inc.; Fontana, CA $43,952.18 $227,104.67 $271,056.85 Bond Blacktop, Inc.; Union City, CA $44,281.13 $229,670.17 $273,951 30 California Pavement Maintenance Co., Inc.; $48,076.65 $251.065.46 $299,142.11 Sacramento, CA Pavement Coatings Co.; Cypress, CA $52,884.32 $271,987.44 $324,871.76 The engineer's estimate was $40,486 for Bid Schedule A, and $166,913 for Bid Schedule B, for a total of$207,398. The estimate was based on bid amounts from last year's slurry seal project, however, bid prices per square foot for this year's slurry seal project increased roughly 25%. The issue of lacking sufficient funds to budget for annual street maintenance is proved by the fact that costs for this year's annual slurry seal increased over last year's costs, and it is not possible to award the entire contract with the $200,000 budget for this project. In order to move forward and proceed with as much maintenance as possible this year, staff is recommending that the rubberized slurry seal of the three major streets within Section 14 be deleted from the contract. These streets (Alejo Road, from Indian Canyon Drive to Sunrise Way; Sunrise Way, from Ramon Road to Alejo Road; and Avenida Caballeros, from Ramon Road to Alejo Road),will have to be programmed as part of next year's annual slurry seal. This fact continues to show that this Department is falling further behind in required annual maintenance of City streets due to a shortage of gas tax and Measure A funds available for routine street maintenance. As stated previously, this Department has not yet suggested supplementing its annual budget with general fund revenue, realizing the numerous other programs and projects that require funding solely from the general fund. However, the fact that each year we continue to lack sufficiently budgeted funds to slurry seal an appropriate amount of City streets is evidence of the fact that an increase in funding for street maintenance is necessary. Further discussion at an appropriate time should occur to discuss the Department's future abilities to fund a program to maintain the City's infrastructure limited to the use of gas tax and Measure A revenue. This bid award is an opportune time to bring to the Council's attention the fact that slurry seal prices are steadily increasing, as well as overall street maintenance costs. This fact causes the Department concern, as it is more and more difficult to keep up with a frequency of street maintenance and slurry seal projects that is appropriate due to limitations on budget and available funds. Historically, this Department has relied solely on gas tax and local Measure A funds to cover all of its street maintenance costs. Unfortunately, other projects, local matches for federal projects, and higher construction costs are severely limiting the ability to spread those funds appropriately across the City for street maintenance purposes. It is generally recommended that streets in good condition be slurry sealed every 5-7 years to keep the streets in good condition, however, we have only been able to budget with available gas tax and Measure A funds a slurry seal of city street on an interval of approximately 9-10 years. This lends to further deterioration, and ultimately, more expensive maintenance repairs, such as overlays and reconstruction. 2003/2004 Annual Slurry Seal March 3, 2004 Page 2 With this in mind, it is not possible to award the entire contract amount. The Department included as Bid Schedule A, a slurry seal of Vista Chino, at previous Council direction. This street was excluded from the award of last year's slurry seal in order to fund last year's slurry seal project. Staff recommends that Bid Schedule A, a rubberized slurry seal of Vista Chino (which has been delayed two years), as well as Bid Schedule B, slurrying of City streets within Section 14, be awarded at this time, with a concurrent approval of Contract Change Order No. 1 to delete the three major streets within Section 14, postponing their maintenance until next year's budgeted slurry seal project. Staff has coordinated with staff from the Agua Caliente Band of Cahuilla Indians to determine impacts to any events scheduled in or around the Tribal Casino or Spa Hotel. The scheduling of the slurry seal project will not coincide or impact any known events, and staff will continue to cooperate closely with Tribal staff to avoid any street closures in the event future events are scheduled. The basis of award was the total sum of Bid Schedules A and B. The low bidder is American Asphalt South, Inc., from Fontana, California. The company is a California corporation and its officers are: Allan Henderson, President; Lyle Stone, Secretary; Jeff Petty, Vice-President; and Steve Aguirre, Treasurer. Upon approval of Contract Change Order No. 1, sufficient funds will be available in account 134-4498-50100 (Slurry Seal Program). SUBMITTED: fv' DAVID J. BARAKIAN Director of Public Works, City Engineer APPROVED DAVID H. READY City Manager ATTACHMENTS: 1. Minute Order (2) 2. Contract Change Order No. 1 4EVIEWED BYDEPT. OF FINaAI'lrF VA 3 CITY OF PALM SPRINGS CONTRACT CHANGEORDER To: American Asphalt South, Inc. Date: March 3, 2004 74855 Joni Drive, Suite 5 Project No.: 03-15 Palm Desert, CA 92260 Project: 2003/2004 Annual Slurry Seal Change Order No.: One (1) Attn: Jeff Petty, Vice President Contract Purchase No: Pending Account Numbers: Pending Agr.