REPORT TO COUNCIL
SUBJECT
Title
Award Bid No. PW16-23 for Mary Avenue Bicycle Lanes Project, Approve Budget Modification No. 33, and Reject Bids from Non-compliant Bidders
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $1,220,011 (Base Bid in the amount of $931,947 and Additive Alternates 1 and 2 in the amounts of $183,177 and $104,887) to Redgwick Construction Company of Oakland for the Mary Avenue Bicycle Lanes project (Public Works Project No. TR-14/02-15). Approval is also requested for a 10% construction contingency in the amount of $122,001, for Budget Modification No. 33 to provide additional project funding, and to reject bids received from Golden Bay Construction Inc. and Tennyson Electric Inc. pursuant to Sunnyvale Municipal Code section 2.09.130 and as discussed below.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder. Pursuant to Section 2.09.140 of the Municipal Code, the awarding authority may reject bids received in response to formal bid solicitations.
ENVIRONMENTAL REVIEW
Pursuant to sections 15070-15075 of the California Environmental Quality Act (CEQA) Guidelines, a Mitigated Negative Declaration for this project was considered and adopted by Council on October 8, 2013 (RTC No. 13-239).
BACKGROUND AND DISCUSSION
The Mary Avenue Bicycle Lanes Project on Mary Avenue from Fremont Avenue to Evelyn Avenue consists of pavement repairs, slurry sealing, re-striping, video detection installations, and signage to install bicycle lanes in both the northbound and southbound directions. Bicycle facilities are recommended for Mary Avenue in the City’s Bicycle Mobility Plan. Public outreach meetings were held during the project conceptual design development process. The intent of the project is to provide a safe environment for both pedestrians and bicyclists within the project limits.
The striping modifications will improve traffic flow and provide a designated path of travel for bicyclists. This project satisfies the City’s Non-Motorized Transportation Plan, making bicycling more convenient and building a comprehensive citywide bicycle network.
The project was advertised in The Sunnyvale Sun on March 25, 2016, distributed to sixteen Bay Area Builder’s Exchanges, and published on the City’s website. Fourteen contractors requested bid documents. Sealed bids were opened on April 13, 2016, with three bids being received. The lowest responsive and responsible bid was received from Redgwick Construction Company.
The highest bid received was from Golden Bay Construction, but the firm was also listed as a subcontractor on the second lowest bid submitted by Tennyson Electric. Pursuant to Sunnyvale Municipal Code section 2.09.130, a prime contractor who submits a bid may not submit sub-bids to other competing prime contractors. This provision is also clearly identified in the bidding instructions, which also state that failure to comply with the requirement will result in the rejection of all of the bids from the non-complying bidder. For this reason, the bids from Tennyson Electric and Golden Bay must be rejected.
FISCAL IMPACT
The bid was structured as a Base Bid with two Additive Alternates in order to be able to award the segment of Fremont Avenue to Iowa Avenue in the event the bids for the full project scope came in higher than expected (this segment provides continuity from existing bike lanes to the south). Additive Alternative 1 covers the portion between Iowa Ave and Washington Ave, and Additive Alternative 2 extends from Washington Ave to Evelyn Ave.
While the Base Bid and both Additive Alternates came in slightly lower than the Engineer’s Estimate for the project, available budgeted funding in Capital Project 830760 (Mary Avenue Bicycle Lanes) from a Transportation Development Act (TDA) grant and Traffic Impact Fees is insufficient to design and construct the project. Additional funding is available in Capital Project 825290 (Pavement Rehabilitation).
Funding Source
This project will be funded by a combination of sources including Transportation Development Act Funds (TDA), Traffic Impact Fees, and the General Fund. In order to complete the project, Budget Modification No. 33 has been prepared to increase funding for the project by $711,164. Of this amount, $596,076 is transferred from the Pavement Rehabilitation and $142,302 is appropriated from TDA funds. The additional appropriation from TDA funds, will increase TDA funding for the Mary Lanes Bicycle Project to approximately $497,000.
Budget Modification No. 33
FY 2015/16
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Infrastructure Fund |
|
|
|
|
Capital Project 825290 - Pavement Rehabilitation (General Fund Portion) |
$6,839,642 |
($596,076) |
$6,243,566 |
|
Transportation Development Act Fund |
|
|
|
|
Revenues |
|
|
|
|
Transportation Development Act Funds - Fiscal Year 2016/17 |
$0 |
$115,088 |
$115,088 |
|
Capital Projects Fund |
|
|
|
|
Capital Project 830760 - Mary Avenue Bicycle Lanes |
$772,150 |
$711,164 |
$1,483,314 |
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) Award a construction contract, in substantially the same form as Attachment 2 to the report and in the amount of $1,220,011 to Redgwick Construction Company; 2) Approve a 10% construction contingency in the amount of $122,001; 3) Approve Budget Modification No. 33 to provide additional project funding of $711,164; and 4) Reject bids received from Tennyson Electric Inc. and Golden Bay Construction Inc.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Acting Director of Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract