REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Great America Parkway and Mission College Boulevard Intersection Improvements Project to O’Grady Paving, Inc. and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Great America Parkway and Mission College Boulevard Intersection Improvements Project (Project) consists of widening the intersection at Great America Parkway (GAP) and Mission College Boulevard (MCB) to include additional left-turn and through vehicle lanes, traffic signal replacement, replacement of streetlights, pavement rehabilitation, bicycle lane improvements, Americans with Disabilities Act (ADA) compliant curb ramps and corner bulb-outs, bus stop improvements and modifications to existing utilities including storm drain, and Silicon Valley Power (SVP) electrical and fiber optic facilities along GAP and MCB. The Project also includes additional pavement rehabilitation on GAP from the intersection south to Highway 101 (Attachment 1).
On August 16, 2022 (Item 3.L), the City Council approved Amendment No. 1 to the Design Professional Services Agreement with WRECO for the Project to support modifications to the Project design based on a value engineering analysis which identified modified lane configuration options to decrease necessary roadwork (reducing costs by approximately $2.6 million) which would minimize traffic delays based on the latest traffic volume forecasts. The Agenda Report indicated that additional funds would be required in the Capital Improvement Program Budget to fund the full construction of the Project.
DISCUSSION
In December 2023, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, Periscope S2G. The RFB was viewed by over 50 vendors, which included contractors, suppliers, plan rooms, builder exchanges, and more. Beyond the contractors and suppliers who viewed the RFB through Periscope S2G, additional vendors were also able to view the RFB as members of various plan rooms and builder exchanges. In addition, staff also reached out directly to distribute the RFB to contractors and vendors who have previously viewed similar projects in the past.
On January 29, 2024, the bid opening for the Project was held via video conference. Three bids were received ranging from $9,199,304 to $10,730,562. The Bid Summary is included as Attachment 2. The lowest bid submitted by O’Grady Paving, Inc., in the amount of $9,199,304, is approximately 10 percent above the Engineer’s Estimate of $8,380,000.
O’Grady Paving’s bid was reviewed by the Department of Public Works 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 award of contract will allow construction to commence. The Project is estimated to be substantially complete by the end of 2025. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
The Project being considered includes improvements to widen the intersection to include additional left-turn and through vehicle lanes, traffic signal replacement, replacement of streetlights, pavement rehabilitation, bicycle lane improvements, Americans with Disabilities Act (ADA) compliant curb ramps and corner bulb-outs, bus stop improvements and modifications to existing utilities including storm drain, and SVP electrical and fiber optic facilities. The additional left-turn and through vehicle lanes received environmental clearance in accordance with CEQA as part of the City's CIP in 1998 and were also analyzed as part of the Environmental Impact Reports (EIR) for the 2009 Yahoo Campus Project (2009), Levi’s Stadium (2010), and Related Santa Clara projects (2016).
Additionally, the remaining improvements, including, but not limited to, pavement rehabilitation, utility relocation, sidewalk and pedestrian ramp improvements, and traffic signal modification scope of work, are 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 $9,199,304, plus a 10 percent contingency, or $919,930, for any potential change orders for a total not-to-exceed contract amount of $10,119,234. On August 16, 2022 (Item 3.L), staff informed Council that additional funds would be required in the Capital Improvement Program Budget to fund the full construction costs of the Project. Staff reviewed options to fund the remaining costs with Traffic Impact Fees, City regional transportation funds past developer contributions, as well as other relevant City funds.
Additional funding in the amount of $7,921,528 is required to completely fund the construction of the Project. The funding is recommended to be transferred from the following transportation related funds: $1,183,910 in Unallocated Traffic Impact Fees from the Traffic Mitigation Fund; $3,301,046 in Unallocated Regional Transportation Funds from the Developer Traffic Payments Fund; $221,000 reallocated from the Traffic Signal Enhancements Project in the Streets and Highways Capital Fund; and a total of $1,750,000 in the Unrestricted Fund Balance of the Streets and Highways Capital Fund, which is comprised of $750,000 of Unallocated Developer Contributions and $1,000,000 of Unallocated Vehicle Registration Fees. This Project also involves adjusting sanitary sewer manhole covers; removing and replacing water valve boxes; replacing SVP vaults, manholes, conduits and installing street light poles; and additional pavement rehabilitation work beyond the intersection improvements. To fund costs associated with that work, Staff recommends transferring funds from the Sewer Utility Capital Fund ($7,487), the Water Utility Capital Fund ($23,959), Electric Utility Capital Fund ($394,983), and reallocating funds from the Annual Street Maintenance and Rehabilitation project ($1,039,143).
