TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Award of Contract - Yorba Avenue Street Improvements Project (ST233) and Local Street Rehabilitation FY2024 Project (ST241).
end
RECOMMENDATION
recommendation
1) Appropriate $1,021,174 to the Transportation Fund 320 for Project (ST233) Yorba Ave Street Improvements, with two corresponding year end transfers from the reserves of these two funds; General Fund 100 for $981,174 and Fund 220 Bridges/Signals/Thoroughfare for $40,000, for a revised project budget of $1,471,174; 2) appropriate $449,040 to the Transportation Fund 320 for Project (ST241) Local Street Rehabilitation FY2024, with a corresponding year end transfer from the reserves of the General Fund, for a revised project budget of $2,886,040; 3) award a construction contract to Hardy & Harper, Inc., Lake Forest, CA, for the Yorba Avenue Street Improvements Project (ST233) and the Local Street Rehabilitation Fiscal Year 2024 Project (ST241) for an amount not to exceed $3,195,550 and authorize up to $319,555 (10% of the contract amount) for project contingencies; 4) award a professional services agreement to GeoTek Inc., Corona, CA, for geotechnical services for the Yorba Avenue Street Improvements Project (ST233) and the Local Street Rehabilitation Fiscal Year 2024 Project (ST241) for an amount not to exceed $53,826; 5) authorize expenditures of up to $160,260 for construction management services, and $10,000 for overtime inspection costs for the Yorba Avenue Street Improvements Project (ST233) and the Local Street Rehabilitation Fiscal Year 2024 Project (ST241); and 6) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
The fiscal impact by awarding the contracts listed above for Projects ST233 and ST241 will reduce the reserves of the General Fund 100 balance by $1,430,214, and Fund 220 Bridges/Signals/Thoroughfare by $40,000. The City received a $440,000 cash payment from Yorba XC, LLC (developer) for the Yorba Avenue Street Improvements Project ST233 in lieu of the improvement performed by the developer. The City appropriated $400,000 of $440,000 from the developer to Project ST233 during the budget process in Fiscal Year 2022-23. The remaining $40,000 is being appropriated to Project ST233 with this Council action. There is sufficient fund balance in both Fund 100 and Fund 220 for this purpose.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
|
Revenue: |
Expenditure: 3207100 - 48005 | 48009 - ST233 1000000 - 48005 | 48009 - ST241 |
|
Transfer In: |
Transfer Out: |
BACKGROUND
Yorba Avenue Street Improvements - Project ST233
In 2021, the City Council approved a General Plan Amendment, Zone Change, and the related environmental Mitigated Negative Declaration for the Yorba XC Project (“Development Project”) following a recommendation of approval from the Planning Commission. The Project consists of two separate site approvals for the construction of a two-story administrative office building for the Chino Valley Unified School District located at 13461 Ramona Avenue and for the construction of a 325,300 square-foot industrial building located at 13404 Yorba Avenue. During the private development project entitlement process, members of the Planning Commission and the City Council expressed truck traffic safety concerns on Yorba Avenue and adjacent local streets around the project area. The City Council also expressed concerns about lack of street improvements along Yorba Avenue to support the proposed industrial building.
The developer and staff discussed additional options and/or modifications to the industrial project and Yorba Avenue roadway that could be implemented to address the Planning Commission and City Council’s truck traffic concerns. Based on the discussions, the developer was able to provide additional detailed analysis/information related to truck traffic and the Yorba Avenue roadway design to address the concerns without changing the project design/scope. The Project was ultimately approved by unanimous vote on September 7, 2021, by the City Council.
As part of the entitlement, the developer agreed to pay the City $240,000 for its fair-share cost of the improvements of the west side of Yorba Avenue within the existing right-of-way which had been planned to be completed by the City’s Capital Improvement Program (CIP). The developer also contributed an additional $200,000 to the City to fund a portion of the improvements necessitated by their project at the intersection of Yorba and Schaefer Avenues.
Currently, the City is moving forward with the Yorba Avenue Street Improvements from Chino to Schaefer Avenues (“Project ST233”). The Project scope includes sidewalk connectivity, curb and gutter installation, and asphalt pavement rehabilitation along the existing residential developments north of the planned project frontage. It also includes the removal of non-City and City-owned trees to the south of the project site (along the west side of Yorba Avenue) and the widening and installation of asphalt pavement and berm along the roadway. An easement for public sidewalk purposes will be dedicated to the City by the property owner located at 13386 Yorba Avenue before the construction of the sidewalk and drive approach along the property’s frontage. Interim improvements are also being constructed with this project to enhance truck turn movements at the intersection of Yorba and Schaefer Avenues.
Additionally, the streets within the industrial areas adjacent to Yorba Avenue were identified as deficient and added to the pavement rehabilitation for Project ST233.
