DATE: AUGUST 6, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, DIRECTOR
BY: JOSIE LANTACA, ASSISTANT ENGINEER
TITLE: BORONDA ROAD CONGESTION RELIEF PROJECT PHASE 1, CIP 9510 RECOMMENDED MOTION:
A motion to:
Rescind Resolution No. 23008;
Approve the plans and specifications for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510; Approve award of contract to Granite Construction Company for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510 in the amount of $15,637,796.93 (Base Bid plus Alternate Bid Items (Items 1-149); and Approve a transfer of funds from Fund 2306 – (Development Fees – Arterial) in the amount of $5,300,000 to CIP 9510 – Boronda Road Congestion Relief Project.
BACKGROUND:
On June 18, 2024, City Council approved Resolution 23008 – A Resolution approving plans and specifications; authorizing bid award and execution of contract to Granite Construction Company; and approving the transfer of funds from Fund 2306 – (Development Fees – Arterial) to CIP 9510 – Boronda Road Congestion Relief Phase 1 Project. The Resolution erroneously specifies the bid items that are included in the contract award. The 2nd sentence of the 6th paragraph on Resolution 23008 states:
The subject contract is hereby awarded to said Successful Bidder for the sum of $15,637,796.93 (Base Bid minus Items 142, 143, 144 Plus Items 145, 146, 147, 148,149), and more specifically at the unit prices particularly set forth and contained in the Proposal for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510, of said Successful Bidder previously filed in the office of the City Clerk on May 28, 2024.
The above sentence needs to be corrected to read:
The subject contract is hereby awarded to said Successful Bidder for the sum of $15,637,796.93 (Base Bid plus Alternate Bid Items) (Items 1-149), and more specifically at the unit prices particularly set forth and contained in the Proposal for the Boronda Road Congestion Relief Project Phase 1, CIP No. 9510, of said Successful Bidder previously filed in the office of the City Clerk on May 28, 2024.
The correction was due to the format of the bid proposal which already reflected Bid Items 142, 143, and 144 as deductive (or negative) items. Stating the word “minus” in Resolution 23008 changes the mathematical sum of the bid items. Therefore, staff recommends rescinding Resolution 23008, and approving a revised Resolution to clarify the bid items that are included in the bid award. Other than the 2nd sentence of the 6th paragraph on Resolution 23008, there are no further changes to the Resolution, and there is no change to the total contract award amount.
CEQA CONSIDERATION:
The act of correcting an erroneous Resolution is Not a Project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). The environmental impacts of the construction project have been analyzed in accordance with CEQA guidelines. An Initial Study (IS) was prepared to evaluate the potential impacts associated with the project. Based upon review of the IS, the proposed project will not have a significant effect on the environment because the mitigation measures outlined in the Mitigation Monitoring and Reporting Program (MMRP) have been included in the project.
A Mitigated Negative Declaration (MND) was prepared for this project pursuant to the provisions of CEQA, and on November 3, 2020, the Salinas City Council adopted and approved the MND and MMRP for the project.
STRATEGIC PLAN INITIATIVE:
The project addresses the City Council’s Strategic Goals of Infrastructure and Environmental Sustainability, and Economic Development.
DEPARTMENTAL COORDINATION:
The planning phase of this Project involved Public Works, Community Development, Finance, and Legal Departments. Public Works Department was the lead on this Project in close coordination with Community Development and Legal Departments in the review of the CEQA Documents, and there has been an extensive and iterative coordination effort between West Area Specific Plan, Central Area Specific Plan, and the Boronda Road Congestion Relief Project to ensure consistency with the projects.
FISCAL AND SUSTAINABILITY IMPACT:
Funding sources for the project includes the following:
Measure G (Resolution No. 22507)
$5,500,000
Development Fees - Arterial
$5,818,176
Gas Tax
$1,000,000
Measure X – Transportation Safety & Investment Plan
$2,318,918
Regional Surface Transportation Program fund through TAMC (Competitive Grant) $4,000,000
Air District Grant
$400,000
Total
$19,037,094
Expenditures (encumbered & expended through June 5, 2024) ($3,527,916)
Currently Available
$15,509,178
Expenditures include spent and encumbered funds for the project’s environmental, preliminary design, and detailed design phases.
The estimated construction costs for this Phase 1 project are $20,764,584.93. Below is a summary of the projected costs:
Construction Cost (Granite’s Bid)
$15,637,796.93
Contingencies (12%)
$1,876,540.00
Construction Management Services (MNS Engineers, Inc.)
$1,829,248.00
Construction Support – Design (Wallace Group)
$400,000.00
Administrative Overhead (2 years)
$100,000.00
City Staff Project Management (2%)
$312,700.00
Environmental Mitigation (Sparling Ranch) (Phase 1 & 2a) $608,300.00
Total Estimated Construction Costs
$20,764,584.93
Based on the bid received and the estimated costs, insufficient funds are available to proceed with project award. A transfer of funds from Fund 2306 – (Development Fees – Arterial) in the amount of $5,300,000 is requested to proceed with the project award and construction.
ATTACHMENTS:
Resolution
Bid Tabulations
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