TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Department
1. Subject
title
Award of Contract to R. J. Noble Company for Community Development Block Grant Fiscal Year 2023-2024 Grand Street Neighborhood Street Rehabilitation Project; Bid No. 23-24.26.
body
2. Summary
Bids for the Community Development Block Grant Fiscal Year 2023-2024 Grand Street Neighborhood Street Rehabilitation Project (SP-4264) were received and opened on February 1, 2024. Four bidders responded to the notice inviting bids. The apparent low bidder is, R. J. Noble Company of Orange, CA in the amount of $295,782.
3. Recommended Action
recommendation
1. Authorize the Amendment to the Memorandum of Understanding to increase the 2023-2024 Street Rehabilitation Project by $56,400, for a total not-to-exceed amount of $338,790; and authorize the City Manager or his designee to execute the amendment on behalf of the City.
2. Authorize the Amendment to the 2023-2024 Annual Action Plan to increase the allocation to the 2023-2024 Street Rehabilitation Project by $56,400 to a total allocation of $338,790 and submit the Amendment to the Department of Housing and Urban Development.
3. Approve the contract with R. J. Noble Company in the total amount of $325,360, representing an original bid amount of $295,782, plus a 10% contingency of $29,578, for Community Development Block Grant Fiscal Year 2023-2024 Grand Street Neighborhood Street Rehabilitation Project; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. Authorize the following budget transfer:
From: 310.9645.56582.20500 - CDBG Sycamore and Palmyra Neighborhoods Street Rehabilitation $56,400
To: 310.9645.56582.30220 - CDBG Neighborhood Street Rehabilitation $56,400
end
4. Fiscal Impact
The expense for this contract is $325,360 and will be funded through:
310.9645.56582.30220 - CDBG - Neighborhood Street Rehabilitation $286,610
500.5032.56100.20374 - Capital Projects - Street Light Pole Replacement $38,750
Total $325,360
5. Strategic Plan Goals
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. Discussion and Background
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in low and moderate income areas within their jurisdiction. The proposed street improvements project was approved through the 2023-2024 Annual Action Plan process on May 9, 2023.
The scope of the project mainly includes the rehabilitation of pavement on Grand Street from Collins Avenue to Wilson Avenue.
The City Council previously approved an advertisement for bids on November 28, 2023. The bid solicitation was advertised on January 11, 2024, for a period of three weeks and bids were opened on February 1, 2024. Four bids were received as follows:
1. R. J. Noble Company, Orange $295,782
2. All America Asphalt, Corona $326,125
3. Hardy & Harper, Inc., Lake Forest $333,000
4. PALP Inc., dba Excel Paving Company, Long Beach $399,445
The low bid is about 28% higher than the engineer’s estimate. This may be due to the increasing costs of construction and materials and federal funding stipulations requiring the purchase of domestic construction materials over imported. Staff checked the references and qualifications for R. J. Noble Company and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommends that R. J. Noble Company be awarded the contract in the total amount of $325,360, representing an original amount of $295,782, plus a 10% contingency of $29,578 for the CDBG FY 2023-2024 Grand Street Neighborhood Street Rehabilitation Project.
Construction is scheduled to begin in April 2024 and is expected to be completed within 30 calendar days.
Funding requested for the project includes an estimated $18,070 for staff costs incurred in the administration of the project.
Annual Action Plan/Citizen Participation Plan
The city’s Citizen Participation Plan (CPP) provides a guide to ensure citizen and interested party participation in the development of the City’s Annual Action Plan. The Annual Action Plan outlines the City’s plans for the use of CDBG funding received in a specific year. Per the CPP, an increase of over 20% of the original allocation to an approved project requires a substantial amendment to the Annual Action Plan in which the project was approved and would require a 30-day public review for comment and public hearing at City Council. The proposed increase of $56,400 to the CDBG FY 2023-2024 Grand Street Neighborhood Street Rehabilitation Project does not meet the criteria for a substantial amendment to the 2023-2024 Annual Action Plan as it is below 20% (or $56,478) of the original allocation. The amendment, therefore, requires only City Council approval to be submitted and accepted by the U.S. Department of Housing and Urban Development (HUD).
7. ATTACHMENTS
• Attachment 1 Contract with R. J. Noble Company
• Attachment 2 Bid Abstract
• Attachment 3 Amendment to 2023-2024 Annual Action Plan