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ADOPT RESOLUTION TO REJECT BID, AUTHORIZE CITY MANAGER TO EXECUTE A MEASURE K RENEWAL COOPERATIVE AGREEMENT, AND APPROPRIATE FUNDS TO THE CALIFORNIA STREET ROAD DIET PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Reject the bid received for the California Street Road Diet, Project No. WT18005, pursuant to Stockton Municipal Code section 3.68.160(B).
2. Authorize the City Manager to execute a Measure K Renewal Cooperative Agreement between the City and San Joaquin Council of Governments from the Measure K Smart Growth Incentive Program Cycle 2 for a total of $2,000,000 for the California Street Road Diet, Project No. WT18005.
3. Appropriate funds in the amount of $2,000,000 from the Measure K Smart Growth Incentive Program Cycle 2 to the California Street Road Diet, Project No. WT18005.
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 California Street Road Diet, Project No. WT18005, will implement lane reductions and install Class II and IV bicycle facilities along California Street from Alpine Avenue to Eighth Street and a Class III bicycle route along Eighth Street from California Street to El Dorado Street (Attachment A). The improvements will total approximately four miles and will transform California Street into a complete street as envisioned in the City’s Bicycle Master Plan (BMP). A complete street accommodates multiple modes of transportation, such as vehicles, bicycles, pedestrians, and mass transit. To accomplish this, the project will implement lane reductions, install bicycle facilities, upgrade/repair existing curb ramps and failing sidewalk, and signal modifications at all signalized intersections within the project limits. The project was included in the 2018-23 and 2019-24 Five-Year Capital Improvement Plans (CIP).
The City has been applying for grant funds for several years in efforts to fully fund the project. Most recently, in September 2020, Public Works submitted grant applications for the Regional San Joaquin Council of Governments (SJCOG) Active Transportation Program (ATP) Grant. The Regional SJCOG ATP Grant is comprised of State and federal ATP funds, as well as Measure K funds. The project was successfully awarded $2,000,000 of Measure K Smart Growth Incentive Program funds to complete construction of the project. To secure these funds, it is necessary to execute a Measure K Renewal Cooperative Agreement with SJCOG at this time.
On January 20, 2022, the City received one bid for construction of this project. The bid from George Reed, Inc., of Modesto, CA, in the amount of $11,063,371.19, is approximately 42 percent higher than the engineer’s estimate. There are insufficient funds to award the project at this cost. Staff recommends Council adopt a resolution to reject the bid received. Re-bid of the project will include additional outreach to better publicize the project and increase competition for the contract. In addition, staff will consider modifying the scope of work to reduce costs while still maintaining the intent of the grant funds.
DISCUSSION
Background
On December 5, 2017, by Resolution No. 2017-12-05-1501, Council approved a new BMP for the City. The BMP was completed with input from stakeholders in the community with the goal of improving access to bicycle facilities for residents of the City. This input identified California Street as a key corridor and part of the backbone of the BMP.
The California Street Road Diet, Project No. WT18005, will implement lane reductions and install Class II and IV bicycle facilities along California Street from Alpine Avenue to Eighth Street and a Class III bicycle route along Eighth Street from California Street to El Dorado Street (Attachment A). The improvements will total approximately four miles and will transform California Street into a complete street as envisioned in the City’s BMP. A complete street accommodates multiple modes of transportation, such as vehicles, bicycles, pedestrians, and mass transit. To accomplish this, the project will implement lane reductions, install bicycle facilities, upgrade/repair existing curb ramps and failing sidewalk, and signal modifications at all signalized intersections within the project limits.
In 2017, staff submitted grant applications to the ATP Cycle 4 and Cycle 1 of the Measure K Smart Growth Incentive Programs, respectively. The project was awarded $4,390,000 in ATP Cycle 4 funding and $2,000,000 in Measure K funding for completion of design and construction of the project. The Measure K funds were identified in the 2018-23 Five-Year CIP. The ATP funds were identified in the 2019-24 Five-Year CIP.
On June 19, 2018, by Resolution No. 2018-06-19-1119, Council approved a Measure K Renewal Cooperative Agreement in the amount of $2,000,000 with SJCOG for design and partial construction funding. The City provided $206,000 in matching funds.
In September 2020, Public Works submitted additional grant applications for the ATP Cycle 5 and Measure K Smart Growth Incentive Cycle 2 programs in an effort to fully fund the project. The California Street Road Diet project was awarded another $2,000,000 of Measure K Smart Growth Incentive Program funding to complete construction of the project. The City must enter into a separate Measure K Renewal Cooperative Agreement with SJCOG to receive the additional funding.
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 applies to this project because the engineer’s estimate was more than $1 million.
Present Situation
On November 23, 2021, the California Street Road Diet, Project No. WT18005, was advertised for bids. On January 20, 2022, one bid was received with the following result:
COMPANY NAME BID AMOUNT
George Reed, Inc. (Modesto, CA) $11,063,371.19
Engineer’s Estimate $ 7,816,293.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Application of the Local Business Preference has no effect on the bid order. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
George Reed, Inc., the sole bidder, submitted a bid in the amount of $11,063,371.19, which is approximately 42 percent higher than the engineer’s estimate. The high bid is attributed to a combination of increase in material costs and low bidder turnout due to contractors being busy. There are insufficient funds to award the project at this price. During the bidding process, staff reached out to potential contractors to encourage multiple bid submittals for the project. Several potential bidders indicated they were too busy to bid the project. Staff recommends Council adopt a resolution to reject the bid received. SMC section 3.68.160(B) provides that Council shall award a contract to the lowest and best regular responsible bidder or reject all bids.
Staff further recommends Council adopt a resolution authorizing the City Manager to execute a Measure K Renewal Cooperative Agreement between the City and SJCOG from the Measure K Smart Growth Incentive Program Cycle 2 for a total of $2,000,000 for the California Street Road Diet, Project No. WT18005.
FINANCIAL SUMMARY
The current unencumbered balance for the California Street Road Diet, Project No. WT18005, is $6,649,198. The addition of $2,000,000 in Measure K Smart Growth Incentive Program funds identified below will bring the total unencumbered balance for the project to $8,649,198. This is not sufficient to award a Construction Contract to George Reed, Inc. in the amount of $11,063,371.19 and provide for construction contingency and staff oversight.
The resolution includes the following action to provide additional funding for construction related costs:
Appropriate funds in the amount of $2,000,000 from the Measure K Smart Growth Incentive Program Cycle 2 to the California Street Road Diet, Project No. WT18005 (formerly PW1805), Account No. 4510-000-800007-300-000-30-45-000-000.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map