Title
Adopt a Resolution to Approve and Authorize the City Manager to Negotiate and Approve an Increase in the Cumulative Change Order Amount from 25% to 43% (from $167,372 to $287,879) for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade Project, Project No. 2020.5620; and to Appropriate $509,564 from Account No. 143-38-392 to On-going Projects
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Economic Development
• Public Safety
• Infrastructure
SUMMARY
This contract provides for the traffic signal upgrade at the Wicks Boulevard and Manor Boulevard intersection. The increase in change order authority will allow for additional work required by PG&E to relocate the electric meter.
RECOMMENDATIONS
Staff recommends the following actions:
• Authorize an increase in the cumulative Change Order Cap from 25% to 43% (from $167,372 to $287,879); and
• Appropriate $509,564 from Account No. 143-38-392 to on-going projects.
BACKGROUND
The Fixing America’s Surface Transportation (FAST) Act, signed into law on December 4, 2015, established the Highway Safety Improvement Program (HSIP) as a core Federal-aid highway program. The primary goal of HSIP is to significantly reduce traffic fatalities and serious injuries on all public roads by implementing infrastructure-related highway safety improvements.
In 2017, the City was awarded $323,910 through the 2018 HSIP Cycle 9 to upgrade the traffic signal and enhance safety at the intersection of Wicks Boulevard and Manor Boulevard.
The project includes a full signal upgrade at the intersection. Improvements consisted of installing protected left-turn signals, upgrading signal heads and related equipment, implementing video detection systems for cars and bikes (including advanced detection), and installing accessible pedestrian pushbuttons and signals. The project also included the construction of curb ramps to meet current ADA accessibility standards.
Analysis
On May 15, 2023, the City Council awarded a construction contract to Ray’s Electric in the amount of $669,487 with a 25% contingency allowance for the installation of traffic signal improvements at the intersection of Wicks Boulevard and Manor Boulevard. During the project, the contractor experienced several challenges, including supply chain delays and tariff-related impacts.
The project is now substantially complete, with the contractor currently addressing punch list items. However, when the City requested PG&E to energize the signal equipment, PG&E required that the City modify the power supply configuration. As part of this requirement, PG&E directed the City to relocate the existing electrical meter approximately 600 feet from the original location to comply with PG&E’s current standards and practices. Consequently, the City was required to install a new foundation for the meter cabinet and to trench and install new conduits and conductors from the relocated meter cabinet to the signal controller on Wicks Boulevard. This directive was issued by PG&E after construction had started, and no alternatives were provided that would avoid incurring additional costs. The cost of this change order is $244,780, which exceeds the contract’s change order cap.
Section 520 of the San Leandro Municipal Code stipulates that appropriations to capital funds may be carried forward for no more than five fiscal years. The funds in Account No. 143-38-392, originally appropriated for the Annual Street Overlay 2017-18, have now exceeded this five-year limit. Because the Annual Street Overlay 2017-18 Project has been completed, this action will reallocate the remaining funds to support on-going projects, including the Wicks Manor Traffic Signal Upgrade project, as needed.
To further address the unanticipated cost increase, staff has contacted the CalTrans District Local Assistance Engineer (DLAE) to request additional HSIP grant funding. If approved, the Federal Highway Administration (FHWA) will provide supplemental HSIP grant funds to cover these increased costs, allowing the remaining balance in Account No. 143-38-392 to be used for other eligible projects. However, approval of this additional HSIP funding request has not been secured at this time and is not guaranteed.
Current Agency Policies
• Maintain and enhance the City’s infrastructure
Previous Actions
• On May 15, 2023, by Resolution No. 2023-050, the City Council awarded a construction contract to Ray’s Electric for $669,487 for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade, Project No. 2020.5620 and authorized the City Manager to approve individual contract change orders up to 5% and cumulative change orders up to 25% of the original contract
• On December 7, 2020, by Resolution No. 2020-150, the City Council approved a Consulting Services Agreement with Kimley-Horn and Associates for the design of the project in the amount of $83,859; appropriated $42,359 from the development fees for street improvement fund balance and authorized City Manager to negotiate and execute individual contract amendments up to 10% ($8,386) and cumulative amendments up to a maximum of 25% ($20,965)
• On March 16, 2020, by Resolution No. 2020-025, the City Council authorized the City Manager to Execute Program Supplement Agreement No. F029 with the State of California to Provide $37,350 in Grant Funds for the Design Phase of the Wicks Blvd. and Manor Blvd. Signal Upgrade Project and to Appropriate $359,900 for the Total Project Budget in Fiscal Year 2019-2020
• On June 19, 2017, by Resolution No. 2017-085, the City Council approved the Administering Agency-State Agreement No. 04-5041F-15
Applicable General Plan Policies
• Policy T-2.1: Complete Streets Serving All Users and Modes. Create and maintain “complete” streets that provide safe, comfortable, and convenient travel through a comprehensive, integrated transportation network that serves all users
• Policy T-7.2: Capital Improvements. Identify capital improvements and other measures which improve the safety of bicyclists, pedestrians, and motor vehicles on San Leandro Streets
• Policy T-7.7: Funding. Pursue grants for the improvement of pedestrian, bicycle, and motor vehicle safety, including a greater focus on traffic law and speed enforcement
Permits and/or Variances Granted
A Building permit was obtained for the project.
Environmental Review
On December 4, 2019, the Categorical Exemption/Categorical Exclusion Determination Form was signed by Project Manager/Caltrans Division of Local Assistance (DLA) Engineer.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, Vision Hispana and World Journal. Staff also notified local builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email. The project is described on the Engineering and Transportation Department website.
Two non-mandatory pre-bid meetings were held on March 15 and 16, 2023.
Prior to any construction which affected access to private businesses, the contractor provided advance notification in the form of door hangers before the work started.
Contract Change Order Summary
CCO No. Description Amount %
1 Costs to replace contract ethernet switch,
replace two mast-arms with longer arms $19,642.00 2.9%
2 Furnish and install ethernet switch, one
traffic signal pole and gator patch/terminal
panel $14,870.65 2.3%
3 Replace 12’ Luminaire Mast-arm with 15’
Mast-arm $7,980.87 1.1%
4 Cost increase to relocate the meter cabinet,
install 600 ft conduits and wiring caused by
PG&E’ request. $244,780.87 36.5%
Change Order Total $287,274.39 42.8%
Financial Impacts
The estimated cost of this 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 $160,216
Existing Construction Contract $669,487
Construction Management & Inspection $50,000
Construction Contingencies $287,274
Total Cost: $1,166,977
Budget Authority
Account No. Source Reso/Budget Year Amount
143-38-392* VLF FY17-18 $99,821
120-38-349 DFSI Fund Res. 2020-025, FY19-20 $35,990
120-38-349 DFSI Fund Res. 2020-150, FY20-21 $42,359
144-38-349 Measure B FY19-20 $424,364
150-38-349 HSIPL Grant Res. 2020-025, FY19-20 $323,910
Total Appropriation: $926,444
*Amount listed is funds available for this contract and is less than the total appropriation.
Appropriation Request
Account No. Source Reso/Budget Year Amount
143-38-392 VLF FY17-18 $509,564
ATTACHMENTS
• Attachment A: - Draft Resolution CCO Cap
PREPARED BY: Austine Osakwe, Senior Engineer, Public Works Department - Engineering Division