Report to Mayor and City Council
Tuesday, November 07, 2023
Consent
SUBJECT:
Title
CONSIDERATION OF RESOLUTION NO. 23-160 AND APPROVAL OF FOUR MAINTENANCE CONTRACTS FOR PUBLIC WORKS ANNUAL PAVING MAINTENANCE FOR EACH DISTRICT WITHIN THE CITY OF CARSON (CITY COUNCIL)
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I. SUMMARY
The Department of Public Works released an Invitation for Bids (IFB No. 23-16) on August 11, 2023. The scope of work involves uniform cold mill and an overlay of 2” Asphaltic Rubberized Hot Mix (ARHM). Solicitation for bids closed on August 31, 2023, and two bids were received for all Districts. R.J. Noble Company was determined to be the lowest, responsive, and responsible bidder for Districts 1, 3 and 4. All American Asphalt was determined to be the lowest responsive, and responsible bidder for District 2. Staff recommends awarding an annual paving maintenance contract to R.J. Noble Company and All American Asphalt for a three-year term with the option to extend for two additional one-year terms at the City’s discretion, for a not-to-exceed amount of $2,000,000 per district in year one and $3,000,000 per district per year in years two and three. The total amount requested over a three-year period is $32,000,000.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a Construction Contract to the lowest responsive and responsible bidder, R.J. Noble Company for the annual paving maintenance at District 1, for a three-year term in the amount of $8,000,000, with the option to extend for two additional one-year terms.
2. AWARD a Construction Contract to the lowest responsive and responsible bidder, All American Asphalt for the annual paving maintenance at District 2, for a three-year term in the amount of $8,000,000, with the option to extend for two additional one-year terms.
3. AWARD a Construction Contract to the lowest responsive and responsible bidder, R.J. Noble Company for the annual paving maintenance at District 3, for a three-year term in the amount of $8,000,000, with the option to extend for two additional one-year terms.
4. AWARD a Construction Contract to the lowest responsive and responsible bidder, R.J. Noble Company for the annual paving maintenance at District 4, for a three-year term in the amount of $8,000,000, with the option to extend for two additional one-year terms.
5. AUTHORIZE the Mayor to execute all four Maintenance Contracts following approval as to form by the City Attorney.
6. WAIVE further reading and ADOPT Resolution No. 23-160, “A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2023/24 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS”
1.
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III. ALTERNATIVES
1. DO NOT APPROVE the awards of contracts for the annual paving maintenance.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the Law.
IV. BACKGROUND
The City’s roadway infrastructure is approximately 245 centerline miles. The condition of each segment of the City’s roadway infrastructure has been evaluated through the Pavement Management Program (PMP). The PMP determines the condition of each roadway segment with a Pavement Condition Index (PCI) number which equates to the type of treatment a roadway shall have. Based on the data collected in 2021/2022 the City’s pavement system is rated to be in Fair condition, with an average PCI of 56.
Improvements to the roadway have been historically conducted by the Department of Public Works Engineering Division through various street improvement projects as part of the annual Capital Improvement Program (CIP). Aside from the improvements to the roadway pavement, this method included simultaneous repairs of curb and gutter to address any drainage (ponding) issues, as well as driveways and accessible curb ramps. Engineering has historically accomplished these street improvements through a design-bid-build project delivery method.
On August 1, 2023, the City Council adopted Ordinance No. 23-2307 that amended Section 2612 of the Municipal Code which modified the definition of maintenance work as it pertains to resurfacing of streets and highways (Exhibit No. 1). The amendment redefined the maintenance for resurfacing of streets and highways at up to two inches (2”), rather than less than one inch (1”) as it was previously defined. The increase to the resurfacing depth of the asphalt pavement provides the option to improve the condition of the roadway at an accelerated rate through a maintenance contract rather the design-bid-build project delivery.
The City of Carson released Invitation for Bids (IFB No. 23-16) which advertised on PlanetBids from August 11, 2023, to August 31, 2023. A total of two proposals were received for all the districts and were opened by the Purchasing Division Manager at the City Clerk’s office on August 31, 2023 (Exhibit No. 2). The bid results from PlanetBids are as follows:
DISTRICT CONTRACTOR BID ADJUSTED
NO. NAME AMOUNT BID AMOUNT *
1 RJ Noble $3,958,691.30 $1,525,358.30
1 All American Asphalt $9,255,695.00 $2,095,695.00
2 RJ Noble $3,958,691.30 $1,525,358.30
2 All American Asphalt $5,355,695.00 $1,315,695.00
3 RJ Noble $3,958,691.30 $1,525,358.30
3 All American Asphalt $7,305,695.00 $1,705,695.00
4 RJ Noble $3,958,691.30 $1,525,358.30
4 All American Asphalt $7,730,695.00 $1,790,695.00
*See Attached Bid Results (Exhibit No. 3)
Each bid amount was reviewed in further detail and was adjusted as shown above. Details of the calculation for the adjusted bid amount are shown on Exhibit No. 3.
R.J. Noble was determined to be the lowest, responsive, and responsible bidder for Districts 1, 3, and 4, and All-American Asphalt was determined to be the lowest responsive, and responsible bidder for District 2. The contractors’ references have been checked and it has been verified that the contractors have completed similar maintenance service projects in an acceptable manner. Staff recommends Council approve the Maintenance Services Agreements with RJ Noble Company for a not-to-exceed amount of $24,000,000 for District 1, District 3 and District 4 (Exhibit No. 4, Exhibit No. 6 and Exhibit No. 7) and All-American Asphalt for a not-to-exceed amount of $8,000,000 for District 2 (Exhibit No. 5). The total of all four contracts over the three-year term will be $32,000,000.00.
V. FISCAL IMPACT
The proposed contract per year one is as follows:
R.J. Noble - $2,000,000 for District 1, District 3, and District 4.
All American Asphalt - $2,000,000 for District 2.
Each contract year following:
For RJ Noble the funding will be $3,000,000 for District 1, District 3, and District 4 and with All American $3,000,000 for District 2.
Funds for this project were not included in the FY 2023/24 budget; therefore, if the maintenance contracts are awarded, the current budget will need to be increased by $8,000,000. Funding for Fiscal Year 2024/25 and FY2025/26 will be budgeted accordingly. Funds should be appropriated from the unreserved, undesignated general fund balance to account no. 101-80-840-281-6019, per resolution no 23-160.
If the City Council approves this action, the City will not be structurally balanced for FY 2023/24. The Reserve Fund would be reduced by the $8,000,000 request, however, the City’s reserves has been increased by over 5 times the required amount (20%) of the City’s General Fund to utilize for the residents and needs of the City determined by the City Council and its constituents.
VI. EXHIBITS
1. Amended section 2612 of the Municipal Code
2. Bid Registry
3. Bid Results
4. Maintenance Services Agreement - District 1
5. Maintenance Services Agreement - District 2
6. Maintenance Services Agreement - District 3
7. Maintenance Services Agreement - District 4
8. Resolution No. 23-160
Prepared by: Arlington Rodgers, Jr., Director of Public Works