TO: HONORABLE MAYOR FROM: Matt Loesch
AND CITY COUNCIL John Ristow
SUBJECT: SEE BELOW DATE: February 6, 2023
Approved Date
2/8/23
COUNCIL DISTRICTS: 7 and 8
SUBJECT: AWARD OF CONTRACT FOR THE 8512 – TULLY ROAD SAFETY IMPROVEMENTS PROJECT – FEDERAL PROJECT NO. CML-5005(155) - RE-BID
RECOMMENDATION
(a) Report on bids and award of contract for the 8512 – Tully Road Safety Improvements Project – Federal Project No. CML-5005(155) - Re-Bid to the low bidder, Joseph J.
Albanese, Inc., in the amount of $6,632,725.
(b) Approve a 10% contingency in the amount of $663,273.
SUMMARY AND OUTCOME
Award of the construction contract to Joseph J. Albanese, Inc., enables the 8512 – Tully Road Safety Improvements Project – Federal Project No. CML-5005(155) – Re-Bid to proceed. (See Attachment – Location Map - Tully Road Safety Improvement Project). Approval of a 10% contingency will provide funding for any unanticipated work necessary for the proper completion of the project.
BACKGROUND
In July, 2016, the City of San José Department of Transportation submitted a grant application to the Santa Clara Valley Transportation Authority’s One Bay Area Grant Complete Streets Competitive Program for the Tully Road Vision Zero Corridor. Tully Road is a major arterial with a high incidence of fatal and severe injuries resulting from traffic collisions. The One Bay Area Grant application was successful, and the awarded grant funding will implement safety measures to help reduce vehicle speeds and minimize vehicle conflicts with pedestrians and COUNCIL AGENDA: 2/28/23
FILE: 23-269
ITEM: 3.4
HONORABLE MAYOR AND CITY COUNCIL
February 6, 2023
Subject: Award of Contract for 8512 – Tully Road Safety Improvements Project
bicyclists by increasing awareness and visibility of these vulnerable populations. When completed, this project will create a safe, inviting, and an attractive corridor on Tully Road for people walking, bicycling, driving, and taking transit between Monterey Road and Swift Lane.
The total amount approved through the One Bay Area Grant is $8,599,000 for the design and construction phases. On June 10, 2021, the California Department of Transportation approved the City’s Request for Authorization (E-76) to proceed into the construction phase.
The project will include the installation and enhancement of new and existing bike lanes, new standard and raised crosswalks and Americans with Disabilities Act curb ramps, enhancement of existing crosswalks, construction of raised median islands, installation of a speed radar sign, modification of right-turn slip-lanes, and reduction of corner radii at intersections. The project will also include pavement maintenance and associated striping. Construction is scheduled to start in August 2023, with completion expected in April 2024.
The project was originally advertised on May 4, 2022 with the bid opening on June 2, 2022.
However, after reviewing the bids, City staff determined that all of the bids were non-responsive for failing to submit a required Caltrans Equal Employment Opportunity Certification form.
ANALYSIS
The project was re-advertised on August 17, 2022. Five bids were received by the September 8, 2022 deadline with the following results:
Contractor Bid
Amount
Variance Amount Over/(Under)
Percent
Granite Rock Company
(San José)
(bid withdrawn)
$5,880,936 ($1,169,064) (17)
Joseph J. Albanese, Inc.
(Santa Clara)
$6,632,725 ($417,275) (6)
Redgwick Construction Co.
(Oakland)
$6,679,905 ($370,095) (5)
FBD Vanguard Construction, Inc.
(Livermore)
$6,694,367 ($355,633) (5)
Engineer’s Estimate $7,050,000 --- ---
Wattis Construction Co., Inc.
(San José)
$7,127,900 $77,900 1
Granite Rock Company requested and was granted relief of its bid per section 2-1.095 of the City’s Standard Specifications due to a unit price clerical error on its bid, making Joseph J.
Albanese, Inc. the lowest responsive bidder.
HONORABLE MAYOR AND CITY COUNCIL
February 6, 2023
Subject: Award of Contract for 8512 – Tully Road Safety Improvements Project
Staff recommends awarding the construction contract to the lowest responsive, responsible bidder, Joseph J. Albanese, Inc. whose bid is six percent under the Engineer’s Estimate. The bid is considered reasonable for the work involved.
Joseph J. Albanese, Inc. has completed projects for the City of San José, including the Sierra Road Slide Repair Project, and completed projects with a similar scope for other agencies in the San Francisco Bay Area, such as the Stanford Perimeter Trail Project in Palo Alto.
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% of the total contract amount. Staff recommends a 10% contingency, which should be sufficient to account for unforeseen conditions during construction.
Disadvantaged Business Enterprise Program Requirements
In accordance with Federal Regulations, Title 49 CFR Part 26, a disadvantaged business enterprise (DBE) goal of 19% was established for this project. Joseph J. Albanese, Inc. committed to $513,865 (8%) DBE participation, which did not meet the DBE goal set for this project. However, the City’s Office of Equality Assurance analyzed the contractor’s DBE outreach efforts and determined that the contractor provided “good faith efforts” to meet the DBE goal, thereby meeting Caltrans requirements.
Project Labor Agreement Applicability
A project labor agreement is applicable to this project as the Engineer’s Estimate is over $1,200,000. The Federal Highway Administration also authorized the implementation of a project labor agreement.
Local and Small Business Outreach
In addition to soliciting DBE participation per Caltrans requirements, procurement staff used Biddingo to reach out 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 a “small business enterprise” as a local business enterprise with 35 or fewer employees. Procurement staff sent bid invitations to 11,321 vendors, and documents were downloaded by 28 vendors, approximately 11 of which were located within Santa Clara County and, therefore considered local. The recommended contractor is a local but not a small business enterprise. In addition, several local business enterprises are listed as subcontractors. Lonestar, Inc. (San Martin) will perform landscaping work valued at approximately $34,500. Pipe-Net, Inc. (Gilroy) will perform underground piping work valued at approximately $189,100. Graham Contractors, Inc. (San José) will perform crack sealing work valued at approximately $65,000.
And ABSL Construction (San José) will perform asphalt grinding work valued at approximately $46,750.
HONORABLE MAYOR AND CITY COUNCIL
February 6, 2023
Subject: Award of Contract for 8512 – Tully Road Safety Improvements Project
Climate Smart San José
The recommendation in this memorandum aligns with Climate Smart San José mobility goals by installing facilities that encourage walking and biking as another mode of travel.
EVALUATION AND FOLLOW-UP
No additional follow up action with City Council is expected at this time.
COST SUMMARY/IMPLICATIONS
1. AMOUNT OF RECOMMENDATION/COST OF PROJECT:
Project Delivery* $ 3,550,632
Construction $ 6,632,725
Contingency $ 663,273
TOTAL PROJECT COSTS $ 10,846,630
Prior Cost Expenditures (through December 2022) ($ 2,315,632) REMAINING PROJECT COSTS $ 8,530,998
*Project Delivery includes $2,330,632 for Design Services and $1,220,000 for Construction Management and Inspection Services.
2. COST ELEMENTS OF AGREEMENT/CONTRACT:
Traffic Control $ 284,300
Water Pollution Control $ 180,760
Storm Drain Facilities $ 233,500
Concrete Work $ 1,511,650
Asphalt Concrete Pavement $ 1,660,250
Traffic Signage and Striping Work $ 1,084,880
Electrical Work $ 1,677,385
TOTAL AGREEMENT/CONTRACT AMOUNT $ 6,632,725
3. SOURCE OF FUNDING: 429 – Building and Structure Construction Tax Fund
4. FISCAL IMPACT: This project has no fiscal impact since the Department of Transportation has already budgeted for the operation and maintenance of the traffic signals.
HONORABLE MAYOR AND CITY COUNCIL
February 6, 2023
Subject: Award of Contract for 8512 – Tully Road Safety Improvements Project
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, construction, and contingency costs.
Fund # Appn # Appn Name
Total
Appn
Amt. for
Contract
2022-2023
Adopted Capital
Budget Page
Last Budget
Action (Date,
Ord. No.)
429 405G Tully Road Safety
Corridor
Improvements
$9,846,000 $6,632,725 1050 10/18/2022
Ord. No. 30833
COORDINATION
This project memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the February 28, 2023 City Council meeting.
The public outreach meeting for this project was coordinated with City Council Districts (CD) 7 and 8. Department of Transportation staff presented the proposed project improvements on Tully Road Corridor, answered questions, and took feedback from the community members. Below is a list of community meetings held to discuss the Tully Road Safety Improvement Project.
• 10/1/2018 (CD8) - Tully Ocala Capitol King Neighborhood Association • 10/3/2018 (CD8) - Brahms/Edgeview Neighborhood Watch Association • 10/29/2020 (CD7) - Meeting with the Fairgrounds
• 11/6/2020 (CD7) - Meeting with Franklin Elementary School • 12/2/2020 (CD7 and CD8) - Joint Community Meeting with CD7 and CD8 Councilmembers and community
• 12/7/2020 (CD8) -Welch Park Neighborhood Association meeting • 7/14/2021 (CD7) - Zachary Way Neighborhood meeting
• 12/6/2022 (CD7 and CD8) – Eastridge Business Association Leadership Group
The community’s participation in the meetings showed strong support for the planned pedestrian and vehicle improvements. City staff and the contractor will continue public outreach to the affected neighborhoods and businesses prior to and during construction.
HONORABLE MAYOR AND CITY COUNCIL
February 6, 2023
Subject: Award of Contract for 8512 – Tully Road Safety Improvements Project
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Categorically Exempt, File No. PP18-029, CEQA Guidelines Section 15301(c), Existing Facilities.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/ /s/
MATT LOESCH JOHN RISTOW
Acting Director of Public Works Director of Transportation
For questions, please contact Mathew Nguyen, Deputy Director of Public Works, at (408) 535-8300.
ATTACHMENT: Location Map – Tully Road Safety Improvements Project