REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the 2020 Annual Street Maintenance and Rehabilitation Project (CE 19-20-01) [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City’s street pavement network consists of approximately 250 centerline miles of arterial, collector, residential and local streets. Through the Pavement Management Program, staff prioritizes various street segments for preventative maintenance and rehabilitation work based on condition, use and available funding.
The 2020 Annual Street Maintenance and Rehabilitation Project (Project) consists of preventative maintenance and rehabilitation of approximately 29.6 lane miles of street pavement along 18 street segments (Attachment 1). The scope of work for the Project includes: repair and replacement of asphalt pavement; placement of slurry seal; adjustment of utility valves and covers; construction of accessible concrete ramps in accordance with the requirements of the Americans with Disabilities Act; replacement of traffic striping and pavement markings; and other necessary work to complete the Project.
The project includes a CalRecycle grant and a Transportation Fund for Clean Air (TFCA) grant. In 2019, a CalRecycle grant was awarded to the City to incorporate recycled rubberized materials in pavement maintenance projects. The City will receive reimbursement of up to the $274,033 from CalRecycle based on the quantity of rubberized materials used. A portion of this grant funding has been expended on the previous 2019 Pavement Rehabilitation Project (CE 17-18-19), and the remaining grant funds will be expended on this Project. The TFCA grant funding is associated with the March 17, 2020, Council approved agreement with the Valley Transportation Authority, which will install Class II bicycle lanes on Saratoga Avenue between San Tomas Expressway and Los Padres Boulevard (RTC 20-1284). The TFCA grant-funded work is included in this 2020 Annual Street Maintenance and Rehabilitation Project in order to complete it in a cost-efficient way by incorporating it into a larger project.
Additionally, this project includes pavement rehabilitation at Westridge Drive, which is located along the city limit between the City of Santa Clara and the City of San Jose, and the street is partially within both jurisdictions. In order to rehabilitate the entire street for the benefit of the public, staff has coordinated with the City of San Jose to enter into a cooperative agreement between the two agencies in which Santa Clara will perform the construction work and San Jose will contribute a respective share of funding for work completed within San Jose’s jurisdiction. Approval of this cooperative agreement is in progress and is anticipated to be executed by the City Manager in the near future.
DISCUSSION
On April 15, 2020, bids for construction of the Project were opened via video conference. Five bids were received ranging from $6,332,671 to $9,196,690. The Bid Summary is included as Attachment 2. The bids included a Base Bid for the project of 14 street segments, and two Add Alternate bids for an additional four street segments. The additional street segments were included as Add Alternates so that if bids received for the project were higher than the available funding, then these alternate streets could be removed from the current project and deferred to a subsequent project. Based on the bids being lower than the engineer’s estimate and within the available funding amount, staff recommends awarding both the Base Bid and Add Alternates.
DeSilva Gates Construction LP (DGC) submitted the lowest total bid in the amount of $6,332,671, which is approximately 11 percent below the Engineer’s Estimate of $7,174,000. DCG’s bid was reviewed for compliance with the Bid Documents and was determined to be the lowest responsive and responsible bidder. Staff recommends awarding the contract, including the Base Bid and all Add Alternates, to DeSilva Gates Construction LP.
The award of contract will allow construction to commence in order to complete the pavement work during the dry summer and fall months of 2020. This timeframe is subject to change based on the current issues related to the COVID-19 situation. 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, and specifically includes the repair of existing highways and streets.
FISCAL IMPACT
The approximate cost of the contract is $6,332,671 (Base Bid plus Alternates A and B) plus 10 percent contingency, or $633,267, for any potential change orders for a total not-to-exceed contract amount of $6,965,938.
Funding for the contract is available in the Annual Street Maintenance and Rehabilitation Program ($6,652,051) and Saratoga Avenue Bicycle Lanes ($71,000) projects. In addition, staff recommends funding of $149,000 and $93,887 from the Water Utility and Sewer Utility Funds, respectively, to be transferred to the Annual Street Maintenance and Rehabilitation Program project. This Project involves removing and replacing water valve boxes and adjusting sanitary sewer manhole frames. The transfers from the Water and Sewer Utility funds will fund that portion of the project costs.
Budget Amendment
FY 2019/20
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Transfer from Water Utility |
$145,748 |
$149,000 |
$294,748 |
|
Transfer from Sewer Utility |
$81,642 |
$93,887 |
$175,529 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Annual Street Maintenance and Rehabilitation Program |
$15,514,872 |
$242,887 |
$15,757,759 |
|
|
|
|
|
|
Water Utility Fund |
|
|
|
|
Expenditures |
|
|
|
|
Unrestricted Fund Balance |
$970,917 |
($149,000) |
$821,917 |
|
|
|
|
|
|
Transfers To |
|
|
|
|
Transfer to Streets and Highways Capital Fund |
$116,855 |
$149,000 |
$265,855 |
|
|
|
|
|
|
Sewer Utility Fund |
|
|
|
|
Expenditures |
|
|
|
|
Unrestricted Fund Balance |
$911,570 |
($93,887) |
$817,683 |
|
|
|
|
|
|
Transfers To |
|
|
|
|
Transfer to Streets and Highways Capital Fund |
$74,725 |
$93,887 |
$168,612 |
COORDINATION
This report has been coordinated with the Finance Department 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 <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Award the Public Works Contract for the 2020 Annual Street Maintenance and Rehabilitation Project (CE 19-20-01), including the Base Bid, Add Alternate A, and Add Alternate B, to the lowest responsive and responsible bidder, DeSilva Gates Construction LP, in the amount of $6,332,671 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;
2. Authorize the City Manager to execute change orders up to approximately 10 percent of the original contract price, or $633,267, for a total project budget not to exceed amount of $6,965,938; and
3. Approve the budget amendment in the Streets and Highways Capital Fund to recognize transfers of $149,000 from the Water Utility Fund and $93,887 from the Sewer Utility Fund, and increase the Annual Street Maintenance and Rehabilitation Program project by $242,887; in the Water Utility Fund, increase the transfer to the Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $149,000; and in the Sewer Utility Fund, increase the transfer to Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $93,887.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary