TO: HONORABLE MAYOR FROM: Matt Cano
AND CITY COUNCIL John Ristow
SUBJECT: SEE BELOW DATE:
Approved Date
3/11/22
COUNCIL DISTRICT: 3
SUBJECT: AWARD OF CONTRACT FOR THE 9743 – TRANSIT BOARDING
ISLAND FOR TENTH, ELEVENTH, EAST SAN FERNANDO, AND EAST
SAN SALVADOR STREETS
RECOMMENDATION
(a) Report on bids and award of contract for the 9743 – Transit Boarding Islands (10th, 11th, East San Fernando, and East San Salvador Streets) to the low bidder, Sposeto Engineering, Inc., in the total amount of $1,535,827.
(b) Approve a 10 percent contingency in the amount of $153,583.
OUTCOME
Award of the construction contract to Sposeto Engineering, Inc. will enable the Transit Boarding Islands Project to proceed. Approval of the 10 percent contingency will provide funding for unanticipated work, if necessary, for the proper completion of the project.
BACKGROUND
The corridor of 10th and 11th Streets are one-way couplets that are part of important routes on San José’s Better Bikeway Network. The Transit Boarding Islands Project is a continuation to the 10th and 11th Street Precast Concrete Islands project and is part of a grander initiative to enhance the safety and comfort of the bicycling facilities to attract new users of all ages and abilities. This project is funded by the Transportation Development Act, Article 3 grant program administered by the Metropolitan Transportation Commission.
COUNCIL AGENDA: 3/22/2022
FILE: 22-354
ITEM: 2.11
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: Transit Boarding Islands
This project improves the safety for pedestrians and bicyclists by installing Transit Boarding Islands (TBI) and pedestrian refuge islands near the TBIs where feasible. The TBIs will be installed along 10th Street, 11th Street, East San Fernando Street, and East San Salvador Street.
Construction is scheduled to begin in June 2022 with completion expected in September 2022.
ANALYSIS
On December 2, 2021, the City of San José opened bids for the project. Five bids were received with the following results:
Contractor Base Bid Variance Amount Over/ (Under)
Percent
Engineer’s Estimate $1,210,000.00 -- --
Sposeto Engineering, Inc.
(Livermore, CA) 1,535,826.75 $324,845.75 26.93
Wattis Construction Co.
(San José, CA) 1,980,391.50 769,410.50 63.67
Redgwick Construction Co.
(Oakland, CA) 2,224,247.00 1,013,266.00 83.82
Granite Rock Company
(San José, CA) 2,424,513.00 1,213,532.00 100.37
Golden Bay Construction, Inc.
(San José, CA) 2,596,203.50 1,385,222.50 114.56
The low bid submitted by Sposeto Engineering, Inc., is $1,535,827 and almost 27 percent over the Engineer’s Estimate. The bid is considered acceptable for the work involved in the project.
While the estimate was based on an increasing trend of construction cost and inflation observed over the past few years, staff is unable to match the market trend at the end of year. The City cost index has increased from 4.4 percent in September 2021 to 8.0 percent in December 2021, according to Engineering News-Record. In addition, staff underestimated one bid item, an ADA handrail, which contributes to 16 % of the cost variant from the low bidder.
Sposeto Engineering, Inc. has been in business for approximately five years and specializes in working with transit agencies and public work departments throughout the San Francisco Bay Area including City of San José, County of Alameda, Santa Clara Valley Transportation Authority, and Caltrain. A recent project that Sposeto completed for City of San José was Magnolia Avenue Drainage Project while another project it completed with a similar scope of work is the Rebid Rapid 523 Bus Stop Improvements.
San José Municipal Code Section 27.04.050 provides that the contingency for all public works contracts (except those involving the renovation of a building or buildings) cannot exceed 10
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: Transit Boarding Islands
percent of the total contract amount. Staff recommends a 10 percent contingency, which should be sufficient to account for unforeseen conditions that might arise in the construction.
