TO: HONORABLE MAYOR FROM: John Ristow
AND CITY COUNCIL Matt Loesch
SUBJECT: SEE BELOW DATE: March 27, 2023
Approved Date
4/3/23
COUNCIL DISTRICT: 1, 2, 8 & 9
SUBJECT: REPORT ON BIDS AND AWARD A CONSTRUCTION CONTRACT FOR THE 10182 – 2023-2025 LOCAL STREETS RESURFACING (MULTI-
TERM) PROJECT
RECOMMENDATION
a) Report on bids and award a construction contract for the 10182 – 2023-2025 Local Streets Resurfacing (Multi-Term) Project, to the lowest responsive, responsible bidder, MCK Services, Inc., in the amount of $12,385,675 and approve a 10% contingency in the amount of $1,238,000.
b) Adopt a resolution authorizing the Director of Transportation to:
1) Exercise up to two one-term options, for a total amount not to exceed $12,500,000 for each option term period, contingent on the appropriation of funds; and 2) Establish a construction contingency for any option year of up to 10% of the contract amount, not to exceed $1,250,000 for each option term, contingent on the appropriation of funds.
SUMMARY AND OUTCOME
Award of this construction contract to MCK Services, Inc. will resurface approximately 28 miles of streets within the Local and Neighborhood Streets Network during the initial term. It is also estimated that an additional 28 miles could be resurfaced with each subsequent one-term option period if exercised. Approval of the 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of each project.
COUNCIL AGENDA: 04/18/23
FILE: 23-548
ITEM: 5.1
HONORABLE MAYOR AND CITY COUNCIL
April 18, 2023
Subject: Report on Bids and Award a Construction Contract for the 10182 - 2023–2025 Local Streets Resurfacing (Multi-Term) Project
BACKGROUND
The Department of Transportation (DOT) will maintain approximately 161 miles of streets on the Local and Neighborhood Street Network in the 2023 construction season. 110 miles will be resurfaced due to their poor to failed condition, and 51 miles will be sealed. These projects are funded by Measure T Bonds.
Pavement maintenance is typically performed in two separate phases: preparation and a final surface application. The preparation phase consists of the installation and upgrade of Americans with Disability Act curb ramps. The Americans with Disability Act work is conducted under minor contracts to provide more opportunities for local/small businesses. The final surface application phase is known as resurfacing, which is the removal of several inches of damaged or degraded roadway, and the installation of a new layer of asphalt, followed by roadway striping and markings. To complete 110 miles of resurfacing work in one construction season, the 2023 resurfacing work will be divided into four separate projects and implemented concurrently.
The City’s Local and Neighborhood Street Network is organized into 135 geographically contiguous Pavement Maintenance Zones. The Pavement Maintenance Zones were established several decades ago to support efficient planning and delivery of paving projects, maximize the amount of paving work completed at one time within a neighborhood area, and provide geographic spread of pavement maintenance across the City.
DOT utilizes a Pavement Management System to collect and store roadway condition data that is used to generate a candidate list of streets to be considered for the annual pavement maintenance program. The candidate list is then thoroughly analyzed by staff using the following criteria to create the final list of streets:
• Funding availability and funding use restrictions
• Total miles of streets in reconstruction and rehabilitation category • Streets not affected by current or future street related projects • Maintenance history and prescribed treatment schedules • Relative location of street segments to create multiple, continuous segments, consistency within neighborhoods, and project efficiency
• Multi-year geographic spread across the City and street network • Number of public traffic a ttraction facilities such as schools, hospitals, libraries, community centers, etc.
