Report to Mayor and City Council
Tuesday, August 02, 2022
Consent
SUBJECT:
Title
CONSIDER AWARD OF A CONSTRUCTION CONTRACT TO PALP, INC. FOR PROJECT NO. 1641: GARDENA BOULEVARD IMPROVEMENT FROM FIGUEROA STREET TO EAST OF AVALON BOULEVARD AND ADOPT RESOLUTION NO. 22-156 "A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-23 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS"
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I. SUMMARY
On January 4, 2022, the City Council approved item #19, approving the plans, specifications, and estimates (PS&E) for Project No. 1641: Gardena Blvd Street Improvement. This project includes the improvement of Gardena Blvd from Figueroa St. to east of Avalon Blvd. (Exhibit No. 1). This project is the city’s fifth SB-1 project funded by Road Maintenance and Rehabilitation Account (RMRA) funds.
The Invitation for Bid was advertised in a newspaper of local circulation and through the PlanetBids portal from May 26, 2022 to June 6, 2022. Three (3) bids were received and opened at the City Clerk’s Office. It was determined that Palp, Inc. was the lowest responsive and responsible bidder, with a total bid amount of $2,668,527.90.
Staff is requesting City Council to award a Construction Contract to Palp Inc. for a not-to-exceed amount of $2,668,527.90. The total amount of funding for the project will be $3,202,233.48 (Exhibit No. 2).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a Construction Contract for Project No. 1641: Gardena Blvd Street Improvement from Figueroa Street to East of Avalon Boulevard, in the amount of $2,668,527.90, to the lowest responsive and responsible bidder, Palp, Inc.
2. AUTHORIZE the expenditure of construction contingencies in the amount of $533,705.58 (20%) for change orders and any unforeseen construction work such as substructure conflicts, contaminated soil removal and disposal, material testing, and other work that may be necessary to complete this project.
3. WAIVE further reading and ADOPT Resolution No. 22-156, “A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-23 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS” appropriating $537,050.00 from the unassigned General fund balance to augment the current amount budgeted for Project No. 1641: Gardena Blvd Street Improvement from Figueroa Street to East of Avalon Boulevard (Exhibit No. 3).
4. AUTHORIZE the Mayor to execute a Construction Contract with Palp, Inc., following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. REJECT all bids.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
Project No. 1641: Gardena Boulevard Street Improvement from Figueroa Street to east of Avalon Boulevard is included in the City’s Capital Improvement Program (CIP) list. On July 6, 2021, the City Council approved Item No.18, approving the inclusion of Project No. 1641: Gardena Boulevard Street Improvement from Figueroa Street to east of Avalon Blvd. (the “Project”) as the City’s fifth SB-1 project for FY 2022-2023 funded by RMRA funds authorized by the California Transportation Commission (CTC).
SB-1 established new Road Maintenance and Rehabilitation Account (RMRA) funds which are allocated to the city every Fiscal Year. The city receives RMRA funding from the California Transportation Commission (CTC) every year.
Recipients of RMRA funding must comply with all relevant federal and state laws, regulations, policies, and procedures, and the City must satisfy the Maintenance of Effort (MOE) in the Fiscal Year. That is, the City must expend on street and road general revenues, at least the average of the City’s Fiscal Year expenditures during FY 2009/10, FY 2010/11, and FY 2011/12.
The City Council, at its meeting on January 4, 2022, approved Agenda Item No. 19, approving the PS&E, and authorizing staff to advertise the work and call for construction bids for Project No. 1641: Gardena Boulevard Street Improvement from Figueroa Street to East of Avalon Boulevard.
Gardena Boulevard is an east-west, four- to five lane secondary arterial street zoned for light and heavy industrial, and commercial land uses. The length of this corridor is approximately 1.15 miles. The project consists of roadway resurfacing, including A.C. grinding as required to allow for the new layer of asphalt 2.0" to 3.0" thick to provide good rideability of the roadway surface. It also includes repair of broken and damaged concrete improvements including curb & gutter, cross gutters, sidewalks, driveway approaches, access ramps to comply with ADA requirements.
The required concrete improvements were identified as outlined in the 2017 Sidewalk Assessment Report (SAR) completed for the City, and will repair and restore concrete to City standards, meeting the Americans with Disabilities Act (ADA) requirements. The required asphalt pavement repair is per recommendation outlined in the City’s most recent Pavement Management Program (PMP). This segment of Gardena Boulevard in the PMP is assigned a corresponding Pavement Condition Index (PCI) that indicates the treatment needed to maintain structural integrity.
The Invitation for Bids (IFB) was advertised in a newspaper of local circulation and through the PlanetBids portal from May 12, 2022 to May 26, 2022. Three (3) bids were received and opened at the City Clerk’s Office.
The bid results are listed below:
No. Bidder Place of Business Bid Amount
1 Palp, Inc. Long Beach, CA $2,668,527.90
2 R.J. Noble Company Orange, CA $2,791,051.65
3 Hardy & Harper Inc. Lake Forest, CA $3,570,000.00
Staff reviewed the bids and determined that the lowest responsive and responsible bid was submitted by Palp, Inc., with a total bid in the amount of $2,668,527.90. Palp, Inc. is a bona fide contractor licensed by the State of California. The bid bond, in the amount of 10% of the total bid, as supplied by Federal Insurance Company is in order, and was submitted with the bid. The project is subject to compliance with the City’s Project Labor Agreement as stated in the bid packet, and the bid amount reflects the same.
The contractor’s references have been checked and it has been verified that the contractor has completed similar projects in an acceptable manner.
The anticipated timeline for this project is as follows:
Award of Construction Contract: August 2, 2022
Agreement executed by the City: September 2022
Start of construction: November 2022
Completion of construction: April 2023
The project may experience delays depending on weather conditions, and staff may have to adjust the schedule accordingly.
Staff is requesting City Council to award a Construction Contract to Palp, Inc., for a not-to-exceed amount of $2,668,527.90.
V. FISCAL IMPACT
Funds in the amount of $2,060,000 were allocated in the FY 2022/23 5-Year CIP budget listed under Project No. 1641. The construction bid amount received for this improvement project is $2,668,527.90. Considering a construction contingency in the amount of $533,705.58, representing 20% of the total construction bid, the total estimated project construction cost is $3,202,233.48. Therefore, the additional funds needed to complete this project is $1,142,233.00. If the project is awarded, $605,183.00 should be appropriated from Fund 288 - RRA2017-SB1 balance to account no. 288-80-820-904-8009 and $537,050.00 should be appropriated from CIP/General Fund Balance to account no. 101-99-999-904-8007 for a total sum of $1,142,233.
VI. EXHIBITS
1. Project Location Map for Project No. 1641 (pg. 5)
2. Contract Documents (pgs. 6 - 49)
3. Resolution No. 22-156 (pgs. 50 - 51)
Prepared by: Gilbert M. Marquez, P.E., City Engineer; Victor Lopez, P.E.,Civil Engineering Assistant