TITLE
Recommendation to adopt Specifications No. R-7153 and award contracts to All American Asphalt, of Corona, CA, and Sully Miller Contracting Company, of Brea, CA, for as-needed local street improvements, in an annual aggregate amount not to exceed $20,000,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into contracts, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with All American Asphalt, of Corona, CA, and Sully Miller Contracting Company, of Brea, CA (contractors), for local street construction services, such as repair and replacement of street pavement, slurry seal, construction and replacement of alleys, sidewalks, driveways, curbs, gutters, curb ramps, and related improvements.
The contracts will be for on-call work performed based on individual work orders issued by the City of Long Beach (City) and do not include a guaranteed minimum payment or retainer fee. Payment to contractors will be based on the number of work orders issued by the City and fully completed by the contractors. The maximum aggregate dollar amount that can be issued in work orders under these two on-call contracts is $40,000,000. Passage of the Measure A by Long Beach voters, Los Angeles County’s Measure M, Senate Bill 1 (SB 1), and the Road Repair and Accountability Act of 2017 has made additional funding available for street repairs and improvements. These contracts will enable the City to utilize all funds available for this purpose. Two vendors are necessary to ensure timely completion of these street improvement projects. While the Public Works Department will be responsible for administrative control and monitoring of the contracts, the contracts may be used by other City departments for street and related improvement projects.
The bid was advertised in the Long Beach Press-Telegram on June 5, 2019, and 4,564 potential bidders specializing in street construction services were notified of the bid opportunity. Of those bidders, 42 downloaded the bid via the City’s electronic bid system. The specifications were made available by the Engineering Records Section of the Office of the City Engineer located on the tenth floor of the previous City Hall, and on the Purchasing Division’s website at 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. Four bids were received on July 2, 2019. Of those four bidders, none were Women-owned Business Enterprises (WBEs), Disadvantaged Business Enterprises (DBEs), Minority-owned Business Enterprises (MBEs), or certified Small Business Enterprises (SBEs), and one was a Long Beach business (Local). All American Asphalt, of Corona, CA (not a MBE, WBE, SBE, or Local), and Sully-Miller Contracting Company, of Brea, CA (not a MBE, WBE, SBE, or Local), were the lowest responsive and responsible bidders.
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, five Long Beach vendors were notified to submit bids, of which four 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 Erin Weesner-McKinley on October 8, 2019, Purchasing Agent Tara Yeats on October 21, 2019, and by Budget Analysis Officer Julissa José-Murray on October 23, 2019.
SUSTAINABILITY
Asphalt material used under this contract will include recycled rubber tires, and concrete removed under this contract will be recycled as base rock for street construction and diverted from landfills.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. R-7153 and award contracts concurrently is requested on November 12, 2019, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The annual aggregate contract authority will not exceed $20,000,000 for the two-year term, estimated based on current and anticipated projects within various City departments, primarily the Public Works Department. Each work order will be funded by the requesting department prior to the work order being issued to the contractor. Any work not currently budgeted will only proceed at such time as appropriation has been approved by the City Council. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The number of additional local jobs created by the award of these contracts will not be known until the contractors complete hiring and construction has commenced.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER