TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Gilbert Ramos, Associate Engineer
SUBJECT:Title
Consideration of Resolutions Awarding a Construction Agreement to Hardy and Harper, Inc. for the Cycle 2 Street Resurfacing Project for $3,732,000; and Approving a Construction Management and Inspection Services Agreement with Z&K Consultants, Inc. for $141,574; and Determination Pursuant to the California Environmental Quality Act (CEQA) that this Activity is Categorically Exempt Pursuant to the State CEQA Guidelines (Public Works Director Lee).
ADOPT RESOLUTION NOS. 23-0040 AND 23-0041
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council:
1. Adopt Resolution No. 23- 0040:
a. Awarding a construction contract to Hardy and Harper, Inc. for the Cycle 2 Street Resurfacing Project for $3,110,000 and authorizing the City Manager to execute the agreement; and
b. Authorizing the City Manager and/or his or her designee to approve an extra work contingency up to $622,000; and
c. Approving the Final Plans and Specifications for the Project
2. Adopt Resolution No. 23- 0041 Awarding an Inspection Services Agreement to Z&K Consultants, Inc. for the Project for $141,574 and authorizing the City Manager to execute the agreement; and
3. Determine that pursuant to CEQA, the activity is Categorically Exempt pursuant to State CEQA Guidelines.
FISCAL IMPLICATIONS:
Funds for the Cycle 2 Street Resurfacing Project encompassing Agnes Road, Flournoy Road, 27th and 29th Streets (Project) are scheduled within the Annual Street Resurfacing Program. The expected construction and inspection expenditures for this project total $3,900,000, with $756,300 from the Gas Tax Fund, $2,043,700 from the Proposition C Fund, and $1,100,000 from the Measure M Fund as outlined in the Budget and Expenditure Summary Report.
The construction agreement with Hardy and Harper, Inc. is for $3,110,000 with a $622,000 contingency for a total amount not to exceed $3,732,000. The Inspection Services Agreement with Z&K Consultants, Inc. is for a total amount not to exceed $141,574. Sufficient budget exists for both agreements within the project’s current appropriation. There are no anticipated fiscal implications associated with the recommended action at this time.
BACKGROUND:
The City of Manhattan Beach is responsible for the repair and maintenance of over 100 linear miles of street that vary in age and condition, and which require varying treatments periodically to maintain them at high standards. To meet this objective, the City has an Annual Street Resurfacing Program in place which provides for milling and overlaying street pavement surfaces and replacing disturbed curbs, gutters and sidewalks. Locations of specific projects are determined through the Triennial Pavement Management (TPM) System Update. The TPM is an inspection of pavement surfaces to assess condition, prioritize rehabilitation, and determine resources required to maintain street pavements in good condition. Based on the 2021 TPM’s Pavement Condition Index (PCI) rating, staff prioritized several low-scoring street segments to be resurfaced, which include the Cycle 2 Street Resurfacing Project.
DISCUSSION:
Construction Bids
Base and Additive bids for the Cycle 2 Street Resurfacing Project (Bid No. E1274-22C) were solicited on a competitive basis in accordance with the provisions of the California Public Contract Code in March 2023. The Project was advertised on the City of Manhattan Beach Public Works Department Bid Opportunities webpage and the City’s Bid Portal with PlanetBids (an online service that connects vendors, suppliers, and contractors to government procurement opportunities). Staff also notified several contractors who had completed comparable facility projects regarding this project. In addition, to allow for adequate examination of the project site prior to bidding, staff conducted a virtual pre-bid meeting for contractors, material suppliers, and interested parties.
Two bids were received on March 15, 2023. The bids ranged from a low bid of $3,800,000 to the highest bid of $4,798,490 as follows:
Contractor Total Bid Amount
Hardy and Harper, Inc. $ 3,800,000
All American Asphalt $ 4,798,490
All bid packets were analyzed for arithmetical errors, completeness, accuracy, etc. Hardy and Harper, Inc. bid was reviewed by staff and found to be responsive. Representatives of agencies where work has been performed by Hardy and Harper, Inc. have indicated that the work performed was comparable to the Project scope of work and completed to their satisfaction. The current project was discussed with representatives of the firm and they expressed confidence in their bid and a desire to perform the work in a timely and acceptable manner.
