HomeMy WebLinkAbout2006-06-13; City Council; 18592; 2006 Pavement Overlay ProjectCITY OF CARLSBAD - AGENDA BILL
AB# 18.592
MTG. 6/13/06
DEPT. ENG
TITLE:
AWARD OF CONTRACT FOR CONSTRUCTION OF THE
2006 PAVEMENT OVERLAY PROJECT NO. 3667-13
AND APPROPRIATION OF FUNDS
DEPT. HD.
CITYATTY.'
CITY MGR. (^
RECOMMENDED ACTION:
Adopt Resolution No. 2006-147 accepting bids and awarding a contract for the construction
of the Pavement Overlay Project No. 3667-13 and appropriation of funds.
ITEM EXPLANATION:
The 2006 Pavement Overlay Project is part of the City's ongoing Pavement Management Program.
This rehabilitation project will extend the life of various roadways in the Northwest Quadrant of the
City by applying a rubberized asphalt concrete layer over the existing pavement. The roadways in the
Northwest Quadrant were selected based on the age and existing condition of the roadway surface.
In addition, this project proposes to overlay El Camino Real from Palomar Airport Road south to
Dove Lane. This segment of El Camino Real has recently been trenched for the installation of two
large water mains and to provide utilities and widen El Camino Real for numerous developments
such as Bressi Ranch and Villages of La Costa (Greens). The City also recently repaired a number of
areas to hold the pavement together until an overlay project can fully rehabilitate the roadway. All the
streets are listed in Attachment "A".
On March 14, 2006, City Council authorized the advertisement for bids for construction of the
Pavement Overlay Project No. 3667-13. Three bids were received on May 18, 2006, which are
summarized as follows:
CONTRACTOR
1. Silvia Construction, Inc.
2. Hazard Construction Co.
3. Sim J. Harris, Inc.
BID TOTAL
$5,978,245
$5,990,793
$6,473,870
The lowest responsive bidder, Silvia Construction, Inc., submitted a bid in the amount of $5,978,245,
which was 55% higher than the Engineer's Estimate. Discussions with the three bidders indicate the
following regarding cost increases.
• Over the last 11 months, the unit price of the asphalt oil increased 100% in price.
• The asphalt oil suppliers indicate another increase of $20/asphalt oil ton by September 2006.
This cost increase was included by all three bidders in preparing their estimate, and the third
low bidder inflated this cost of oil in anticipation of performing some work in the fourth
quarter. Costs for asphalt oil are made available to contractors on a quarterly basis.
• The low bid contractor does not have his own material hauling trucks. The cost they pay for
hauling is per hour, rather than per ton. Labor costs have increased as well as fuel costs.
The low bidder indicated the price of diesel fuel has increased even more than gasoline.
• Aggregate cost has increased because of labor and fuel cost increases.
• The raising of manhole and valve covers to grade is performed by subcontractors. There are
only a few subcontractors in San Diego that perform this work, and their unit prices increased
this year.
Page 2
• Contractors are hauling asphalt from San Diego rather than from the San Marcos plant
because the San Marcos plant will not provide rubberized asphalt. The rubberized asphalt
interrupts their normal asphalt deliveries. The additional distance from San Diego impacts
hauling cost and production time. Dramatic increases in trucking costs and fueling costs for
equipment were used on the project bids.
• The City's specifications required three of the streets to be completed before the contractor
could move to the next street, which impacts the production of rubberized asphalt.
The asphalt plant must shut down until repairs and preparation on the next street are
completed before paving can resume. This condition was included to ensure that the paving
contractor was not delayed by the concrete contractor working on the same streets.
• The rubberized plant supplier, if shut down, wants $10,000 per day to leave and come back,
which was factored into unit prices.
The unit price of asphalt oil, aggregate material, and labor hauling is not expected to decrease this
year. As a result, requesting new bids is not anticipated to result in lower construction costs.
Project Options - Based on the bid results, the project cost now exceeds the project appropriation.
As a result, staff has developed options for the City Council's consideration. Rejecting all bids and
re-advertising the project unchanged is not included as an option because lower bids are not
anticipated. The following is a discussion of each option.
Option 1 - Award contract to apparent low bidder. The construction of the 2006 Pavement Overlay
Project would be awarded to the apparent lowest responsive bidder, Silvia Construction Inc., in the
amount of $5,978,245. Staff has reviewed all the bids and has found them to be in order. It is
recommended that the additional appropriation required be obtained from the Gas Tax fund.
Option 2 - Reject all bids and re-bid the project with conventional asphalt concrete instead of
rubberized asphalt concrete. Rubberized asphalt concrete is a superior product to conventional
because reflective cracking is significantly reduced and it lasts longer than conventional asphalt
pavement. If the project is re-bid with conventional asphalt concrete, the city can expect a savings
of $17 to $25 per ton, or $650,000 to $1,000,000 over the entire project. Despite utilizing a less
expensive product, this option would still require additional appropriation.
