TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Tim Birthisel, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Awarding a Construction Agreement to Stephen Doreck Equipment Rentals, Inc. for the Cycle 2 Water Infrastructure Improvement and Street Resurfacing Project for $2,942,898, Including Contingency; Approving the Plans and Specifications for the Project; and Adoption of a Determination of Exemption Pursuant to Section 15301(b) and (c) of the State California Environmental Quality Act (CEQA) Guidelines (Public Works Director Lee).
ADOPT RESOLUTION NO. 23-0153
Line
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council:
A. Adopt Resolution No. 23-0153:
1. Awarding a construction agreement to Stephen Doreck Equipment Rentals, Inc. for the Cycle 2 Water Infrastructure Improvement and Street Resurfacing Project (Project) for $2,354,319;
2. Approving the Plans and Specifications for the Project; and
3. Authorizing the City Manager and/or his or her designee to execute the agreement and approve additional work up to $588,579.
B. Adopt a determination of exemption pursuant to CEQA.
FISCAL IMPLICATIONS:
Sufficient funds are available in the 5-Year Capital Improvement Program (CIP) in the Water Fund for the Annual Rehabilitation of Water Mains Project and Measure M Fund for Annual Street Resurfacing. A total of $3,142,898 will be utilized for construction, contingency, and inspection for the Project. Approximately $2,442,898 will be utilized from the Water Fund and $700,000 from the Measure M Fund for construction. Any unused funds will revert back to the Water or Measure M Fund, as appropriate, for future projects. A Budget and Expenditure Summary Report is attached.
Should City Council award construction to Stephen Doreck Equipment Rentals, Inc. (Doreck) for the Project, the City Manager will be authorized execute the agreement with Doreck in amount of $2,354,319 along with a contingency of $588,579 for a total not to exceed amount of $2,942,898. City Council’s award of the agreement is required as the total contract amount exceeds the City Manager’s awarding authority per the City’s purchasing policy.
BACKGROUND:
Based on the 2021 Water Master Plan, staff has prioritized the segments of the water system that exhibit the most critical structural problems and deficiencies for rehabilitation. These segments are in urgent need of attention and will be rehabilitated using the most cost-effective methods available. Additionally, five street segments within the project area will be resurfaced over the entire width of the roadway, ensuring enhanced durability and user experience for the community. The Pavement Condition Index (PCI) and the corresponding improvement in PCI for each street is included in the list below. Note, the surveyed PCI does not consider the pavement condition after installing the proposed water main and services, which will further degrade PCI unless repaved once the water main installation work is completed.
The overall project will include the replacement of six pipe segments located on the following streets:
1. Flournoy Road (including street resurfacing) from 18th Street to 19th Street. Flournoy Road has PCI of 80 and once complete PCI will reach 100.
2. Agnes Road (including street resurfacing) from 18th Street to 23rd Street. Agnes Road has PCI of 75 and once complete PCI will reach 100.
3. 21st Street (including street resurfacing) from Herrin Avenue to Redondo Avenue. 21st Street has PCI of 34 and once complete PCI will reach 100.
4. 22nd Street (including street resurfacing) from Herrin Avenue to Redondo Avenue. 22nd Street has a PCI of 36 and once complete PCI will reach 100.
5. Herrin Avenue (including street resurfacing) from 21st Street to 22nd Street. Herrin Avenue has a PCI of 24 and once complete PCI will reach 100.
6. 14th Street from Ardmore Avenue to Deegan Place.
It is crucial to note that parking will be temporarily impacted during the construction phases, particularly during curb-to-curb street resurfacing operations. Residents will be noticed in advance of any parking restrictions, and should anticipate reduced parking availability in these areas and plan accordingly.
DISCUSSION:
The Project was advertised for bid in the City’s publisher of record (The Beach Reporter), and was listed on the City’s website and PlanetBids (an online service that connects vendors, suppliers and contractors to government procurement opportunities). Six (6) bids were received and opened on October 18, 2023.
|
Contractor |
Calculated Total Bid Amount |
|
Stephen Doreck Equipment Rentals, Inc. |
$2,354,319.00 |
|
SEMA Construction, Inc. |
$3,195,733.98 |
|
CEM Construction Corporation |
$3,581,515.00 |
|
Colich & Sons, LP |
$4,089,368.00 |
|
Dominguez General Engineering, Inc. |
$4,177,550.00 |
|
Mike Bubalo Construction Co., Inc. |
$5,176,125.00 |
All packets were analyzed for arithmetical errors, completeness, accuracy, etc. Staff reviewed the bid, contractor’s license, and references for the apparent low bidder, Stephen Doreck Equipment Rental, Inc. (Doreck). Staff review determined the bid and license are in order. References indicate that Doreck has the knowledge and capability to complete the work in accordance with the plans and specifications.
Therefore, staff recommends that the City Council award a construction agreement to Doreck for $2,354,319 and that the City Manager and/or his or her designee be authorized to approve change orders for up to $588,579 for additional work resulting from unforeseen conditions and utility interferences. The work is estimated to be completed in approximately ten months once it commences in early 2024.
PUBLIC OUTREACH:
The water main installation project was presented to the Parking and Public Improvements Commission on October 26, 2023. A subsequent public outreach meeting was conducted on November 6, 2023, in Council Chambers. The objective was to share the project design, discuss community benefits, and address potential construction impacts.
The construction phase of the water main installation in each individual location is estimated to last approximately six months, with the overall project completion anticipated one year from issuance of Notice to Proceed. Every effort is being made to ensure efficiency and minimize duration, including the contractor pre-purchasing materials for the project, thereby reducing long-term impact on residents. Residents should note that additional smaller maintenance projects are planned for the coming years in the vicinity of Peck Reservoir. All efforts will be made to coordinate these with the water main project to minimize overall disruption to community life.
Residents can expect to be kept informed through multiple channels. Information updates will be regularly posted on the City’s website. Upon the commencement of the construction phase, an initial construction notice will be mailed to affected residents. Periodic updates will also be published on the City website at significant construction milestones. Full street closures will not be permitted during water installation work and driveway access will be maintained at all times. Partial closures will be necessary during the paving phase of the work, with a duration of typically one week or less. All emergency routes remain accessible throughout the construction period. Advance notice will be provided to residents and emergency services for any temporary road closures affecting resident mobility.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the CEQA and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301(b) and (c) (the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use; including existing publicly-owned utilities and highways, streets, or sidewalks) of the State CEQA Guidelines since the project will rehabilitate existing water infrastructure and streets. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 23-0153
2. Agreement - Stephen Doreck Equipment Rental, Inc.
3. Plans and Specifications (Web Link)
4. Budget and Expenditure Summary Report
5. Location Map