BACKGROUND:
The Via De Anza Street Improvement Project – Phase 1 is a bid solicitation for the reconstruction and improvements that encompasses the City’s Community Development Block Grant (CDBG) program for Public Infrastructure along Via De Anza.
The Via De Anza Phase 1 Project (Project) is a street located in the current South City area between Dinah Shore Drive and Olancha Road west of Date Palm Drive.
Engineering Staff identified Via De Anza and connecting streets as eligible for use of the 2021 CDBG Annual Action Plan funding through the Public Improvements portion of the program in the amount of $436,357.
The Project consists of furnishing all labor, materials, necessary equipment and tools, utility work, traffic control and public services coordination required for the completion of the roadway improvement Project. The proposed street improvements and rehabilitation includes constructing sidewalk, curb and gutter, curb ramps, driveways, and placing new asphalt over a cold milled road with a pulverized base on the west half of the street.
Private improvements including reconstructing garden walls, mailboxes, and driveway improvements to the actual right of way are included in the project.
On October 27, 2021, City Council authorized the Director of Engineering/Public Works to execute Task Order 04 for the amount of $42,000 to NAI Consulting, Inc. (NAI) for engineering design services and Task Order 01 in the amount of $6,375 to Fomotor Engineering for surveying services. To accommodate the construction of CVWD’s new watermain on the east side of Via De Anza, the Engineering Staff decided to implement the Project in phases. Phase 1 will add sidewalk, curb, gutter, and roadway improvements for residents along the west side of Via De Anza between Dinah Shore Drive and Olancha Road with infill portions on both Olancha Road and Via Altamira.
Phase 2, which will add similar improvements to the east side of the street, will take place at a later date once CVWD has completed their work.
DISCUSSION:
On Wednesday, May 4, 2022, the City advertised an invitation to bid, requesting qualified contractors to perform the described scope of work found in the Bid Specifications and Plans for this Project. This solicitation was made available to contractors for twenty-one (21) calendar days.
On May 25, 2022, the City received one (1) bid proposal for this Project. Based on the bid received, the lowest responsive bidder is Granite Construction Company from Indio California.
The following table ranks each qualified bidder by total price:
RANK CONTRACTOR AMOUNT
1 Granite Construction Company $ 470,073.20*
* This represents the corrected bid amount. The Contractor’s bid amount contained an arithmetic error of 80 cents.
The lowest responsive bid from Granite Construction Company (Granite) is 28% above the Engineer’s Estimate for the Project, which was $367,369.00. See the attached bid tabulation. For bid item number 4 “Earthwork” the contractor appears to have found significantly more work than the design engineer. Bid item number 16 “Construct Asphalt Concrete” was estimated using recent projects, however, increases in oil cost since the estimate was prepared appear to be impacting this line item. These two bid items account for a majority of the price increase over the Engineer’s Estimate.
Staff reached out to the non-bidding plan holders and found that due to the specialized scope of improvements, bidders found it difficult to perform the specifications required for 51% of the work as the prime contractor (required for public projects), as well as obtain materials in a timely manner. Rebidding the Project would require individual contracts to be created for each individual trade which would delay the Project, increase overall administrative costs, and most likely increase the overall cost of the Project as compared to the bid received from Granite. Also, rebidding the Project as is, would not guarantee lower bids due to the limited number of contractors that can perform the majority of the work as the prime contractor.
Despite the limited response to this solicitation and higher cost than originally estimated due to the limited qualified bidders for a construction project requiring numerous trades, as well as the tight time frame for expending CDBG grant funds, Staff recommends awarding this Project to Granite.
All work will be performed within the existing City right-of-way and on private property via Permit to Enter and Construct Agreements with each of the property owners affected. Construction is scheduled to begin July 2022 and be completed by August 2022.
Staff recommends City Council award a contract to Granite Construction in the amount of $470,073.20 for constructing improvements for the Via De Anza Street Improvement Project – Phase 1 (C08834); and approve an eighteen percent (18%) contingency in the amount of $84,613.18 for any unforeseeable construction costs; thereby, bringing the total construction budget for this Project to $554,686.38; and authorize the City Manager to execute the required contract documents.
ENVIRONMENTAL ANALYSIS:
The project is categorically excluded under the National Environmental Policy Act (NEPA) process for federally funded projects per 24CFR58.35 (a)(1), and Categorically Exempt under the California Environmental Quality Act (CEQA), Section 15301 for “Existing Facilities”.
FISCAL IMPACT:
For the FY 2021-2022 the City allocated $426,825 in funds from the CDBG Annual Action Plan for the design and construction of the Project. This is listed as Via De Anza Street Rehab Project 251-100-150-156-8800-8802. The fund has already encumbered $50,805.92 for design, survey and posting (Desert Sun and Planit) services. Staff is requesting to use the remaining $376,019.08 from this fund.
To make up the difference in the CDBG funding amount and the contract proposal, Staff is requesting to use $94,054.12 from the CIP Unidentified MOE Project 100-100-150- 156-8800-8802, to fulfill the contract amount of ($470,073.20). Staff would also like to include an 18% contingency of $84,613.18 from the same CIP Unidentified MOE Project Fund for a total amount of $178,667.30. The CIP Unidentified MOE Project 100-100- 150-156-8800-8802 has $182,532.00 available.
The following table summarizes the budgeted expenditures for this Project FUND Account
Description
ACCOUNT AMOUNT
FY 2021 – 22
Fund 251
Via De Anza Rehab 251-100-150-156-
8800-8802
$376,019.08
FY 2021 – 22
Fund100
Unidentified MOE
Project
100-100-150-156-
8800-8802
$94,054.12
FY 2021 – 22
Fund100
Unidentified MOE
Project (Contingency)
100-100-150-156-
8800-8802
$84,613.18
Total $554,686.38