HomeMy WebLinkAbout20A - AA - SLURRY SEAL#NAMPO
CITY COUNCIL MEETING DATE:
JUNE 21, 2016
TITLE:
AMEND SCOPE OF CONTRACT WITH
ALL AMERICAN ASPHALT FOR LOCAL
STREET SLURRY SEAL PROJECT
FISCAL YEAR 2014 -2015
(PROJECT NO. 15 -6839)
(STRATEGIC PLAN NOS. 6, 18; 1C; 1G)
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CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
E] As Recommended
E] As Amended
0 Ordinance on 18' Reading
0 Ordinance on 2 "6 Reading
0 Implementing Resolution
0 Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Approve an increase of $103,630 to the All American Asphalt construction contract for the
Local Street Slurry Seal Project for Fiscal Year 2014 -2015 to add enhanced roadway
treatment from slurry seal to rubberized asphalt.
2. Approve an appropriation adjustment recognizing $103,630 in 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.
DISCUSSION
On July 7, 2015, City Council awarded a contract to All American Asphalt in the amount of
$2,150,000 to construct the Local Street Slurry Seal Project approved in the City's Capital
Improvement Program for Fiscal Year 2014 -15. The recommended local street segments are
located throughout Santa Ana and were identified by the City's Pavement Management System
as high priority streets for slurry seal (Exhibit 1).
In 2007, the City leveraged a portion of Gas Tax revenues to finance approximately $60 million in
roadway improvements via Bonds. The intent was to restore all local and residential streets in
the City which had been neglected for many years. All bond funds have been expended except
for $103,630 in interest accrued.
While the original scope of this project has been completed, final accounting of the Gas Tax
bonds indicates accrued interest. The City is obligated to either spend these funds for
constructing additional qualifying roadway improvements or the funds must be returned. The
Local Street Slurry Seal Project for Fiscal Year 2014 -2015 meets the expenditure requirements of
the original bond agreement. Additionally, due to economies of scale, the project pricing offers
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Amend Scope of Contract with All American Asphalt
June 21, 2016
Page 2
an opportunity to maximize the amount of street resurfacing that can be completed with the
remaining funds.
During construction, staff discovered that the condition of some of the planned street segments
have worsened from the time they were designed, and a slurry seal can no longer be used.
However, with the additional funding available, the City can enhance the improvements of those
streets to a one - inch -thick rubberized asphalt layer. The location map (Exhibit 1) shows the
streets which were originally scheduled for slurry seal which would now be done with a
rubberized asphalt overlay. Once completed, the revised treatment will provide new roadway
pavement that will extend the life of the selected streets far beyond the initial scope of work.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities &
Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City
assets), Strategy B (equitably maintain existing streets and associated assets in a state of good
repair so they are clean, safe, and aesthetically pleasing for all users), Strategy C (invest
resources and technology to extend the service life of existing infrastructure to protect the City's
investment and support a high quality of life standard), and Strategy G (develop and implement
the City's Capital Improvement Program in coordination with the Community Investment Plan
[e.g., neighborhood streets, traffic improvements, park facilities, bike master plan, etc.]).
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the proposed project is exempt from
further review. Categorical Exemption ER No. 2015 -57 was filed for this project.
FISCAL IMPACT
The Project Cost Analysis originally estimated project expenditures of $2,902,500, which included
the construction contract, construction administration, and inspection, as well as contingencies.
An additional $103,630 will be added to the project for the additional scope of work for a revised
total estimated cost of $3,006,130 (Exhibit 2). The appropriation adjustment will recognize and
appropriate $103,630 of unrecognized interest earnings on bond proceeds in the Special
Revenue Gas Tax Fund revenue account (No. 02917002 - 58004) and facilitate an interfund
budgetary expenditure transfer from Special Revenue Gas Tax Interfund Transfer account (No.
02917019- 68000 -058) to the Gas Tax Residential Street Improvement Fund revenue account
(No. 05817002 - 59000 -029) and Residential Street Improvement expenditure account (No.
05817661 - 66220). Upon approval of the Appropriation Adjustment, funds will be available in the
Local Street Slurry Seal Project, FY 2014 -2015 (No. 15 -6839) for expenditure in Fiscal Year
2016 -2017.
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Amend Scope
June 21, 2016
Page 3
of Contract with All American Asphalt
APPROVED AS TO FUNDS AND ACCOUNTS:
re Mou vi our Francisco Gutierrez
Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
FM /EWG/TC /MO
Exhibits: 1. Location Map
2. Cost Analysis
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O`FMECT NOI 1
Exhibit 1
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COST ANALYSIS
PROJECT NO. 15 -6839: LOCAL STREET SLURRY SEAL 2014 -15
Construction Contract
$2,150,000
Contract Administration
$96,750
Inspection and Testing
$161,250
Surveying
$64,500
Contingencies
$430,000
Additional Scope of Work (this action)
$103,630
TOTAL ESTIMATED PROJECT DELIVERY COST
$3,006,130
Exhibit 2
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