REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW17-17 for Mary Avenue Bicycle Lanes Project Phase 2 and Approve Budget Modification No. 47
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $804,546 to Redgwick Construction Company of Oakland for the Mary Avenue Bicycle Lanes Project Phase 2 (Public Works Project No. TR-17-03). Approval is also requested for a 10% construction contingency in the amount of $80,455, and for Budget Modification No. 47 to provide additional project funding.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder. Pursuant to Chapter 2.09 of the Sunnyvale Municipal Code, City Council approval is required for construction contracts exceeding $100,000.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
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 Phase 2 Project on Mary Avenue from Evelyn Avenue to Maude 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. This portion of the project represents the remainder of bicycle facility improvements recommended for Mary Avenue in the City’s Bicycle Mobility Plan. 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 broken into two phases due to funding constraints. Phase 1 of the project on Mary Avenue from Fremont Avenue to Evelyn Avenue was awarded by Council (RTC No. 16-0450) in May 2016 and completed in Spring 2017. Phase 2 leverages additional grant funding obtained by the City, with construction occurring in Summer 2017. Public outreach meetings for both phases were held during the project conceptual design development process. Staff accelerated this phase of the project so that the modifications will be largely complete before school begins in the fall.
The project was advertised in the Sunnyvale Sun on March 3, 2017, with eleven general contractors requesting bid documents. Sealed bids were opened on March 29, 2017, with two responsive bids received. The lowest responsive and responsible bid was submitted by Redgwick Construction Company of Oakland, in the amount of $804,546. The Bid Summary is contained in Attachment 1. The submitted bids are higher than the Engineer’s Estimate ($564,190 with contingency), which was prepared utilizing the most recent cost data the City has on file related to this type of construction work. As a result of the current economic conditions and the large number of projects being constructed throughout the bay area, costs have risen. While the bids were higher than anticipated, and insufficient funding is currently allocated to this project, staff recommends awarding this project to augment the bicycle lanes provided in Phase I and complete the project on Mary Avenue. There is also no guarantee that re-bidding the project will produce a better bid result. Therefore, a Budget Modification in the amount of $830,001 is recommended for approval so that the work can proceed.
FISCAL IMPACT
Funding of $885,001 is necessary to fund the contract award and 10% contingency. Existing funding in Capital Project 830760 (Mary Avenue Bicycle Lanes) totaling $55,000 is available for the recommendations included in this report. Additional Funding totaling $830,001 is recommended in Budget Modification No. 47. Funding sources include funding from a Transportation Development Act (TDA) grant ($131,140), Transportation Fund for Clean Air (TFCA) grant ($245,000), Capital Project 825290 Pavement Rehabilitation ($232,000), and Traffic Mitigation Fees ($221,861). It should be noted that TDA grant funds, which are recommended as a funding source, are subject to VTA Board approval scheduled for June 1, 2017. In advance of the VTA Board Meeting, the VTA Technical Advisory Committee and the Policy Advisory Board recommended funding approval. In the unlikely event, should the VTA Board not approve the grant funds, staff will return to the City Council to offset the grant funds with another funding source so that the project can proceed.
Budget Modification No. 47 is proposed to award the contract recommended in this memorandum. The figures in the Current column below reflect available funding sources.
Budget Modification No. 47
FY 2016/17
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Capital Projects Fund / General Assets Sub-Fund |
|
|
|
|
Revenues |
|
|
|
|
Transportation Development Act Grant (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$131,140 |
$131,140 |
|
Transportation Fund for Clean Air Grant (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$245,000 |
$245,000 |
|
Transfers In |
|
|
|
|
Transfer from Capital Projects Fund / Traffic Mitigation Sub-Fund (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$221,861 |
$221,861 |
|
|
|
|
|
|
Transfer from General Fund (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$232,000 |
$232,000 |
|
Expenditures |
|
|
|
|
Project 830760 - Mary Ave Bicycle Lanes |
$55,000 |
$830,001 |
$885,001 |
|
|
|
|
|
|
Capital Projects Fund / Traffic Mitigation Sub-Fund |
|
|
|
|
Transfers Out |
|
|
|
|
Transfer to Capital Projects Fund / General Assets Sub-Fund (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$221,861 |
$221,861 |
|
Reserves |
|
|
|
|
Future Land Use and Transportation Projects |
$499,502 |
($221,861) |
$277,641 |
|
|
|
|
|
|
Infrastructure Renovation and Replacement Fund |
|
|
|
|
Transfers In |
|
|
|
|
Transfer from the General Fund (Project 825290 - Pavement Rehabilitation) |
$3,648,565 |
($232,000) |
$3,416,565 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Project 825290-Pavement Rehabilitation |
$4,015,990 |
($232,000) |
$3,783,990 |
|
|
|
|
|
|
General Fund |
|
|
|
|
Transfers Out |
|
|
|
|
Transfer to the Infrastructure Renovation and Replacement Fund (Project 825290 - Pavement Rehabilitation) |
$3,648,565 |
($232,000) |
$3,416,565 |
|
|
|
|
|
|
Transfer to the Capital Projects Fund / General Assets Sub-Fund (Project 830760 - Mary Ave Bicycle Lanes) |
$0 |
$232,000 |
$232,000 |
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 $804,546 to Redgwick Construction Company and authorize the City Manager to execute the contract when all necessary conditions have been met; 2) Approve a 10% construction contingency in the amount of $80,455; and 3) Approve Budget Modification No. 47 to provide additional project funding.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Manuel Pineda, Director of 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