I. RECOMMENDATION:
It is recommended that the Coalinga City Council award a contract in the amount of $506,450.00 to Terra West Construction, Inc., 1030 Gettysburg Ave., Suite 107, Clovis, CA 93612 for the Paving of Various Dirt Alleys Project. It is also recommended that a contingency of 10% ($50,645) be included in the Council action to cover any unforeseen incidentals for a total authorization amount of $557,095.
II. BACKGROUND:
In October 2017, the Coalinga City Council directed staff to prepare engineering plans and specifications and authorized a call for bids for the Paving of Various Dirt Alleys Project. The project includes, but is not limited to: Sawcutting, concrete removal and disposal, clearing and grubbing, alley excavation and grading, installation of AC pavement, aggregate base, curb and gutter, valley gutter, sidewalk, alley approaches, existing utility lid adjustment, and construction surveying.
III. DISCUSSION:
City Staff received and opened three bids for this project on July 20, 2021 at 2:00 p.m. Terra West Construction, Inc., was the apparent low bidder with a total bid proposal of $506,450.00. The Engineer’s Estimate was $462,500.00. The entire bid summary is included as Attachment “A”. Terra West Construction, Inc., has furnished the required bid bond. If the City Council decides to award the project to Terra West Construction, Inc., and the “Notice to Proceed” is issued, the contractor will have 60 working days to complete the work. The following is a tentative schedule:
Award of Contract: August 5, 2021
Start of Construction: August 30, 2021
Completion of Construction: November 24, 2021
IV. ALTERNATIVES:
The alternative to this council action would be to reject all bids. If all bids are rejected, the City would have to re-advertise or cancel the project. Staff believes that re-advertising the project will not result in lower bids.
V. FISCAL IMPACT:
Award the contract and authorize the Mayor and City Clerk to execute the Public Works Agreement in the amount of $557,095.00 which includes the 10% contingency.
Below is the total construction budget and funding sources.
Expenses
Contract Amount: $557,095
Construction Management: $60,000
Local Match $54,000
Total: $671,095
Budgeted Funding Sources
CMAQ Grant Funds: $469,209
TDA Article VIII $60,791
Total $530,000
Difference in Budget to Expense: (-$141,095)
Due to the increase in construction costs, there is an additional budget request in the amount of $141,095 from the TDA Article VIII Fund account 110-424-98940. It is anticipated that other projects will offset the impact to the TDA Fund as other projects (ATP 3, Sunset and Polk Street) are expected to come in under budget due to unused contingencies, lower bids and unused construction management funds. The TDA Article VIII fund has the available balance to support this increase in project budget. | | |