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ADOPT RESOLUTION TO AUTHORIZE THE HIGH FRICTION SURFACE TREATMENT PROJECT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the Notice of Exemption No. NOE06-20 under the California Environmental Quality Act for the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153).
2. Approve the plans and specifications for the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153).
3. Appropriate additional grant funds in the amount of $100,000 from the Highway Safety Improvement Program to the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153).
4. Transfer funds in the amount of $216,000 from the Wilson Way Bridge Slope Protection Installation, Project No. WT18021, to the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153).
5. Award a Construction Contract in the amount of $842,847.50 to Dirt Dynasty, Inc., of Farmington, CA, for the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153).
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 proposes to reduce the number of collisions at selected curved roadway locations by applying a surface treatment to increase pavement friction and installing radar feedback signs warning drivers about their speed. The project locations are located along Feather River Drive, Brookside Road, Bianchi Road, and Manthey Road (Attachment A - Vicinity Map). The project will also include pavement failure repair, signing, striping, and guardrail installation. Primary funding for this project is from the Highway Safety Improvement Program (HSIP). The project was included in the 2016-21 Five-Year Capital Improvement Plan (CIP).
On January 7, 2021, the City received three bids for this project. The lowest bidder, McGuire and Hester, failed to meet the City’s Disadvantaged Business Enterprise (DBE) goal of 12 percent. Staff recommends award of the Construction Contract to the second lowest responsible bidder, Dirt Dynasty, Inc., in the amount of $842,847.50. Dirt Dynasty, Inc. meets the City’s DBE goal. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE06-20 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to be completed by December 2021.
This project is federally funded and is subject to federal DBE requirements.
DISCUSSION
Background
In July 2015, the City applied for HSIP funds for the High Friction Surface Treatment project. HSIP funds are awarded to projects that can achieve a significant reduction in fatalities and serious injuries on public roads. The project was granted a total amount of $759,960 for design and construction. The project was included in the 2016-21 Five-Year CIP.
The project proposes to reduce the number of collisions at selected curved roadway locations by applying a surface treatment to increase pavement friction and installing radar feedback signs warning drivers about their speed. The project locations are located along Feather River Drive, Brookside Road, Bianchi Road, and Manthey Road (Attachment A - Vicinity Map). The project will also include pavement failure repair, signing, striping, and guardrail installation.
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 12 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 December 21, 2020, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal.
The federal HSIP 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 November 25, 2020, the High Friction Surface Treatment, Project No. WT16022/Federal Project No. HSIPL-5008(153), was advertised for bids. On January 7, 2021, three bids were received with the following results:
COMPANY NAME BID AMOUNT
McGuire and Hester, Alameda, CA $795,018.00
Dirt Dynasty, Inc., Farmington, CA $842,847.50
American Civil Contractors, Benicia, CA $931,431.00
Engineer’s Estimate $785,782.00
McGuire and Hester submitted a bid of $795,018 and committed to a DBE participation of 3.88 percent, which is below the 12 percent DBE goal. Because this did not meet the established goal, an investigation was performed by Public Works’ staff to determine if McGuire and Hester met the good faith effort requirement. It was determined that McGuire and Hester did not make a good faith effort to meet the DBE goal. A reconsideration hearing was held on March 3, 2021, to discuss McGuire and Hester’s failure to meet the DBE goal and the City staff’s Evaluation of Good Faith Efforts. The reconsideration hearing did not provide additional information sufficient to change the determination. Therefore, staff recommends that the bid from McGuire and Hester be rejected.
The second lowest bidder, Dirt Dynasty, Inc., submitted a bid of $842,847.50 and committed to a DBE goal of 62.5 percent. This bid is approximately seven percent higher than the engineer’s estimate and satisfies the project’s DBE goal. Dirt Dynasty, Inc. has the proper license to perform the work.
The original project funding was insufficient to award a construction contract because bids came in higher than estimated. Public Works staff worked collaboratively with Caltrans to secure an additional $100,000 in HSIP grant funding for this project. With the additional grant funds and project savings from a separate project, Wilson Way Bridge Slope Protection Installation, there are sufficient funds to move forward with construction. Staff recommends Council approve the plans and specifications for the project, appropriate and transfer additional funds to the project, and award a Construction Contract to Dirt Dynasty, Inc. of Farmington, CA, in the amount of $842,847.50.
Caltrans National Environmental Policy Act determination was received on September 14, 2018. The State determined that the project is a Categorical Exclusion under 23 CFR 771.117(c): activity (c)(3). Similarly, 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 resolution will approve the filing of Notice of Exemption No. NOE06-20 under CEQA.
Construction is anticipated to be completed by December 2021.
FINANCIAL SUMMARY
The unencumbered balance of $699,017 in the High Friction Surface Treatment, Project No. WT16022 (formerly PW1622)/Federal Project No. HSIPL-5008(153) is not sufficient to award a Construction Contract to Dirt Dynasty, Inc. in the amount of $842,847.50. The resolution includes the following actions to provide sufficient funding to award a Construction Contract and to fund all other construction related costs to complete the project:
1. Appropriation of additional HSIP grant funds in the amount of $100,000 to Project No. WT16022 (formerly PW1622)/Federal Project No. HSIPL-5008(153), Account No. 4570-000-800007-300-000-30-45-000-000; and
2. Transfer funds from the Wilson Way Bridge Slope Protection Installation, Project No. WT18021 (formerly PW1821), Account No. 4570-000-800007-300-000-30-45-000-000, to Project No. WT16022 (formerly PW1622), Account No. 4570-000-800007-300-000-30-45-000-000 in the amount of $216,000.
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