Title
Staff Report for a Resolution to Award a Construction Contract to American Asphalt for the Annual Street Sealing 2014-15 Project, Project No. 2015.0070 and City Council Approval of Appropriating $485,000.00 from the Measure B Local Streets and Roads Fund
Staffreport
SUMMARY AND RECOMMENDATIONS
This contract provides for the application of preventive maintenance treatments on various City streets in the 2015 Asphalt Maintenance Areas.
Staff recommends award of a construction contract to the low bidder, American Asphalt, in the amount of $1,175,102.42 for the subject work of the Base Bid and Bid Alternate "A". Staff also recommends that City Council approve appropriation of Measure B Local Streets and Roads funding of $485,000 for the Annual Street Sealing 2014-15 project.
BACKGROUND
Street sealing is an annual maintenance activity that can prolong the useful life of streets. The treatments associated with this project include slurry sealing, asphalt rubber chip sealing, and micro-surfacing. These treatments involve the application of one or more layers of aggregate materials, crumb rubber chips produced by recycling used tires, and asphalt emulsions. The particular process is individually selected for each street based on its street condition.
The City was awarded a grant from CalRecycle for the use of the crumb rubber chips in the rubberized chip seal process and will be reimbursed at a rate of $1.00 per square yard of roadway where that process is applied on this project.
Project streets were selected with priority given to arterial streets and by assigning treatments to streets that are suitable for street sealing starting with those with the lowest pavement condition index within the annual pavement maintenance area.
The bid documents contain a Bid Alternate "A" for repair of asphalt base failure that is required before installing street sealing treatments. This work was separated from the base bid so that it could be removed from the contract in the event that City staff or another contractor was able to perform it. City Public Works staff did not have the capacity to perform this additional work and the cost to perform this work with previously contracted street rehabilitation work was prohibitively costly and therefore Bid Alternate "A" will be awarded as part of this contract.
Analysis
A total of five bids were received on March 5, 2015 ranging from $1,175,102.42 to $1,450,115.45. American Asphalt submitted the lowest responsive Base Bid plus Bid Alternate "A" at $1,175,102.42. The pre-bid engineer's estimate for construction was $1,181,545.20.
The Base Bid was $808,182.42 and the Bid Alternate "A" was $366,920.00.
The existing funding is $870,000, therefore an appropriation of $485,000 is requested from the Measure B Local Streets and Roads fund for this project. The appropriation is requested because the City has proposed an ambitious project to use increased Measure B revenue as soon as possible saving streets earlier in an effort to reduce future maintenance cost.
Applicable General Plan Policies
This action is consistent with Streets and Highways Goal No. 16 of the General Plan and Action Item 16.03: Regularly maintain City streets and traffic control devices to ensure that streets operate safely and efficiently.
Environmental Review
This project was deemed categorically exempt from CEQA per Section 15301(c) - Existing Facilities. A Notice of Exemption was filed with the County Recorder on March 13, 2015.
Summary of Public Outreach Efforts
This project was advertised in the Daily Review as well as in three other newspapers whose circulation reflects the diversity of San Leandro on February 3, 2015. Staff also notified contractors interested in working with the City via email and sent plans to fifteen bid houses.
Prior to construction, staff will notify residents regarding the streets included in the project and project schedule. The contractor will also provide notification in the form of door hangers immediately before the work.
Fiscal Impacts
The total project cost including design, construction, contingencies and construction management is estimated to be $1,358,000.
Budget Authority
This project will be funded as follows:
1) $775,113 - Gas Tax Funds, Annual Street Sealing 2014-15, Account No. 142-38-354, allocated in FY 2014-15
2) $32,025 - Measure B/ACTC Funds, Annual Street Sealing 2014-15, Account No. 144-36-299 allocated in FY 2014-15
3) $66,255 Cal Recycle Grant, Account No. 150-38-354
4) $485,000 Measure B Funds, Local Streets and Roads, Account No. 144-38, Council approved appropriation via the attached Resolution
ATTACHMENT
ยท Bid Summary - Annual Street Sealing 2014-15
PREPARED BY: Nicole Noronha Castelino, Associate Engineer, Engineering and Transportation Department