REPORT TO COUNCIL
SUBJECT
Title
Award Bid No. PW15-09 for Orchard Gardens Park Expansion and Demolition of Structure at 775 Dona Avenue, Adopt a Resolution to Execute a PG&E Easement, and Approve Budget Modification No. 24; and Related CEQA Actions: Adoption of Mitigated Negative Declaration and Finding of Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $798,400 to Robert A. Bothman, Inc. of San Jose for the Orchard Gardens Park Expansion Project and for demolition of the City-owned structure located at 775 Dona Avenue (the "Girl Scout House") (Public Works Project No. PR-14/06-14). Although the park expansion and demolition are separate projects, they were included in the same bid request because they both include demolition work that can be efficiently performed at the same time. Approval is also requested for a 10% construction contingency in the amount of $79,840. In order for the work to commence, Council must also take the following actions:
· Adopt a California Environmental Quality Act (CEQA) Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program for constructing the park (Attachments 1 and 2)
· Make a finding of categorical exemption for the structure demolition
· Adopt a Resolution authorizing the City Manager to execute an easement with Pacific Gas & Electric Co. (PG&E) for utility access (Attachment 5)
· Approve Budget Modification No. 24 to provide additional project funding
ENVIRONMENTAL REVIEW
A Mitigated Negative Declaration (MND) has been prepared for the Orchard Gardens Park Expansion project in accordance with CEQA provisions and City guidelines. An Initial Study (IS) identified potential construction related significant impacts on air quality, biological and cultural resources, noise, transportation and traffic. Implementing mitigation measures during construction through a Mitigation Monitoring and Reporting Program (MMRP) will reduce these impacts to less than significant. The City will also ensure that construction-related hazardous materials and wastes are handled in accordance with applicable laws, and that measures will be implemented to minimize and control stormwater runoff. Soils analyses were also conducted and found environmental conditions to be within acceptable limits.
The IS/MND and MMRP were prepared, processed and noticed in accordance with Public Resources Code Sections 21000 et seq. and 14 California Code of Regulations Sections 15000 et seq.
The CEQA finding for the demolition and disposal of the structure on Dona Avenue is a categorical exemption pursuant to Class 1, Section 15301(l)(4) which allows for the demolition and removal of individual small structures.
BACKGROUND AND DISCUSSION
Orchard Gardens Park Expansion
The Orchard Gardens Park project will expand the existing 2.5 acre Orchard Gardens Park by demolishing three City-owned homes (252, 266 and 278 Garner Drive) directly adjacent to the park site and replacing them with landscaping, benches and other park furnishings, outdoor fitness equipment, hardscape walkways, lighting and parking spaces. The project is intended to provide additional open space for the park and to serve as a "gateway" for the western terminus of the John W. Christian Greenbelt. A conceptual design for the park expansion was approved by Council on November 26, 2013 (RTC No. 13-266), and the detailed design was prepared by Harris Design, a landscape architectural firm.
Pacific Gas & Electric Co. Easement
The Orchard Gardens Park project also involves removal of a section of overhead utilities including electric, phone and cable lines that cross through an easement at the rear of the property where the City-owned homes are located. The overhead lines and two joint utility poles will no longer be necessary once the homes are demolished and will be removed to improve the aesthetics of the new park space. When the two poles are removed, new pole anchors will be required to support the remaining lines, which will extend from the existing easement onto park property. An easement deed will be required to allow PG&E as-needed access to the pole anchors for construction and maintenance (see Exhibit A of Attachment 5). Council adoption of the resolution in Attachment 5 is required to authorize the City Manager to execute the Easement Deed with PG&E.
