CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. __-23 ACCEPTING BID AND AWARDING A
CONSTRUCTION CONTRACT TO SANDSTONE ENVIRONMENTAL
ENGINEERING, INC. FOR PHASE I OF THE DOWNTOWN STREET
TREE REPLACEMENT PROJECT NO. 03-23 AND THE GRAYSON
CREEK RESTORATION AND MITIGATION PROJECT
SYNOPSIS
The Downtown Street Tree Replacement Project No. 03-23, Phase I, will provide for needed streetscape improvements along Crescent Drive. In addition, the bidding included creek restoration and mitigation along Grayson Creek that was originally part of the Library project.
The purpose of this item is to consider acceptance of the lowest responsive, responsible bid from Sandstone Environmental Engineering, Inc., and seek authorization to award the construction contract.
DISCUSSION
Background
Tree Project. The Pleasant Hill Downtown Project was completed in 1999 and included the installation of Bradford Pear street trees along Crescent Drive, Crescent Plaza and the adjacent downtown corridor. Over nearly 25 years of growth, the Bradford Pear’s root systems have presented ongoing maintenance issues, which require expensive asphalt pavement and sidewalk repairs. In addition, the height of the trees is such that pruning them has required a balance between the health of the trees and the needs of Downtown businesses for clearance and visibility. The typical lifespan for the Bradford Pear tree is 20-25 years, so these trees have reached the end of their normal life.
In the past several years, three Bradford Pear trees have fallen along Crescent Drive and Crescent Plaza due to a rotted tree base. In August 2022, the City hired Tony Wayne Walcott Consulting, a licensed arborist to perform a tree assessment of the existing trees adjacent to Crescent Drive and Crescent Plaza, which concluded that the Bradford Pear trees are problematic due to disease, poor structure, and splitting co-dominant stems. Due to their weak branch structure, the tree limbs will continue to split and break apart during high wind events and storms, causing future potential danger and damages. Further, the lack of soil volume weakens the trees, many are at risk, and several are dying. The combination of inadequate space, insufficient and inconsistent irrigation/rainfall, and poor soil conditions have resulted in the demise of the Bradford Pear specimen in this location.
City staff, working closely with Vestar Downtown Property Managers (Vestar) and the Batha Design Group, a landscape architect, conducted a study of the Downtown street trees and compiled the Crescent Drive Street Tree Inventory and Sustainability Guide, which provides guidelines and recommendations for the removal of the existing Bradford Pear Trees, as well as recommendations for the type, installation and the long term care of the replacement trees. The Batha Design Group presented a variety of replacement tree options, including the Chinese Pistache. City staff and Vestar reviewed each specimen and determined that the Chinese Pistache “Keith Davey” species would best meet the needs of the City and the Downtown businesses. The species is the flowerless male clone of the Chinese Pistache tree, is drought tolerant, and is a more suitable specimen for outdoor public areas given its medium size, attractive form, brilliant fall colors, and non-flowering attributes.
The Downtown Street Tree Replacement Project No. 03-23, Phase I, is identified as a funded project in the approved FY 2022-2027 Capital Improvement Plan (CIP) (Project IP-3). Due to budget constraints and in an effort to minimize the impact on Downtown businesses, the project has been divided into three phases. Phase I is multi-faceted, and will achieve the following:
Replace 35 existing Bradford Pear trees with new Chinese Pistache “Keith Davey” species;
Widen the existing tree wells;
Expand existing soil with new structural soil;
Repair the existing irrigation system at each tree to its functional form; and Repair existing damaged sidewalk along the corridor adjacent to the project.
New pavers will be installed adjacent to all new replacement trees to ensure a clean look that compliments the existing newly remodeled aspects of downtown. The cost of these improvements is $366,240.50, including a 15 percent contingency. Phase I encompasses improvements along Crescent Drive between Contra Costa Boulevard and Crescent Plaza; phases two and three will cover the rest of Crescent Drive followed by improvements to Crescent Plaza.
The project is located within Assessment District 20 (AD 20), Zone 6; for FY 21/22 and FY 22/23, $108,000 was budgeted from Zone 6 to help fund the project. A budget review of Zone 6 has determined that these funds are not available to fund the project and alternative sources have been identified. Given the benefit that the Downtown businesses will receive with the addition of the new improvements, UBS agreed to contribute $100,000 to the cost of the project, but additional non-assessment district funds will be needed to complete it (see below) Grayson Creek Restoration and Mitigation. An additional CIP project encompasses creek restoration and mitigation along Grayson Creek that was originally part of the Library completion requirement. In an effort to attract more bids and receive competitive pricing, this work was included in the Downtown Street Tree Replacement Project. Staff had previously presented to City Council an estimated cost of $100,000 in Measure K funding for the creek work, required as part of the Library project. The actual bid for this work is $40,900. Adding a 15 percent contingency brings the cost to $47,035, which represents a cost savings of $52,965 in Measure K funds.
Analysis
Project Cost. The Project’s total construction cost (Downtown Tree Project and Creek Restoration) is not to exceed $413,275.50, which includes $359,370.00 base bid for both projects, plus a staff-recommended contingency of 15 percent, or $53,905.50, to address any unforeseen conditions during construction. The total construction cost of the tree project is $366,240.50. This is $58,240.50 above the approved budgeted amount of $308,000, as identified in FY2022-27 CIP. The combination of elevated construction cost and the AD20 budget shortfall requires an additional allocation of $166,240.50 from alternative sources to balance the Project budget.
Budget Committee. On April 25, 2023, the Budget Committee met to discuss the status and funding of Phase I of the Downtown Street Tree Replacement Project. Staff confirmed that previously identified ARPA and private funds (UBS) were available; however, due to insufficient funds in AD20, Zone 6, the Committee requested staff consider various options for funding, such as loaning AD20 funds from American Rescue Plan Act (ARPA) or using unallocated CIP project/program funds.
Loaning funds to AD20 would require the District’s ability to repay the loan in a reasonable amount of time. Staff is currently projecting that AD20 is going into deficit, and is moving forward with a Proposition 218 process to maintain funding for operational costs. Therefore, the loan option would not be viable since AD20 could not afford any additional costs, such as a repaying a loan for the Downtown Street Tree Replacement Project.
Since the Budget Committee’s meeting in late April, Staff has identified the Sidewalk Maintenance/Gap Closure Program as a viable, alternative funding source to cover the Project’s budget shortfall of $166,240.50. Also, the Creek Restoration and Mitigation Project is under staff’s estimate, so the remaining $52,965 of the funds would remain in the Measure K fund.
Bids Received. The Notice Inviting Bids was sent to the construction exchanges on March 9, 2023, and the Project was advertised in the East Bay Times newspaper on March 10, 2023. Four bids were received and publicly read on Tuesday, April 18, 2023, at 3:00 p.m. at the Engineering Division Counter 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 Base Bid
1. Sandstone Environmental Engineering, Inc. $359,370.00
2. Marina Landscape, Inc. $489,000.00
3. Brightview Landscape Development, Inc. $513,338.00
4. McGuire and Hester $686,156.00
Average of Four Bids Received $511,966.00
Engineer’s Estimate (EE) $275,000.00
A detailed analysis of Sandstone’s bid price of $359,370 (which includes the creek restoration work) revealed that the bid is 30 percent lower than the average base bid of $511,966, and its bid price is reasonable relative to the other competitive construction bids received. Sandstone has reviewed the full bid results and confirmed its unit prices; therefore, the bid is acceptable.
Sandstone has recently completed similar projects including landscaping and storm drain improvements for the West Contra Costa Unified School District. Additionally, Sandstone has completed retaining wall and sediment removal projects for the City of Berkeley. Staff believes the Contractor’s team has the experience and professional competency to deliver a satisfactory product for the City. The Contractor is ready to begin construction this summer and complete the Project by fall 2023. Staff concludes that the bid is acceptable after checking Sandstone’s references.
Sandstone’s bid proposal documentation is complete, and staff has determined them to be 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 Sandstone.
FISCAL IMPACT
Staff proposes funding Phase I of the Downtown Street Tree Project through a combination of three sources: American Rescue Plan Act of 2021 (ARPA), Sidewalk Maintenance/Gap Closure Program, and private funding (UBS). The additional bid item for creek restoration will be funded through Measure K bond proceeds. Project funding is summarized in the table below:
Project Expense
Construction Contract $359,370.00
Contingency (15%) $ 53,905.50
Total $413,275.50
Funding Sources
American Rescue Plan Act (ARPA) $100,000.00
Sidewalk Maintenance/Gap Closure $166,240.50
Private Funding (UBS) $100,000.00
Measure K (Bond Proceeds) $ 47,035.00
Total $413,275.50
Staff is not requesting the allocation of General Fund money for the construction of the Project.
Engineering Division staff has confirmed with the Finance Department that the monies identified above are available for construction of this Project.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt a resolution to accept the bid and award a construction contract for the Downtown Street Tree Replacement Project No. 03-23, and authorize the City Manager to execute a construction contract with Sandstone Environmental Engineering, Inc.
ALTERNATIVES TO RECOMMENDED ACTION
Council may consider allocating more ARPA funds, or a combination of both ARPA and Sidewalk Maintenance/Gap Closure Program sources, to cover the outstanding balance.
Council may reject all current bids and rebid the project, which would likely result in higher bids and project delays.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - Contractor Agreement
Exhibit 2 – Project Location Map
Prepared by: Omar Adina, Assistant Engineer
Reviewed by: Ananthan Kanagasundaram, City Engineer
Approved by: June Catalano, City Manager