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CC - CONSENT ITEM: (1) Award of Construction Contract to Hardy & Harper Inc., as the Lowest Responsive and Responsible Bidder, in the Amount of $2,065,000 for the 2022 Pavement Rehabilitation Project, PS-005; and (2) Authorization to the Public Works Director to Approve Change Orders to the Contract in an Amount Not-to-Exceed $516,250 to Cover Contingency Costs and Paving of Additional Streets (25%).
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Meeting Date: May 8, 2023
Contact Person: Diana Szymanski, Associate Engineer
Phone: (310) 253-5623
Fiscal Impact: Yes [x] No [ ] General Fund: Yes [X] No [ ]
Attachments: Yes [X] No [ ]
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/03/2023)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (04/25/2023)
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RECOMMENDATION
Staff recommends the City Council: (1) award a construction contract to Hardy & Harper Inc., as the lowest responsive and responsible bidder, in the amount of $2,065,000 for the 2022 Pavement Rehabilitation Project, PS-005; and (2) authorize the Public Works Director to approve change orders to the contract in an amount not-to-exceed $516,250 to cover contingency costs and paving of additional streets (25%).
BACKGROUND
Based on the low pavement condition index rating in the pavement management system and staff evaluation, the following streets have been selected to be resurfaced with new asphalt:
1. Centinela Boulevard between Mesmer Ave and Bristol Parkway
2. Jefferson Boulevard between 405 NB Ramp/City Limits to Sepulveda Boulevard
3. Madison Ave between Culver Boulevard to Braddock Drive
The scope of work consists of removing and replacing 2 to 3 inches of deteriorated asphalt concrete with new rubberized asphalt concrete. Damaged curb, gutter and sidewalk will be replaced where necessary. As part of the restriping of the street following resurfacing, bicycle lanes will be installed on the north and south side of Centinela Boulevard.
Additionally, project scope includes paving of the alley between Sepulveda Boulevard and Tuller Avenue, currently a dirt alley, to be repaved with PCC concrete.
The 2022 Pavement Rehabilitation Project, PS-005 was originally bid in April 2022. The construction bids greatly exceeded the engineer’s estimate for the project. The City Council rejected the bids in June 2022. City Staff revised the project scope, and rebid the paving project in January 2023, as approved by City Council on August 22, 2022.
DISCUSSION
The notice inviting bids was posted on PlanetBids on January 23, 2023. Two addendums were issued for the project on February 13, 2023 and February 16, 2023. On February 22, 2023, the City’s Purchasing Division opened the bids, and below is a summary of the bid proposals received:
Staff reviewed the six sets of contractors’ bid documents and determined Hardy & Harper, Inc. submitted the lowest responsive bid. Staff reviewed the bid proposal and found the bid documents responsive and complete. Its bond, contractor’s license, and worker’s compensation insurance were reviewed and determined to meet City requirements. Hardy & Harper Inc. is a well-established paving contractor and has completed many similar projects in cities throughout southern California with satisfactory performance.
Due to the favorable prices in Hardy Harper’s bid and a sufficient available budget, it is recommended that additional streets be included to the project scope of work, per Section 3-2.2.1 of the Standard Specifications for Public Works Construction, the Contract Unit Price will apply when actual contract quantities are within 25% of the original bid quantities. The proposed 25% construction contingency is requested to pave the additional streets and to cover unforeseen conditions.
Construction inspection and material testing services will be selected from the City’s pre-approved on-call engineering firms. Construction is scheduled to begin in Summer of 2023 and is expected to be substantially completed by the Winter of 2023. Typical Monday-Friday workdays are anticipated for this project’s construction activities.
PUBLIC NOTIFICATION
Approximately two weeks prior to construction activity, the adjacent businesses and residences will be provided with written information on the project schedule and contact information for questions and/or concerns regarding the project. The City will also use social media to inform residents and nearby businesses of the work and to provide on-going status reports. Changeable Message Signs will be installed on Centinela Boulevard and Jefferson Boulevard 10 days prior to construction.
FISCAL ANALYSIS
There is sufficient funding in the Revised Budget for Fiscal Year 2022-2023 for this agreement in CIP #PS005 (Annual Street Pavement Rehabilitation Project). The base contract to Hardy & Harper, Inc. would be for $2,065,000 with a contingency not to exceed $516,250 (25%) which would total $2,581,250. In addition, staff estimates that $265,000 will be needed for additional construction management costs related to inspection services, material testing, and survey monuments to be provided by an independent construction consultant. The total project cost is anticipated to be $2,846,250 and is included in the Revised Budget for Fiscal Year 2022-23 utilizing the funding sources identified below:
The breakdown of estimated expenditures is provided below:
Estimated Project Expenses
Hardy & Harper, Inc.’s Bid $ 2,065,000
25% Contingency $ 516,250
Construction Inspection Services (Estimated) $ 180,000
Material Testing (Estimated) $ 45,000
Survey Monument Preservation (Estimated) $ 40,000
Total Project Expenses: $ 2,846,250
ATTACHMENTS
None
MOTION
That the City Council:
1. Award the construction contract to Hardy & Harper Inc., as the lowest responsive and responsible bidder, in the amount of $2,065,000 for the 2022 Pavement Rehabilitation Project, PS-005;
2. Authorize the Public Works Director to approve change orders to the contract in an amount not-to-exceed $516,250 to cover contingency costs and paving of additional streets (25%); and
3. Authorize the City Attorney to review/prepare the necessary documents; and
4. Authorize the City Manager to execute such documents on behalf of the City.