title
AWARD A CONSTRUCTION CONTRACT TO TEICHERT CONSTRUCTION FOR THE FEDERAL FISCAL YEAR 2014-15 STREET RESURFACING, PROJECT NO. PW1446
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the filing of Notice of Exemption No. CE002-16 under the California Environmental Quality Act (CEQA) for the Federal Fiscal Year (FFY) 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142).
2. Approve the plans and specifications for the FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142).
3. Accept federal Transportation Grant funding of $2,500,786 from the Regional Surface Transportation Program (RSTP), accept State Grant funds of $49,250 from the California Department of Resources Recycling and Recovery (CalRecycle), and appropriate grant funds of $2,550,036 to the FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142).
4. Award a Construction Contract in the amount of $2,245,525.05 to A. Teichert & Son, Inc. doing business as Teichert Construction (Teichert Construction) of Stockton, CA, for the FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
On March 10, 2016, the City received five bids for the FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142). The project will resurface segments of West Lane, Harding Way, March Lane, French Camp Road, Country Club Boulevard, and Eight Mile Road for a combined distance of approximately five miles (Attachment A).
The recommended resolution approves the plans and specifications for the project, and awards a Construction Contract to the lowest responsive bidder, Teichert Construction (Stockton, CA), in the amount of $2,245,525.05, for the FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142). The resolution also approves the filing of Notice of Exemption No. CE002-16 under CEQA.
Construction is anticipated to begin in summer 2016, and to be completed in fall 2016, weather permitting. This project is federally funded; therefore, the Local Employment and Local Business Preference Ordinances do not apply. This project is subject to Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
The Public Works Department receives an annual allocation of federal RSTP funds. These funds must be used on streets classified by the Federal Highway Administration as arterial or collector Federal Aid Urban (FAU) routes. The City typically uses RSTP funds for resurfacing of FAU street segments that have a poor pavement condition rating. This rating is established by the City’s pavement management system, which rates the pavement condition of all streets in a range from poor to excellent condition.
The general locations for the FFY 2014-15 RSTP allocation were identified in the FY 2015-16 Capital Improvement Plan, based on estimated federal funding of $2,161,329. The actual confirmed funding available to the City for the FFY 2014-15 Street Resurfacing project is $2,500,786, which is a combination of prior year savings and the annual allocation that is programmed by San Joaquin Council of Governments. Additional grant funding of $49,250 from CalRecycle is also being applied to the FFY 2014-15 Street Resurfacing project. There is no match required as the City will use toll credits in lieu of the normal match requirement of 11.47 percent. Toll credits are derived from toll revenue collected by the State from applicable toll roads. While these toll credits do not provide additional funding to the City, they do eliminate the need for the City to provide the local match, which effectively allows the City to request reimbursement of federal funds at 100 percent. In August 2015, Caltrans issued authorization to proceed with the project.
For the FFY 2014-15 RSTP, the City identified these street segments (Attachment A) as follows:
West Lane
• From Alpine Avenue to Harding Way
Harding Way
• From El Dorado Street to Wilson Way
March Lane
• From Holiday Drive to Montauban Avenue
• From Montauban Avenue to Holman Road
French Camp Road
• From 1,000-feet east of Airport Way to 1,000-feet west of Union Street
Country Club Boulevard
• From Ryde Avenue to Oregon Avenue
Eight Mile Road
• From Marlette Road to Lower Sacramento Road
The project includes base failure repair of failed asphalt areas; installation of wheelchair ramps (as required by the Americans with Disabilities Act); curb, gutter, and sidewalk replacement; adjustment of utility covers; installation of traffic signal loops; replacement of pavement markings; and resurfacing of the pavement using either a slurry seal, micro-surface seal, or rubberized cape-seal. The project will resurface approximately five miles of roadway.
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 make adequate good faith efforts are grounds for rejecting the bidder as non-responsive. By definition, 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 11.0 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 mandatory pre-bid meeting was held on February 25, 2016, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal. The City’s Local Employment and Local Business Preference Ordinances are not applicable to this project due to federal funding guidelines.
Present Situation
The FFY 2014-15 Street Resurfacing, Project No. PW1446/Federal Project No. STPL-5008(142) was advertised on February 18, 2016. On March 10, 2016, five bids were received with the following results:
Teichert Construction (Stockton, CA) $2,245,525.05
Knife River Construction (Stockton, CA) $2,257,708.00
Telfer Highway Technologies (McClellan, CA) $2,466,231.00
George Reed (Modesto, CA) $2,671,694.00
Intermountain Slurry Seal (Reno, NV) $2,958,088.00
Engineer’s Estimate $2,229,839.00
The bid of Teichert Construction is regular in all respects. Teichert Construction has the proper license to perform the work and has proposed a DBE commitment of 11.1 percent, which exceeds the 11.0 percent DBE goal. Staff recommends awarding a Construction Contract to Teichert Construction in the amount of $2,245,525.05. Construction is anticipated to begin in summer 2016, and to be completed in fall 2016, weather permitting.
The project is in conformance with the City’s General Plan, pursuant to California Government Code Section 65402, and is exempt from the requirements of CEQA as specified under Article 19, Section 15301, Class 1, of the CEQA Guidelines. As a result, the project has been granted a Categorical Exemption. This is considered a discretionary project under the City’s jurisdiction, and qualifies as a project that does not have a significant effect on the environment. Staff recommends Council adopt a resolution authorizing the filing of Notice of Exemption No. CE002-16 under CEQA. The project is also subject to National Environmental Protection Act requirements and has received a Categorical Exclusion from Caltrans Environmental Division.
FINANCIAL SUMMARY
The primary funding source for this project is the federal RSTP. Funding of $2,500,786 from federal RSTP Grant funds and $49,250 from CalRecycle Grant funds are being appropriated with the action. Additionally, there is $64,700 already appropriated from Municipal Services funding for utility adjustments. The total project funding is $2,614,736, which is sufficient to award a Construction Contract to Teichert Construction in the amount of $2,245,525.05. Funds over and above the contract amount will be used for change orders, contingencies, and staff costs. Any remaining funding will be reallocated to future rehabilitation projects in the Capital Improvement Program budget process.
Funding is being appropriated as listed in the table below:
|
PROJECT NO. |
FUNDING SOURCE |
ACCOUNT NO. |
AMOUNT |
|
PW1446 |
Federal RSTP Revenue |
308-3062-331 |
$2,500,786 |
|
PW1446 |
Federal RSTP Construction Services |
308-3062-640 |
$2,500,786 |
|
PW1446 |
CalRecycle Grant Revenue |
304-3062-331 |
$49,250 |
|
PW1446 |
CalRecycle Construction Services |
304-3062-331 |
$49,250 |
There are no matching funds associated with these grant funds. The City will be utilizing toll credits in lieu of the traditional 11.47 percent local match.
There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map