• Community and City Council office feedback regarding roadway conditions and priority street segments
In 2021, DOT added equity as a criterion for zone selection. DOT staff cross-referenced the selected zones with census tracts designated by the Metropolitan Transportation Commission as “Equity Priority Communities”, formerly known as “Communities of Concern” to better track equity in service delivery. Results confirmed that 313 out of 354 miles (roughly 88%) of local and neighborhood streets designated in Equity Priority Communities areas will be maintained by
HONORABLE MAYOR AND CITY COUNCIL
April 18, 2023
Subject: Report on Bids and Award a Construction Contract for the 10182 - 2023–2025 Local Streets Resurfacing (Multi-Term) Project
the end of the current three-year plan (2025). DOT anticipates completing pavement maintenance for nearly 76% of the local street network in this same timeframe.
DOT has maintained a total of 214 Equity Priority Communities miles since 2019 and will be maintaining an additional 15 Equity Priority Communities miles in 2023, which is roughly 9% of the 161 miles of Local and Neighborhood Streets selected for maintenance in 2023.
The Attachment to this memorandum contains the list of streets to be resurfaced. The list may change if unforeseen circumstances arise or new information regarding other street-related projects becomes available.
ANALYSIS
Bids were opened on March 2, 2023, with the following results:
Contractor City Bid Amount Variance
Amount
% Over/Under
Engineer’s Estimate
MCK Services, Inc. Concord, CA $12,385,675 $1,665,045 -11.9% DeSilva Gates
Construction, Inc. Dublin, CA $13,987,000 $63,720 -0.5% Engineer's Estimate -- $14,050,720 -- --
A. Teichert & Son, Inc. Pleasanton, CA $14,142,658 $91,938 0.7%
The Engineer’s Estimate for this project is $14,050,720 and was based on bids received from similar past projects and current estimated construction prices. The low bid submitted by MCK Services, Inc. is $12,385,675 and is 11.9% below the Engineer’s Estimate. The bid is considered acceptable for the work involved in the project.
MCK Services, Inc. previously completed all three years of the 2020-2022 LS Resurfacing (Multi-year) project, which was the City’s first multi-term paving contract. MCK Services, Inc. has also completed two of the three years of the 2022–2024 LS Resurfacing Project. The scope and size of the two projects are comparable. In each of the three years, the 2020-2022 LS Resurfacing Project paved 20, 25, and 24 miles. The 2022-2024 LS Resurfacing Project paved 26 miles in 2022 and is being scheduled to resurface 25 miles in 2023.
The contract will have an initial term beginning on the date the City Council awards the contract and ending on December 31, 2023, as well as two additional one-term options. The unit prices in
HONORABLE MAYOR AND CITY COUNCIL
April 18, 2023
Subject: Report on Bids and Award a Construction Contract for the 10182 - 2023–2025 Local Streets Resurfacing (Multi-Term) Project
the “schedule of quantities” applicable in the initial term will be applicable in each option year subject to price adjustment based on the California Statewide Crude Oil Price Index and the California Construction Cost Index. The scope of work during an option year will be the same as the scope of work during the initial term, except that the work will be at different locations for approximately same miles of streets. Subject to the appropriation and availability of funds, DOT – in the Director’s sole discretion – will have the option to extend the Initial Term for 2 additional one-term options.
DOT recommends that the City Council adopt a resolution allowing the Director to execute the two one-term options, as appropriate. This action gives the City the ability to secure favorable prices in subsequent option years and the advantage to start paving operations earlier in the year by saving time from the typical procurement process. This strategy was first successfully piloted in 2020, resulting in the efficient resurfacing of 69 miles of local streets over the three-year period.
Construction is scheduled to begin in May 2023 and be completed by the end of October 2023.
Contingency
San Jose Municipal Code Section 27.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of building or buildings. The standard contingency is appropriate for this project.
Project Labor Agreement Applicability
The Project Labor Agreement is applicable to this project because the Engineer’s Estimate is over $1.2 million.
Local and Small Business Outreach
Public Works 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 9126 vendors, and documents were downloaded by 14 vendors, 5 of which were located within Santa Clara County. The recommended contractor is not a local or a small business enterprise. No local or small business enterprises were listed as subcontractors on the project.
