REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW19-13 to Graham Contractors, Inc for Annual Slurry Seal 2019 and Finding of CEQA Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $872,722.46 to Graham Contractors, Inc of San Jose for the Slurry Seal 2019 Public Works Project (ST-19-01). Approval is also requested for a 10% construction contingency in the amount of $87,272.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder. Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for this project is a categorical exemption pursuant to CEQA Guidelines Section 15301(c) for the rehabilitation of existing streets involving negligible or no expansion of the existing use.
BACKGROUND AND DISCUSSION
Slurry seal is a maintenance treatment utilized by the City that extends the life of a road surface. Slurry seal is most effective when used to extend the life of pavement that is already in good to very good condition. A pavement condition survey is used to determine which streets will most benefit from a slurry seal. Slurry seal is most effective in protecting and extending the life of a pavement surface when applied on a regular cycle, normally every 7 to 10 years.
This project consists of the slurry seal of 183 street segments in various locations throughout the City. A list of the street segments is included in the technical specifications of the contract documents.
The construction project was advertised for competitive bidding on January 18, 2019. Nine (9) contractors requested bid documents and sealed bids were opened on February 6, 2019, with eight (8) responsive bids received. Graham Contractors Inc. has the lowest responsive and responsible bid in the amount of $872,722.46. (see Attachment 1 - Bid Summary).
FISCAL IMPACT
Project costs consist of the construction contract in the amount of $872,723, and a 10% construction contingency in the amount of $87,272, for a total of $959,995. Budgeted funds are available in capital projects 828030 (Annual Slurry Seal of City Streets) and 825290 (Pavement Rehabilitation).
Funding Source
This project is funded by the General Fund.
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
Take the following actions:
- Making a finding of categorical exemption from the California Environmental Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) for rehabilitation of existing streets;
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $872,722.46 to Graham Contractors, Inc.
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Approve a 10% construction contingency in the amount of $87,272.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract