The City of Alamo Heights seeks approval to award a $602,534 contract to Clark Construction for the 2023 Street Maintenance Program. Four bids were submitted ranging from $602,534 to over $1 million. Clark Construction provided the lowest bid and has performed well for the City in the past. The program will repair streets in two areas and additional work may be added if negotiated within the 25% increase allowed by law.
1. 1
CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Phillip Laney, Assistant City Manager
SUBJECT: Approval of Low Bid Contract for the 2023 Street Maintenance Program (SMP)
DATE: April 24, 2023
SUMMARY
Staff seeks Council’s authorization in accepting the low bid for the 2023 Street Maintenance
Program in an amount not to exceed $798,090.
BACKGROUND INFORMATION
On November 21, 2022 City Manager Buddy Kuhn authorized Freese and Nichols Inc. to provide
engineering services in securing bids for the 2023 SMP in the amount of $44,992.00. Contract cost
estimates were $1,000,000.00, which includes a five percent contingency. This contract cost
estimate was based on 2022’s low bid quantity for similar repairs performed.
The City requested bids through advertisements in the San Antonio Express-News on March 8th
and March 15th
, 2023. A pre-bid submittal meeting was held on March 22, 2023 with bids opening
April 6, 2023.
City staff secured and opened four bids which were submitted as follows:
Clark Construction in the amount of $602,534.42
CK Newberry LLC in the amount of $841,939.00
Texas Materials in the amount of $871,960.71
BK Paving LLC in the amount of 1,036,526.84
This project consists of approximately 33,125 square yards of roadway improvements, utilizing
both milling and overlay of existing surfaces, and full-depth pavement repair. Streets identified
for improvements are:
1. Broadway, from Austin Hwy to Albany
2. E. Fair Oaks, from Broadway to N. New Braunfels
Due to the favorable pricing by Clark Construction, the City will be approaching the contractor to
provide additional street maintenance work to extend the project area north past Albany to Blue
Bonnet. State law authorizes local municipalities to increase the original contract amount up to
25% to maximize favorable pricing. The additional work will be negotiated with the selected
vendor.
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POLICY ANALYSIS
Local Government Code Sec. 252.048 provides municipalities the ability to submit change order
requests to increase the original contract amount by up to 25 percent, with authorization by
Council. Freese and Nichols Inc. and City staff recommends the bid contract be awarded to Clark
Construction as the lowest bidder that is qualified. The City Attorney and City Manager were also
consulted on this recommendation.
FISCAL IMPACT
Costs for the 2023 Street Maintenance Project include the contract cost with Clark Construction
in an amount of $602,534.42 and $44,922.00 for engineering fees by Freese and Nichols Inc. The
City has an option to add 25% to a favorable contract in the amount of $150,633.60, totaling a not
to exceed amount of $798,090.00. Funds are currently available under the FY 2023 Capital
Expense of $1,000,000 for the Street Maintenance Project.
ATTACHMENT
Attachment A – Recommendation of Award
_________________________
Phillip Laney
Assistant City Manager
___________________________
Buddy Kuhn
City Manager
3. 9601 McAllister Fwy, Suite 1008 San Antonio, Texas 78216 210-298-3800 FAX 817-735-7491 www.freese.com
April 17, 2023
Mr. Pat Sullivan
Public Works Director
City of Alamo Heights
6116 Broadway
San Antonio, TX 78209
Re: Recommendation of Award of Contract
2023 Street Maintenance Program
FNI Project No. ALH22938
Mr. Sullivan,
Four bids were received for the above-referenced project on Thursday, April 6th, 2023. The bids were evaluated
and checked for responsiveness. The four bidders included the required documents and were deemed responsive.
The bidders from lowest bid to highest bid based on the total bid amount are as follows: Clark Construction of
Texas, Inc., CK Newberry, LLC., Texas Materials Group, and BK Paving LLC. A summary of the bids received is
provided in the table below and the detailed bid tabulation is attached to this letter.
Contractor Total Bid
Clark Construction of Texas, Inc. $ 602,534.42
CK Newberry, LLC. $ 841,939.00
Texas Materials Group, Inc. $ 871,960.25
BK Paving LLC. $ 1,036,526.84
Freese and Nichols, Inc. (FNI) performed a reference check for Clark Construction of Texas Inc. FNI contacted two
references with the provided information, but did not receive a response. The Contractor has performed favorably
in the past with the City.
Having submitted the lowest bid on the project and based upon previous performance with the City of Alamo
Heights, FNI recommends that the Street Maintenance Program be awarded to Clark Construction of Texas, Inc. for
the Total Bid amount of $602,534.42.
If you have any questions concerning this recommendation, please contact me at your convenience.
Sincerely,
Chris Trevino, PE, CCM
Freese and Nichols, Inc.
Attachment A