# Pending M.O.# Pending Res. # A. CHANGES IN WORK: Decrease to Contract Quantities: Bid Schedule B Item Description 2 Construction of Rubberized Emulstion-Aggregate Slurry Seal, REAS (or FLEX SEAL), including mobilization, traffic control, removal and replacement of reflectorized raised pavement markers and pavement markings, and all appurtenant work on Alejo Road, from Indian Canyon Drive to Sunrise Way; and on Sunrise Way from Ramon Road to Alejo Road; (and Avenida Caballeros from Ramon Road to Alejo Road, included in the quantity but not listed in the bid item). Increase to Contract Quantities: None. B. CHANGES IN COST: Decrease to Contract Quantities: Bid Schedule B Item Description Quantity Unit Unit Price Amount 2 Construction of Rubberized Emulstion- 889,677 SF $0.1348 $119,928.46 Aggregate Slurry Seal, REAS (or FLEX SEAL), including mobilization, traffic control, removal and replacement of reflectorized raised pavement markers and pavement markings, and all appurtenant work on Alejo Road, from Indian Canyon Drive to Sunrise Way; and on Sunrise Way from Ramon Road to Alejo Road; (and Avenida Caballeros from Ramon Road to Alejo Road, included in the quantity but not listed in the bid item). TOTAL DECREASE TO CONTRACT QUANTITIES: ($119,928.46) 114 V Increase to Contract Quantities: None. TOTAL INCREASE TO CONTRACT QUANTITIES: $0.00 TOTAL NET CHANGE ORDER AMOUNT: ($119,928.46) NOTE: No additional markup will be added to any items in this Contract Change Order. All costs per each item are final. C. REASONS FOR CHANGES: Decreased Items: The 2003/2004 Fiscal Budget appropriated $200,000 for the annual slurry seal project. The lowest, responsive, responsible bid price for the programmed slurry seal project is $271,056.85, $71,056.85 above the budgeted funds for this project. Maintenance of the three arterial streets (Alejo Road, Sunrise Way, and Avenida Caballeros) within Section 14 will have to be postponed until the next fiscal year when it can be budgeted as part of the next annual slurry seal project. D. SOURCE OF FUNDS: Funds are available in the following account: Account No.: 134-4498-50100 (Slurry Seal Program) Summary of Costs Contract Time Original Contract Amount: $271,056.85 Original Completion Date: To be determined This Change Order: ($119,928.46) Days Added for this C.C.O.: - 0 - Previous Change Order(s): $0.00 Previous Days Added: - 0 - Revised Contract Amount: $151,128.39 Revised Completion Date: To be determined I have received a copy of this Change Order and City Approval: the above totals are acceptable to the contractor. Submitted by Date Street Maintenance Manager By Approved by Date Director of Public Works/City Engineer Title Approved by Date Date City Manager Distribution: Original Conformed Copies Conformed-File Copy Engineering (1) Engineering File (1) S Finance (1) Public Works Inspector (1) Contractor (1) Engineering Field Supervisor (1) City Clerk (1) Purchasing Agent (1) Proof of Publication In Newspaper STATE OF CALIFORNIA County of Riverside Jacquelin K. Welch Says: 1. 1 am a citizen of the United States, a CITY OF PALM SPRINGS resident of the City of Desert HotNOTICE INVITING BIDS Springs, County of Riverside, State of For constructing 2003/2004 Annual Slurry Seal City Project 03-15 California, and over the age of 18 years. N-, NOTICE IS HEREBY GIVEN that sealed bids for the 2. I am the Research & Production 2003/2004 Annual Slurry Seal will be received at the office of Assistant of The Public Record, a the Director of Procurement and Contracting of the Pity of Palm Springs,California;until 2:00 PM. on February 17,2004, at newspaper of general circulation printed which lime they will be opened and read aloud. and published in the City of Palm N-2 DESCRIPTION OF THE WORK:The Work comprises the application of rubberized emulsion-aggragale slurry seal Springs, County of Riverside, State of (REAS)or FLEX SEAL;and construction of Type ll Slurry Seal on various City streets In Sections 7 and 14(as listed in the California. Said The Public Record ($ a Appendix);traffic striping;and all appurtenant work. newspaper of general circulation as that N-3 AWARD OF CONTRACT:reserves right after opening bids to term is defined in Government Code reject any or all bids,to waive any