REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW15-18 for Duane Avenue Pavement Rehabilitation 2014 and Finding of CEQA Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $1,285,445 to Granite Construction Company, Inc. of Santa Clara for the Duane Avenue Pavement Rehabilitation 2014 project (Public Works Project No. ST-14/05-15). Approval is also requested for a 10% construction contingency in the amount of $128,545.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for this project is a categorical exemption pursuant to Class 1, Section 15301(c) for existing facilities including highways and streets.
BACKGROUND AND DISCUSSION
Capital Project 830930 (Duane Avenue Roadway Rehabilitation) will rehabilitate Duane Avenue pavement, curb and gutter between San Juan Avenue and Stewart Drive (600 feet west of Lawrence Expressway). Rehabilitation of the roadway will enhance the movement of motorists and bicyclists and remedy existing drainage issues. The scope of work will include asphalt grinding, digout repairs, asphalt overlay and full depth reconstruction. Additional work includes minor concrete improvements, striping and adjusting utility boxes to grade.
This project is partially funded with federal funds through the Metropolitan Transportation Commission’s (MTC) OneBayArea Grant (OBAG) program. Funding was appropriated by Council July 29, 2014 (RTC No. 14-0409).
The project was bid as follows:
Bid Notice: Advertised in The Sun on June 12, 2015;
Provided to 18 Bay Area Builder’s Exchanges;
Posted on Onvia Demandstar public procurement network; and
Published on the City’s website.
Bid Response: 15 contractors requested bid documents.
Bid Results: Sealed bids were publicly opened on July 8, 2015
Five responsive bids were received.
The lowest responsive and responsible bid was from Granite Construction Company, Inc. of Santa Clara in the amount of $1,285,445. The bid amount is approximately 22% below the engineer’s estimate of $1,647,580. The Bid Summary is attached.
It should be noted that the second lowest bidder, C.F. Archibald Paving, Inc., has indicated its intent to submit a protest, alleging that Granite Construction submitted a late bid. Bids are due by 3:00 p.m., as indicated on the wall clock in the lobby of the City Hall Annex building. A representative from Granite Construction entered the lobby to submit a bid just after the wall clock changed from 2:59 to 3:00 p.m. The majority of prospective bidders that had gathered in the lobby for the bid opening noted that the City’s wall clock was actually two minutes fast. The Purchasing Officer determined that this was the case and accepted the bid.
Granite Construction’s bid is approximately $102,000 less than the bid submitted by C.F. Archibald Paving. Staff recommends awarding the construction contract to Granite Construction Company, Inc., the lowest responsive and responsible bidder. Staff also recommends the award of a 10% construction contingency in the amount of $128,545.
FISCAL IMPACT
Project costs are as follows:
Construction $1,285,445
Construction contingency (10%) $128,545
Total costs $1,413,990
Budgeted funds are available in Capital Project 830930 (Duane Avenue Roadway Rehabilitation).
Funding Source
88% of this project is funded with STP-T4-2 OBAG grant funds, 12% is funded by Gas Tax Funds.
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) Make a finding of CEQA categorical exemption pursuant to Class 1 Section 15301(c) for existing facilities including highways and streets, 2) Award a contract, in substantially the same format as Attachment 2 and in the amount of $1,285,445 to Granite Construction Company, Inc. for the subject project and authorize the City Manager to execute the contract when all the necessary conditions have been met; and 3) Approve a 10% construction contingency in the amount of $128,545.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Assistant Director, Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Jane Chambers, Interim Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract