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ADOPT RESOLUTION TO AUTHORIZE THE CALIFORNIA STREET ROAD DIET PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE18-21 under the California Environmental Quality Act for the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
2. Approve the plans and specifications for the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
3. Appropriate funds in the amount of $1,377,143.09 from the Measure K Non-Competitive Bicycle, Pedestrian, and Safe Routes to School Program funds to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
4. Award a Construction Contract in the amount of $9,446,626 to George Reed, Inc. of Modesto, CA, for the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
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 implement lane reductions and install approximately four miles of bicycle facilities along California Street from Alpine Avenue to Eighth Street and Eighth Street from California Street to El Dorado Street (Attachment A). The improvements will transform California Street into a complete street that will accommodate all modes of travel as envisioned in the City’s Bicycle Master Plan (BMP). The project was included in the 2018-23 and 2019-24 Five-Year Capital Improvement Plans (CIP).
Funds from the Measure K Non-Competitive Bicycle, Pedestrian, and Safe Routes to School (BP-SRtS) Program are available based on a formula share outlined in the Measure K Renewal Program.
On March 23, 2023, the City received one bid from George Reed, Inc., which was below the engineer’s estimate. Staff recommends award of the Construction Contract to George Reed, Inc. in the amount of $9,446,626. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE18-21 under the California Environmental Quality Act (CEQA), approving the plans and specifications, and appropriating necessary funding for the project.
Construction is anticipated to be completed by spring 2024.
DISCUSSION
Background
On December 5, 2017, by Resolution No. 2017-12-05-1501, Council approved a new BMP for the City. The BMP was completed with input from stakeholders in the community with the goal of improving access to bicycle facilities for residents of the City. This input identified California Street as a key corridor and part of the backbone of the BMP.
The California Street Road Diet project will implement lane reductions and install Class II and IV bicycle facilities along California Street from Alpine Avenue to Eighth Street and a Class III bicycle route along Eighth Street from California Street to El Dorado Street (Attachment A). The improvements will total approximately four miles and will transform California Street into a complete street as envisioned in the City’s BMP. A complete street accommodates multiple modes of transportation, such as vehicles, bicycles, pedestrians, and mass transit. To accomplish this, the project will implement lane reductions, install bicycle facilities, upgrade/repair existing curb ramps and failing sidewalk, and complete signal modifications at all signalized intersections within the project limits.
The Public Works Department submitted grant applications to the California Transportation Commission, the San Joaquin Council of Governments for the Active Transportation Program (ATP), and the Measure K Smart Growth Incentive programs, respectively. The project has received $4,390,000 in ATP funding and $4,206,000 in Measure K Smart Growth Incentive funding for completion of design and construction of the project. The Measure K funds were identified in the 2018-23 and 2021-26 Five-Year CIPs. The ATP funds were identified in the 2019-24 Five-Year CIP.
On November 23, 2021, the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194), was advertised for bids. One bid was received from George Reed, Inc. from Modesto, CA, which was significantly higher than the engineer’s estimate. On May 24, 2022, by Resolution No. 2022-05-24-1218, Council rejected the bid. City staff proceeded to review the project scope for cost saving opportunities and also looked for an additional funding source.
Staff subsequently identified available funds from the Measure K Non-Competitive BP-SRtS Program in the amount of $1,377,143.09. This funding will be used to help fully fund the project, which will enable advertising and award of a Construction Contract.
Public Works and Economic Development staff collaborated with an infill developer on obtaining funding from the Affordable Housing Sustainable Communities (AHSC) Program, a State funding program. AHSC funding in the amount of $1.2 million has been earmarked for the California Street Road Diet project and will enable staff to add additional improvements that are not included in the advertised project. Staff will return to Council for all necessary funding and project approvals in the near future.
On February 23, 2023, Public Works submitted a grant application to the California Department of Transportation (DOT) under the federal RAISE Grant Program for Connecting Stockton: The California Street Multimodal Corridor, which included potential funding for the California Street Road Diet project in the amount of $25 million. This funding opportunity will enable the project to complete a much larger and comprehensive scope of improvements along the corridor that are not part of the advertised project. If funding is received, the City will be able to complete a more comprehensive and robust project that addresses general deferred maintenance and roadway upgrades along the corridor. The scope of improvements identified in the RAISE Grant Program was included in the California Street Road Diet project advertisement as construction additive alternates. However, inclusion of this project work is subject to detailed coordination with other Caltrans authorized funding. The project work will most likely be performed by a separately advertised project and contract, if awarded funds. Additional Council action will be required to award any improvements funded by the RAISE Grant Program. The California DOT will announce award of RAISE Grant Program funding by June 30, 2023.
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 January 31, 2023, the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194), was advertised for bids. On March 23, 2023, one bid was received for the base bid with the following result:
COMPANY NAME BASE BID AMOUNT
George Reed, Inc. (Modesto, CA) $9,446,626
Engineer’s Estimate $9,780,160
The bid from George Reed, Inc., the sole bidder, is regular in all respects. The submitted bid in the amount of $9,446,626 is below the engineer’s estimate for the base bid. George Reed, Inc. has the proper license to perform the work.
During the bidding process, Public Works’ staff reached out to potential bidders to encourage contractors to bid on the project. The potential bidders either did not respond to Public Works’ staff or stated they were too busy to bid the project.
The scope of work identified in the RAISE Grant Program was advertised as construction additive alternates to the base bid. This resolution only proposes to award the base bid items covered with the grant funding available at the present time. Staff will return to Council for necessary approvals needed for improvements and/or funding related to the RAISE Grant Program.
Staff recommends Council approve the plans and specifications for the project, appropriate Measure K Non-Competitive BP-SRtS Program funding in the amount of $1,377,143.09, and award a Construction Contract to George Reed, Inc. of Modesto, CA, for the base bid in the amount of $9,446,626.
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. The resolution will approve the filing of Notice of Exemption No. NOE18-21 under CEQA. Construction is anticipated to be completed by spring 2024.
FINANCIAL SUMMARY
The current unencumbered balance in the California Street Road Diet, Project No. WT18005 (formerly PW1805)/Federal Project No. ATPSB1L-5008(194), Account No. 4570-000-800007-300-000-3045-000-000, is not sufficient to award a Construction Contract to George Reed, Inc. in the amount of $9,446,626. The resolution includes the following actions to provide sufficient funding to award a Construction Contract:
1. Appropriate funds in the amount of $1,377,143.09 from the Measure K Non-Competitive BP-SRtS Program funds to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194), Account No. 4570-000-800007-300-000-30-45-000-000.
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 - Vicinity Map