HomeMy WebLinkAbout13 Asphalt RepairsAGENDA ITEM #13
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MEETING DATE:April 6, 2022
TO:Board of Directors
FROM:Chad J. Reed, Water Utility Director
SUBJECT:Consideration of a Contract for AC Street Paving 2022
APPROVED BY____________________________
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a contract with Lakeside Paving and Sealing
Inc, for the sum of $172,500 plus a 10% change order authorization for a total not to
exceed amount of $189,750.
BACKGROUND:
Each year the District requires professional paving repair and maintenance (R&M)
services to repair street excavations which occur when the District water crews repair
water mains and service laterals.
Historically, the District has included paving repair in maintenance contracts in the
Board’s annual procurement review and authorizations conducted in the preceding year.
Recognizing the volatility and uncertainty of labor and materials prices, many contractors
were hesitant to commit to contract pricing so far in advance. Staff made a determination
to bid out the work in the spring to ensure a competitive public procurement process.
Since it is difficult to predict how many leaks and water mainline repairs will take place
each year, Staff must make an assumption on quantities of aggregate materials and work.
The bid is for a price per square foot basis.
ANALYSIS:
The District publicly advertised a request for bids for the 2022 water utility paving repair
and maintenance work. On March 22, 2022 a bid opening was held and three bids were
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received. The results are provided below in a table.
Contractor Location Total Price
Lakeside Paving Carnelian Bay, CA $ 172,500.00
Armac Excavation Carson City NV $ 286,250.00
West Coast Reno, Nv $ 215,000.00
Staff has concluded that Lakeside Paving and Sealing Inc. is the lowest responsive
bidder.
OBJECTIVES & GOALS:
1.05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet current
and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
1.05.030 Goals:
1. Manage for Financial Stability and Resiliency.
FISCAL IMPACT:
In 2021, the actual invoiced work for paving R&M of $82,800 was $60,000 less than bid
amount due to a lower quantity of paving R&M services completed than anticipated. This
lower quantity was driven by the varying nature of service needed each year, as well as,
fall 2021 weather impacts on completing certain known patch repair needs. These latter
repairs will need to be serviced in 2022.
2022 paving R&M services low bid cost is 21% greater than the 2021 bid for same
estimated quantity of patch paving R&M. This equates to a $30,000 increase at bid
estimated quantities.
Paving R&M services for 2022 is budgeted at a three year average + 3% of $110,000 as
a key component of GL account 2.7.694.20.670 budget total of $214,000. To the extent
2022 actual paving required exceeds the $110,000 budgeted, there will be a cost overage
to budget.
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Staff’s recommended approval of a not to exceed amount of $189,750 (less $110,000
budgeted) equates to $80,000 over budget amount, if the estimated contract work for
2022 is actually completed. Staff does not currently forecast this overage, however, to
the extent actual paving R&M costs exceeds $110,000, sufficient funds exist in the
operating general fund reserve account. The year-end 12/31/2021 operating general fund
reserve balance of $5.2m was in excess of policy balance by $339,000 or 7%.
ATTACHMENTS:
None.