Report to Mayor and City Council
Tuesday, August 18, 2020
Consent
SUBJECT:
Title
CONSIDER AWARD OF A CONSTRUCTION CONTRACT TO SUPERIOR PAVEMENT MARKINGS, INC. FOR PROJECT NO. 1413-3 CITYWIDE ANNUAL RUBBERIZED SLURRY SEAL - PAVEMENT STRIPING
Body
I. SUMMARY
On July 21, 2020, the City Council approved the plans, specifications and estimates (PS&E) for Project No. 1413-3: Citywide Annual Rubberized Slurry Seal Program, and awarded a Construction Contract to Petrochem Materials Innovations, LLC (PMI) to piggyback on a competitively bid contract between the City of Los Angeles and PMI for the annual slurry seal material purchase and laydown, excluding the pavement striping portion of the project.
Given that the pavement striping was excluded from PMI’s contract, the City needs to hire a separate contractor to perform this work. The Invitation for Bids (Number IFB 20-03) for the pavement striping was advertised through the “Our Weekly” publication and the PlanetBids portal from July 9, 2020 to July 16, 2020. Three bids were received on July 22, 2020, and it was determined that Superior Pavement Markings, Inc., was the lowest responsive and responsible bidder, with a total bid amount of $51,862.00.
Staff requests that City Council award a Construction Contract to Superior Pavement Markings, Inc. in the amount of $51,862.00.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a Construction Contract for Project No. 1413-3: Citywide Annual Rubberized Slurry Seal Program - Pavement Striping, to the lowest responsive and responsible bidder, Superior Pavement Markings, Inc., in the amount of $51,862.00, and APPROVE the proposed Construction Contract (Exhibit No. 1).
2. AUTHORIZE the expenditure of construction contingencies in the amount of $5,186.20 (10%) for any unforeseen construction work such as material testing and other work that may be necessary to complete Project No. 1413-3.
3. AUTHORIZE the Mayor to execute the Construction Contract following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. REJECT all bids.
2. TAKE another action that the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
Project No. 1413-3: Citywide Annual Rubberized Slurry Seal program is listed in the City’s Capital Improvement Program. This project is typically funded by Infrastructure/Roadways funds (Gas Tax fund and Measure M fund).
The City has been utilizing rubberized slurry seal on City streets due to its superior benefits over conventional slurry seal in preventing deterioration of the existing pavement. Application of rubberized slurry seal is the best-cost effective approach extending pavement lives, preserving structural capacity, and providing quality service to the traffic.
On July 21, 2020, the City Council approved Item No. 11, approving the PS&E and awarding a Construction and Materials Purchase Contract to Petrochem Materials Innovations, LLC (PMI) to piggyback on a competitively bid contract between the City of Los Angeles and PMI for Project No. 1413-3: Citywide Annual Rubberized Slurry Seal Program in the amount of $639,146.62.
The focus of slurry sealing this year is on Maintenance Zone Nos. 4 and 5, which have the highest need for this type of roadway surface treatment. The majority of the residential streets within this project area are bordered by the 405 Freeway, Wilmington Avenue, 213th Street, 223rd Street and Bonita Street (Exhibit No. 2). Staff also included the following four City Parks parking lots as part of this project: Del Amo Park (CIP Project No.1401), Stevenson Park (CIP Project No. 1410), Dominguez Park (CIP Project No. 1417), and Calas Park (CIP Project No. 1418), given that these parking lot areas are also in need of the same surface treatment.
The City’s Purchasing Manager determined that the PMI contract met the requirements for a piggyback purchase in accordance with CMC§2611(f). However, since PMI’s contract with City of Los Angeles did not include pavement striping, this portion of the work was excluded from PMI’s contract with the City of Carson per direction of the Purchasing Manager, and staff was advised to hire a separate contractor to perform this work. A separate Invitation for Bids (IFB No. 20-03) was prepared and was advertised in a local newspaper and PlanetBids from July 9-16, 2020.
On July 22, 2020, three bids were received through PlanetBids and opened by the Director of Finance/Purchasing Division Buyer at the City Clerk’s office as listed below:
|
Rank |
Bidder |
Place of Business |
Bid Amount |
|
1 |
Superior Pavement Markings, Inc. |
Cypress, CA |
$51,862.00 |
|
2 |
Sterndahl Enterprises, Inc. |
Sun Valley, CA |
$162,000.00 |
|
3 |
Safe USA, Inc. |
Ontario, CA |
$196,400.00 |
Staff reviewed the bids received and determined that the lowest responsive and responsible bid was submitted by Superior Pavement Markings, Inc., with a total bid in the amount of $51,862.00. Superior Pavement Markings, Inc. is a Specialty Company and is a bona fide contractor licensed by the State of California. The bid bond, in the amount of 10% of the total bid, supplied by Old Republic Surety under the laws of the State of Wisconsin, is in order and was submitted with the bid. The contractor’s references have been checked, and it has been verified that the contractor has completed similar projects in an acceptable manner.
The approximate timeline and the status of this project are as follows:
|
Approval of PS&E, award of Construction and Materials Purchase Contract to PMI |
July 21, 2020 |
|
Award of proposed Pavement Striping Contract |
August 18, 2020 |
|
Start of pavement striping |
October 2020 |
|
Completion of Construction |
November 2020 |
V. FISCAL IMPACT
The amount of contract awarded to PMI for slurry sealing was $639,146.62, and a 10% contingency of $63,914.62 was also authorized. The bid amount submitted by Superior Pavement Markings, Inc. for the pavement striping work for Project No. 1413-3 is $51,862.00, and staff’s proposed contingency of 10% would be $5,186.20. The total combined cost of slurry sealing and pavement striping including its contingencies is $760,109.48. Funds for this project in the amount of $900,000.00 were included in the adopted Fiscal Year 2020-2021 budget. The project funding sources, account numbers and amounts are as follows:
|
Fund Source |
Estimated Project Cost |
FY 2020/21 Budget |
Account No. |
|
Infrastructure/Roadways (Gas Tax and Measure M) |
|
$900,000.00 |
281-80-820-904-7020/0141301 |
|
Project Costs |
|
PMI (awarded July 21, 2020) |
$639,146.62 |
|
|
|
Superior Pavement Markings, Inc. (proposed Contract) |
$51,862.00 |
|
|
|
Contingencies (10%) |
$69,100.86 |
|
|
|
TOTAL |
$760,109.48 |
$900,000.00 |
|
VI. EXHIBITS
1. Contract (pgs. 4-16).
2. Project Location Map. (pg. 17).
Prepared by: Rick Boutros, P.E., Associate Civil Engineer; Gilbert Marquez, P.E., City Engineer