DATE:
January 16, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Mohamed Alaoui, Public Works Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Enter Into A First Amendment To The Contract With Bay Cities Paving And Grading, Inc. In The Amount Of $1,850,000.00 For A Total Not To Exceed Amount Of $4,119,819.11; Appropriating $600,000.00 From Fund 242 Into CIP No. 19475008; CEQA Determination: Exempt Pursuant To 15301(c) Recommendation
Staff recommends that the City Council adopt the above-titled resolution.
Background
On December 19, 2017, the City Council unanimously approved the City’s application for 2018 SB 1 - Transportation Corridors Enhancement Program ("TCEP") funding for a Quiet Zone in Emeryville. In January 2018, the City of Emeryville submitted a project application for $4.2 million in construction funding with a required match of approximately $1.8 million for a total construction value of $6 million. The $1.8 million match was provided by ACTC, amounting to 30% of the overall project budget.
On May 16, 2018, the California Transportation Commission (“CTC”) approved the 2018 Trade Corridor Enhancement Program Final Adopted Program of Projects. The current project under discussion ‘Quiet Zone Safety Engineering Measures’ (“Project”) was included in this list. The Project was officially approved in Resolution TCEP-P-1819-05B (October 17, 2018) and revised per Waiver 19-33 (June 26, 2019). Additionally, in June 2020, CTC granted an additional 8-month extension due to COVID-19 impacts.
On July 10, 2018, the City Council approved Resolution 18-104, finding the Project is exempt from the California Environmental Quality Act pursuant to state CEQA Guideline 15301(c) and granting the City Manager signature authority for all agreements necessary to assure completion of the Quiet Zone Safety Engineering Measures Project.
On September 17, 2018, the City Council approved Resolution 18-124, authorizing the City Manager to execute a Professional Services Agreement to initiate design and processing of the Project.
On April 21, 2020, the City Council approved minor scope of work changes to the Project and approved the permanent street closure of 66th Street 130 feet east of Shellmound Street at the Union Pacific Railroad (“UPRR”) Crossing, effective July 1, 2021.
On January 19, 2021, the City Council approved an amended budget moving funds from various City and ACTC funding sources into the Project. Scope of work changes from the original application were discussed as ready to be brought forward for consideration to the CTC at their March 2021 Meeting.
On March 25, 2021, the City received approval from the CTC for the Project’s Construction Funding Allocation Request for $4,200,000 of TCEP Funding. Additionally, the City had already executed a funding agreement on July 26, 2018 for $1,800,000 of ACTC Measure BB Funding for the local match requirements of the TCEP program.
On May 18, 2021, the City Council approved the scope of work and authorized the City Engineer to advertise the Project for public bids (Resolution No. 21-44).
Discussion
On February 15, 2022, the City Council authorized the construction of the TCEP – Quiet Zone Safety Engineering Measures, Project No. EPW-18103 (CIP No. 19475008) by awarding a $2,269,819.11 Construction Contract to Bay Cities Paving and Grading, Inc (“BCPG”). The lowest responsive bid from BCPG was approximately $550,000 (19.5%) below the Engineer’s Estimate of $2,820,000. Furthermore, due to the special nature of the Project, the City Council granted the City Manager a contingency amount for possible additional costs up to $454,000 (20% of the contract amount).
The Project broke ground in June 2022, but has faced significant challenges beyond the control of the City of Emeryville, primarily due to persistent delays in collaboration with Union Pacific Railroad (“UPRR”). These delays have stemmed from UPRR's labor shortages and emergency response work which have diverted crews away from the site. Thus far, the delays experienced during construction are estimated to be nine months. The construction delays add to the delays the Project experienced during design due to UPRR negotiations and COVID shelter-in-place directives which amounted to twenty months. This required the City to ask for the maximum extension allowed under the state’s CTC TCEP grant program. Construction of the Project is now expected to be completed in early 2024, but still requires more coordination and scheduling of work to be performed by BCPG and UPRR through March 2024. The City contracted with Zephyr UAS, Inc. to provide Construction Management support during construction, and the delays will also require an upcoming amendment to their contract (expected in February 2024) to provide services through 2024 as the City will need continued support for the Quiet Zone implementation.
The delays, combined with unforeseen conditions, third-party costs, and opportunistic additions have used up the Project’s contingency budget and additional funds will be necessary to complete the Project. The additional costs to the Project are as follows:
Unforeseen Conditions
The Quiet Zone Project encountered several unforeseen conditions that necessitated additional work and expenses beyond the initial project scope. First, unfavorable soil conditions were discovered during the concrete pouring process for traffic signal foundations. This prompted the incorporation of extra reinforcement that included permanent steel casings to prevent hole failure. Furthermore, conflicts with existing sewer and water lines necessitated additional potholing efforts to locate suitable foundation positions. In addition, modifications to the planned locations of traffic signal conduits and pole locations were needed to avoid conflicts with the 6701 Shellmound Street development project, which has been under construction in parallel with the Quiet Zone Project.
