REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW19-20 to Interstate Grading & Paving, Inc. for Pavement Rehabilitation 2019 and Finding of California Environmental Quality Act (CEQA) Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $1,123,531.40 to Interstate Grading & Paving, Inc. of South San Francisco for Pavement Rehabilitation 2019 (Public Works Project No. ST-18-10) and a 10% construction contingency in the amount of $112,353.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contracts to be awarded to the lowest responsive and responsible bidder.
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) for the restoring and rehabilitating of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities, involving negligible or no expansion of use beyond that presently existing.
BACKGROUND AND DISCUSSION
Capital Project 825290 (Pavement Rehabilitation) provides funding for ongoing roadway infrastructure rehabilitation. Each year, staff surveys one half of the City's streets and inputs the data in the City's pavement management system. The system produces a list of deteriorated streets and plans are made to repair, slurry seal, double chip seal overlay, or reconstruct the streets as needed.
The Pavement Rehabilitation 2019 SB1 project includes nearly 1,246,000 square feet of pavement rehabilitation, which is nearly three miles of roadway. This project includes rehabilitation of the following streets: Tasman Drive, Wolfe Road, Java Drive, Noranda Drive, Taylor Avenue and Mango Avenue. These streets are in poor condition and have medium to severe block cracking and alligator cracking. Noranda Drive, Taylor Avenue and Mango Avenue have a Pavement Condition Index (PCI) of 56, 52 and 59 respectively, while Tasman Drive, Wolfe Road north of El Camino Real, and Taylor Avenue have a PCI of 73, 77 and 72, respectively.
The construction project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to Bay Area Builder’s Exchanges on July 5, 2019. Eighteen contractors requested bid documents. Sealed bids were opened on July 24, 2019, with five responsive bids received (Bid Summary attached). The lowest responsive and responsible bid was submitted by Interstate Grading & Paving in the amount of $1,123,531.40. The lowest bid is approximately 13% below the engineer's estimate of $1,392,500.
FISCAL IMPACT
Project costs include the base bid of $1,123,531.40 and a recommended 10% contingency in the amount of $112,353, for a total of $1,235,884.40. Budgeted funds are available in Capital Project 825290 (Pavement Rehabilitation).
Funding Source
Funding for pavement rehabilitation comes from multiple funding sources including the SB1 Road Improvement Fund. The Wastewater Management (Project 831680-Adjust Sewer Utilities in Support of Pavement) and Water Supply and Distribution (Project 831550-Adjust Sewer Utilities in Support of Pavement) funds pay for adjusting manholes and other utility infrastructure affected by the project.
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
Take the following actions:
- Make a finding of categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c);
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $1,123,531.40 to Interstate Grading & Paving, Inc.;
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Approve a 10% construction contingency in the amount of $112,353
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Construction Contract