Title
Resolution to Award a $4,891,826 Construction Contract to Bay Cities Grading and Paving, Inc. for the Annual Street Overlay and Rehabilitation 2019-2021, Phase 1, Project No. 2020.0050; to Authorize the City Manager to Negotiate and Approve Individual Change Orders up to 5% of the Original Contract Amount; and to Authorize the City Manager to Negotiate and Approve Change Orders up to a Cumulative Value of 25% of the Original Contract Amount
Staffreport Resolution to Award a $4,891,826 Construction Contract to Bay Cities Grading and Paving, Inc. for the Annual Street Overlay and Rehabilitation 2019-2021, Phase 1, Project No. 2020.0050; to Authorize the City Manager to Negotiate and Approve Individual Change Orders up to 5% ($244,591) of the Original Contract Amount; and to Authorize the City Manager to Negotiate and Approve Change Orders up to a Cumulative Value of 25% ($1,222,957) of the Original Contract Amount.
SUMMARY AND RECOMMENDATIONS
This contract provides for repaving of City streets listed on the attachment to this Staff Report.
Staff recommends the following actions:
• Award a construction contract for the Base Bid to Bay Cities Grading and Paving, Inc.; in the amount of $4,891,826;
• Authorize the City Manager or her designee to negotiate and approve individual change orders up to 5% (or $244,591) of the original contract amount; and
• Authorize the City Manager or her designee to negotiate and approve cumulative change orders up to 25% ($1,222,957) of the original contract amount.
BACKGROUND
The City of San Leandro maintains approximately 180 centerline miles of paved roadways. Each year the City conducts two pavement maintenance projects, one for street sealing and one for street overlay / rehabilitation. This contract is for the resurfacing of pavement (overlay) and for the repair of the subgrade and pavement (rehabilitation), which addresses any pavement in poor condition.
To expedite construction, this project is subdivided into two phases. The current Phase 1 of this project is scheduled for construction this Summer 2022. Phase 2 of this project includes streets that require additional design and coordination with utility agencies, and will follow under a separate contract.
Phase 1 will rehabilitate 4.5 lane-miles of roadway on eleven different streets throughout the City, upgrade curb ramps within the project limits to maintain compliance with the Americans with Disabilities Act (ADA) accessibility requirements, and repair the sanitary sewer lines. In addition, the project will install asphalt speed lumps on Orchard Avenue and Speed Feedback Signs on Benedict Drive based on recommendations from the Neighborhood Traffic Calming Program. This project will also install enhanced crosswalks - Rectangular Rapid Flashing Beacons (RRFB) at seven intersections identified through the Completed Streets program - namely two RRFBs each on Manor Boulevard and Grand Avenue; and one each on Monterey Boulevard at Anza Way, Aurora Drive at Walnut Drive, and Williams Street at Joyce Street. Finally, the project will install and upgrade bike facilities on certain streets recommended in the approved 2018 San Leandro Bicycle and Pedestrians Master Plan. A list of the work locations is attached to this staff report. Plans and specifications for the project can be viewed on the City’s website at the following url:
<https://www.sanleandro.org/DocumentCenter/View/6689/Combined-Plans-and-Specs?bidId=10>
The streets selected for overlay are streets in the poorest condition that could be preserved utilizing overlays. The streets selected for rehabilitation were the streets that had the lowest pavement condition index (PCI). When selecting streets, priority is given to streets that carry more vehicles and streets that are on a bike route.
Analysis
Bids were opened on April 14, 2022. Three (3) bids were received, ranging from $4,023,111 to $4,954,000 for the base bid. The pre-bid engineer’s estimate for construction of the base bid was $4,715,445. The apparent low bidder, Azul Works, Inc., withdrew its bid and requested relief from responsibility for honoring its bid due to a mistake in the proposal. The City is currently evaluating Azul Works, Inc.’s request for relief. If relief is justified, the City will return Azul’s bid bond, and if not, the City will file a claim for the full amount of the bid bond, $402,311.
Based on Azul Works, Inc. request to withdraw its bid, Bay Cities Grading and Paving, the next low bidder is recommended for award of this contract. Staff verified that Bay Cities Grading and Paving has a valid license with the Contractor’s State License Board and is registered with the California Department of Industrial Relations.
None of the bidders has an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance. None of the bidders met the Local Business Participation Goal by subcontracting with San Leandro businesses for 25% of the contract value. Bay Cities Grading and Paving provided documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal.
This project is subject to the provisions of the Community Workforce Agreement (CWA). Each bidder was advised of the agreement in writing and verbally at the mandatory pre-bid meetings. Each contractor was given contact information for the Bay Area Business Roundtable, an organization hired by the City to provide free technical assistance to comply with the Community Workforce Agreement (CWA). All bidders signed the CWA commitment form.
As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction, as well as the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered during construction and plan details may need to be adjusted or clarified. To minimize delay to the project, ensure that the scope of work is adjusted as needed to provide the highest quality project, and to take advantage of the favorable costs of the work along with providing for the expedient use of grant funding, staff requests authorization to negotiate and approve change orders. Therefore, staff requests that the City Council authorize the City Manager or her designee to negotiate and approve individual change orders up to 5% ($244,591) of the original contract amount and cumulative change orders up to 25% ($1,222,957) of the original contract amount. This will ensure efficient completion of the project on budget and on schedule.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure.
Applicable General Plan Policies
• Policy CSF-6.8 Maintenance:
Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, streetlights, traffic signals, landscaping, street trees, storm drains, public buildings, and other infrastructure.
• Transportation Goal T-5:
Improve major transportation arteries for circulation in and around the city.
Permits and/or Variances Granted
Caltrans encroachment permits were obtained for work on Grand Ave. near the I-580 on and off Ramps.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on December 23, 2021.
Summary of Public Outreach Efforts
The streets to be repaved are posted on the City’s website. Properties adjacent to the work will receive a notification from the City and a second notification from the Contractor prior to the work.
The Notice to Bidders was published in the East Bay Times, the South County Post, Visión Hispana, and World Journal. Staff also notified nineteen builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email.
Fiscal Impacts
The cost of this multi-fund project is detailed below. The budget authority section has details on funding types, accounts, and authorizations. CIP accounts are carried forward for five years or until the work is complete, whichever occurs first.
Design and Bid - Phase 1 & 2 $1,685,300
Construction Contract -Phase 1 $4,891,826
Construction Contract (est.) - Phase 2 $4,890,000
Constr. Management, Insp. & Contingencies - All Phases $1,872,874
Total $13,340,000
Budget Authority
Account No. Reso. Appropriation Dates & Source Amount
152-38-419 FY 2020-21 Budget, SB1 $1,000,000
152-38-413 FY 2019-20 Budget, SB1 $1,000,000
141-38-413 FY 2019-20 Budget, Measure BB $1,000,000
141-38-419 FY 2019-20 Budget, Measure BB $1,200,000
141-39-403 FY 2019-20 Budget , Measure BB $7,000,000
210-38-419 FY 2020-2021 Budget, General Fund $2,140,000
Total $13,340,000
ATTACHMENTS
• Att A - Resolution
• Att B - Bid Summary
• Att C - List of Streets
PREPARED BY: Nicole Noronha Castelino, Senior Engineer, Engineering and Transportation Department