During 2023, unexpected heavy rains resulted in the emergence of new and larger potholes in the immediate project area. To address this issue without incurring extra expenses from emergency contractors, additional paving was included in the Project’s scope. Leveraging the services of BCPG which was already mobilized in the area proved cost-effective. The proposed funding from unallocated Fund 262 dollars will cover the costs for additional paving areas, encompassing Shellmound Street from 65th to the northerly City limits, pothole repairs on Shellmound Street, 65th Street, and 67th streets, and emergency repairs at the 40th and Adeline Street intersection. The total expenses attributed to all of the "unforeseen conditions" amount to $700,000.
Third-Party Costs
Several third-party expenses arose during the Quiet Zone Project, impacting the project's budget. UPRR necessitated the contractor to directly contract with multiple railroad flagging companies, which incurred additional expenses into BCPG’s contract versus the City paying directly. PG&E and EBMUD also imposed extra survey and construction costs related to powering new signals, streetlights, and relocating fire hydrants. Additionally, UPRR imposed additional work and costs on the contractor, including concrete reinforcement at crossing areas, multiple surveys, unintentional destruction of project elements (requiring repairs during construction), and the installation of a new gate and bollard system at the 66th Street cul-de-sac. The total expenses attributed to "third-party costs" amount to $380,000.
Opportunity Work
The City strategically utilized opportunities to enhance the Project's scope for the public's benefit. As part of the newly approved Active Transportation Plan, Class IV concrete protected bike lanes were added to Shellmound Street. Accordingly, the Project has taken the opportunity to install concrete protected bike lanes within the project limits on Shellmound Street from 65th to 67th Streets. The upgrade of the 65th/Shellmound traffic signal was added to the Project, incorporating ADA upgrades, new signal heads, and a new cabinet containing new technology and equipment.
Additional paving work was also added to the contract within the Project limits. By adding paving work to the Project vicinity in this current contract, City staff avoided subjecting adjacent residents and businesses to additional construction activity in a few years. The total expenses attributed to "Opportunity Work" amounts to $770,000.
Fiscal Impact
Funding for the construction phase of this Project is available under CIP project number 19475008 with the following funds identified and proposed:
Project
Fund
Budget
19475008
254 – CMA TIP Reprogramming Grant
$1,379,886
19475008
254 – ACTC TCEP Match Grant
$1,800,000
19475008
254 – SB1 TCEP Grant
$4,200,000
19475008
250 – Traffic Impact Fees
$500,000
19475008
444 – 1999 Bonds
$105,910
19475008
471 – Ped Path
$180,000
19475008
475 – Gen Cap
$708,870
EXISTING TOTAL
$8,874,666
19475008
(NEW) 242 – Measure BB Local Streets/Roads
$600,000
NEW TOTAL
$9,474,666
The following estimated costs have been identified:
Prior Spent (Planning/Design Phase)
Planning Phase $ 29,000.00
Rio Grande Pacific (Design) $ 599,611.49
UPRR (Planning/Design) $ 140,000.00
Professional Services
Original Contract (Zephyr Rail UAS, Inc.) $ 897,387.25 Estimated 1st Amendment Contract (Feb 2024) $ 200,000.00 Non-Railroad Work (Civil Roadway Items)
Original Contract (Bay Cities Paving & Grading) $ 2,269,819.11 1st Amendment Contract $ 1,850,000.00
Railroad Portion of the Work
Construction Costs (Final Estimate) $ 2,795,436.00
Contingency $ 587,000.00
Estimated Total Cost $ 9,368,253.85
In light of the Project's progress and the challenges faced, it is important to note that the engineer's estimate was $2.82 million, while the low bid received came in notably lower at $2.27 million, resulting in cost savings of $550,000. Despite these initial savings, the unforeseen conditions, third-party costs, and opportunity work have collectively necessitated additional funding beyond the original contract. To ensure the successful completion of the Project, Staff recommends appropriating an additional $600,000 from unallocated Fund 242 (Measure BB Local Streets and Roads) into CIP No. 19475008. With this recommended appropriation, the Project will have adequate funding to cover the incurred expenses, thus securing the necessary resources to fully execute the construction of the TCEP – Quiet Zone Safety Engineering Measures Project.
Upon completion of the Project, there will be an expected cost of $90,000 per year in Railroad Maintenance Fees. The maintenance of the newly installed supplemental safety measures will be the responsibility of the City of Emeryville as these facilities go beyond what is required at a normal railroad crossing. These maintenance fees are expected to first occur in Fiscal Year 2024/2025 and the remaining Project balance will be used until exhausted. A maintenance budget will need to be incorporated into the City’s operating budget for future years.
Staff Communication with the Public
The Quiet Zone Project has been discussed at various meetings of the Bicycle and Pedestrian Advisory Committee and the Transportation Committee in 2021-2023.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council adopt the above-titled resolution.
PREPARED BY: Ryan O’Connell, Senior Civil Engineer
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Construction Contract – Initial
Draft Resolution
Construction Contract – 1st Amendment (Bay Cities Paving and Grading, Inc.) Bay Cities Paving & Grading 1st Amendment Contract - Quiet Zone Project City Council Meeting | January 16, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM