REPORT TO COUNCIL
SUBJECT
Title
Actions on Award of Contract for the 2023 Annual Street Pavement Maintenance and Rehabilitation Project (CE 23-24-01) to O’Grady Paving, Inc., Approve a Class 1 CEQA Categorical Exemption, and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s street pavement network consists of approximately 610 lane miles of arterial, collector, residential, and local streets. Through the Pavement Maintenance Program, staff prioritizes various street segments for preventative maintenance and rehabilitation work based on condition, use, and available funding.
The 2023 Annual Street Pavement Maintenance and Rehabilitation Project (Project) consists of preventative maintenance and rehabilitation of approximately 22.3 lane miles of pavement along various street segments (Attachment 1). The scope of work 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 (ADA); replacement of traffic striping and pavement markings; and other necessary work to complete the Project.
DISCUSSION
In April 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 May 11, 2023, the bid opening for the Project was held via video conference. Two bids were received ranging from $2,526,640 to $2,600,502. The Bid Summary is included as Attachment 2. The lowest bid, submitted by O’Grady Paving, Inc. (O’Grady) in the amount of $ 2,526,640, is 10 percent below the Engineer’s Estimate of $2,811,500.
O’Grady’s bid was reviewed by the Department of Public Works (DPW) 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 in order to complete the pavement work during the summer and fall of 2023. 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 $2,526,640, plus a 10 percent contingency, or $252,664, for any potential change orders for a total not-to-exceed contract amount of $2,779,304.
Funding for the contract is available in the Annual Street Maintenance and Rehabilitation Program project in the Streets and Highways Capital Fund. In addition, staff recommends transferring $50,700 from the Water Utility Fund and $50,700 from the Sewer Utility Fund to the Annual Street Maintenance and Rehabilitation Program 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 2022/23 |
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund (Fund 533) |
|
|
|
|
Transfers From |
|
|
|
|
Transfer from Water Utility Fund |
$0 |
$50,700 |
$50,700 |
|
Transfer from Sewer Utility Fund |
$0 |
$50,700 |
$50,700 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Annual Street Maintenance and Rehabilitation Program |
$18,511,138 |
$101,400 |
$18,612,538 |
|
|
|
|
|
|
Water Utility Fund (Fund 092) |
|
|
|
|
Transfers To |
|
|
|
|
Transfer to Streets and Highways Capital Fund |
$0 |
$50,700 |
$50,700 |
|
Expenditures |
|
|
|
|
Unrestricted Ending Fund Balance |
$5,545,633 |
($50,700) |
$5,494,933 |
|
|
|
|
|
|
Sewer Utility Fund (Fund 094) |
|
|
|
|
Transfers To |
|
|
|
|
Transfer to Streets and Highways Capital Fund |
$0 |
$50,700 |
$50,700 |
|
Expenditures |
|
|
|
|
Unrestricted Ending Fund Balance |
$4,028,480 |
($50,700) |
$3,977,780 |
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve use of a Class 1 Categorical Exemption under CEQA Guidelines Section 15301 for the project;
2. Award the Public Works Contract for the 2023 Annual Street Pavement Maintenance and Rehabilitation Project (CE 23-24-01), to the lowest responsive and responsible bidder, O’Grady Paving, Inc., in the amount of $2,526,640 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 $252,664, for a total project budget not to exceed amount of $2,779,304; and
4. Approve the following FY 2022/23 budget amendments:
A. In the Streets and Highways Capital Fund, recognize transfers of $50,700 from the Water Utility Fund and $50,700 from the Sewer Utility Fund, and increase the Annual Street Maintenance and Rehabilitation Program project by $101,400 (five affirmative Council votes required to appropriate additional revenue);
B. In the Water Utility Fund, increase the transfer to the Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $50,700 (five affirmative Council votes required for the use of unused balances); and
C. In the Sewer Utility Fund, increase the transfer to the Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $50,700. (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary