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ADOPT RESOLUTION TO AUTHORIZE THE INSTALL LEFT-TURN LANES AT AIRPORT WAY AND HAZELTON AVENUE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE11-21 under the California Environmental Quality Act for the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184).
2. Approve the plans and specifications for the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184).
3. Appropriate funds in the amount of $362,557.40 from the Highway Safety Improvement Program funds to the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184).
4. Award a Construction Contract in the amount of $1,423,590 to United Pavement Maintenance, Inc. of Hughson, CA, for the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184).
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 left-turn lanes, modify signals with protected left-turn phasing, add sidewalk to close gaps, and improve access for pedestrians on Airport Way at Hazelton Avenue (Attachment A - Project Location Map). The project was included in the 2019-24 Five-Year Capital Improvement Plan (CIP).
On October 13, 2022, the City received six bids for this project. The lowest bidder, George Reed, Inc., failed to meet the City’s Disadvantaged Business Enterprise (DBE) goal of 21 percent. Staff recommends award of the Construction Contract to the second lowest responsible bidder, United Pavement Maintenance, Inc., in the amount of $1,423,590. Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE11-21 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.
To fully fund the construction of the project, staff recommends appropriating funds in the amount of $362,557.40 from the Highway Safety Improvement Program (HSIP) funds to the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184). Construction is anticipated to be completed by spring 2024.
This project is federally funded and is subject to federal DBE requirements.
DISCUSSION
Background
HSIP is a federal-aid program that provides funding for projects to reduce the frequency and severity of collisions by improving roadway conditions. The City submitted nine grant applications to Caltrans for Cycle 9 of the HSIP grant program in August 2018. The Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184), was approved for HSIP construction funding in the amount of $1,303,000. A 10 percent local match is required as part of the grant. The project was included in the 2019-24 Five-Year CIP.
The Install Left-Turn Lanes at Airport Way and Hazelton Avenue project will add left-turn lanes, modify signals with protected left-turn phasing, add sidewalk to close gaps and improve access for pedestrians on Airport Way at Hazelton Avenue (Attachment A - Project Location Map). The project will consist of several elements including separate left-turn lanes with protected left-turn traffic signal phasing at Airport Way and Hazelton Avenue, Americans with Disabilities Act curb ramps, sidewalk, curb, gutter, new pavement delineation, and signing.
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 evident 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 specific 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 21 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 October 4, 2022, 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 September 15, 2022, the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184), was advertised for bids. On October 13, 2022, six bids were received with the following results:
COMPANY NAME BID AMOUNT
George Reed, Inc. (Modesto, CA) $1,396,219.60
United Pavement Maintenance, Inc. (Hughson, CA) $1,423,590.00
McFadden Construction, Inc. (Stockton, CA) $1,461,674.00
Ray’s Electric (Oakland, CA) $1,567,585.00
Dirt Dynasty, Inc. (Farmington, CA) $1,571,182.00
B & M Builders, Inc. (Rancho Cordova, CA) $1,797,037.00
Engineer’s Estimate $1,352,390.00
George Reed, Inc. submitted a bid in the amount of $1,396,219.60 and committed to a DBE participation of 12.86 percent, which is below the 21 percent DBE goal. Because this did not meet the established goal, Public Works’ staff reviewed the bid documentation from George Reed, Inc. to determine if they met the good faith efforts requirement. It was determined that George Reed, Inc. did not make the required good faith efforts to meet the DBE goal. A reconsideration hearing was held with George Reed, Inc. on December 12, 2022, to discuss City staff’s Evaluation of Good Faith Efforts. During the reconsideration hearing, no additional information was received that was sufficient to change the determination. Staff recommends that the bid from George Reed, Inc. be rejected.
The second lowest responsible bidder, United Pavement Maintenance, Inc., submitted a bid in the amount of $1,423,590 and committed to a DBE participation of 78 percent, which exceeds the 21 percent DBE goal. Although the second low bid exceeds the engineer’s estimate by five percent, the bid is comparable and reflects current market pricing, which indicates that rebidding the project would not result in a more favorable outcome.
Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to United Pavement Maintenance, Inc. of Hughson, CA, in the amount of $1,423,590.
Caltrans National Environmental Policy Act determination was received on February 19, 2021. 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 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. NOE11-21 under CEQA. Construction is anticipated to be completed by spring 2024.
Financial Summary
The unencumbered balance of $1,343,000 in the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002 (formerly PW1902)/Federal Project No. HSIPL-5008(184), is not sufficient to award a Construction Contract to United Pavement Maintenance, Inc. in the amount of $1,423,590. The resolution includes the following action to provide sufficient funding to award a Construction Contract and to fund all other construction related costs to complete the project:
1. Appropriate of funds in the amount of $362,557.40 from the HSIP funds to the Install Left-Turn Lanes at Airport Way and Hazelton Avenue, Project No. WT19002/Federal Project No. HSIPL-5008(184), 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 - Project Location Map