REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Award of Contract for the Permanent Changeable Message Signs Project to Tennyson Electric, LLC. and Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Permanent Changeable Message Signs Project (Project) consists of the installation of ten large permanent electronic changeable message signs (signs) on overhead structures in the northern Santa Clara area along Great America Parkway and Tasman Drive (Attachment 1, Project Location Map). The signs will provide real-time directional and traffic safety guidance and wayfinding information to support local events at destinations such as the Convention Center and Levi’s Stadium. These signs can also provide messaging to the public in the case of an emergency. Sample renderings of the proposed CMS are included as Attachment 2.
DISCUSSION
In December 2023, a competitive Request for Bids (RFB) for constructing the Project was published on the City’s electronic bid notification system. The RFB was viewed by over 60 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.
On January 25, 2024, the bid opening for the Project was held via video conference and one bid was received and opened for construction of the Project. The single bid was received from Tennyson Electric, LLC. in the amount of $3,042,385, which is 5 percent above the Engineer’s Estimate of $2,900,000. The Bid Summary is included as Attachment 3. The project team speculates that the reason the City received only one bid may be due to the type of project and the limited number of contractors currently available to perform this type of CMS installation.
Tennyson Electric, LLC’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 Tennyson Electric, LLC.
The award of contract will allow construction to commence and the Project is estimated to be substantially complete by Fall 2025. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
The Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15301(c), “Existing Facilities,” as the activity consists of the minor alteration of existing streets involving no or negligible expansion of the use beyond what is currently existing.
.
FISCAL IMPACT
The approximate cost of the contract is $3,042,385, plus a 15 percent contingency, or $456,360, for any potential change orders, for a total not-to-exceed contract amount of $3,498,745. Funding is available in the Permanent Changeable Message Signs project in the Streets and Highways Capital Fund.
In the FY 2017/18 budget, the Stadium Authority Board approved $1,000,000 for Street Signage surrounding Levi’s stadium to better protect, inform and serve patrons attending events. The Project will provide real-time traffic safety and guidance information for planned Levi’s Stadium events to alleviate ingress and egress traffic congestion on surrounding streets. The $1,000,000 budget has been carried forward and is currently available in the FY 2023/24 Stadium Authority Capital Expense Budget. Staff recommends the budget amendments below in the Streets and Highways Capital Fund to increase the estimate for Other Revenue to recognize funding from the Stadium Authority for the Permanent Changeable Message Signs Project and return $747,880 in allocated Project budget to the Gas Tax Fund to fund other transportation related needs in the City.
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund (533) |
|
|
|
|
Revenue |
|
|
|
|
Other Revenue |
$750,000 |
$1,000,000 |
$1,750,000 |
|
|
|
|
|
|
Transfers to |
|
|
|
|
Gas Tax Fund |
$0 |
$747,880 |
$747,880 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Changeable Message Signs Project (CIP 1227) |
$3,406,728 |
$252,120 |
$3,658,848 |
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
In June 2021 and December 2023, the City sent notification letters to property owners adjacent to the CMS Project area with information about the proposed signs along their frontages. Additionally, on January 29, 2024, the City sent a notification letter to over 1,000 property owners in the vicinity of the Project to inform them that construction work is forthcoming. A Project website has been established to provide additional information to the community and will be regularly updated once construction commences. Staff will also host a Project Community Meeting in April 2024 to provide additional information 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 <mailto: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. Award the Public Works Contract for the Permanent Changeable Message Sign Project, to the lowest responsive and responsible bidder, Tennyson Electric, LLC, in the amount of $3,042,385 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 15 percent of the original contract price, or $456,360, for a total contract not-to-exceed amount of $3,498,745; and
4. Approve the following FY 2023/24 budget amendments:
a. In the Streets and Highways Capital Fund, increase the Other Revenue estimate to recognize funding from the Stadium Authority, establish a transfer to the Gas Tax Fund in the amount of $747,880, and increase the Changeable Message Signs project by $252,120 (five affirmative Council votes required to appropriate additional revenue);
b. In the Gas Tax Fund recognize a transfer from the Streets and Highways Capital Fund and increase the Unrestricted Ending Fund Balance by $747,880 (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 Location Map
2. Sample Permanent Changeable Message Sign Renderings
3. Bid Summary