EVALUATION AND FOLLOW-UP
DOT provides an ongoing evaluation of the City’s pavement conditions and provides periodic reports on this topic to the Transportation and Environmental Committee. In addition to the project discussed in this memorandum, three additional major street projects consisting of 75
HONORABLE MAYOR AND CITY COUNCIL
April 18, 2023
Subject: Report on Bids and Award a Construction Contract for the 10182 - 2023–2025 Local Streets Resurfacing (Multi-Term) Project
miles, and six additional local and neighborhood street pavement maintenance projects totaling 133 miles are scheduled for Council action this spring.
COST SUMMARY/IMPLICATIONS
This project supports the Transportation and Aviation Services City Service Area goal to Preserve and Improve Transportation Assets and Facilities. By performing pavement maintenance with this project, the extension of the useful life of the project streets will defer more costly reconstruction. The source of funding for this project is through the 498 – Measure T Public Safety and Infrastructure Bond Fund. This project will have no net operating and maintenance costs to the General Fund.
1. TOTAL COST OF PROJECT:
Programmatic Project Delivery Estimate $1,238,000 Construction Contract $12,385,675
Contingency $1,238,000
TOTAL PROJECT COSTS: $14,861,675
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memo.
COORDINATION
This memorandum has been coordinated with the Department of Public Works, Department of Planning, Building and Code Enforcement, the City Attorney’s Office, and the City Manager’s Budget Office.
Fund
#
Appn
#
Appn Name
Total
Appn
Amt. for
Contract
2022-23
Adopted
Capital
Budget Page
Last Budget
Action
(Date, Ord.
No.)
Source of New Funding
498 415Y
Pavement
Maintenance
Measure T Bond
$51,433,000 $12,385,675 1016 10/18/2022,
30833
Total Current Funding Available $51,433,000 $12,385,675
HONORABLE MAYOR AND CITY COUNCIL
April 18, 2023
Subject: Report on Bids and Award a Construction Contract for the 10182 - 2023–2025 Local Streets Resurfacing (Multi-Term) Project
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 18, 2023 City Council meeting.
To solicit contractors, this project was listed on an online bid solicitation website, Biddingo, where bid packages were made available to download for contractor organizations and builders’ exchange. When the project commences the contractor will provide advance notification regarding working hours, duration of project, and any appropriate schedule and lane closures to affected businesses and residents, as stated in the specifications.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Environmental status granted by the Planning, Building and Code Enforcement Department.
Exempt, File No. ER23-009, 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 Frank Farshidi, DOT Division Manager at (408) 794-1945.
Attachment: List of Streets
ATTACHMENT
Subject: 2023-2025 Local Streets Resurfacing (Multi-Term) Project
