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ADOPT RESOLUTION TO AUTHORIZE THE PACIFIC AVENUE AND MARCH LANE INTERSECTION MODIFICATIONS PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the plans and specifications for the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181).
2. Appropriate funds in the amount of $180,000 from the Public Facility Fees Air Quality Fund Balance to the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181).
3. Appropriate funds in the amount of $20,000 from the Accessible Pedestrian Signals Program to the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181).
4. Award a Construction Contract in the amount of $650,839 to McFadden Construction, Inc. of Stockton, CA, for the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181).
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 install a dedicated southbound right-turn lane on Pacific Avenue at the intersection of March Lane and modify lane striping and the sidewalk leading to the intersection (Attachment A). Primary funding for this project is from the Congestion Mitigation and Air Quality Improvement (CMAQ) Program. The project was included in the 2018-23 Five-Year Capital Improvement Plan (CIP).
On February 25, 2020, by Resolution No. 2020-02-25-0505, Council approved the Notice of Exemption No. NOE31-19 under the California Environmental Quality Act (CEQA) for the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181).
On February 23, 2023, the City received five bids for this project. Staff recommends award of the Construction Contract to the lowest responsible bidder, McFadden Construction, Inc., in the amount of $650,839. Staff also recommends that Council adopt a resolution approving the plans and specifications for the project.
This project is federally funded and is subject to federal Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
In January 2017, Public Works submitted grant applications for the CMAQ Program. This program is administered by the San Joaquin Council of Governments and is designed to improve air quality by relieving traffic congestion. The Pacific Avenue and March Lane Intersection Modifications project was one of the projects submitted for funding consideration and was awarded $547,560 for design, right of way, and construction.
The project will install a dedicated southbound right-turn lane on Pacific Avenue at the intersection of March Lane and modify lane striping and the sidewalk leading to the intersection (Attachment A). The project was included in the 2018-23 Five-Year CIP, with project funding allocated from the CMAQ Program grant.
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 22 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 February 15, 2023, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal.
The federal CMAQ 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.
On February 25, 2020, by Resolution No. 2020-02-25-0505, Council approved the Notice of Exemption No. NOE31-19 under the California Environmental Quality Act (CEQA) for the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181). Caltrans National Environmental Policy Act determination was received on August 8, 2022. The State determined that the project is a Categorical Exclusion under 23 CFR 771.117(c): activity (c)(26). 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 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.
Present Situation
On January 31, 2023, the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025/Federal Project No. CML-5008(181), was advertised for bids. On February 23, 2023, five bids were received with the following results:
COMPANY NAME BID AMOUNT
McFadden Construction, Inc. (Stockton, CA) $ 650,839
Dirt Dynasty, Inc. (Farmington, CA) $ 719,608
George Reed, Inc. (Modesto, CA) $ 847,792
United Pavement Maintenance, Inc. (Hughson, CA) $ 884,700
Ray’s Electric (Oakland, CA) $1,079,337
Engineer’s Estimate $ 983,518
The bid from McFadden Construction, Inc., the lowest responsible bidder, is regular in all respects. McFadden Construction, Inc. has the proper license to perform the work and has met the 22 percent DBE goal.
Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to McFadden Construction, Inc. of Stockton, CA, in the amount of $650,839.
Financial Summary
The current unencumbered balance of $621,650 in the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025 (formerly PW1725)/Federal Project No. CML-5008(181), is not sufficient to award a Construction Contract to McFadden Construction, Inc. in the amount of $650,839. 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. Appropriate funds in the amount of $180,000 from the Public Facility Fees Air Quality Fund Balance to the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025 (formerly PW1725)/Federal Project No. CML-5008(181), Account No. 4510-000-800007-300-000-30-45-000-000.
2. Appropriate funds in the amount of $20,000 from the Accessible Pedestrian Signals Program, Project No. WT15028 (formerly PW1528), Account No. 4510-714-800007-250-252-30-45-000-000, to the Pacific Avenue and March Lane Intersection Modifications, Project No. WT17025 (formerly PW1725)/Federal Project No. CML-5008(181), Account No. 4510-000-800007-300-000-30-45-000-000.
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 - Project Location Map