Option 3 - Reject all bids and reduce the project scope to be within current appropriation. Utilizing
unit price information developed from these bids, the number of streets to receive a rubberized
asphalt pavement overlay will be reduced to comply with the current appropriation. The overlay on
El Camino Real would be maintained but the streets in the northwest quadrant to receive an overlay
would be reduced. The total project would be scaled back by 38% or 14.7 lane miles. Using this
approach, staff will re-advertise the entire project but place the streets into two or more separate
schedules. Schedule A would be the basis of awarding the bid with a quantity reflecting the current
appropriation. The other schedules will be considered as an add-on. However, because of
economies of scale, unit prices for asphalt concrete may actually increase. The selection of this
option would mean that streets which currently need an overlay would not get resurfaced.
Staff is recommending Option 1 because all of the streets identified in the project are currently in
need of an overlay.
ENVIRONMENTAL REVIEW:
This project is categorically exempt from the environmental review process under Section 15301
Class 1(c) of the Public Resources Code (California Environmental Quality Act).
PageS
FISCAL IMPACT:
Shown below is the project cost for Optionl, which includes awarding the project to the apparent
lowest bidder, Silvia Construction, Inc.
2006 PAVEMENT OVERLAY PROJECT - OPTION 1
Construction Contract
Construction Contingency
Project Administration and Inspection
TOTAL COST
AVAILABLE APPROPRIATIONS
ADDITIONAL APPROPRIATION NEEDED
.' cqiisrs;;*" ;
$5,978,245
$100,000
$121,755
$6,200,000
$4,357,000
$1,843,000
Staff recommends that an additional $1,843,000 be appropriated from the Gas Tax fund to fully-fund
the improvements included in the project. Sufficient funds are available in the Gas Tax fund for this
appropriation. On March 14, 2006, City Council approved Resolution No. 2006-058 which authorized
a $1.0 million loan from the Gas Tax fund to the Pavement Management Program for the purpose of
paving El Camino Real this year. The Resolution for this project is appropriating the previously
approved loan from the Gas Tax fund.
EXHIBITS:
1. Attachment "A" List of 2006 pavement overlay streets.
2. Location Map.
3. Resolution No. 2006-147 accepting bids and awarding a contract for the
construction of the 2006 Pavement Overlay Project No. 3667-13 and appropriation of funds.
DEPARTMENT CONTACT: Jon Schauble, (760) 602-2762, ischa@ci.carlsbad.ca.us
EXHIBIT 1
ATTACHMENT "A"
2006 PAVEMENT OVERLAY STREETS
ROAD
CARLSBAD VILLAGE DRIVE
TAMARACK AVE
TAMARACK AVE
EL CAMINO REAL
ELCAMINOREAL
EL CAMINO REAL
EL CAMINO REAL
AMES PL
ANDREA AVE
ANN DR
AVOCADO LN
BALDWIN LN
BASSWOOD
BUENA VISTA CIR
BUENA VISTA WAY
BUTTERS RD
CAMEO ROAD
CAROL PL
CHESTNUT AVE
CHINQUAPIN AVE
CIPRIANO LN
DAVIS AVE
DAVIS AVE & PI
ELMWOOD ST
FOREST AVE
FOREST AVE
GARFIELD ST
GLORIA LN
GUEVARA RD
HARDING ST
HARDING ST
HIGHLAND DR
HIGHLAND DR
HOOVER ST
JAMES DR
JAMES DR
JAN IS WAY
JEANNE PL
KARREN LN
KNOWLES AVE
KNOWLES AVE
KREYMEYER CIR
FROM
Pio Pico
Jefferson
Adams St
Palomar Airport Rd
Camino Vida Roble
Cassia Rd
Poinsettia Lane
Chestnut
Valley
Gayle Way
Harding
Chinquapin
Highland
Laguna
Jefferson
Highland
Chestnut
Jefferson
Lincoln
Linmar
Forest
Knowles
Knowles
Buena Vista
Highland
Pio Pico
Ocean
Jeanne PI
Highland
Magnolia
Oak Ave
Chestnut
Las Flores
Adams
Tamarack
Basswood
Ann Dr
James Dr
Monroe
Jefferson
Pio Pico
Laguna
;: ' TO- ...:.. V
El Camino Real
Adams St
Skyline
Camino Vida Roble
Cassia Rd
Poinsettia Lane
Dove Lane
end
end
Janis
end
end
Valley
end
Davis
end
end
Harding
Washington
Jefferson
end
Buena Vista
Laguna
Laguna
Crest
Highland
Pacific
end
end
Carol
Cbad Village Dr
Chinquapin
Forest Ave
Highland
Tara
south end
Donna Dr
end
end
end
Elmwood
end
ATTACHMENT "A"
2006 PAVEMENT OVERLAY STREETS
ROAD
LAGUNA DR
LAGUNA DR
LINCOLN ST
MADISON ST
MAGNOLIA AVE
MAGNOLIA AVE
MONROE STREET
MOUNTAIN VIEW DR
NORMANDY LANE
OAK AVE
OAK AVE
OCEAN ST
