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    18.    
City Council Regular
Meeting Date: 02/27/2018  

SUBJECT:
CONTRACT WITH ALL AMERICAN ASPHALT CORPORATION FOR THE CHINO AVENUE PAVEMENT REHABILITATION PROJECT
RECOMMENDATION:
  1. Approve an appropriations budget amendment in the amount of $62,200 from the Gas Tax 7360 unreserved fund balance to the Chino Avenue Pavement Rehabilitation project. 
     
  2. Award a contract to All American Asphalt in the amount of $587,770 for the Chino Avenue Pavement Rehabilitation Project. 
     
  3. Authorize staff to issue a Notice of Award. 
     
  4. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of such. 
     
  5. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($58,777) of the awarded contract amount.
BACKGROUND/ANALYSIS:
On December 13, 2017, the City Council approved the plans and specifications for the Chino Avenue Pavement Rehabilitation Project and authorized staff to solicit bids.  The scope of the project includes:
  1. Chino Avenue – from Peyton Drive to West City Limit
  2. Eagle Canyon Drive – from Chino Avenue to Wandering Ridge Drive
  3. Beverly Glen Road – from Peyton Drive to Peyton Drive
  4. Olympic View Drive – from Peyton Drive to Crescent Hills Drive
  5. Feldspar Drive – from Carbon Canyon Road to Topaz Drive 
On January 25, 2018, six (6) bids were received and are summarized as follows:
 
 
CONTRACTOR BID AMOUNT
  1. All American Asphalt
$587,777
  1. Sequel Contractors, Inc.
$669,260
  1. Hardy and Harper, Inc.
$678,000
  1. Palp, Inc. dba Excel Paving Co.
$757,742
  1. Copp Contracting, Inc.
$787,467
  1. R.J. Noble Company
$829,435
 
                       
Staff received favorable reports from references regarding the work performed by All American Asphalt, and All American Asphalt performed acceptable work on the Pipeline Avenue Raised Median Construction project.  Therefore, staff recommends that the City Council award a contract in the amount of $587,770 to All American Asphalt.
 
All American Asphalt’s bid was below the engineer’s cost estimate of $645,000, however, the current available funding in the amount of $713,600 will not cover the cost for contingencies, project management and construction inspection costs. Staff estimates the project will need an additional $62,200 added to the project’s funding.  Therefore, staff is requesting City Council to authorize an additional $62,200 from the Gas Tax Fund to cover the shortfall in the project funding.
ENVIRONMENTAL (CEQA) REVIEW:
At the December 13, 2017, City Council meeting, the project was determined to be exempt as a Class 1(c) Categorical Exemption, (existing highway and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities), pursuant to Section 15301 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code section 21000 et seq.
 
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Description Amount
Design and Project Management $   38,675
Construction Contract Amount  587,770
Contingencies (10%)    58,777
Construction Project Management (2%)    12,931
Construction Inspection (12%)    77,586
Total $ 775,739
  
Funding for this project will come from the following source:
 
Project No. Funding Source Amount
S18006 Gas Tax 7360 Fund $ 214,400
S18006 SB 1 RMRA  460,100
S18006 AD-94 Operations    39,100
Total Current Funding $ 713,600
Additional Appropriation Requested (Gas Tax 7360 Fund)    62,200
Total Project Funding $ 775,800
 
The total approved budget for this project is $713,600 with funding coming from Gas Tax 7360 Fund in the amount of $214,400, SB 1 RMRA in the amount of $460,100 and AD-94 Operations in the amount of $39,100.  Staff is requesting the City Council to appropriate an additional $62,200 from the Gas Tax 7360 unreserved fund balance to cover the shortfall.  There are sufficient funds available in the Gas Tax 7360 fund balance to cover the $62,200 amount.  There is no impact on the General Fund with this item.
 
REVIEWED BY OTHERS:
This item has been reviewed by the Finance Director and the City Attorney.
 
Attachments
Agreement

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