CITY COUNCIL STAFF REPORT
Meeting Date: June 26, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ____-23 REJECTING ALL BIDS FOR THE
CONTRA COSTA BOULEVARD IMPROVEMENT PROJECT (VIKING
DRIVE TO HARRIET DRIVE), PROJECT NO. 02-23; AND DIRECTING
STAFF TO MODIFY THE BID DOCUMENTS AND RE-BID THE
PROJECT
SYNOPSIS
City staff recently opened bids for the Contra Costa Boulevard Improvement Project (Viking Drive to Harriet Drive), Project No. 02-23. The responsive low bidder submitted a proposal that was 24% greater than the construction budget approved by the City Council. The purpose of this item is to consider adopting a resolution rejecting all bids and directing staff to modify the bid documents and re-bid the project later this year.
DISCUSSION
Background
Contra Costa Boulevard Corridor Enhancement. The Contra Costa Boulevard Improvement Project (Viking Drive to Harriet Drive) is the fifth and final phase of the overall Contra Costa Boulevard Corridor enhancement. Construction began in 2009 between Golf Club Road and Second Avenue. The most recent segment, between Beth Drive and Harriet Drive, was completed in 2016.
Contra Costa Boulevard (CCB) is the largest regional arterial in the City of Pleasant Hill, with an average daily traffic volume of over 30,000 vehicles. The corridor spans numerous commercial and business centers in the City (e.g. Downtown Pleasant Hill and Sun Valley Mall), and it provides vital access to key educational facilities such as Diablo Valley College. The current roadway configuration was designed in the 1940s and 1960s and is in need of redesign and improvement. To date, the enhancements have improved overall traffic circulation, and improved pedestrian and bicycle access and safety.
The Contra Costa Boulevard Improvement Project (Viking Drive to Harriet Drive) will construct "complete streets" enhancements along CCB, between Viking Drive and Harriet Drive. Project improvements will follow previously adopted landscaping, street lighting, and bike/pedestrian design templates along CCB. Key project components include intersection geometry modifications at the CCB/Taylor Boulevard intersection, a new traffic signal at CCB/Alan Drive, new concrete sidewalks, new landscaping along median and sidewalk areas, new bike lanes, pavement rehabilitation, and new LED street lighting.
Funding. The Contra Costa Boulevard Improvement Project (Viking Drive to Harriet Drive) is identified in the FY 2022/2027 Capital Improvement Plan (CIP) (Project G-26). It is funded through a combination of Measure J grants, SB1, Uniform Lighting Fund, Traffic Mitigation, Measure K, and a contribution from the City of Concord. The CCTA Board approved appropriation of $4,792,000 in Measure J grant funds on May 17, 2023. The City must first spend the funds and then seek reimbursement from CCTA. The project does not include sidewalk or pedestrian lighting improvements along the east side of CCB (City of Concord’s boundary line).
Analysis
Bids Received. The Notice Inviting Bids was sent to the construction exchanges on April 27, 2023, and the Project was advertised in the East Bay Times newspaper on April 27, 2023. Three bids were received and publicly read on Tuesday, June 6, 2023, at 2:00 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, or reject all bids. The following table summarizes the bid amounts.
Company Total Base Bid
1. Redgwick Construction Co. $9,660,532.30
2. Ghilotti Brothers, Inc. $9,888,851.05
3. McGuire and Hester $10,612,079.00
Average of Three Bids Received $10,053,820.78
The proposal submitted by the lowest responsive bidder, Redgwick Construction Co., is 24% greater than the approved construction budget. It is typical to include a construction contingency of 10% ($966,053.23) for a project of this type. This would increase the total construction contract to $10,626,585.53.
Bid Analysis. Several unit prices received were very high, including traffic control, roadway excavation, vegetation removal, hot mix asphalt, base failure repairs, traffic signals, and streetlights.
The consensus among contractors is that the window of time available for shutting down a lane (9:00 a.m. to 3:00 p.m.) to perform construction decreases productivity and thus increases prices.
They also acknowledged that they received very high quotes from electrical contractors for the traffic signal and streetlights.
City staff proposes the following possible options to decrease the cost of the project.
1. Modify Working Hours. Construction working hours are limited to 7:30 a.m. to 7:00 p.m.
Monday through Friday per PHMC 9.15.040; however, the City has historically limited the closure of travel lanes on CCB to between 9:00 a.m. and 3:00 p.m. due to heavy traffic volume. The City may wish to consider relaxing the lane closure restriction on CCB, or allowing the contractor to work at night (as opposed to the current restriction that only allows work to be performed at night at CCB/Taylor Blvd. intersection), in order to increase the number of hours available to construct the project and thereby reduce contractor costs.
2. Eliminate Improvements on the West Side of Contra Costa Boulevard. The project scope of work includes sidewalk, pedestrian streetlights, landscape, and irrigation improvements on the west side of CCB between Viking Drive and Alan Drive, and between Taylor Boulevard and Harriet Drive. Except where there is an ADA accessibility deficiency, this work could be significantly scaled back or eliminated.
3. Reduce Median Landscape and Irrigation. The City could reduce by 30% the costs of planting and irrigation. Staff observes that once the plants mature, this reduction will not be noticeable.
4. Eliminate Micro-surfacing and/or Base Failure Repairs. Eliminate micro-surfacing and base failure repairs from the project, and include it as part of a future street resurfacing program.
5. Bid Later in the Year. Summer is a busy time, as contractors take advantage of the weather to schedule much of their work. Staff anticipates that the City may receive better prices when re-bidding the project in the fall/winter.
FISCAL IMPACT
The project expenses identified in the approved CIP are summarized in the table below:
Project Expense
Design $450,000
Engineering Staff $60,000
Project Administration $7,000
Construction Contract $7,780,000
Construction Inspection and Testing $200,000
Total $8,497,000
Based upon the lowest responsive bid received plus a 10% contingency figure, the project has a construction budget shortfall of $2,846,585.53, which cannot be supplemented by the current CIP.
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
Staff recommends that the City Council adopt the proposed resolution rejecting all bids; and direct staff to modify the bid documents and re-bid the project later this year.
ALTERNATIVES TO RECOMMENDED ACTION
Council may wish to direct staff to keep the current scope of work, re-bid at a later time, and identify other available funding.
ATTACHMENT(S):
Project Site Map
Proposed Resolution
Prepared by: Deirdre Castillo, Senior Civil Engineer
Reviewed by: Ananthan Kanagasundaram, City Engineer
Approved by: Ethan Bindernagel, Interim City Manager