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APPROVE RESOLUTION TO AUTHORIZE THE STREET RESURFACING ON FEDERAL-AID STREETS FISCAL YEAR 2016-17 PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. CE027-18 under the California Environmental Quality Act for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2016-17 (Project No. PW1610/Federal Project No. STPL-5008(172)).
2. Approve the plans and specifications for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2016-17 (Project No. PW1610/Federal Project No. STPL-5008(172)).
3. Appropriate funds in the amount of $31,200 from the Water Utility fund balance (421-0000-287) to the Street Resurfacing on Federal-Aid Streets Fiscal Year 2016-17 (Project No. PW1610; 427-3062-640).
4. Appropriate funds in the amount of $18,000 from the Wastewater Utility fund balance (431-0000-287) to the Street Resurfacing on Federal-Aid Streets Fiscal Year 2016-17 (Project No. PW1610; 431-3062-640).
5. Award a Construction Contract in the amount of $4,677,754 to George Reed, Inc. of Modesto, CA, for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2016-17 (Project No. PW1610/Federal Project No. STPL-5008(172)).
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 Street Resurfacing on Federal-Aid Streets Fiscal Year (FY) 2016-17 project will resurface Arch Road from B Street to the State Route 99 on-ramp; March Lane from Feather River Drive to Riverbrook Drive; and Pershing Avenue from March Lane to Brookside Road for a total distance of approximately three miles (Attachment A). The project was included in the FY 2017-22 Capital Improvement Plan (CIP).
On December 20, 2018, the City received four bids for this project. Staff recommends award of the Construction Contract to the lowest responsive bidder, George Reed, Inc., in the amount of $4,677,754. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. CE027-18 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to begin in spring 2019 and be completed by fall 2019, weather permitting.
This project is subject to federal Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
The City of Stockton receives an annual allocation of federal Regional Surface Transportation Program (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 FY 2016-17 RSTP allocation were identified in the FY 2017-22 CIP. The federal funding available to the City for the Street Resurfacing on Federal-Aid Streets FY 2016-17 project is $5,508,954, which was allocated and programmed by the San Joaquin Council of Governments. There is no match required, as the City will use toll credits to meet the match requirement of 11.47 percent. Toll credits are derived from toll revenue collected by the State from applicable toll roads. Toll credits do not provide additional funding to the City but can be used to eliminate the local match requirement. Using toll credits effectively allows the City to fund the project with 100 percent federal funds. In July 2018, Caltrans issued authorization to proceed with the project.
For the FY 2016-17 RSTP allocation, the City identified Arch Road from B Street to the State Route 99 on-ramp; March Lane from Feather River Drive to Riverbrook Drive; and Pershing Avenue from March Lane to Brookside Road for resurfacing (Attachment A). These segments are arterial roadways with high traffic volumes and low pavement condition ratings. The last resurfacing on these segments occurred in 2010, 2005, and 2000, respectively. Only minor localized repairs were completed since the last resurfacing. Beyond general pavement failure, these segments have significant rutting at some intersection approaches and base failure. Resurfacing will prevent further deterioration on these roadways that provide connectivity to multiple shopping centers and school campuses.
The project includes base failure repair of failed asphalt areas; installation of wheelchair ramps (as required by the Americans with Disabilities Act); adjustment of utility covers; installation of traffic video detection; resurfacing of the pavement using a variable thickness asphalt grind and overlay, and replacement of pavement markings. The project will resurface approximately three miles of roadway. The project was included in the FY 2017-22 CIP.
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.
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 17 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 December 11, 2018, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal. The federal 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. The CWTA was not applied to this project as federal regulations prohibit the use of such agreements.
Present Situation
On November 26, 2018, the Street Resurfacing on Federal-Aid Streets FY 2016-17 project was advertised for bids. On December 20, 2018, four bids were received with the following results:
COMPANY NAME BID AMOUNT
George Reed, Inc. (Modesto, CA) $4,677,754.00
Granite Construction Co. (Sacramento, CA) $4,771,033.43
DeSilva Gates Construction LP (Dublin, CA) $5,085,599.00
Knife River Construction Corp. (Stockton, CA) $5,270,140.10
Engineer’s Estimate $4,805,983.00
The bid from George Reed, Inc., the lowest responsive bidder, is regular in all respects. George Reed, Inc. has the proper license to perform the work and proposed a DBE commitment of 17.13 percent, which exceeds the 17 percent DBE goal. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to George Reed, Inc. in the amount of $4,677,754.
The project conforms 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 Article 19, Section 15301, Class 1, 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 project is also subject to National Environmental Protection Act requirements and received a Categorical Exclusion from Caltrans Environmental Division. The resolution will approve the filing of Notice of Exemption No. CE027-18 under CEQA. Construction is anticipated to begin in spring 2019 and be completed by fall 2019, weather permitting.
FINANCIAL SUMMARY
Staff recommends the appropriation of additional funding in the amount of $31,200 from the Water Utility fund balance (421-0000-287) to the Street Resurfacing on Federal-Aid Streets FY 2016-17 (Project No. PW1610; 427-3062-640), and $18,000 from the Wastewater Utility fund balance (431-0000-287) to the Street Resurfacing on Federal-Aid Streets FY 2016-17 (Project No. PW1610; 431-3062-640). Appropriations from the Water Utility and Wastewater Utility funds will be used will be used for utility adjustments required by the project. With this additional funding, there is an unencumbered balance of $5,556,200 which is sufficient to award a Construction Contract to George Reed, Inc. in the amount of $4,677,754. Funds over and above the contract amount will be used for change orders, contingencies, staff costs, or reprogrammed to other streets projects through the CIP budget.
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 - Project Location Map