DATE: August 20, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: BUDGET APPROPRIATION FOR CONSTRUCTION OF THE OLIVE DRIVE GUARDRAIL PROJECT
RECOMMENDATION
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Staff recommends that the City Council approve a budget appropriation in the amount of $133,226 from the Senate Bill (SB) 1 RMRA Gas Tax reserve fund to the Olive Drive Guardrail account to construct approximately 470 linear feet of guardrail on Olive Drive, immediately west of the intersection at Olive Drive and North Avenue.
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BACKGROUND AND ANALYSIS
The proposed project involves the installation of guardrails along the north side of Olive Drive, immediately west of the intersection of Olive Drive and North Avenue. Over the years, a number of vehicle accidents along that portion of Olive Drive have resulted in property damage to the rear fence of private residences. The installation is intended to enhance safety with the goal to minimize or prevent future damage to private property.
The project was originally informally bid in 2024, and a construction contract was awarded on October 16, 2024 to Voltaire for installation of the guardrail. Prior to issuing the Notice to Proceed, Voltaire contacted DigAlert to mark underground utilities as part of the standard construction process. Although the City had performed due diligence through potholing and utility marking prior to bidding, a previously unidentified traffic signal conduit was discovered within the proposed guardrail alignment. This unforeseen conflict required the potential relocation of the conduit. As a result, staff determined the project scope required re-evaluation and re-bidding in order to properly account for the utility conflict. The contract with Voltaire was formally terminated on February 28, 2025.
Following the reassessment, staff informally re-bid the project on June 6, 2025 based on the available budget. The revised bid package included a base bid and two bid alternates, reflecting three distinct segments of guardrail installation. These segments were identified based on existing site conditions and utility interferences. To prioritize the work, a collision summary report covering the past five years was used to assess the severity and frequency of incidents at each segment.
Bids were received on July 11, 2025. After review, Blue Pacific Engineering Construction, Inc. was determined to be the apparent lowest responsive and responsible bidder.
Pursuant to City Code section 28A.28(c)(1), the City Engineer may award an informal contract exceeding $200,000 but not exceeding $220,000. Staff is recommending awarding the base bid and bid Alternate A to Blue Pacific Engineering Construction, Inc. for a total contract amount of $203,500. These segments correspond to three of the four documented incidents over the past five years, as identified in the collision summary report. The combined scope includes the installation of approximately 470 linear feet of guardrail, as detailed in Attachment 3.
FISCAL IMPACT
The construction contract with Blue Pacific Engineering Construction, Inc., inclusive of the base bid and bid Alternate A, totals $203,500. In addition to the contract amount, City staff anticipates the need for the following support services to ensure successful project delivery:
• City staff time, construction management services, and inspection services in the amount of $40,000 to administer the contract and verify that construction is completed in accordance with the Bid Documents and City Standards; and
• Construction contingency in the amount of $16,000 to address any unforeseen issues that may arise during the project.
Based on these anticipated needs, the total estimated construction cost is $259,500.
Currently, there is a balance of $126,274 in the Olive Drive Guardrail Project Account. To fully fund the project, staff requests City Council approval of a budget appropriation of $133,226 from the SB1 RMRA Gas Tax Fund Reserve, which has a current available balance of $2,083,929. Therefore, sufficient funds are available.
|
Description |
Amount |
Object Code |
Olive Guard Guardrail 902191824265.5703.10100 |
Appropriation Requested SB1 Fund Reserve 265.3010 |
|
Contract |
$ 203,500 |
5703 |
$ 126,274 |
$ 77,226 |
|
Staff Time |
$ 10,000 |
5105 |
|
10,000 |
|
Construction Management & Inspection |
$ 30,000 |
5305 |
|
30,000 |
|
Contingencies |
$ 16,000 |
5703 |
|
16,000 |
|
TOTAL |
$ 126,274 |
$ 133,226 |
|
Available Balances |
$ 126,274 |
$ 2,083,929 |
COMMISSION OR COMMITTEE REPORT 0
Does not apply.
CITY ATTORNEY’S ANALYSIS
The bid documents were previously reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder whose bid is responsive to the notice inviting bids. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract.
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Prepared by: Kymberly Corbin, Senior Civil Engineer
Reviewed by: Darlene Nicandro, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Bid Tabulation
3. Site Plan