TITLE
Recommendation to adopt Plans and Specifications No. R-7104 for construction of the Seaside Way Storm Drain Project; award a contract to PALP, Inc., dba Excel Paving Company, of Long Beach, CA, in the amount of $1,199,199, with a 15 percent contingency in the amount of $179,880, for a total contract amount not to exceed $1,379,079; authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments;
Authorize City Manager, or designee, to execute an agreement, and any subsequent amendments with the California Governor’s Office of Emergency Services to accept and expend Federal grant funding in an amount not to exceed $641,798, for the construction of the Seaside Way Storm Drain Project, for the period of December 7, 2017 through December 8, 2019;
Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $641,798, offset by reimbursement grant revenue; and
Accept Categorical Exemption CE-18-167. (District 2)
DISCUSSION
City Council approval is requested to enter into a contract with PALP, Inc., dba Excel Paving Company, for the construction of the Seaside Way Storm Drain Project (Project) (Attachment A). The proposed Project will add storm drain pipe parallel to the existing storm drain along Seaside Way between Chestnut Place and Golden Shore Drive.
The California Governor’s Office of Emergency Services (Cal OES) has obtained a grant from the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program in the amount of $641,798 to fund construction costs associated with this Project. On December 7, 2017, FEMA executed the Funding Agreement with Cal OES. The City has received a subaward for these funds from Cal OES. The Project is designed to negate flooding at Seaside Way and prevent businesses and properties from being impacted. The Project will also improve the water quality of the water entering the Los Angeles River with the installation of trash treatment control devices to capture and remove trash and debris prior to entering the new storm drain.
This bid was advertised in the Long Beach Press-Telegram on July 11, 2018, and 4,754 potential bidders specializing in construction services, materials, and supplies were notified of the bid opportunity. Of those bidders, 109 downloaded the bid via the City’s electronic bid system. The bid document was made available by the Purchasing Division, located on the seventh floor of City Hall, and on the Division’s website at www.longbeach.gov/purchasing <file:///\\CLBCHPW\pw$\Council%20LETTERS\FY%2018-19\07%20April\April%2023\www.longbeach.gov\purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 28 local, minority, and women-owned business groups. Two bids were received on January 30, 2019. Of those two bidders, none were Minority-owned Business Enterprises (MBEs), Woman-owned Business Enterprises (WBEs), Disadvantaged Business Enterprises (DBEs), or Small Business Enterprises (SBEs), one was a Long Beach business (Local). PALP, Inc., dba Excel Paving Company, of Long Beach, CA (Local), was the lowest responsible bidder.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, 419 Long Beach vendors were notified to submit bids, of which nine downloaded, and one submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 27, 2019, Purchasing and Business Services Manager Sandy Tsang-Palmer on April 1, 2019, and by Budget Analysis Officer Julissa José-Murray on April 5, 2019.
SUSTAINABILITY
The Project will include installation of trash treatment control devices to capture and remove trash and debris prior to entering the new storm drain, thereby improving the quality of water discharged into the Los Angeles River.
In conformance with the California Environmental Quality Act (CEQA), Categorical Exemption CE 18-167 was issued for this project on October 22, 2018 (Attachment B).
TIMING CONSIDERATIONS
City Council action to adopt the Plans and Specifications No. R-7104 and award a contract concurrently is requested on April 23, 2019, to meet the grant reimbursement deadline.
FISCAL IMPACT
The total project cost is estimated at $1,915,000, which includes the contract award amount of $1,379,079, including construction contingency, design, construction support, labor compliance, and related project oversight. The total project cost is supported by $1,273,202 in Tidelands funding, which is appropriated in the Tidelands Operations Fund (TF 401) in the Public Works Department (PW) and $641,798 in grant funding from FEMA. An appropriation increase is requested in the Capital Projects Fund (CP) in the Public Works Department (PW), offset by reimbursement grant revenue. The grant requires a City match of $160,450, which will be covered by the Tidelands Funds already appropriated in the Tidelands Operations Fund (TF 401) in the Public Works Department (PW) for the Project.
On August 23, 2018, the State Lands Commission (SLC) approved expenditures for the Project in the amount of $1,915,000. All SLC requirements have been met and the City is ready to proceed with construction. Approval of this recommendation is expected to have a minimal impact on staff hours beyond the normal budgeted scope of duties and a minimal impact on existing City Council priorities.
Upon completion of the Project, Public Works Department will be responsible for operating and maintaining the storm drain. The annual operating and maintenance (O&M) costs associated with the Project are not anticipated to increase the overall storm drain O&M costs citywide. There is sufficient appropriation in the General Fund (GF) in the Public Works Department (PW) for these O&M costs. If additional appropriation is necessary, it will be requested as part of a subsequent budget process. Approval of this recommendation will provide continued support to our local economy. The number of local jobs created by this project will not be known until the contract is awarded and construction has commenced.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER