HomeMy WebLinkAbout20A - AA - LOCAL STREET IMPROVEMENTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 20, 2014
TITLE:
APPROVE CONTRACT CHANGE ORDER
TO ADD LOCAL STREET IMPROVEMENTS
TO THE EXISTING CONTRACT WITH ALL
AMERICAN ASPHALT, INC., IN THE
AMOUNT OF $1,000,000
(PROJECT 146822) /
CITY MANAGfR
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1' Reading
❑ Ordinance on 2n° Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Approve a contract change order to add local street improvements to the construction contract
with All American Asphalt in the amount of $1,000,000, which increases the total estimated
contract to $7,786,182.
2. Authorize the City Manager to execute said change order in an amount not to exceed $1,000,000
for construction of local streets.
3. Approve an appropriation adjustment recognizing $176,271 in unrecognized interest earnings on
Gas Tax revenue bond proceeds, transferring the funds to the Gas Tax Residential Street
Improvement revenue account, and appropriating the same into the Gas Tax Residential Street
Improvement expenditure account, which totals $1,000,000 when added to the undesignated
bond proceeds of $823,729.
DISCUSSION
The recommended action allows the City to commit the remaining balance of Residential Street
Repair bond funds principal before its expiration at the end of Fiscal Year 2013 -14. By issuing a
change order to the existing All American Asphalt, Inc., the contractor performing the Bristol Street
Improvements between 2nd and 10th Streets, the City can meet the bond issuance commitment
deadline and may benefit from low unit pricing for the residential street improvements.
In December 2007, the City leveraged gas tax revenues as debt service for a $68 million bond. The
funds were restricted for the purposes of rehabilitating local streets. Over the initial five years of the
Residential Street Repair Bond Program project, streets were rehabilitated at much lower costs.
Lower unit pricing from a favorable bid climate, economies of scale associated with large bid
quantities, and advanced construction techniques enabled the City to perform more street
rehabilitation work than anticipated. As a result, after each phase of construction, a balance
remained unexpended. The bond terms require that all proceeds be committed before the end of
Fiscal Year 2013 -14.
20A -1
Contract Change Order to Add Local Street Improvements
to Contract with All American Asphalt, Inc.
May 20, 2014
Page 2
Staff has identified the streets in Exhibit 1 as the next highest priority residential streets eligible for
using these bond funds. The recommended streets were constructed with concrete pavement and
have deteriorated due to weather, age, and heavy usage, In response to the time constraint, staff
recommends modifying the current All American Asphalt, Inc., contract to maximize economies of
scale and favorable unit prices received in the open bid process for the procurement of the Bristol
Street Improvements and Widening Project. The City Council awarded a contract to All American
Asphalt, Inc., the lowest bidder, on January 22, 2013. The prices are within the range the City has
paid for similar residential street repair work of this magnitude in the past. Staff has determined that
approving a change order to cover residential street repairs is the most efficient way to meet the
requirements of the bond. This final phase of residential street repair will consume the remaining
bond principal balance.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the proposed project is exempt from
future review. Categorical Exemption Environmental Review No. 2014 -40 will be filed for the project.
FISCAL IMPACT
The appropriation adjustment will recognize and appropriate $176,271 in unrecognized interest
earnings on bond proceeds in the Special Revenue Gas Tax Fund revenue account (02917002-
58004) and facilitate an interfund budgetary transfer expenditure (02917019 -68000 -058) to the Gas
Tax Residential Street Improvement Fund revenue (05817002- 59000 -029) and expenditure
(05817661- 66220) accounts. The Project Cost Analysis (Exhibit 2) has been revised for a total
estimated construction contract of $7,786,182.
APPROVED AS TO FUNDS AND ACCOUNTS:
;dwin "William" Galy , P.E. Francisco Gutierrez
Interim Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
Exhibits: 1. Location Map
2. Cost Analysis
20A -2
Contract Change Order to Add Local Street Improvements
to Contract with All American Asphalt, Inc.
May 20, 2014
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Contract Change Order to Add Local Street Improvements
to Contract with All American Asphalt, Inc.
May 20, 2014
Page 4
COST ANALYSIS
CONTRACT AWARD FOR ALL AMERICAN ASPHALT
PROJECT 081700
BRISTOL IMPROVEMENTS
Construction Contract $6,169,256
Contingencies $616,926
TOTAL CONTRACT AWARD — JANUARY 2013 $6,786,182
PROJECT 146822
FY 13/14 RESIDENTIAL STREET IMPROVEMENTS
Local Streets Change Order $1,000,000
TOTAL ESTIMATED CONSTRUCTION COSTS $7,786,18 2
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