Demolition of 775 Dona Avenue Structure
Demolition of the 775 Dona Avenue structure is a separate project that has been pending since 2010 to secure funding. It is included in the scope of work for this contract since it was determined that construction efficiencies could be achieved by doing the demolition work for both projects at the same time. The structure is on a 20 foot wide strip of city-owned property located alongside a PG&E tower lines right-of-way. It was used in the past as a Girl Scout meeting house. It has not been in use since 1996, and is uninhabitable due to pervasive mold and asbestos issues. The structure will be demolished and the land returned to its original undeveloped state.
The project was bid as follows:
Bid Notice: Advertised in The Sun on September 5, 2014;
Provided to 18 Bay Area Builder's Exchanges;
Posted on Onvia Demandstar public procurement network; and
Published on the City's website.
Bid Response: 24 contractors requested bid documents.
Bid Results: Sealed bids were publicly opened on September 24, 2014;
7 bids were received; 4 were responsive.
The lowest responsive and responsible bid was from Robert A. Bothman, Inc. of San Jose in the amount of $798,400. Two lower bids were received, but these were determined to be non-responsive. B-Side, Inc. of Oakland submitted a bid in the amount of $771,000, but the bidder failed to acknowledge Addendum No. 2, which significantly changed the project scope and cost. Galeb Paving, Inc. of Saratoga submitted a bid in the amount of $779,443, but the unit cost submitted for Mobilization (Bid Item #1) exceeded the 5% of bid total maximum specified in the bid documents. Another bidder, Calstate Construction Inc. of Fremont, submitted a bid in the amount of $814,800 but the unit cost submitted on Mobilization also exceeded the 5% of bid total maximum specified and was also judged to be nonresponsive. The bid summary is contained in Attachment 3.
All of the bids were substantially higher than the engineer's estimate of $634,642. The primary reasons for this include higher than expected demolition costs (including abatement of lead paint and materials containing asbestos); higher materials cost for concrete, fencing, electrical and irrigation systems; and upgraded exercise equipment which the City included in the bid based on a request from a neighborhood group. It is unlikely that rebidding the project as designed will result in more favorable pricing.
FISCAL IMPACT
Project costs are as follows:
Construction $798,400
Construction contingency (10%) $79,840
Total costs $878,240
Capital project 829570 (Orchard Garden Park Expansion) will require an additional $280,000 to complete construction. This amount includes higher construction costs for demolition and materials, allowances for CEQA monitoring and utility relocation fees, and quality assurance testing during construction.
Park Dedication Funds have been budgeted for the expansion of Orchard Gardens Park. Budget Modification No. 24 has been prepared to appropriate additional Park Dedication funds in the amount of $280,000 to complete construction. In FY 2013/14, Park Dedication Fee Revenue significantly exceeded expectations. Therefore additional funds can be appropriated without affecting other planned projects.
Budget Modification No. 24
FY 2014/15
|
Current |
Increase/ (Decrease) |
Revised |
Capital Projects Fund |
|
|
|
Expenditures |
|
|
|
Project 829570 - Orchard Gardens Park Expansion |
$676,687 |
$280,000 |
$956,687 |
|
|
|
|
Park Dedication Fund Capital Projects Reserve |
$7,662,316 |
($280,000) |
$7,382,316 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Adopt a CEQA Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Orchard Gardens Park Expansion Project, 2) Make a finding of CEQA categorical exemption pursuant to Section 15301(l)(4) for demolition of the structure located at 775 Dona Avenue; 2) Adopt a resolution authorizing the City manager or her designee to execute an Easement Deed with PG&E; 3) Award a contract, in substantially the same format as Attachment 4 and in the amount of $798,400 for the subject project and authorize the City Manager to execute the contract when all the necessary conditions have been met, 4) Approve a 10% construction contingency in the amount of $79,840; and 5) Approve Budget Modification No. 24 to provide additional funding for the project.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by Manuel Pineda, Director, Public Works
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. CEQA Initial Study and Mitigated Negative Declaration
2. Mitigation Monitoring and Reporting Program
3. Bid Summary
4. Draft General Construction Contract
5. Resolution Authorizing City Manager to Execute PG&E Easement