REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Denice Bailey, Capital Projects Administrator
Subject:
title
Accept bid and authorize execution of a construction contract with PALP Inc. DBA Excel Paving Company in the amount of $4,398,952.10 for the Oak View Streetscape Improvement Project, CC-1689; and authorize 15% in contingency funds
body
Statement of Issue:
On November 14, 2023, bids were opened for the construction of the Oak View Streetscape Improvement Project, CC-1689 ("Project"). City Council approval is requested to award the construction contract to PALP Inc. DBA Excel Paving Company ("Excel"), the lowest responsive and responsible bidder.
Financial Impact:
The estimated project cost is $5,278,743, which includes the construction contract with Excel, a 15% contingency, and supplemental expenses. Sufficient funds are budgeted and include $3,778,743 of Caltrans grant funds from the Caltrans Clean California Local Grant Account No. 127700277.46160 and $1,500,000 of City match from the Improvements Fund in Account No. 31490012.82300.
Recommended Action:
recommendation
A) Accept the lowest responsive and responsible bid submitted by PALP Inc. DBA Excel Paving Company in the amount of $4,398,952.10 (Base Bid + Alternate Bid Items (Schedule B)); and
B) Authorize the Director of Public Works to approve up to a 15% contingency in potential construction change orders; and
C) Authorize the Mayor and City Clerk to execute a construction contract with PALP Inc. DBA Excel Paving Company in a form approved by the City Attorney.
end
Alternative Action(s):
Deny approval of the recommended action, and recommend alternative action.
Analysis:
In May 2022, the City was awarded the California Department of Transportation (Caltrans) Clean California Local Grant for the City’s Oak View Neighborhood Cleanup and Beautification Project. On June 7, 2022, City Council approved receipt and appropriation of the $5,000,000 in grant funds. To date, $827,716 in grant funds have been encumbered or spent on design and outreach efforts. The Caltrans Clean California Local Grant requires an additional 23% City match toward all qualifying expenditures including design and construction.
The goals of the Clean California Local Grant Program are to reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces; enhance, rehabilitate, restore, or install measures to beautify and improve public space; mitigate the urban heat island effect; enhance public health, cultural connection, and community place making by improving public spaces for walking and recreation; and advance equity for underserved communities.
The project is consistent with the goals of this grant program. The streetscape improvements primarily located on Oak Lane and Ash Lane will include artistic crosswalk painting, traffic striping, traffic and street signage, and roadway improvements to an alley; trees, landscaping, and irrigation; pedestrian lights, sidewalk paving, stormwater infrastructure, curb ramps, tactile warning strips, and artistic neighborhood signage to create a sense of community identity. These improvements will benefit the residents of Oak View by improving walkability and safety. The project will cleanup and beautify the neighborhood, reduce water usage, increase shade coverage, and reduce the urban heat island effect.
Construction is anticipated to begin early next year and will be scheduled to complete prior to end of the grant term, June 2024.
The public advertisement period for the project began on September 27, 2023. Bids were opened on November 14, 2023 and are listed in ascending order. The basis of award for the project is the total price of the base bid.
|
|
Bidder |
Submitted and Verified Base Bid |
|
1 |
PALP Inc. DBA Excel Paving Company |
$4,288,142.60 |
|
2 |
Hardy & Harper, Inc. |
$4,700,000.00 |
|
3 |
All American Asphalt |
$4,935,970.00 |
|
4 |
Sully-Miller Contracting Company |
$5,269,330.44 |
|
5 |
Onyx Paving Company, Inc. |
$5,444,000.00 |
Based on the low bid received, the total estimated construction cost of this project is $5,278,743, as itemized below:
|
Item |
Amount |
|
Bid submitted by PALP Inc. DBA Excel Paving Company |
$4,288,142.60 |
|
Alternate Bid Items (Schedule B) |
$110,809.50 |
|
15% Contingency |
$659,842.82 |
|
5% Supplementals (inspection, procurement, environmental work, testing, etc.) |
$219,947.61 |
|
TOTAL CONSTRUCTION COST |
$5,278,742.53 |
The alternate bid items include asphalt roadway improvements for additional streets within the Oak View community. A fifteen percent (15%) contingency is requested to increase the City's ability to address construction issues that may arise which would potentially delay the time sensitive grant funded project.
With respect to responsiveness, staff mathematically verified Excel's bid and reviewed the required documents that were submitted to the City. In terms of being a responsible bidder, Excel previously performed acceptable work for the City.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Project meets multiple strategic plan goals: Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects. Goal 6 - Infrastructure Investment, Strategy D - Undertake major planning efforts including Infrastructure Report Card to adequately anticipate and prepare for future infrastructure needs. Goal 8 - Public Safety, Strategy A - Community-wide comprehensive risk reduction program to optimize public safety's emergency response and reduce the number of calls.
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. Caltrans Grant Agreement
2. Location Map
3. PowerPoint Presentation