July 2, 2024
Public Works
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Ken Cheng, PE, Senior Civil Engineer
Subject:
Lincoln Elementary SRT Construction Contract
Termination Letter
FINANCIAL IMPACT: The contract totaling $599,831 being terminated was funded from the General Cap ital Fund (account string:
20136031-400708-23041) in the amount of $103,831 and
Engineering Grants Fund (account string: 15436431-
400708-23041) in the amount of $496,000. These
amounts will need to be re -budgeted in fiscal year 2024 -
25. PREVIOUS COUNCIL
ACTION:
September 12, 2017 (Resolution 108-17)
October 24, 2023
April 16, 2024 (Resolution 28-24)
STATEMENT OF THE
ISSUE:
The bid documents associated with awarding the
construction contract to Corcus Construction Inc ., did not meet the federal requirements. Hence, the City is required to terminate the construction agreement with Corcus
Construction, Inc and rebid this project.
RECOMMENDED ACTION:
ADOPT a resolution to terminate a construction contract with Corcus Construction, Inc.; DIRECT Public Works staff to rebid the Lincoln Elementary School Safe Route to
School Improvement Project CML -5137(055); AND RE-
APPROPRIATE funds in the General Capital Fund in the
amount of $103,831 and Engineering Grants Fund in the
amount of $496,000 in Fiscal Year 2024-25 - Public Works AGENDA
REPORT
July 2, 2024
Department (Robert Armijo 510-620-5477/Ken Cheng
510-621-1612).
DISCUSSION:
Lincoln Elementary School, situated in the heart of the Iron Triangle neighborhood, stands as one of two primary educational institutions in the area. Its proximity to key community thoroughfares such as the Richmond Greenway, Chanslor Avenue, 4th Street, and 6th Street positions it centrally within vital safe routes to school. The Richmond Public Works Department is proposing several pedestrian safety improvements in response to the substantial need for enhanced safety measures despite the presence of existing crosswalks along Chanslor Avenue, which are frequently used by numerous students and their guardians.
The proposed improvements aim to enhance pedestrian safety by narrowing crossing distances on Chanslor Avenue through the installation of median refuges and curb extensions. Additionally, the introduction of a raised intersection at the junction of Chanslor Avenue and 4th Street is intended to prioritize pedestrian movement and moderate vehicular speed, further reinforcing the safety of this critical school route.
On September 17, 2017, the City Council endorsed a resolution to express local support for these improvements, authorizing the submission of a funding application to the Metropolitan Transportation Commission (MTC). The City Council also committed to providing the requisite matching funds and ensure the project's completion, which includes both design and construction phases.
The Lincoln Elementary School Safe Route Improvement Project benefits from dual financial backing: a $497,000 construction grant from the One Bay Area Grant 2 (OBAG2) and a local contribution of $265,000 from the General Capital Funds. This local contribution was affirmed by the City Council on October 24, 2023, during the approval of the FY 2022-23 Q4 Financial Report and Administrative Budget Adjustments, which included the allocation of additional resources for the successful execution of this project among others.
The City advertised the project through BidsOnline on January 22, 2024, to solicit bids for the construction work. Bids were opened on February 20, 2024, and the City received five bids. The City staff selected Corcus Construction, Inc. as the contractor, and the Council awarded the contract on April 16, 2024.
During the processing of the contract for execution, a clerical error was discovered in the construction contract, specifically the absence of required federal forms.
Unfortunately, by the time the error was noticed, the contract had already been fully executed. The missing forms included:
Form FHWA-1273
July 2, 2024
Bidder’s List of Subcontractors (DBE and Non-DBE) Exhibit 12-B Bidder’s Experience/Qualifications (Exhibit E)
Construction Contract DBE Commitment (Exhibit 15-G)
DBE Information – Good Faith Efforts (Exhibit 15-H)
Bid Tabulation Summary Sheet (Exhibit 15-D)
Detail Estimate (Exhibit 15-M)
Disclosure of Lobbying Activities
Caltrans Local Assistance was immediately informed and recommended that the City of Richmond terminate the contract with Corcus Construction, Inc., for the Lincoln Elementary School Safe Route to School Improvement Project (CML-5137(055)) and rebid as soon as possible. The contractor was contacted and informed of this error and indicated understanding of the situation, expressing interest in participating in the re-bid.
City staff recommends that the City Council terminate the construction contract with Corcus Construction, Inc., and authorize Public Works staff to rebid the Lincoln Elementary School Safe Routes to School Improvement Project (CML-5137(055)).
Additionally, staff recommends re-appropriating funds in the General Capital Fund in the amount of $103,831 and in the Engineering Grants Fund in the amount of $496,000 for Fiscal Year 2024-25. This recommendation ensures compliance with federal requirements and allows the project to proceed without further delays, ultimately enhancing the safety of students and the community.
ENVIRONMENTAL DOCUMENTS:
This project is exempted from CEQA requirements in accordance with Class 1 - Section 15301, Class 2 - Section 15302, and Class 3 - Section 15303.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – CONST AGREEMENT#6985_FE
Attachment 3 – Letter of Termination Corcus Construction, Inc.