OCEAN ST
PARK DR
RATCLIFF RD
REDWOOD AVE
ROOSEVELT ST
SPRUCE ST
SYCAMORE AVE
TUTTLE ST
TYLER ST
VALLEY ST
YOURELL AVE
FROM
Jefferson
Pio Pico
Oak Ave
Cbad Village Dr
Roosevelt
Highland
Carlsbad Village Dr
Ocean
Garfield
Jefferson
Lincoln
Rue de Chateaux
Oak Ave
Monroe
Highland
Carlsbad Blvd
Carlsbad Village Dr
Forest
Carlsbad Blvd
Buena Vista
Oak Ave
Chestnut
Highland
.-^-vr.Ta ' -
end
Elmwood
Chestnut
Magnolia
Harding
Monroe
Chestnut
Pacific
Mtn View
Harding
Washington
Mtn View
Cypress
Woodvale
end
end
Magnolia
end
Garfield
Las Flores
Chestnut
Magnolia
Spruce
LOCATION MAP
r—CARLSBAD VILLAGE DRIVE
BUENA
VISTA
LAGOa
VARIOUS STREETS TO BE OVERLAID
TAMARACK AVENUE
CITY OF VISTA
EL CAMINO REAL
BATIQUITOS LAGOON
PACIFIC
OCEAN
NOT TO SCALE
LEGEND:CITY OF ENCINITAS
STREETS TO BE OVERLAID
PROJECT NAME
2006 PAVEMENT OVERLAY PROJECT
PROJECT
NUMBER
3667-13
EXHIBIT
DRAWN BY: ALFRED ROMERO, CARLSBAD ENGINEERING DEPT. 2/23/2006 H:\CAPITAL\SCHAUBLE\3667-13_2006_PAVEMENT_OVERLAY.DWG
RESOLUTION NO. 2006-147
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING BIDS AND AWARDING CONTRACT FOR
THE CONSTRUCTION OF THE 2006 PAVEMENT OVERLAY PROJECT
NO. 3667-13. AND APPROPRIATION OF FUNDS.
WHEREAS, the City Council of the City of Carlsbad, California, has determined it
necessary, desirable, and in the public interest to resurface various roadways in the Northwest
Quadrant of the City, including El Camino Real south of Palomar Airport Road; and
WHEREAS, the project is exempt from the California Environmental Quality Act pursuant
to CEQA Section 15301 Class 1(c); and
WHEREAS, on March 14, 2006, the City Council approved plans and specifications for
furnishing of all labor, materials, tools, equipment, transportation, and other expenses necessary
or incidental to the 2006 Pavement Overlay Project No. 3667-13; and
WHEREAS, three (3) sealed bids were received on May 18, 2006 for the project; and
WHEREAS, the lowest responsive, responsible bid for the project was submitted by
Silvia Construction, Inc., in the amount of $5,978,245; and
WHEREAS, additional Gas Tax funds need to be appropriated in order to construct the
2006 Pavement Overlay Project No. 3667-13; and
WHEREAS, on March 14, 2006, City Council approved Resolution No. 2006-058 which
authorized a $1.0 million loan from the Gas Tax fund to the Pavement Management Program for
the purpose of paving El Camino Real this year.
WHEREAS, there are sufficient Gas Tax funds available for the additional appropriation.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
23 1 - That the above recitations are true and correct.
2. That the bid submitted by Silvia Construction, Inc., in the amount of $5,978,245 is
hereby accepted, and the Mayor is hereby authorized to execute the contract for the construction
of the 2006 Pavement Overlay Project No. 3667-13, in accordance with the plans, specifications,
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and contract documents referred to herein.
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3. That the Finance Director is hereby authorized to appropriate $1,843,000 from the
Gas Tax fund for the project.
4. That the Finance Director is hereby authorized to appropriate the previously
approved loan of $1.0 million to the Pavement Management Program from the Gas Tax Fund.
5. That the City Manager is hereby authorized to approve construction change orders
up to the contingency amount of $100,000 to Silvia Construction, Inc., for the 2006 Pavement
Overlay Project No. 3667-13.
6. That the award of this contract is contingent upon Silvia Construction, Inc.,
executing the required contract and submitting the required bonds and insurance policies,
as described in the contract, within twenty (20) calendar days of adoption of this resolution.
The City Manager may grant reasonable extensions of time.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the 13th day of June , 2006 by the following vote, to wit:
, Kulchin, Packard, SigafooseCouncil Members Lewis,
CLAUDE
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