Report Prepared by: Vannesa Mendoza, EIT, Assistant Engineer, Engineering Department
Title
SUBJECT: Award Bid to American Paving Co. for the Bob Hart Square Expansion, Project Number CP220073, in the Amount of $3,418,502.60, and Approve Contract Change Order No. 1 to Reduce the Bid Schedules and Scope of Work in the Amount of $132,682.10
REPORT IN BRIEF
Considers awarding a Construction Contract to American Paving Co. in the amount of $3,418,502.60 for the Bob Hart Square Expansion Project, and approving Contract Change Order No. 1 for ($132,682.10) for the negotiated bid schedules to reduce the price.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the Bob Hart Square Expansion, Project CP220073 to American Paving Co., in the amount of $3,418,502.60; and,
B. Authorizing the City Manager to execute Contract Change Order No. 1 in the amount of ($132,682.10) for the new negotiated bid schedules; and,
C. Authorizing the City Manager to execute the necessary documents and to approve additional change orders not to exceed 10% of the total contract; and,
D. Authorizing the Finance Officer authorization to make necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1109 - Contracts on Public Works,
Merced Municipal Code Chapter 3.04, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
The work to be performed includes, but is not limited to, Expansion of Bob Hart Square on the south side to include a new outdoor plaza with a stage, bench seating, concrete arch, and brick. These improvements include water main replacement, new storm drain and inlets, landscaping, lighting, and electrical upgrades.
Such other items or details, not mentioned above, that are required by the Drawings and Technical Specifications Plans, City of Merced Standard Specifications and Typical Details, and the Special Conditions shall be performed, placed, constructed, or installed.
The project is located at Bob Hart Square on Canal St between Arbor Lane and 16th Street. Bids are required for the entire work described herein.
Staff prepared plans and specifications, and the project was advertised for bids. Bids were opened on Oct 22, 2024, with the following results:
1. American Paving Co., Fresno, CA $ 3,418,502.60
The Engineer’s estimate for construction was $1,350,000.
Staff negotiated a revised bid schedule crediting some items to reduce the base contract amount to $3,098,486.50, which is reflected in Change Order No. 1. It should be noted that since the ARPA funding must be encumbered by December 31, 2024, the ARPA portion of the contingency for this project ($187,334) is also calculated into Change Order 1, to encumber that funding for “Extra Work To Be Determined” by the City Engineer. It is located in Schedule A, as item 71. The change order credits the contract amount to $3,098,486.50, and then adds $187,334 for the ARPA portion of contingency.
The following is the proposed budget for the project:
|
Construction |
$ 3,098,486.50 |
|
Contingency (10%) |
$ 309,848.65 |
|
Engineering, Testing & Inspection |
$ 150,000.00 |
|
TOTAL: |
$3,558,335.15 |
In December 2021, City Council allocated $800,000 of American Rescue Plan Act (ARPA) funds for the Bob Hart Square Expansion project. The project was also allocated $45,525 in water enterprise funds for the replacement of a water main from 16th Street to Main Street.
At the November 4, 2024, Council meeting, Council approved reallocating a total of $1,218,041 to the Bob Hart Square project from the Broadband ARPA Funds ($10,000), the Affordable housing funds ($1,000,000), and a portion from the Downtown One-way Project ($208,041). This additional allocation did not include the budget needed for contingency, engineering, testing, and inspections.
At the December 9, 2024, Special City Council meeting, Council approved reallocating $245,896 of ARPA funding from the Main St Directional project to Bob Hart to fund the contingency, testing, engineering, and inspections.
The total available budget within the project currently is $2,151,283 (ARPA Funds) and $14,441 (Water Funds), for a total of $2,165,724 creating a shortfall of $1,392,612 in the Water funds. Staff will prepare a budget transfer from the water enterprise funds for the shortfall in water funds.
IMPACT ON CITY RESOURCES
Project CP220073 is established as a Capital Improvement Project and a budget transfer of $1,392,612 from Project CP250028 (Water Systems - Projects to be Determined) will be initiated for the water portion of this project.
ATTACHMENTS
1. Location Map
2. Bid Results
3. Construction Contract
4. Contract Change Order 1