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ADOPT RESOLUTION TO AUTHORIZE THE INSTALL LEFT-TURN LANE ON THORNTON ROAD AT HAMMER LANE AND ON LOWER SACRAMENTO ROAD AT THORNTON ROAD/PACIFIC AVENUE PROJECT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. NOE21-20 under the California Environmental Quality Act for the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156).
2. Approve the plans and specifications for the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156).
3. Appropriate funds in the amount of $300,000 from the Street Improvement Citywide Public Facility Fees (PFF) fund balance to the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156).
4. Award a Construction Contract in the amount of $1,094,256 to George Reed, Inc., of Modesto, CA, for the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156).
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 project will add a second southbound left-turn lane on Thornton Road at Hammer Lane, and a second westbound left-turn lane on Lower Sacramento Road at the Thornton Road/Pacific Avenue junction (Attachment A - Vicinity Map). The project will also perform Americans with Disabilities Act (ADA) upgrades of existing curb ramps, construct median improvements, and upgrade the existing traffic signals. The project was included in the 2015-2020 Five-Year Capital Improvement Plan (CIP).
On October 1, 2020, the City received four bids for this project. Staff recommends award of the Construction Contract to the lowest responsible bidder, George Reed, Inc., in the amount of $1,094,256. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE21-20 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Staff further recommends appropriating funds in the amount of $300,000 from the Street Improvement Citywide PFF fund balance to the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156), to fully fund all anticipated project costs. Construction is anticipated to be completed by fall 2021.
This project is federally funded and is subject to federal Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
In January 2015, the City applied for and was awarded Congestion Mitigation and Air Quality (CMAQ) improvement program funds for the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue project. CMAQ funds are available for transportation projects and programs that contribute to the attainment or maintenance of National Ambient Air Quality Standards. The project was granted a total amount of $814,476 in CMAQ funding for design and construction. The project was later awarded $105,524 in San Joaquin Valley Air Pollution Control District funds, and the City programmed $239,230 in City matching funds to the project.
The project will add a second southbound left-turn lane on Thornton Road at Hammer Lane, and a second westbound left-turn lane on Lower Sacramento Road at the Thornton Road/Pacific Avenue junction. The project will also perform ADA upgrades of existing curb ramps, construct median improvements, and upgrade the existing traffic signals. The project was included in the 2015-2020 Five-Year CIP.
On October 25, 2017, the City retained Siegfried Engineering, Inc. to prepare plans, specifications, and estimates (PS&E) for the construction of the project. The PS&E were completed, and the project was advertised for bids on August 3, 2020.
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.
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 13 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 August 17, 2020, 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. 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 August 3, 2020, the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156), was advertised for bids. On October 1, 2020, four bids were received with the following results:
COMPANY NAME BID AMOUNT
George Reed, Inc. (Modesto, CA) $1,094,256.00
McGuire and Hester (Alameda, CA) $1,414,244.85
Granite Rock Company (San Jose, CA) $1,497,616.00
PTM General Engineering Services, Inc. (Riverside, CA) $1,925,025.00
Engineer's Estimate $1,254,405.00
The bid from George Reed, Inc., the lowest responsible bidder, is regular in all respects. George Reed, Inc. has the proper license to perform the work and has proposed a DBE participation of 13 percent, which meets the 13 percent DBE goal. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to George Reed, Inc. of Modesto, CA, in the amount of $1,094,256.
The total project cost is approximately $1,459,000, which includes the construction bid amount, construction contingency, and staff administration and oversight. The recommended appropriation of Street Improvement Citywide PFF fund balance to this project will enable award of a Construction Contract in the amount of $1,094,256 to George Reed, Inc. and fund all other costs to complete the project.
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. This resolution will approve the filing of Notice of Exemption No. NOE21-20 under CEQA. Construction is anticipated to be completed by fall 2021.
FINANCIAL SUMMARY
The current unencumbered balance in Account No. 308-3020-640 for the Install Left-Turn Lane on Thornton Road at Hammer Lane and on Lower Sacramento Road at Thornton Road/Pacific Avenue, Project No. PW1518/Federal Project No. CML-5008(156), is $999,622. This is not sufficient to award a Construction Contract to George Reed, Inc. in the amount of $1,094,256. Appropriation of additional funds from the Street Improvement Citywide PFF fund balance to Project No. PW1528, Account No. 910-3020-640, in the amount of $300,000, is needed. Once the additional PFF funds are appropriated, there will be sufficient funds to award the Construction Contract and to complete the project.
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