CITY COUNCIL STAFF REPORT
Meeting: October 10, 2023
Subject
Stevens Creek Boulevard/Calabazas Creek Storm Drain Repair Emergency Work Declaration, and authorization for the City Manager to negotiate and execute contract(s) for the repair work.
Recommended Action
Adopt Resolution No. 23-XXX declaring the repairs necessary to restore Stevens Creek Storm Drain as Emergency Work, per City of Cupertino Municipal Code (CMC) Section 3.23.130 C and Public Contract Code Section 22050; Adopt Resolution No. 23-XXX approving budget modification #2324-306, approving a transfer out appropriation of $580,000 from the Capital Reserve Fund (429), a transfer in revenue and increased appropriations of $460,000 to the project (budget unit 420-99-266), for a total authorized project expenditure of $880,000; and Authorize the City Manager to negotiate and execute a construction contract to perform the repairs, without a public bidding process, for an amount (CIP Project number 2024-01) not to exceed the project’s approved funding level of $880,000.
Reasons for Recommendation
In mid-2022 the Public Works Department became aware of a storm drain pipe along Stevens Creek Boulevard, just west of Finch Avenue, that needed repair. A Capital Improvement Program (CIP) project was initiated for Fiscal Year (FY) 2023-24 to rehabilitate the storm drain line. The “Stevens Creek Boulevard/Calabazas Creek Storm Drain Repair” project was approved and funded by City Council as part of the FY 2023-24 City Budget, for $420,000 (budget unit 420-99-266, NWS#SD 007, CIP Project number 2024-01).
The CIP division recently commenced the initial investigation for the project which led to the discovery that the storm drain pipe had experienced significant deterioration since the original observation and is currently in a failed condition, with significant undermining of the roadway.
Public Works closed two lanes of traffic along East-bound Stevens Creek Boulevard to ensure public safety. (Attachment B - Stevens Creek Boulevard-Calabazas Creek SD Work Area Exhibit.) The City Engineer deemed this section of roadway a clear and imminent danger, requiring immediate action to prevent or mitigate the loss of essential public services to the residents and businesses. Further action is necessary to correct the emergency condition and to prevent further damage to public infrastructure.
As Stevens Creek Boulevard is a major arterial street serving residents, local businesses, and schools, the Public Works Department is eager to ensure that the road re-opens fully and that the storm drain pipe is repaired as quickly as possible. To ensure a prompt response to the emergency, Public Works staff recommends that the City Council authorize the Public Works Department to forego the competitive bid requirements pursuant to its authority under the CMC Section 3.23.130 C. and the Public Contract Code Section 22050. Staff will use available information on project costs to ensure that pricing of the work is as competitive as possible.
The CMC, Chapter 3, regarding Public Works contract and bidding procedures, includes the provision that the City Council may delegate to the City Manager, through a resolution passed by a four-fifths vote, the authority to cause the repair of a public facility and to take any immediate action required by an emergency, without formal bidding.
Declaring the storm drain repairs as Emergency Work and authorizing the City Manager to negotiate and execute a contract through a non-competitive bidding process will permit the Public Works Department to streamline the construction of the repairs.
California Public Contract Code § 22050 (C) requires that the City Council, by four-fifths vote, approve and then review this emergency action at every regularly scheduled meeting thereafter to confirm that there is need to continue the action.
Sustainability Impact
Maintaining the storm drain system allows for proper storm drain run-off management.
Fiscal Impact
The Stevens Creek Boulevard/Calabazas Creek Storm Drain Repair project is funded for $420,000. Due to the significant deterioration the storm drain pipe has experienced since the initial observations, the repair work will exceed the current project budget. Current estimates indicate the project costs could reach $880,000. This creates a funding deficit of $460,000. The staff recommendation to increase the approved level of project expenditure to $880,000, utilizing Capital Reserve Fund to bridge the deficit, and authorize the City Manager to negotiate and execute contracts up to the full amount of the proposed project funding will facilitate completion of the emergency repairs in an expeditious manner, as required by the situation.
Current Fiscal Summary:
Current Funding Status
Amount
Budgeted City Funds for Stevens Creek Storm Drain Repair $420,000
Remaining Budget $420,000
Projected Expenditures
Amount
Investigation Work
($6,900)
Designer/Engineer Cost (estimated)
($33,100)
Construction Management Cost (estimated)
($60,000)
Construction Cost (estimated)
($780,000)
Expenditures (estimated) ($880,000)
Funding Deficit (addressed by the requested budget modification) ($460,000) California Environmental Quality Act (CEQA)
This project is exempt from the CEQA under CEQA Guideline section 15301 (maintenance of existing facilities). _____________________________________
Prepared by: Susan Michael, Capital Improvement Programs Manager Reviewed by: Chad Mosley, Director of Public Works
Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Draft Resolution – Emergency Declaration
B – Stevens Creek Boulevard-Calabazas Creek SD Work Area Exhibit C – Draft Resolution – Budget Modification