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Agenda Item 20.
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| City Council Meeting |
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| Subject: |
| Contract with Sully Miller Contracting Company for the Water Main Replacement and Alley Rehabilitation Projects, CIP Project No.'s 7315, 7316, 7317, and 7461 in the amount of $2,694,000 |
| RECOMMENDATION |
- Adopt Resolution to Appropriate an Additional $1,350,000 from the Water Fund (Fund 420) and $200,000 from the Measure M Fund (Fund 260) for Project Construction, Contingency, and Administration;
- Receive Bids and Award Contract to Sully Miller Contracting Company in the amount of $2,694,000; and
- Authorize the Public Works Director or his designee to issue Contract Change Orders up to a "not to exceed" amount of 10% of the contract price.
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| BACKGROUND/DISCUSSION |
The Miscellaneous Alley and Water Capital Improvement Projects 7315, 7316, 7317 and 7461 (“Project”) were included as part of the Fiscal Year (“FY”) 2016-2017 and FY 2017-2018 Capital Improvement Program (CIP).
These Projects will replace the waterlines and rehabilitate the pavement to the Cliffwood Industrial Park which includes Cliffwood Street (south of Lambert Road), Oak Place, Thor Place, and Telstar Way. The Projects will also rehabilitate the alley east of Redwood Avenue between Birch Street and Ash Street and the alley east of Puente Street between Joyce Drive and Walling Avenue. Due to similar type of work, combining these projects results in more competitive bids and will save time in project administration.
The detailed descriptions of these projects are as follows:
Cliffwood Industrial Park (South of Lambert Rd. ) Water Improvements, Project 7461 – The water mains in this tract have experienced numerous leaks in the past several years and need replacement. The new water mains will provide reliable water service and better fire protection for the commercial properties. This project will replace approximately 5,500 linear feet of water main, services, gate valves, and appurtenances within the commercial tract.
Cliffwood Industrial Park (South of Lambert Rd.) Pavement Rehabilitation, Project 7317 – The existing pavement has experienced aging and poor drainage contributing to the aging process. The asphalt pavement is no longer recommended for slurry seal coating. This project will rehabilitate the existing pavement of the commercial streets in the Cliffwood Industrial Park. In addition, damaged and/or uplifted sections of cross gutters, curb, gutter, sidewalk, and curb ramps will be replaced.
Rehabilitation of Alley east of Redwood Avenue between Birch Street and Ash Street, Project 7315 – The pavement has exceeded its service life and is in poor condition. Also, the selection of this alley for rehabilitation is based on the ranking in accordance with the City’s Pavement Management Plan. This project will reconstruct the pavement in the alley east of Redwood Avenue between Birch Street and Ash Street. The approximate length of this project is 500 feet.
Rehabilitation of Alley east of Puente Street between Joyce Drive and Walling Avenue, Project 7316 – The pavement has exceeded its service life and is in poor condition. Also, the selection of this alley for rehabilitation is based on the ranking in accordance with the City’s Pavement Management Plan. This project will reconstruct the pavement in the alley east of Puente Street between Joyce Drive and Walling Avenue. The approximate length of this project is 700 feet.
On February 19, 2019, 9 bids were received with the following results:
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Contractor |
Amount |
| 1. |
Sully Miller Contracting Company |
$2,694,000.00 |
| 2. |
PALP, Inc. |
$2,776,810.45 |
| 3. |
GRFCO, Inc. |
$2,856,623.75 |
| 4. |
Hardy & Harper, Inc. |
$2,899,000.00 |
| 5. |
All American Asphalt |
$2,915,853.50 |
| 6. |
Sequel Contractors, Inc. |
$2,934,178.45 |
| 7. |
Big Ben, Inc. |
$2,980,638.25 |
| 8. |
Gwinco Construction & Engineering, Inc. |
$3,370,131.00 |
| 9. |
YAKAR |
$3,904,030.25 |
The lowest responsive bidder was Sully Miller Contracting Company of Brea, CA in the amount of $2,694,000. The company has a valid contractor’s license and has been in the construction business for 96 years. Sully Miller Contracting Company has successfully completed similar projects for the Cities of Irvine, Newport Beach, and Fullerton. These projects were completed satisfactorily according to the references. If awarded, construction could begin in May 2019, and take approximately six (6) months to complete; weather permitting. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee reviewed staff's recommendation at their March 26, 2019 meeting and recommended to proceed.
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| FISCAL IMPACT/SUMMARY |
Current funding for the project is from Fund 220 - Gas Tax ($50,485), Fund 221 - Road Maintenance and Rehabilitation Account ($246,966), Fund 260 - Measure M ($587,523), and Fund 420 - Water ($869,973) for a total original estimated cost of $1,754,947. This was a programmatic estimate as created within th CIP budget. However, as the design continued into fully developed plans and specifications there were several additional improvements necessary to accommodate the nearby businesses that were not captured in the original programmatic Project costs. The following table provides a breakdown of the construction and construction engineering budget with the requested additional funds:
| Project No. |
Project Description |
Fund 220 |
Fund 221 |
Fund 260 |
Fund 420 |
Total |
| 7315 |
Alley Rehab |
$26,320 |
$0 |
$138,680 |
$0 |
$165,000 |
| 7316 |
Alley Rehab |
$11,157 |
$0 |
$153,843 |
$0 |
$165,000 |
| 7317 |
Street Rehab |
$13,008 |
$246,966 |
$295,000 |
$0 |
$544,974 |
| 7461 |
Waterline Replacement |
$0 |
$0 |
$0 |
$869,973 |
$869,973 |
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Total |
$50,485 |
246,966 |
$587,523 |
$869,973 |
$1,754,947 |
| Estimated Total Project Costs |
Total |
| Design |
$102,753 |
| Construction Contract |
$2,694,000 |
| Contingency (10%) |
$269,400 |
| Construction Engineering |
$237,072 |
| Legal, Misc. |
$1,722 |
| Expenditure Total |
$3,304,947 |
| Adopted Project Budget |
$1,754,947 |
| Shortfall (Grand Total - Expenditure Total) |
$(1,550,000) |
As seen above, the shortfall for the Project is found to be $1,550,000. Since the original budget was prepared, several items have contributed to the increase in cost. One of the contributing factors is that over the last couple years there has been an experience of a busy bidding environment, which has resulted in high construction costs. It is anticipated that $200,000 from Fund 260 - Measure M and $1,350,000 from Fund 420 - Water Fund will provide the additional funding needed. Therefore, there will be no General Fund Impact.
Staff is recommending to receive bids, adopt attached resolution authorizing the additional funding in the amount of $1,550,000, award the Contract to the lowest responsible and responsive bidder Sully Miller Contracting Company in the amount of $2,694,000, and authorize the Public Works Director or his designee to issue Contract Change Orders up to a "not to exceed" amount of 10% of the Contract price.
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Raymond Contreras, Associate Engineer
Concurrence: Michael S. Ho, P.E., Deputy Director of Public Works/City Engineer and Tony Olmos, P.E., Public Works Director
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