Informality(non-responsive- seetion 6000, its status as such having ness) In a bid, or to make award to the lowest responsive, responsible bidder on the basis of the total sum of Bid been established by judicial decree of the Schedules A and B and reject all other bids,as it may best Superior Court of the State of California in serve the interest of [he City Bidders shall bid on all Bid Schedules and for the County of Riverside In (b) As a condition of award,the successful bidder will be required to submit payment and performance bonds and Proceeding No. Indio 49271 , dated insurance March 31 1987 entered in Judgment N-4 BID SECURITY:each bid shall be accompanied by a i can(,ad or cashier's check or Bid Sell the amount of 10 per- Book No. 129, page 355, on March 31 , cent of the total bid price of the total sum of Bid Schedules A and B payable to the City of Palm Springs. 1987. N-5 BIDS TO REMAIN OPEN:The Bidder shall guarantee 3. The Public Record is a newspaper of the Total Bid Price for a period of 60 calendar days tram the data of bid opening. general circulation ascertained and N-6 CONTRACTOR'S LICENSE CLASSIFICATION: The established in the Cityof Palm Springs in Contractor shall possess a valid Class"A"OR"012"OR"C- 32"Contractor license at the time of submitting bids the County of Riverside, State Of N-7 CALIFORNIA WAGE PATE REQUIREMENTS: The California, Case No. RIC 358286, Filed Contractorshall pay the general prevailing rate of per diem wages as determined by the Director of the Department of June 8, ZOOi. Industrial Relations of the State of California for the locality where the work Is to be performed.A copy of said wage rates 4. The notice, of which the annexed is a is on file of the office of the City Engineer, The Contractor and true printed copy, was published in the any subcontractors shall pay not less than said specified rates and shall post a copy of said wage rates at the project site. newspaper on the following publication N-8 RETAINAGE FROM PAYMENTS:The Contractor may _ decLIo receive too percent-oPpaymems-due under the dates to wit: Contract Documents from time to time,without retention of any— portion of the payment by the City,by depositing securities of equivalent value with the City in accordance with the provisions `A o January 27, 2004 of Section 22300 of the Public Contract Code. N-9 OBTAINING OR INSPECTING CONTRACT February 3, 2004 DOCUMENTS: I certify under penalty of perjury that the cuments may be inspected without charge(at the office ofa) Contract othe City Engineer,3200 East Tahmuftz above is true and correct. Canyon Way,Palm Springs,CA 92262 Dated at Palm Springs, California, (b)Complete sets of said Contract Documents may be purchased at$25 00 per set and are obtainable from the office this 3HD day of February 2004. of the City Engineer,3200 East Tahquilz Canyon Way, Palm Springs,CA 92262. No refund will be made of any charges for vvGHL..�� sets of Contract Documents. (c)An additional fee of$20 00 will be charged for sets of documents sent by mail N-10 ADDRESS AND MARKING OF BIDS:The envelope 47 enclosing the Bid shall be sealed and addressed to the City of Palm Springs,and shall be delivered or mailed to the Director of Procurement and Contracting of 3200 East Tahquilz Canyon Way,Palm Springs,CA 92262 The envelope shall be plainly Jacquelin K. Welch marked in the upper left hand corner with the name and Research & Production roduction Assistant address of the Bidder and shall bear the words"Bid For.:'fol- lowed by the[life of the Project and the date and hour of open- ,'r, ing Bids.The certified or cashier's check or Bid Bond shall be enclosed In the same envelope with the Bid. BY ORDER OF THE CITY OF PALM SPRINGS Date January 22,2004 David Succeed,PE 7 Director of Public Works/City Engineer January 27,February 3,2004 MINUTE ORDER NO. AWARDING CONTRACT TO AMERICAN ASPHALT SOUTH, INC., IN THE AMOUNT OF $271,056.85 FOR BID SCHEDULE A AND BID SCHEDULE B, FOR THE 2003/2004 ANNUAL SLURRY SEAL,CITY PROJECT 03-15 I HEREBY CERTIFY that this Minute Order, awarding contract to American Asphalt South, Inc., in the amount of$271,056.85 for Bid Schedule A and Bid Schedule B, for the 2003/2004 Annual Slurry Seal, City Project 03-15, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 3ftl day of March, 2004. PATRICIA A. SANDERS City Clerk q 5 MINUTE ORDER NO. APPROVING CONTRACT CHANGE ORDER NO. 1 FORA DECREASE OF $119,928.46, FOR A REDUCED TOTAL CONTRACT AMOUNT OF $151,128.39, FOR THE 2003/2004 ANNUAL SLURRY SEAL,CITY PROJECT 03-15 I HEREBY CERTIFY that this Minute Order, approving Contract Change Order No. 1 for a decrease of$119,928.46, for a reduced total contract amount of$151,128.39, for the 2003/2004 Annual Slurry Seal, City Project 03-15, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 3`d day of March, 2004. PATRICIA A. SANDERS City Clerk