REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to VSS International, Inc. for Java Drive Road Diet and Bike Lanes, Finding of California Environmental Quality Act (CEQA) Categorical Exemption, and Approval of Budget Modification No. 1 (PW22-13)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $574,000 to VSS International, Inc. of West Sacramento for Java Road Diet and Bike Lanes Project (Public Works Project No. TR-21-03), approve a 10% construction contingency in the amount of $57,400 and approve Budget Modification No. 1 in the amount of $269,400 to fund the project.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for construction contracts exceeding $250,000.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, City Council may amend or supplement the budget by a motion adopted by affirmative votes of at least four members to authorize the transfer of unused balances appropriated for one purpose or another, or to appropriate available revenue included in the budget.
ENVIRONMENTAL REVIEW
This project is categorically exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), which applies to minor alterations of existing highways and streets involving negligible or no expansion of use beyond that which presently exists.
Caltrans has also determined that under the National Environmental Policy Act (NEPA), the project qualifies for a Categorical Exclusion under 23 C.F.R. Section 771.117(c)(3) which covers "[c]onstruction of bicycle and pedestrian lanes, paths, and facilities”. NEPA review is required for construction projects receiving federal grant funding.
BACKGROUND AND DISCUSSION
The City of Sunnyvale’s 2020 Active Transportation Plan (ATP) identifies bikeways on Java Drive between Mathilda and Crossman Avenues as a Bicycle Plan priority. This Project will install approximately 5,000 linear feet of buffered Class II (on-street bike lanes) bike facilities via a “Road Diet” on Java Drive from Mathilda Avenue to Crossman Avenue (Project 832950). The Project includes bicycle detection at five signalized intersections for added bicycle travel convenience and safety and green-colored pavement treatments for bicycle-vehicle conflict zones. The Project is also included in the Santa Clara Valley Transportation Authority (VTA) Plan 2040 (VTP 2040), which is the long-range transportation plan for Santa Clara County and includes the Bicycle Expenditure Program (BEP).
In July 2016, the City secured $500,000 in grant funds for design and construction through a competitive selection process from the VTA One Bay Area Grant Cycle 2 (OBAG2). The OBAG2 program is funded with a mix of federal Surface Transportation Block Grant Program funds and Congestion Mitigation Air Quality funds. The Project met all the criteria of the grant program and received authorization in 2018 from Caltrans Mark Thomas and Company was selected as the project consultant team for conceptual design, environmental clearance, and final design (RTC No. 20-0167).
The Project’s main goal is to provide a transportation system that can safely handle circulation for all users including vehicles, bicyclists, pedestrians, and transit. This area is one of the most concentrated workplace areas in the City. The new bike lanes will provide an alternative to driving to work and driving between facilities within the nearby area. The bike lanes along with the reduction in travel lanes will create a multi-modal travel approach to one of the major roadways in the area. This project is consistent with what is being planned in the future Moffett Park Specific Plan.
The construction project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to the Bay Area Builder’s Exchange on April 22, 2022. Eighteen (18) contractors requested bid documents. Sealed bids were opened on May 18, 2022, with a sole bid received. VSS International, Inc submitted a bid that was responsive and responsible in the amount of $574,000 (Attachment 1 - Bid Summary).
FISCAL IMPACT
The project has $297,728 available for construction. The sole bid for the project ($574,000) and 10% contingency ($57,400) total $631,400 and exceed the construction budget by $269,400
To make up the deficiency in the project budget, Budget Modification No. 1 has been prepared to appropriate $269,400 from Project Pavement Rehabilitation (825290) to this Project Java Drive Road Diet and Bike Lanes (832950). Java Drive was initially planned for resurfacing as part of Project 825290 in 2020; however, that was deferred and included as part of this project. Therefore, it is recommended that 825290 be reduced by $269,400 in Gas Tax funds and 832950 increased by $269,400. There is no reserve impact to the Gas Tax Fund with this reappropriation between projects.
BUDGET MODIFICATION NO. 1
FISCAL YEAR 2022/2023
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Current |
Increase (Decrease) |
Revised |
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Gas Tax Fund |
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Expenditures: |
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832950 - Java Drive Road Diet and Bike Lanes |
$431,959 |
$269,400 |
$ 701,359 |
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825290 - Pavement Rehabilitation |
$1,323,290 |
($269,400) |
$1,053,890 |
Funding Source
The current Project 832950 funding source includes: 1) Local Match Funds that are funded by Transportation Impact Fees and 2) Federal Funds from the OBAG2 grant.
The reappropriation of $269,400 between 825290 and 832950 with this budget modification will be funded from Gas Tax.
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 Public Library, Senior Center, Community Center and in the Department of Public Safety Lobby. In addition, the agenda and report are available at the Sunnyvale Public Library, Office of the City Clerk, and on the City's website.
RECOMMENDATION
Recommendation
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $574,000 to VSS International, Inc.;
- Making a finding of categorical exemption from the California Environmental Quality Act pursuant to California Environmental Quality Act Guidelines Section 15301(c);
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Approve a 10% contingency in the amount of $57,400; and
- Approve Budget Modification No. 1 in the amount of $269,400
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Java Drive Road Diet and Bike Lane CIP Budget Sheet