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund (533) |
|
|
|
|
Transfer From |
|
|
|
|
Sewer Utility Capital Fund |
$13,200 |
$7,487 |
$20,687 |
|
Water Utility Capital Fund |
$1,500 |
$23,959 |
$25,459 |
|
Electric Utility Capital Fund |
$0 |
$394,983 |
$394,983 |
|
Traffic Mitigation Fund |
$700,000 |
$1,183,910 |
$1,883,910 |
|
Developer Traffic Payments Fund |
$0 |
$3,301,046 |
$3,301,046 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Annual Street Maintenance and Rehabilitation Program (CIP 1235) |
$19,735,353 |
($1,039,143) |
$18,696,210 |
|
Traffic Signal Enhancements (CIP 1219) |
$710,310 |
($221,000) |
$489,310 |
|
MCB/GAP Intersection Improvement Project (CIP 1237) |
$2,276,125 |
$7,921,528 |
$10,197,653 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$3,827,048 |
($1,750,000) |
$2,077,048 |
|
|
|
|
|
|
Sewer Utility Capital Fund (594) |
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$10,827,564 |
($7,487) |
$10,820,077 |
|
|
|
|
|
|
Transfer To |
|
|
|
|
Streets and Highways Capital Fund |
$13,200 |
$7,487 |
$20,687 |
|
|
|
|
|
|
Water Utility Capital Fund (592) |
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$7,223,252 |
($23,959) |
$7,199,293 |
|
Transfer To |
|
|
|
|
Streets and Highways Capital Fund |
$1,500 |
$23,959 |
$25,459 |
|
|
|
|
|
|
Electric Utility Capital Fund (591) |
|
|
|
|
Expenditure |
|
|
|
|
Transmission and Distribution Capital Maintenance and Betterments (CIP 2006) |
$9,943,599 |
($394,983) |
$9,548,616 |
|
|
|
|
|
|
|
|
|
|
|
Transfer To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$394,983 |
$394,983 |
|
|
|
|
|
|
Traffic Mitigation Fund (123) |
|
|
|
|
Transfer To |
|
|
|
|
Streets and Highways Capital Fund |
$700,000 |
$1,183,910 |
$1,883,910 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Unrestricted Fund Balance |
$3,384,781 |
($1,183,910) |
$2,200,871 |
|
|
|
|
|
|
Developer Traffic Payments Fund (124) |
|
|
|
|
Transfer To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$3,301,046 |
$3,301,046 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Restricted Fund Balance |
$8,667,690 |
($3,301,046) |
$5,366,644 |
|
|
|
|
|
COORDINATION
This report has been coordinated with the Finance Department, the Water & Sewer Utilities Department, Silicon Valley Power, and the City Attorney’s Office.
PUBLIC CONTACT
On January 29, 2024, the City sent a notification letter to over 1,000 property owners in the vicinity of the Project to provide advance notification that construction work is forthcoming at the GAP/MCB intersection. A Project website has been established to provide additional information to the community and will be updated during construction activities. Staff will host a Project Community Meeting in spring 2024 to provide additional information on the Project to the surrounding community and address any questions and comments related to upcoming construction activities.
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 including, but not limited to, pavement rehabilitation, utility relocation, sidewalk and pedestrian ramp improvements, and traffic signal modification, were previously analyzed as part of the Environmental Impact Reports (EIR) for the 2009 Yahoo Campus Project (2009), Levi’s Stadium (2010), and Related Santa Clara projects (2016) and/or are otherwise exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Award the Public Works Contract for the Great America Parkway and Mission College Boulevard Intersection Improvements Project (CE 18-19-13), to the lowest responsive and responsible bidder, O’Grady Paving, Inc, in the amount of $9,199,304 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 a final form approved by the City Attorney;
3. Authorize the City Manager to execute change orders up to approximately 10 percent of the original contract price, or $919,930, for a total contract not to exceed amount of $10,119,234; and
4. Approve the following FY 2023/24 budget amendments:
A. In the Streets and Highways Capital Fund, recognize a transfer from the Sewer Utility Capital Fund in the amount of $7,487, a transfer from the Water Utility Capital Fund in the amount of $23,959, a transfer from the Electric Utility Capital Fund in the amount of $394,983, a transfer from the Traffic Mitigation Fund of $1,183,910, and a transfer of $3,301,046 from the Developer Traffic Payments Fund, decrease the Annual Street Maintenance and Rehabilitation Project in the amount of $1,039,143, decrease the Traffic Signal Enhancements Project in the amount of $221,000, increase the MCB/GAP Intersection Improvement Project by $7,921,528, and decrease the unrestricted ending fund balance by $1,750,000 (five affirmative Council votes required to appropriate additional revenue and for the use of unused balances);
B. In the Sewer Utility Capital Fund, establish a transfer to the Streets and Highways Capital Fund and decrease the Sewer Utility Capital Fund Unrestricted Ending Fund Balance by $7,487 (five affirmative Council votes required for the use of unused balances);
C. In the Water Utility Capital Fund, establish a transfer to the Streets and Highways Capital Fund and decrease the Water Utility Capital Fund Unrestricted Ending Fund Balance by $23,959 (five affirmative Council votes required for the use of unused balances);
D. In the Electric Utility Capital Fund, establish a transfer to the Streets and Highways Capital Fund and decrease the Transmission and Distribution Capital Maintenance and Betterments project by $394,983 (majority affirmative Council votes required);
E. In the Traffic Mitigation Fund, establish a transfer to the Streets and Highways Capital Fund and decrease the Traffic Mitigation Fund Unrestricted Ending Fund Balance by $1,183,910 (five affirmative Council votes required for the use of unused balances); and
F. In the Developer Traffic Payments Fund, establish a transfer to the Streets and Highways Capital Fund and decrease the Developer Traffic Payments Fund Restricted Ending Fund Balance by $3,301,046 (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