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<br />City of San Leandro Meeting Date: September 4, 2012 Staff Report File Number: 12-301 Agenda Section: CONSENT CALENDAR Agenda Number: 8.G. TO: City Council FROM: Chris Zapata City Manager <br />BY: Uchenna Udemezue Engineering & Transportation Director FINANCE REVIEW: David Baum Finance Director TITLE: Staff Report for a Resolution to Reject Bids for Annual Street Sealing <br />2011-12, Project No. 11-144-38-332 SUMMARY AND RECOMMENDATIONS Staff recommends that the City Council approve a resolution rejecting all bids on the subject project. BACKGROUND City <br />staff conducts an annual pavement condition survey using the Citys Pavement Management System to establish the condition of City streets. Based on this survey, various City streets <br />were recommended for one of three maintenance treatments: reconstruction; overlay; or sealing. This project is to conduct sealing treatment. Sealing is the recommended treatment <br />for streets in fairly good condition to rejuvenate and prolong the life of the pavement. Sealing treattments in this project will include slurry seal and scrub seal; the asphalt rubber <br />cape seal was bid separately as part of the Asphalt Rubber Street Sealing 2011-12 project. Analysis The bid opening for the subject project was held on June 28, 2012. A total of four <br />bids were received, and the lowest bidder was 43% above the engineers estimate for the base bid. This was unexpected since the base bid amount of street sealing work to be done with <br />the subject project is about 60% more than the scope of work for the previous street sealing project, and prices tend to go down as quantities increase. The higher bid prices also <br /> contradict what was predicted by the Caltrans Crude Oil Price Index, which had dropped 11% since May 2011 when bids were opened for our last project. City staff contacted contractors <br />and subcontractors who submitted bids for the subject project. Based on these discussions, we conclude that the higher prices were likely due to the fact that City of San Leandro <br />Page 1 Printed onn 8/28/2012 <br />File Number: 12-301 the bid opening for the subject project was held later in the year than the one for the previous street sealing project. Contractors tend to give lower bids for <br />projects at the beginning of the construction season, since their schedules are not yet full. Therefore, staff proposes to re-bid this project in early 2013. Previous Actions On <br />June 4, 2012, by Resolution No. 2012-058, the City Council approved the plans and specifications and called for bids for the subject project. Committee Review and Actions The locations <br />of the T-intersection access ramps to be installed were reviewed by the Facilities and Transportation Committee at its meeting on February 14, 2012. Applicable General Plan Policies <br />The scope of this project is consistent with Streets and Highways Goal No. 16 of the General Plan and Action Item 16.03: Regularly maintain City streets and traffic control devices <br />to ensure that streets operate safely and efficiently. Environmental Review This project is categoricallly exempt from CEQA per Section 15301(c) - Existing Facilities. Fiscal Impacts <br />The total cost of this project is estimated to be $1,297,720.51 including the base bids for both contracts with design, construction and construction administration costs. The construction <br />contract was estimated to be $438,998.30 for the base bid. Budget Authority The funding described below incorporates the construction contracts for both the Annual Street Sealing <br />2011-12 and Asphalt Rubber Street Sealing 2011-12 projects, which will be funded by the following CIP accounts: 1) $692,540.98 - Measure B Streets and Roads Funds, Account No. 144-38-332 <br />2) $600,000.00 - Gas Tax Funds, Account No. 142-38-332 3) $32,971.29 - Proposition 1B Funds, Account No. 149-38-327 ATTACHMENTS Bid summary PREPARED BY: Kyle K. Lei, Associate Engineer, <br />Engineering and Transportation Department City of San Leandro Page 2 Printed on 8/28/2012 <br />City of San Leandro Meeting Date: September 4, 2012 Resolution - Council File Number: 12-302 Agenda Section: CONSENT CALENDAR Agenda Number: TO: City Council FROM: Chris Zapata City <br />Manager BY: Uchenna Udemezue Engineering & Transportation Director FINANCE REVIEW: David Baum Finance Director TITLE: ADOPT: Resolution to Reject Bids for Annual Street Sealing 2011-12, <br />Project No. 11-144-38-332 (rejects bids for the subject project) WHEREAS, the City of San Leandro did, on June 28, 2012, publicly open, examine and declare all sealed proposals or <br />bids for the work described in Resolution No. 2012-058 of the City Council of said City adopted on June 4, 2012, which resolution is hereby expressly referred to for a description <br />of said work and for all particulars relative to the proceedings under said resolution; and WHEREAS, said proposals were submitted to the Engineering and Transportation Director for <br />comparison and recommendation; and WHEREAS, the Engineering and Transportation Director has recommended thhat the proposals for said work be rejected. NOW, THEREFORE, the City Council <br />of the City of San Leandro does RESOLVE as follows: That said City Council hereby rejects said proposals or bids for doing said work. City of San Leandro Page 1 Printed on 8/28/2012