The total bid amount includes the base bid plus all additive bids. The total Project scope included the following street segments:
• Agnes Road from Marine Avenue to 29th Street (Base Bid)
• 29th Street from Blanche Road to Agnes Road (Base Bid)
• 27th Street from Laurel Avenue to Pacific Avenue (Base Bid)
• Flournoy Road South from Valley Drive to 19th Street (Additive “A”)
• Flournoy Road North from Valley Drive to 33rd Street (Additive “B”)
• Marine Avenue from Blanche Road to Valley Drive (Additive “C”)
• 14th Street from Agnes Road to Laurel Avenue (Additive “D”)
• Curb Extension Bulb-outs Various Locations (Additive “E”)
The low bid amount includes:
Bid Schedule Bid Amount
Base Bid (Agnes Road, 27th and 29th Streets) $ 1,870,000
Additive Bid “A” (Flournoy Road South) $ 80,000
Additive Bid “B” (Flournoy Road North) $ 1,110,000
Additive Bid “E” (Additive Bulb-Outs) Ardmore/Flournoy Only $ 50,000
Given the low bid received and the anticipated additional project expenses identified in the attached Budget and Expenditures summary report, staff is recommending an award of contract for the base bid scope of work plus additives “A,” “B,” and “E” (only item E2 - Bulb Out Improvements at Ardmore/Flournoy). All other street segments will be completed in a future street resurfacing project cycle.
Inspection Services
The City issued a Request for Proposals (RFP) on December 15, 2022, seeking full-time construction inspection services for the Project. The scope of work includes:
• Ensuring the contractor complies with the plans, specifications and applicable standards of each project;
• Performing field project oversight;
• Documenting the daily work performed by the contractor;
• Verifying the completed work, monitoring, providing supporting documentation and inspecting any additional work performed; and
• Preparing a list of items for correction.
Five proposals were received by January 5, 2023, deadline. These proposals were evaluated by an evaluation committee of City staff according to the following selection criteria:
• Demonstrated understanding of the Scope of Services requested;
• Firm qualifications and experience performing similar work;
• Project/Construction management methods and quality control;
• Qualifications and experience of key personnel; and
• Consultant’s familiarity with local (sensitivity) conditions.
Based on the selection criteria, Z&K Consultants, Inc. provided the most responsive proposal for the entire breadth of the project. The assigned staff, including sub-consultants, has excellent experience on projects of similar type, size, constraints, and coastal conditions. Additionally, they presented an understanding and methods of management of the key project issues. The proposed level of staffing and the backup staff was appropriate for the size, complexity, and potential unforeseen of the projects. The methodology proposed by Z&K Consultants, Inc. for executing the scope of work was clear and organized.
Therefore, staff recommends that the City Council award a Construction Agreement to Hardy and Harper, Inc. for $3,110,000 and that the City Manager and/or his or her designee be authorized to approve change orders up to $622,000 for additional work. Additionally, staff recommends that City Council award an Inspection Services Agreement for $141,574 to Z&K Consultants, Inc. for the project.
The Notice to Proceed to fulfill preconstruction requirements and order materials will be issued as soon as the Council-approved award package is finalized. Construction installation is anticipated to start approximately four to six months after the contractor begins procuring products and materials. Assuming construction starts on schedule, the project is anticipated to be completed by February 2024. Allowable construction hours will be from 7:30 AM to 4:30 PM, Monday through Friday.
PUBLIC OUTREACH:
Two Project community meetings were held on April 20, 2022 and September 29, 2022 to receive feedback from the public during the design phase of this Project. The meetings were publicly noticed on the City’s Project website with additional notification by mail to residents living on all affected Project streets. The April meeting was held virtually, and the September meeting was hybrid with both in-person and virtual participation. Area residents will continue to be updated with information posted on the City’s website. Once the construction phase begins, public outreach will include an initial project construction notice mailed to nearby residents and periodic updates at construction milestones on the City website.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to Section 15301 Class 1 (repair and maintenance of existing public facilities, involving negligible or no expansion of use) of the State CEQA Guidelines. A Notice of Exemption was filed with the Los Angeles County Clerk’s Office for the Project.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 23-0040
2. Agreement - Hardy & Harper, Inc.
3. Bid Proposal - Hardy & Harper, Inc.
4. Resolution No. 23-0041
5. Agreement - Z&K Consultants, Inc.
6. Plans and Specifications (Web-Link Provided)
7. Budget and Expenditures Summary
8. Location Map