REPORT TO COUNCIL
SUBJECT
Title
Award Bid No. PW16-04 for Concrete Sidewalk, Curb, Gutter and Driveway Approaches, Approve Budget Modification No. 11 in the Amount of $210,919 and Make Finding of CEQA Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $2,016,879, plus a 10% contingency in the amount of $201,688, to JJR Construction Inc. of San Mateo for the Concrete Sidewalk, Curb, Gutter and Driveway approaches 2015/16 (Public Works Project No. ST-15/07-16). Approval is also requested for Budget Modification No. 11 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.
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 829400 provides for the replacement of concrete curbs, gutters, sidewalks and driveway approaches throughout the city generally identified by residents and then verified, inspected, prioritized and scheduled by the Department of Public Works (DPW). Over the last two fiscal years, approximately 1,700 locations have been added to the replacement list, adding to an existing backlog (last year about 660 locations were addressed). Approximately 800 locations are included in the current bid. While this project is in process, staff will coordinate the removal and replacement of trees that are deemed to cause damage and severe displacement to the concrete hardscape.
The project was advertised in The Sunnyvale Sun on August 28, 2015, distributed to eighteen Bay Area Builder’s Exchanges, and published on the City’s website through the Demandstar public procurement network. Ten contractors requested bid documents. Sealed bids were opened on September 16, 2015, with five responsive bids being received.
The lowest responsive and responsible bid was submitted by JJR Construction, Inc. of San Mateo, in the amount of $2,016,879. The Bid Summary is attached. The Engineer’s Estimate 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 and the low bid exceeded the Engineer’s Estimate, as well as the available budget. Consequently a budget modification is recommended in order to complete the work, as detailed below.
FISCAL IMPACT
Project costs consist of the base bid in the amount of $2,016,879, plus a 10% construction contingency in the amount of $201,688, for a total of $2,218,567. In order to address a growing backlog of needed sidewalk repairs, Council included $1 million over two years in additional funding with the FY 2014/15 Budget. The current FY 2015/16 Budget includes unspent funds from FY 2014/15 in addition to the elevated amount budgeted for FY 2015/16. Further, Council allocated $1.3 million in one-time property tax revenue with the FY 2015/16 Budget for Fiscal Years 2016/17 and 2017/18 to maintain an elevated level of repairs for those years as well. Budget modification No. 11 has been prepared to bring forward some of the FY 2016/17 funding and appropriate it to the current budget to fund this contract. Bringing money forward may reduce the number of locations that can be completed in FY 2016/17. The Council may consider additional appropriations as part of its budget deliberations and final action.
Funding Source
Sidewalk, Curb and Gutter replacements are funded by a General Fund transfer to the Infrastructure Renovation and Replacement Fund.
Budget Modification No. 11
FY 2015/16
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Infrastructure Renovation and Replacement Fund |
|
|
|
|
Expenditures |
|
|
|
|
FY 2015/16 Project 829400 - Sidewalk, Curb and Gutter Replacement |
$2,007,648 |
$210,919 |
$2,218,567 |
|
|
|
|
|
|
FY 2016/17 Project 829400 - Sidewalk, Curb and Gutter Replacement |
$1,006,675 |
($210,919) |
$795,756 |
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; 2) approve Budget Modification No. 11 to provide project funding; 3) award a contract, in substantially the same format as Attachment 2 to the report and in the amount of $2,016,879 to JJR Construction Inc.; and 4) approve a 10% construction contingency in the amount of $201,688.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, 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