Local Street Rehabilitation Fiscal Year 2023-24 - Project ST241
The City Council held a workshop on June 13, 2023. City staff presented recommendations from the City’s Pavement Management Inventory Program (“Program”) to target a citywide Pavement Condition Index (“PCI”) of 75. To meet the target PCI, the Program forecasts annual expenditures of approximately $11.8 million per year over the next five years. The adopted City budget for pavement management projects allocates approximately $5 million per year with primary sources of funding from Measure I and the Road Maintenance and Rehabilitation Account (“RMRA”) revenues. Therefore, a shortfall of approximately $7 million per year was identified to achieve acceptable street conditions. The Council directed staff to devise a CIP plan to spend an additional $21 million during the next two fiscal years to achieve the targeted street conditions, including alleys, throughout the City.
Accordingly, on July 6, 2023, staff presented the Citywide Pavement Rehabilitation Project - Phase 1 to the Streets Infrastructure Committee. Due to the challenge of completing pavement rehabilitation projects meeting the City’s Policy on Accessible Facilities in the Public Right of Way in a timely and cost-effective manner, staff proposed a pilot program to coordinate the design and build efforts. The program approach utilizes existing City standard ramp designs with layouts customized to each intersection, reducing the design lead time. The work is further separated into two stages with a contract for concrete work and a contract for the asphalt work to follow. Staff presented the pilot program to the City Council on July 18, 2023, and received support to move forward.
The City’s on-call contractor and contract inspector successfully completed accessibility ramp improvements on 7th Street between “D” Street and Washington Avenue as part of Phase I of the pilot program. The City is ready to move forward with the street rehabilitation surrounding these ramp improvements and other streets identified for rehab in nearby areas identified with the Local Street Rehabilitation Fiscal Year 2024 Project (“Project ST241”).
ISSUES/ANALYSIS
Plans and specifications were prepared for the construction of Project ST233, and a Notice Inviting Bids was published both locally, and in regional trade publications, and on the Planet Bid web-based bid system on September 14, 2023.
Staff issued an addendum to include Project ST241 in the Notice Inviting Bids. The addendum also updated the bid item list to include an “Alternative Bid” list to potentially reach a more competitive price for several bid items.
On November 15, 2023, at 10:00 a.m., two (2) bids were received and opened, the following results include the top contractors with the “Alternative Bid” price:
|
|
|
Bid Amounts |
|
Company |
Location |
ST233 |
ST241 |
Total |
|
Hardy & Harper, Inc. |
Lake Forest, CA |
$1,143,200 |
$2,052,350 |
$3,195,550 |
|
All American Asphalt |
Corona, CA |
$1,314,421 |
$2,071,626 |
$3,386,047 |
The lowest, responsible, responsive bid was submitted by Hardy & Harper, Inc., Lake Forest, CA, as shown in the table above for a total amount of $3,195,550. Staff subsequently reviewed the contractor’s licensing, bonding, references, and list of subcontractors submitted for the project, and found all bid submittal documentation to be in order.
All contract documents have been reviewed by the City Attorney’s Office and found to be in order.
The estimated project construction costs are itemized below:
|
Project Task |
Vendor |
Project ST233 |
Project ST241 |
Totals |
|
Construction |
Hardy and Harper Inc., Lake Forest, CA |
$1,143,200 |
$2,052,350 |
$3,195,550 |
|
Construction Management |
Z&K Consultants Inc., Riverside, CA |
$51,620 |
$108,640 |
$160,260 |
|
Overtime Inspection |
City Staff |
$5,000 |
$5,000 |
$10,000 |
|
Geotechnical Services |
GeoTek, Inc., Corona, CA |
$26,913 |
$26,913 |
$53,826 |
|
10% Contingency (1) |
As allowable per the Public Contract Code |
$114,320 |
$205,235 |
$319,555 |
|
EST. PROJECT COST TOTAL |
|
$1,341,053 |
$2,398,138+ |
$3,739,191 |
Note: (1) Note that, as in all the City's public works contracts, the contract itself provides the Director of Public Works authority to issue change orders of up to 10% of the original contract amount. When the Council approves the contract, it approves this authority. Ten percent is generally considered within the normal range of changed conditions on a public works construction project and, by providing change order authority upfront, Council helps to reduce the possibility of delay on a construction project.
Staff recommends the following as summarized above:
1. Awarding a construction contract to the low bidder Hardy & Harper, Inc., Lake Forest, CA, in an amount not to exceed $3,195,550, with contingency costs of $319,555
2. Award a professional services agreement to GeoTek Inc., Corona, CA, for geotechnical services in an amount not to exceed $53,826
3. Authorize construction management fee not to exceed $160,260 using an existing on-call consultant agreement with Z&K Consultants Inc., Riverside, CA
4. Authorization of expenditures up to $10,000 for overtime city staff inspection costs.
This project is exempt from the California Environmental Quality Act (CEQA) according to Section 15301(c) of the CEQA Guidelines - Existing Facilities, which includes the operation, repair, and maintenance of highways, streets, sidewalks, gutters, bicycle and pedestrian trails, and other similar facilities.
Attachments - Project Map
Hardy & Harper, Inc. Agreement
GeoTec Inc. Agreement