1 STAFF REPORT
DATE: August 22, 2023
TO: Justin Hess, City Manager
FROM: Ken Berkman, Public Works Director
Via: Daniel Rynn, Assistant Public Works Director – City Engineer By: Vikki Davtian, Principal Engineer-Traffic
SUBJECT: Adoption of a Resolution Approving Contract Documents and Awarding a Construction Contract for Bid Schedule No. 1454 - Glenoaks Boulevard Arterial and First Street Signal Improvements Project [Metro MR310.46] to International Line Builders Inc. ; Finding of CEQA Exemption (14 CCR §15301); Amendment to Fiscal Year 2023/24 Budget
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING
CONTRACT DOCUMENTS AND AUTHORIZING EXECUTION OF A CONSTRUCTION CONTRACT FOR BID SCHEDULE NO. 1454 – GLENOAKS BOULEVARD ARTERIAL AND FIRST STREET SIGNAL IMPROVEMENTS PROJECT [METRO MR310.46] TO INTERNATIONAL LINE BUILDERS INC.; AND APPROVAL OF BUDGET AMENDMENT (Attachment 1).
BACKGROUND
In 2016, the Public Works Department’s Traffic Division staff developed the scope of improvements for the Glenoaks Boulevard Arterial and First Street Signal Improvements Project (Project).
The Project will provide benefits for bicycles, pedestrians, and vehicles at 14 intersections (see Attachment 2 for locations) with the following improvements:
• Installation of new traffic signal poles,
• Installation of bicycle, pedestrian, and vehicle detection to reduce user delays and improve signal efficiency,
• Installation of light-emitting diode (LED) intersection lighting to enhance pedestrian visibility,
• Installation of left turn arrows to reduce vehicle delays and congestion, • Installation of new intersection wiring to improve electrical reliability, • Installation of traffic cameras to monitor traffic conditions in real time,
• Installation of high visibility crosswalks and setback stop lines to improve pedestrian safety,
• 27 Americans with Disabilities Act (ADA) ramps to improve pedestrian mobility.
The Project achieves several of the City’s goals for transportation, including the following Burbank2035 General Plan Policy items:
• Policy 1.6: Use technology and intelligent transportation systems to increase street system capacity and efficiency as an alternative to street widening, • Policy 5.1: Maximize pedestrian and bicycle safety, accessibility, and connectivity, • Policy 9.2 : Address the needs of people with disabilities and comply with the requirements of the Americans with Disabilities Act.
DISCUSSION
The City Charter (Charter) and the Burbank Municipal Code (BMC) addresses bids and proposals for public works construction projects and award of such project by the City Council to the lowest responsive and responsible bidder. (See also Charter of the City of Burbank, §1205; BMC §2-2-116).)
In accordance with the Charter and the BMC, Bid Schedule No. 1454 was advertised on May 3 and May 10, 2023 , and on the City’s PlanetBids online platform on May 3, 2023.
The bid opening was held on June 6, 2023. The City received 3 bids, with only 1 being deemed responsive (Attachment 3). The lowest and responsible bid was received from International Line Builders Inc. of Chino Hills, California at $4,266,250. International Line Builders Inc. has not worked for Burbank previously but has performed similar work for other agencies with satisfactory results . International Line Builders Inc. provided a complete bid package and references that have been verified by staff. The two other bids were deemed non-responsive due to on e bidder submitting an incomplete bid package and the other bidder withdrawing their bid.
The project bids recently received came in higher than anticipated due to an increase in labor and material costs. In October 2021 , staff developed an estimated total project budget of $5.2M, which includes project design fees, construction cost estimate, construction contingency, construction support ( inspection services), required utility services, and materials as required for the Funding Agreement Amendment No. 2 executed with Metro in March 2023 (Attachment 4). To determine why the bid came in significantly higher than the 2021 estimate, staff completed a cost analysis comparing the itemized bid prices received to the funding agreement estimates and found that the cost for concrete, asphalt, signal cabinets, and traffic signal improvements ha ve significantly increased.
Project plans and specifications are available for review at the Public Works Department located at 150 N. Third Street, Burbank, California, and the City Council Office located in Burbank City Hall, 275 E. Olive Avenue, Burbank, California.
ENVIRONMENTAL REVIEW
Staff recommends that the Council find that adoption of this resolution i s categorically exempt under the California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15301(c), which exempts the operation, repair, maintenance, and minor alteration of existing public structures, facilities, that involve negligible or no expansion of existing or former use. Here, the activity involves maintenance and upgrades of existing traffic signal equipment so they can continue to be used for public right of way purposes and alterations to accommodate bicycle and pedestrian uses that do not create additional vehicle lanes. In addition, there are no exceptions or unique circumstances that apply that would affect the application of this exemption.
FISCAL IMPACT
The total Project budget per the Funding Agreement is $5,200,000. Initial expenditures were incurred for design ($177,105) and City purchased materials ($618,425 for pre- purchased signal poles) for a total of $795,530.
The total Project cost is comprised of the bid of $4,266,250, a construction contingency of 15% ( $639,937), $298,283 for construction inspection, and the aforementioned $795,530, for a total of $6,000,000.
To address the shortfall, staff requests Council’s approval in accordance with Charter Section 1005 of an appropriation of $800,000 from Developer Impact Fees to the project account, which will bring the total project budget to $6,000,000 (see table below) .
Developer Impact Fees are being utilized since the Project will be improving the efficiency and operation of the existing signal network and improving multi-modal capacity.
Staff has had preliminary discussions with Metro staff to confirm the likelihood that the $800,000 additional funding needed to complete the Project will be reimbursed with additional Measure R Highway Funds. Given the regional cost increases to Measure R Projects and discussions with Metro staff , City staff is confident the Metro Board will approve the reimbursement and recommends continuing the path to complete the Project with the current bidder. If the Metro Board approves the budget amendment of $800,000, the Funding Agreement will be amended a 3rd time to increase the total project budget to $6,000,000. The City will be able to submit reimbursement for the additional $800,000 and funds will be deposited back into the Development Impact Fee revenue account number 127.CD000.41008.0000. LA Metro will reimburse 100% of the approved project expenditures on a quarterly basis based on project invoices.
The project funding breakdown is as follows:
Project Funding Breakdown Cost
Total Project Budget from Funding Agreement No. 2 $ 5,200,000 Current Project Expenditures
Design $177,105
Materials $ 618,425
Expenditures Sub-Total $ 795,530
Construction Costs
Construction Bid Cost $ 4,266,250
Construction Contingency (15% of Bid Cost) $ 639,937
Construction Support/Inspection $ 298,283
Construction Costs Sub-Total $ 5,204,470
Total Project Budget (Expenditures + Construction Costs) $ 6,000,000
Any unused funds appropriated to the Project at the completion of construction will be returned to their sources.
CONCLUSION
Staff recommends that Council adopt the attached resolution that approves the Contract Documents and awards a construction contract to International Line Builders Inc. and approves the budget amendment.
If approved by Council, c onstruction is anticipated to begin in October 2023 and end in July 2024.
ATTACHMENTS
Attachment 1 - Resolution
Attachment 2 - Location Map
Attachment 3 - Bid Summary
Attachment 4 - Project Funding Agreement (Amendment 2)