TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
SUBJECT:Title
Consideration of a Resolution Rejecting All Bids Received for the Cycle 2 Street Resurfacing Project (Public Works Director Lee).
ADOPT RESOLUTION NO. 23-0018
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Recommended Action
RECOMMENDATION:
Staff recommends the City Council adopt Resolution No. 23-0018 rejecting all bids received on January 4, 2023 for the Cycle 2 Street Resurfacing Project (“Project”) and authorizing staff to re-bid the Project with a reduced scope of work.
FISCAL IMPLICATIONS:
There is no fiscal impact associated with the rejection of all bids received for this Capital Improvement Program (CIP) funded project.
BACKGROUND:
The City of Manhattan Beach is responsible for the repair and maintenance of over 100 linear street miles 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:
The Project was advertised in the City’s publisher of record (The Beach Reporter) on December 15, 2022. Advertisement for bids was also published on PlanetBids (an online service that connects vendors, suppliers, and contractors to government procurement opportunities) on November 29, 2022.
The Project scope included the following street segments:
• 29th Street from Blanche Road to Agnes Road
• 27th Street from Laurel Avenue to Pacific Avenue
• Agnes Road from Marine Avenue to 29th Street
• Marine Avenue from Blanche Road to Valley Drive
• Flournoy Road North from Valley Drive to 33rd Street
• Flournoy Road South from Valley Drive to 19th Street
• 14th Street from Agnes Road to Laurel Avenue
Four bids were received and opened on January 4, 2023. The bid results are as follows:
Contractor Calculated Total Bid Amount
Hardy and Harper, Inc. $3,150,000.00
All American Asphalt $3,186,127.25
Onyx Paving Company, Inc. $3.727,000.00
Sully-Miller Contracting Company $3,843,500.00
All four bids are significantly higher than the Engineer’s Estimate of $2,000,000 and exceeded the Project budget. The primary reason the bids exceeded the Engineer’s Estimate is the current volatility in the construction market with increases in the cost of materials applicable to this Project (e.g., asphalt, concrete, steel, rebar, diesel fuel and transportation costs) varying from 20% to 200% over the past two years.
Due to the high prices of the four bids, staff determined that it is necessary to re-bid the Project with a reduced scope of work. To develop a Project that fits within the City’s current budget for this work, staff will reduce the amount of pavement to be resurfaced in this cycle by focusing on the segments with the lowest PCI rating and most community benefit. Therefore, the segments on 29th Street from Blanche Road to Agnes Road, 27th Street from Laurel Avenue to Pacific Avenue, and Agnes Road from Marine Avenue to 29th Street will be issued as the Base Bid in the revised package. The remaining four street segments from the original package will be included as Additive Bid items that may be added to the Project at the City’s discretion as funding allows. Any streets unable to be included in this cycle will be included in the next cycle’s scope of work.
The plans and specifications for the revised Project will be advertised for bids in PlanetBids starting on February 22, 2023, with bid opening scheduled for March 16, 2023. This will allow for a contract to be awarded by the City Council at its April 4, 2023 meeting and for the low bid contractor to start work by early May 2023.
Staff recommends that City Council adopt Resolution No. 23-0018 rejecting all the Cycle 2 Street Resurfacing bids received on January 4, 2023 and authorizing staff to immediately re-bid the Project as reduced in scope.
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.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 23-0018
2. Revised Location Map