CITY COUNCIL STAFF REPORT
Meeting Date: May 01, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ____-23 ACCEPTING BID AND AWARDING
A CONSTRUCTION CONTRACT FOR THE TAYLOR BOULEVARD
IMPROVEMENTS PROJECT (CIVIC DRIVE TO RUTH DRIVE),
PROJECT NO. 01-23; AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSTRUCTION CONTRACT WITH KEREX
ENGINEERING, INC.
SYNOPSIS
The Taylor Boulevard Improvements Project will construct a new traffic signal at the intersection of Taylor Boulevard and Civic Drive, new sidewalk on the north side of Taylor Boulevard between Civic Drive and Ruth Drive, and new sidewalk on both sides of Civic Drive.
Staff requests that the City Council accept the lowest responsive, responsible bid and authorize the City Manager to execute a construction contract with Kerex Engineering, Inc. for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive), Project No. 01-23.
DISCUSSION
Background
This Project is included in the FY 2022-2027 Capital Improvement Plan (CIP) (Project MK-3B).
It is funded through Measure K, Traffic Mitigation Fund, and two Transportation Development Act (TDA) grants. The project scope includes the installation of a new traffic signal, ADA curb ramps, and sidewalks. When complete, the Project will provide a continuous ADA accessible path of travel for residents to walk or bike from Lucille Lane and Ruth Drive to Valley View Middle School, College Park High School, Diablo Valley College, City Police Department, Community Center, YMCA, and other office complexes on the north side of Taylor Boulevard.
The plans, specifications, and estimate (PS&E) were completed by LCC Engineering and Surveying, Inc.
Analysis
The Notice Inviting Bids was sent to the construction exchanges and was advertised in the East Bay Times on March 16, 2023. Six bids were received and publicly read on Tuesday, April 18, 2023, at 2:00 p.m. at City Hall.
Per project bid documents, the City will base the project award on the lowest responsive, responsible bid. The following table summarizes the bid amounts. The low bid is marked in bold.
Company Total Bid
1. Kerex Engineering, Inc. $1,465,424.50
2. Redgwick Construction Co. $1,485,764.00
3. Sposeto Engineering Inc. $1,610,043.30
4. McGuire and Hester $1,706,710.00
5. Granite Construction Co. $1,749,345.36
6. Ghilotti Brothers, Inc. $1,787,654.00
Average of Six Bids Received $1,634,823.53
Engineer’s Estimate (EE) $1,500,000.00
Kerex Engineering’s bid of $1,465,424.50 is two percent lower than the Engineer’s Estimate of $1,500,000, and 10 percent lower than the average bid of $1,634,823.53, so Kerex Engineering’s bid price is considered reasonable relative to other competitive bids received.
The project bid documents included an alternate bid item to construct sidewalk on the west side of Civic Drive (the east side was already included in the base bid). Kerex Engineering provided a bid to construct the additional sidewalk for $69,362.00, which was similar to other contractors’ prices. Staff recommends adding the alternate bid item.
Kerex Engineering is an experienced public works contractor that has satisfactorily completed projects in this area, including the Gregory Gardens Storm Drain Rehabilitation Project for the City of Pleasant Hill in 2022, the Brook Street Park Improvements Project for the City of Lafayette in 2021, and the 2022 Median Landscape Improvement Project for the City of Hayward. Kerex Engineering intends to hire sub-contractors for construction of specialty items such as traffic signal installation and micro-surfacing (paving). Staff believes the Contractor’s team has the experience and professional competency that will result in a satisfactory product for the City.
Kerex Engineering’s bid proposal documentation is complete, and staff has deemed them the lowest responsive, responsible bidder. Bidding rules require that the City Council award the construction contract to the lowest responsive, responsible bidder or reject all bids. Staff recommends the City Council award the construction contract to Kerex Engineering, Inc. If the Project is awarded to Kerex Engineering, construction will begin this spring, starting with the installation of the sidewalks, ADA ramps, conduits, and foundations. Work will be paused while waiting for delivery of long lead time items such as traffic signal poles and equipment, which may take up to six months. Upon delivery of traffic signal poles, the Contractor will have one month to complete the remaining items of work including signal energizing, micro-surfacing, and striping.
FISCAL IMPACT
The project construction cost is $1,534,786.50 ($1,465,424.50 + $69,362.00). Staff has included a construction contingency of approximately 10 percent or $154,213.50, which is typical for a construction project of this type. The total construction cost will not exceed $1,689,000.
Engineering Division staff will conduct construction management and inspection in order to reduce the overall project cost. Project funding is summarized in the table below:
Revenues Projected Expenses
Measure K $501,600 Construction Contract $1,534,786.50
TDA Grants $152,800 Contingency ( ̴10%) $ 154,213.50
Traffic Mitigation (Fund 06) $ 15,400
Other* $1,047,200
Total $1,717,000 Total $1,689,000
*Includes the re-budgeting of unspent FY 2021-22 budget, consisting of funds from Measure K, Gas Tax, and Measure J (Fund 27).
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Accept the bid and award a construction contract (Agreement attached – Exhibit 1) for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive), Project No. 01-23, and authorize the City Manager to execute a construction contract with Kerex Engineering, Inc.
ALTERNATIVES TO RECOMMENDED ACTION
Reject all current bids and rebid the project construction, which would likely result in higher bids and project delay, as the current lowest responsive, responsible bidder is ready to perform the work this spring.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - Contractor Agreement
Prepared by: Deirdre Castillo, Senior Engineer
Reviewed by: Ananthan Kanagasundaram, City Engineer
Approved by: June Catalano, City Manager