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ADOPT RESOLUTION TO AUTHORIZE THE TRANSPORTATION MANAGEMENT CENTER EQUIPMENT UPGRADE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Transfer funds in the amount of $300,000 from the Traffic Signal Control System, Project No. WT15022, to the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
2. Transfer funds in the amount of $371,550.78 from the Traffic Signal Modification, Project No. WT15029, to the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
3. Approve Notice of Exemption No. NOE49-23 under the California Environmental Quality Act for the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
4. Approve the plans and specifications for the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
5. Award a Construction Contract in the amount of $3,845,696.33 to Econolite Systems, Inc. of Fremont, CA, for the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Transportation Management Center (TMC) Equipment Upgrade project is funded by the Federal Highway Administration’s Congestion Mitigation and Air Quality (CMAQ) Program grant funds. The TMC Equipment Upgrade project will construct a new TMC and include upgrades to the central servers, local traffic signal controllers, closed-circuit television cameras, communication equipment, and new fiber optic network cabling to support the new TMC (Attachment A). The project was included in the 2021-26 Five-Year Capital Improvement Plan (CIP).
On April 11, 2024, the City received three bids for this project. Staff recommends Council award a Construction Contract to the lowest responsible bidder, Econolite Systems, Inc., in the amount of $3,845,696.33. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE49-23 under the California Environmental Quality Act (CEQA), approving the plans and specifications, and transfer of funds for the project. Construction is anticipated to be completed by fall 2024.
This project is federally funded and is subject to federal Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
The TMC Equipment Upgrade project is funded by the Federal Highway Administration’s CMAQ Program grant funds. The project will construct a new TMC in the Public Works Department at new City Hall. The project will also upgrade the existing traffic management system which includes the upgrades to central servers, local traffic signal controllers, closed-circuit television cameras, communication equipment citywide, and installation of new fiber optic network cabling to support the new TMC (Attachment A). The TMC will allow engineers to remotely manage and/or monitor the traffic signal system when needed in real time. The benefits gained from the system are remote, real-time diagnostics and troubleshooting, better maintenance response, and enhanced vehicle progression (reduced driver delays), which helps air quality and creates a better driving experience for the citizens.
The TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), was included in the 2021-26 Five-Year CIP. The project was approved for CMAQ funding in the amount of $3,906,000 for environmental clearance, design, and construction.
Since the project is funded with federal transportation dollars, DBE program rules apply. DBE rules require that the prime contractor either meet a calculated project-specific DBE participation goal or undertake and document good faith efforts to do so. If the apparent low bidder does not meet the project goal, a Good Faith Efforts Evaluation must be made examining several specific factors. Failure to meet the goal or provide evidence of adequate good faith efforts are grounds for rejecting the bidder as non-responsive.
Per Caltrans Local Assistance Procedures Manual, a DBE is a socially and economically disadvantaged small business owned by a woman or by a specified ethnic group that has been properly certified by Caltrans. These groups include:
• African American
• Asian Pacific American
• Native American
• Women
• Hispanic American
• Subcontinent Asian American
A DBE goal of 21 percent was established for this project. The goal was calculated by examining the breakdown of the types of work to be performed, and the availability of certified DBE companies in our market area to perform the work. A pre-bid meeting was held on April 2, 2024, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal. The project contractor meets DBE goal.
This project was previously advertised on September 21, 2023, and on November 2, 2023, three bids were received. However, all bidders failed to submit complete DBE information due to an error in the assembled bidding documentation. After consulting with Caltrans (funding administrator) and the City Attorney’s Office, it was deemed that all bidders were non-responsive. On April 2, 2024, by Motion No. 2024-04-02-1217, all bids were rejected.
The federal CMAQ funding restrictions prohibit the use of the Local Employment Ordinance (Stockton Municipal Code (SMC) section 3.68.095) and the Local Business Preference Ordinance (SMC section 3.68.090).
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was not applied to this project as federal regulations prohibit the use of such agreements.
Present Situation
On March 21, 2024, the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), was advertised for bids. On April 11, 2024, three bids were received with the following results:
COMPANY NAME BASE BID ADDITIVE BID TOTAL BID
Econolite Systems, Inc. $3,701,761.33 $143,935 $3,845,696.33
(Fremont, CA)
St. Francis Electric, LLC $4,927,000.00 $275,000 $5,202,000.00
(San Leandro, CA)
Tennyson Electric, LLC $3,796,125.00 $184,250 $3,980,375.00
(Livermore, CA)
Engineer’s Estimate $3,411,818.00 $242,000 $3,653,818.00
The bid from Econolite Systems, Inc., the lowest responsible bidder on base bid and additive bid, is regular in all respects. Econolite Systems, Inc. has the proper license to perform the work and has met the 21 percent DBE goal. Staff recommends Council approve the plans and specifications and transfer of funds for the project, and award a Construction Contract to Econolite Systems, Inc. of Fremont, CA, in the amount of $3,845,696.33, which includes the additive bid of $143,935.
The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(c) of the CEQA Guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE49-23 under CEQA.
Construction is anticipated to be completed by fall 2024.
FINANCIAL SUMMARY
The current unencumbered balance in the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), is not sufficient to award a Construction Contract to Econolite Systems, Inc. in the amount of $3,845,696.33.
The resolution includes the following actions to provide sufficient funding to award a Construction Contract and to fund all other construction-related costs to complete the project:
1. Transfer funds in the amount of $300,000 from the Traffic Signal Control System, Project No. WT15022, to the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
2. Transfer funds in the amount of $371,550.78 from the Traffic Signal Modification, Project No. WT15029, to the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191).
With the transfer of funds, there will be sufficient funding in the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), to award a Construction Contract to Econolite Systems, Inc. in the amount of $3,845,696.33.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map