Local and Small Business Outreach
Procurement staff used Biddingo to outreach to local and small business enterprises. Chapter
4.12 of the San José Municipal Code defines a “local business enterprise” as one with a legitimate business presence in Santa Clara County and “small business enterprise” as a local business enterprise with 35 or fewer employees. Procurement staff sent bid invitations to 9,269 vendors, and documents were downloaded by 16 vendors, approximately seven of which were located within Santa Clara County and therefore local. The recommended contractor is not a local or a small business enterprise. However, one of the listed subcontractors, Cal West Fence, is located in San Martin and therefore is local as they are within Santa Clara County. Cal West Fence will be performing handrail work valued at approximately $228,000.
Project Labor Agreement Applicability
The director of Public Works determined that a project labor agreement (PLA) is not applicable to this project as the engineer estimate is less than $3,000,000.
CONCLUSION
As a result of the evaluation of bids, staff recommends the award of contract to Sposeto Engineering, Inc. in the total amount of $1,535,827 and approval of a 10 percent contingency in the amount of $153,583.
EVALUATION AND FOLLOW-UP
No additional follow up action with the City Council is expected.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum aligns with one or more Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
To solicit contractors, this project was listed on Biddingo. The complete bid package and project information for all Department of Public Works construction projects are available on Biddingo for interested contractors, contractor organizations, and builders’ exchanges.
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: Transit Boarding Islands
Public outreach for this project was done by the Department of Transportation through an online virtual public meeting with a prerecorded presentation in May 2020 and two virtual neighborhood group meetings in October 2020.
Staff and the contractor will continue public outreach to the affected neighborhoods and businesses prior to and during construction.
This memorandum will be posted on the City’s website for the March 22, 2022, City Council agenda.
COORDINATION
This project memorandum has been coordinated with the City Attorney’s Office; City Manager’s Budget Office; and the Planning, Building and Code Enforcement Department.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
The project aligns with the Transportation and Aviation Services City Service Area outcomes to provide viable transportation choices that promote a strong economy and to provide a transportation system that enhances community livability.
COST SUMMARY/IMPLICATIONS
1. AMOUNT OF RECOMMENDATION/COST OF PROJECT: $2,240,544 Project Delivery $551,134*
Construction 1,535,827
Contingency (10%) 153,583
TOTAL PROJECT COSTS $2,240,544
Prior year expenditures and encumbrances (175,861)
REMAINING PROJECT COSTS $2,064,683
* Project delivery includes $234,834 for design services and $316,300 for construction management and inspection services.
HONORABLE MAYOR AND CITY COUNCIL
February 28, 2022
Subject: Transit Boarding Islands
2. COST ELEMENTS OF CONTRACT:
Clear and grub, permits, cleanup, and misc. work $62,329 Storm drain facilities 1,500
Concrete work 599,728
Asphalt concrete pavement
Steel
515,787
296,698
Traffic signage and striping work 59,785 TOTAL AGREEMENT/CONTRACT AMOUNT $1,535,827
3. SOURCE OF FUNDING: Fund #465 – Construction Excise Tax Fund
4. FISCAL IMPACT: The operating and maintenance costs of this project are to be determined, and any net operating and maintenance costs to the General Fund will be evaluated as part of a future budget process.
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memorandum.
Fund
#
Appn
#
Appn. Name
Current
Total
Appn
RC # Amt. for
Contract
2021-2022
Adopted
Capital
Budget Page
Last Budget
Action
(Date, Ord.
No.)
465 4292
Bicycle and
Pedestrian
Facilities
$2,359,000 204625 $1,535,827 959 6/22/2021,
30621
CEQA
Categorically Exempt, File No. PP18-029, CEQA Guidelines Section 15301(c), Existing Facilities
/s/ /s/
MATT CANO JOHN RISTOW
Director of Public Works Director of Transportation
For questions, please contact Mathew Nguyen, Deputy Director, Public Works Department, at (408) 535-8300.
Attachment: Location Map
MARTHA
LOCATION MAPNOT TO SCALENORTH
9743 - TRANSIT BOARDING ISLANDS(10TH ST, 11TH ST, E. SAN FERNANDOST, AND E. SAN SALVADOR ST) 11TH STREET
INSTERSTATE 280
E. HEDDING STREET
E. SANTA CLARA ST10TH STREET
SAN JOSE STATEUNIVERSITY
TAYLOR STREETEMPIRE STREETJULIAN STREETSAN FERNANDO STSAN SALVADOR ST 7TH STREET
5TH STREETMARGARET STWILLIAM ST
VESTAL ST