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ADOPT RESOLUTION TO AUTHORIZE THE CHANNEL STREET IMPROVEMENTS PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Appropriate additional funds in the amount of $700,000 from the Affordable Housing and Sustainable Communities to the Channel Street Improvements, Project No. WT22053.
2. Approve the Notice of Exemption No. NOE47-24 under the California Environmental Quality Act for the Channel Street Improvements, Project No. WT22053.
3. Approve the plans and specifications for the Channel Street Improvements, Project No. WT22053.
4. Award a Construction Contract in the amount of $1,376,066.65 to Tracy Grading and Paving, Inc. of Tracy, CA, for the Channel Street Improvements, Project No. WT22053.
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 Channel Street Improvements, Project No. WT22053, is located along Channel Street between Hunter Street and American Street, and on Hunter Street and San Joaquin Street between Miner Avenue and Weber Avenue (Attachment A). The project will install various improvements including bicycle facilities, raised medians, landscaping, parklets, sidewalk improvements, crosswalk improvement, and targeted tree planting. Public Works’ staff, together with Visionary Home Builders (VHB), received an additional $700,000 in Affordable Housing Sustainable Communities (AHSC) funding to help fully fund the project.
On March 20, 2025, the City received seven bids for this project. On March 27, 2025, Rapid Grading Services, the second lowest bidder, submitted a bid protest contending specific documents were not submitted in accordance with the bid requirements. After a thorough review, Public Works, in coordination with the City Attorney’s Office, determined the bid protest to be without merit.
It is recommended that Council award a Construction Contract to the lowest bidder, Tracy Grading and Paving, Inc., in the amount of $1,376,066.65. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE47-24 under the California Environmental Quality Act (CEQA), approving the plans and specifications, and appropriating additional funds for the project.
Construction is anticipated to be completed by fall 2025, weather permitting.
DISCUSSION
Background
On November 1, 2018, the Strategic Growth Council (SGC) and the California Department of Housing and Community Development (HCD) made available approximately $395 million in funding for the AHSC Program. The AHSC Program provides grants and/or loans to projects that will achieve greenhouse gas emission reductions and benefit disadvantaged communities. All applications for the funding were submitted by February 11, 2019.
VHB proposed to construct the Grand View Village project, which included affordable housing and office/retail space. The project included construction of a new building located along the south side of Miner Avenue between Hunter Street and San Joaquin Street with the goal of bringing affordable housing to an underutilized area of Downtown Stockton. The project also improved sidewalks, transit stops, and installed trees to encourage active transportation. Grand View Village building was completed in 2024.
In February 2019, VHB submitted an application for AHSC funding. VHB requested funding for housing elements and transportation elements. $1,585,132 was reserved for the design and construction of the Channel Street Improvements, Project No. WT22053. The project is located along Channel Street between Hunter Street and American Street, and on Hunter Street and San Joaquin Street between Miner Avenue and Weber Avenue (Attachment A). The project will install various improvements including bicycle facilities, raised medians, landscaping, parklets, sidewalk improvements, crosswalk improvement, and targeted tree planting.
VHB was awarded the AHSC grant funding for the Grand View Village project. On September 6, 2022, the City Manager executed an AHSC Disbursement Agreement that allowed the City to access funding.
Design started toward the end of 2022. However, in fall of 2023, a funding shortfall was identified in the amount of $700,000 for the Channel Street Improvements, Project No. WT22053. VHB requested additional AHSC funding from SGC and a time extension to complete construction. In December 2023, SGC granted the additional $700,000 in AHSC funds to the project and approved a time extension to December 31, 2025, for completion of construction and final funding reimbursements. The additional $700,000 brought the total AHSC budget for the project to $2,285,132. There are sufficient funds to award a Construction Contract including administration, construction management, and contingencies. It is recommended that Council adopt a resolution to appropriate the additional AHSC funding to the project.
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. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was applied to this project as the estimated construction cost is over $1 million, and the AHSC program encourages the use of such agreements.
Present Situation
On February 14, 2025, the Channel Street Improvements, Project No. WT22053, was advertised for bids. On March 20, 2025, seven bids were received with the following results:
COMPANY NAME BID AMOUNT
Tracy Grading and Paving, Inc. $1,376,066.65
Rapid Grading Services $1,420,000.00
United Pavement Maintenance, Inc. $1,474,754.27
FBD Vanguard Construction, Inc. $1,553,212.35
Dutch Contracting, Inc. $1,699,744.97
Martin General Engineering, Inc. $1,771,119.46
George Reed, Inc. $2,698,088.00
Engineer’s Estimate $1,816,574.00
State and federal funding programs 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.
The bid from Tracy Grading and Paving, Inc. is the apparent lowest bidder and has the proper license to perform the work.
On March 27, 2025, Rapid Grading Services, the second lowest bidder, submitted a bid protest claiming that Tracy Grading and Paving, Inc. did not submit appropriate documentation to satisfy the City’s bid requirements. Public Works’ staff, in coordination with the City Attorney’s Office, reviewed the bid protest and determined it was without merit as Tracy Grading and Paving, Inc. satisfied all bid requirements.
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. NOE47-24 under CEQA. Construction is anticipated to be completed by fall 2025, weather permitting.
FINANCIAL SUMMARY
With the appropriation of additional funds, there will be sufficient budget in the Channel Street Improvements, Project No. WT22053, to award a Construction Contract to Tracy Grading and Paving, Inc. in the amount of $1,376,066.65.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map