REPORT TO COUNCIL
SUBJECT
Title
Actions on a Proposed Award of Contract for the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project to O’Grady Paving, Inc., Authorize the City Manager to Execute a Funding Agreement with Santa Clara Valley Transportation Authority for 2016 Measure B Funding, and Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project (Project) consists of implementing bicycle lanes along Lafayette Street between Laurelwood Road and Reed Street, including pavement rehabilitation (Attachment 1). The scope of work includes repair and replacement of asphalt pavement; adjustment of utility valves and covers; construction of accessible concrete ramps in accordance with the requirements of the Americans with Disabilities Act (ADA); installation of traffic striping, markings, markers, and signs; traffic signal modifications; and other necessary work to complete the Project.
In 2016, Santa Clara County voters approved “Measure B,” a 30-year half-cent county-wide sales tax to fund improvements for nine transportation related program categories including a pedestrian and bicycle category. The Santa Clara Valley Transportation Authority (VTA) administers these funds and in December 2019, issued a call for projects for bicycle/pedestrian capital projects. The City’s application for the Lafayette Street Class IV Bikeway Project was awarded $1,197,000 and is a high priority recommendation in the City’s Bicycle Plan. On July 13, 2021, Council approved a grant funding agreement for $200,000 with VTA for the design phase of the Project.
On August 22, 2023, Council was presented several options for implementing bicycle lanes along Lafayette Street between Laurelwood Road and Reed Street. Council selected the option that included the installation of protected bicycle lanes through this corridor. As part of this approval, Council authorized parking removal through a pilot program along Lafayette Street between Memorex Drive and Reed Street in order to implement the protected bikeway. This portion of the Project will be monitored for approximately one year after construction and staff will return to Council for a decision to either make the modifications permanent or to restore parking, remove the protected bicycle lanes and install a Class II (striped) bicycle lane on one side of the roadway and no bicycle lane (share the road) on the other side of the roadway. Additionally, due to the significant investment in bikeway infrastructure on Lafayette Street, staff coordinated the pavement maintenance and rehabilitation needs identified for Lafayette Street in the City’s pavement program to be completed concurrently with the bikeway improvements.
On December 12, 2023, Council approved a design professional services agreement with BKF Engineers to develop the design and construction documents to implement the Project and based on the inclusion of pavement rehabilitation into the project scope updated the Project name to the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project.
DISCUSSION
On May 8, 2025, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, BidNet Direct. The RFB was viewed by various vendors, including contractors, suppliers, plan rooms, and builder exchanges, among others. Additional vendors were also 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 May 29, 2025, the bid opening for the Project was held via video conference. Two bids were received ranging from $4,087,445 to $4,464,464. The Bid Summary is included as Attachment 2. The lowest bid, submitted by O’Grady Paving, Inc. (O’Grady) in the amount of $4,087,445, is 21.9 percent below the Engineer’s Estimate of $5,233,300. O’Grady’s bid was reviewed by staff and the City Attorney’s Office 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 O’Grady Paving, Inc. The contract includes prevailing wage requirements.
In order to receive the 2016 Measure B Bicycle/Pedestrian Capital Projects grant funds for the construction phase of the Project, VTA requires a separate funding agreement (Attachment 3). This agreement provides $997,000 in 2016 Measure B funds towards construction costs.
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 $4,087,445 plus a 10 percent contingency, or $408,745, for any potential change orders for a total not-to-exceed contract amount of $4,496,190.
The Project construction phase is recommended to be funded through a combination of 2016 Measure B grant funds and the reallocation of project funds from the Pedestrian and Bicycle Enhancement Facilities project and the Annual Street Maintenance and Rehabilitation Program project. The following budget amendment table includes actions to recognize the $997,000 in 2016 Measure B grant funds, reallocate $99,700 from the Pedestrian and Bicycle Enhancement Facilities project and reallocate $3,250,000 from the Annual Street Maintenance and Rehabilitation Program project and appropriate these funds to the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project.
In addition, staff recommends transferring $135,900 from the Buildings and Grounds project in the Water Utility Capital Fund and $34,000 from the Sewer Utility Fund to the Lafayette Street Class IV Bikeway and Pavement Rehabilitation project for the portion of the project costs associated with those funds. This Project involves removing and replacing water valve boxes and adjusting sanitary sewer manhole covers.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund |
|
|
|
|
Revenues |
|
|
|
|
2016 Measure B Grant |
$10,426,760 |
$997,000 |
$11,423,760 |
|
|
|
|
|
|
Transfers From |
|
|
|
|
Water Utility Capital Fund |
$0 |
$135,900 |
$135,900 |
|
|
|
|
|
|
Sewer Utility Fund |
$0 |
$34,000 |
$34,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Annual Street Maintenance and Rehabilitation Program |
$28,280,021 |
($3,250,000) |
$25,030,021 |
|
|
|
|
|
|
Pedestrian and Bicycle Enhancement Facilities |
$676,062 |
($99,700) |
$576,362 |
|
|
|
|
|
|
Lafayette Street Class IV Bikeway and Pavement Rehabilitation |
$9,183 |
$4,516,600 |
$4,525,783 |
|
|
|
|
|
|
Water Utility Capital Fund |
|
|
|
|
Transfers To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$135,900 |
$135,900 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Buildings and Grounds |
$5,620,608 |
($135,900) |
$5,484,708 |
|
|
|
|
|
|
Sewer Utility Fund |
|
|
|
|
Transfers To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$34,000 |
$34,000 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$3,714,617 |
($34,000) |
$3,680,617 |
COORDINATION
This report has been coordinated with the Finance Department, Water & Sewer Utilities 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Approve and authorize the City Manager to execute the funding agreement between the City of Santa Clara and Santa Clara Valley Transportation Authority, including minor modifications, amendments, and time extensions, if needed, in final forms approved by the City Attorney;
3. Award the Public Works Contract for the Lafayette Street Class IV Bikeway and Pavement Rehabilitation Project to O’Grady Paving, Inc., the lowest responsive and responsible bidder, in the amount of $4,087,445 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;
4. Authorize the City Manager to execute change orders up to approximately 10 percent of the original contract price, or $408,745 for a total project budget not to exceed amount of $4,496,190, in final forms approved by the City Attorney; and
5. Approve the following FY 2025/26 budget amendments:
a. In the Streets and Highways Capital Fund, recognize grant revenue of $997,000 from Valley Transportation Authority, recognize transfers of $135,900 from the Water Utility Capital Fund and $34,000 from the Sewer Utility Fund, and increase Lafayette Street Class IV Bikeway and Pavement Rehabilitation project appropriation by $1,166,900, (five affirmative Council votes required to appropriate additional revenue);
b. In the Streets and Highways Capital Fund, reduce the Pedestrian and Bicycle Enhancement Facilities project appropriation by $99,700, reduce the Annual Street Maintenance and Rehabilitation Program project appropriation by $3,250,000, and increase the appropriation in the Lafayette Street Class IV Bikeway project appropriation by $3,349,700 (majority affirmative Council votes required);
c. In the Water Utility Capital Fund, establish a transfer to the Streets and Highways Capital Fund and reduce the Buildings and Grounds appropriation by $135,900 (majority affirmative Council votes required); and
d. In the Sewer Utility Fund, establish a transfer to the Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $34,000 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary
3. Agreement