REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Miscellaneous Asphalt and Concrete Rehabilitation Project to Silicon Valley Paving, Inc. and Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The FY 2024/25 and FY 2025/26 Adopted Biennial Capital Improvement Program Budget includes several projects that involve miscellaneous asphalt and/or concrete pavement repair. The work covered under these projects will take place at various sites throughout the City, including City Hall (visitor parking lot at the corner of Warburton Avenue and Lincoln Street), Central Park Library, the Convention Center, three water wells (Water Well 22, 24 and 29), five sanitary sewer pump stations (De La Cruz, Northside, Rabello, Stadium, and Westside) and the Convention Center (Maintenance District No. 183) (Attachment 1). Because each location is relatively small, they have been combined to create one larger project, the Miscellaneous Asphalt and Concrete Rehabilitation Project (Project) under the existing Public Building Parking Lot Improvements project. Administering the design and construction as a single project allows the City to hire one engineering consultant for design and to bid the work under one construction contract. This creates City staffing efficiencies and lowers the overall management/administration time and cost necessary to deliver the project. Also, bidding the work out under one construction contract has the potential to reduce construction mobilization and unit costs (i.e. the contractor can procure greater quantities of materials at lower prices).
CSG Consultants, Inc. was previously retained to provide the required design professional services for the Project. The scope of work generally includes asphalt pavement repair, seal coating, concrete removal and replacement, grading and base material repair, pavement striping and replacement of ancillary features such as ADA ramps.
DISCUSSION
In March 2025, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system. The RFB was viewed by contractors, suppliers, plan rooms, and builder exchanges, among others. Additional vendors were able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to contractors and vendors who had viewed similar projects in the past.
On April 3, 2025, bids for the Project were opened via video conference. Six bids were received ranging from $1,139,217 to $1,973,888. The Bid Summary is included as Attachment No. 2. The lowest bid submitted by Silicon Valley Paving, Inc. in the amount of $1,139,217 is approximately 26 percent below the engineer’s estimate of $1,532,000. Silicon Valley Paving’s bid was reviewed by staff for compliance with the terms and conditions of the bid documents and has been determined to be the lowest responsive and responsible bid. Staff recommends awarding the construction contract to Silicon Valley Paving, Inc. Award of contract will enable construction of the Project to commence. Substantial completion of the Project is anticipated by early 2026. The date may be subject to change based on any unforeseen conditions discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The approximate cost of the contract is $1,139,217, plus a 15 percent contingency, or $170,883, for any potential change orders, for a total not-to-exceed contract amount of $1,310,100. Funding for the Project is proposed to be apportioned to each project based on its proportionate share. Staff recommends a transfer of each project’s share to the Public Building Parking Lot Improvements Project which will consolidate management and administration of the combined project’s funding.
For the improvements at the Central Park Library, a transfer of $216,000 from the General Fund to the Public Buildings Capital Fund was approved by City Council on December 3, 2024, as part of the FY 2023/24 Year End Close Report to Council. This transfer covers $216,000 of Library's $279,269 share of the project costs. The remaining $63,269 is recommended to be transferred from the Central Park Library - Concrete Sidewalk Replacement project in the Library Department Capital Fund.
The budget amendments below establish transfers from each respective fund to the Public Buildings Capital Fund. The transfers cover $1,080,948 of the costs of the construction contract and project delivery costs, which include inspection and construction management. Funding for the remaining project costs is available in the Public Building Parking Lot Improvements Project budget for FY 2024/25 and includes the $216,000 previously transferred for the Central Park Library portion of the project. The table below summarizes the recommended budget amendments:
Budget Amendments
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Water Utility Capital Fund |
|
|
|
|
Transfers To |
|
|
|
|
Public Buildings Capital Fund |
$0 |
$96,854 |
$96,854 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Buildings and Grounds |
$2,898,961 |
($96,854) |
$2,802,107 |
|
|
|
|
|
|
|
|
|
|
|
Sewer Utility Fund |
|
|
|
|
Transfers To |
|
|
|
|
Public Buildings Capital Fund |
$0 |
$612,624 |
$612,624 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Unrestricted Fund Balance |
$1,908,780 |
($612,624) |
$1,296,156 |
|
Library Department Capital Fund |
|
|
|
|
Expenditures |
|
|
|
|
Central Park Library - Concrete |
$231,734 |
($63,269) |
$168,465 |
|
Sidewalk Replacement |
|
|
|
|
|
|
|
|
|
Transfers To |
|
|
|
|
Public Buildings Capital Fund |
$0 |
$63,269 |
$63,269 |
|
Convention Center Maintenance District Fund |
|
|
|
|
Expenditures |
|
|
|
|
Public Works Department |
$1,862,825 |
($308,201) |
$1,554,624 |
|
|
|
|
|
|
Transfers To |
|
|
|
|
Public Buildings Capital Fund |
$0 |
$308,201 |
$308,201 |
|
Public Buildings Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Water Utility Capital Fund |
$0 |
$96,854 |
$96,854 |
|
Sewer Utility Fund |
$0 |
$612,624 |
$612,624 |
|
Library Department Capital Fund |
$0 |
$63,269 |
$63,296 |
|
Convention Center Maintenance District Fund |
$0 |
$308,201 |
$308,201 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Public Building Parking Lot Improvements Project |
$562,417 |
$1,080,948 |
$1,643,365 |
COORDINATION
This report has been coordinated with the Finance Department, Water and Sewer Utilities Department, Library, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine the project to be exempt under CEQA Guidelines Section 15301 (Class 1) Existing Facilities;
2. Award the Public Works Contract for the Miscellaneous Asphalt and Concrete Rehabilitation Project to the lowest responsive and responsible bidder, Silicon Valley Paving, Inc., in the amount of $1,139,217 and authorize the City Manager to execute any and all documents associated with and necessary for the award, completion, and acceptance of this Project, in final forms approved by the City Attorney;
3. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $170,883, for a total not-to-exceed amount of $1,310,100; and
4. Approve the following FY 2024/25 Budget Amendments:
a) In the Water Utility Capital Fund, establish a transfer to the Public Buildings Capital Fund and reduce the Building and Grounds project in the amount of $96,854 (majority affirmative Council votes required);
b) In the Sewer Utility Fund, establish a transfer to the Public Buildings Capital Fund and reduce the Unrestricted Ending Fund Balance in the amount of $612,624 (five affirmative Council votes required for the use of unused balances);
c) In the Library Department Capital Fund, establish a transfer to the Public Buildings Capital Fund and reduce the Central Park Library - Concrete project by $63,269 (majority affirmative Council votes required);
d) In the Convention Center Maintenance District Fund, establish a transfer to the Public Buildings Capital Fund and reduce the Public Works Department budget by $308,201 (majority affirmative Council votes required); and
e) In the Public Buildings Capital Fund, recognize transfers totaling $1,080,948 from the Water Utility Capital Fund in the amount of $96,854, Sewer Utility Fund in the amount of $612,624, Library Department Capital Fund in the amount of $63,269, and Convention Center Maintenance District Fund in the amount $308,201 and increase the Public Building Parking Lot Improvements Project appropriation by $1,080,948 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Project Map
2. Bid Summary