List of Streets
(Initial Term of Contract - Year 2023)
Street Name From To Council District
ADELAIDE WY SANDY LN EMILINE DR 9
ANNE CT ANNE WY S END 9
ANNE WY COPELAND LN LEIGH AVE 9
ANNE WY LEIGH AVE CITY LIMIT 9
ANNIE LAURIE WY BAGPIPE WY SILVER CREEK RD 8
ARPEGGIO AV DULCEY DR ROSENBAUM AV 2
ASHRIDGE LN YERBA BUENA RD N END 8
AVON CT BLUEFIELD DR S END 2
BARONET CT YERBA BUENA RD N END 8
BARONI AV SNELL AV W END 2
BEAUMONT DR PARKFIELD AV DEL CAMBRE DR 1
BEN LOMOND WY DANIEL MALONEY
DR
THREADNEEDLE
WY 8
BLANCO DR EASTUS DR MARILLA AV 1
BLANCO DR CUL DE
SA BLANCO DR S END 1
BLANCO DR CUL DE
SAC BLANCO DR S END 1
BOBBYWOOD AV COPELAND LN BLOSSOM HILL RD 9
BRIDAL PLACE CT COLT WY S END 8
BRIGADOON WY ABORN RD DANIEL MALONEY
DR 8
BRIGADOON WY CAMPERDOWN WY CORKERHILL WY 8
BRIGADOON WY DANIEL MALONEY
DR CAMPERDOWN WY 8
CAMPERDOWN WY S END TORYGLEN WY 8
CAMPERDOWN WY TORYGLEN WY BRIGADOON WY 8
CARDEL WY MICHON DR ELROSE AV 9
CARICK PLACE WY COLT WY MEADOW GLEN WY 8
CARICK PLACE WY COLT WY RAVENS PLACE WY 8
CARRYDUFF WY LORWICK WY BRIGADOON WY 8
CATALINA DR MARILLA AV MALIBU DR 1
CHEVALIER DR HARWOOD RD COPELAND LN 9
CLEARPARK CR KINGSPARK DR CLEANPARK PL 2
CLEARPARK PL CLEARPARK CR N END 2
COLT WY SILVER CREEK RD DOVE HILL RD 8
COPELAND CT COPELAND LN W END 9
COPELAND LN CHEVALIER DR BLOSSOM HILL RD 9
COPELAND PL COPELAND LN W END 9
ATTACHMENT
Subject: 2023-2025 Local Streets Resurfacing (Multi-Term) Project
Street Name From To Council District
CORDOY LN MICHON DR MICHON DR 9
CORKERHILL WY BRIGADOON WY CAMPERDOWN WY 8
CORONA DR MALIBU DR MARILLA AV 1
COTY WY MARTI WY ROSENBAUM AV 2
COVINGTON CT MONET CR E END 2
CRANWORTH CR CORKERHILL WY S CORKERHILL WY N 8
CREEKWOOD DR DOYLE RD E END 1
CRESCENDO AV ROSENBAUM AV DULCEY DR 2
CURLING CT BAGPIPE WY S END 8
DANIEL MALONEY
DR BRIGADOON WY SILVER CREEK RD 8
DANIEL MALONEY
DR NIEMAN BL BRIGADOON WY 8
DEANS PLACE WY CEDAR KNOLL CT POLTON PLACE WY 8
DEL CAMBRE DR WILLIAMS RD PARKFIELD AV 1
DEL ORO CT DEL ORO DR W END 9
DEL ORO DR ANNE WY BLOSSOM HILL DR 9
DEL ORO PL DEL ORO DR W END 9
DERMOTT DR VENICE WY S END 1
DOVE HILL RD COLT WY N END 8
DULCEY CT DULCEY DR N END 2
DULCEY DR ROSENBAUM AV KINGSPARK DR 2
EAGLEHURST DR SILVER CREEK RD CARRYDUFF WY 8
EASTUS DR MARILLA AV DEL CAMBRE DR 1
EDENWOOD CT EDENWOOD DR E END 8
EDENWOOD DR YERBA BUENA RD GLENGARRY DR 8
ELROSE AV CHEVALIER DR LOS GATOS
ALMADEN RD 9
ELROSE AVE LOS GATOS
ALMADEN RD MICHON DR 9
EMILINE DR LOS GATOS
ALMADEN RD LAURINDA DR 9
FIRTH WY BAGPIPE WY THREADNEEDLE
WY 8
GARDIE PLACE WY RAVENS PLACE WY YERBA BUENA RD 8
GILDA WY HARLOW WY HARWOOD RD 9
GILDA WY MARY JO WY HARLOW WY 9
GLENSTONE CT HURSTGLEN WY W END 8
GRANDPARK CR VISTAPARK DR VISTAPARK DR 2
GREENPARK WY VISTAPARK DR KINGSPARK DR 2
GREGG DR LEIGH AV CITY LIMIT 9
GRUWELL PL MORAN DR N END 1
ATTACHMENT
Subject: 2023-2025 Local Streets Resurfacing (Multi-Term) Project
Street Name From To Council District
GYPSY PLACE CT WIVEN PLACE WY W END 8
HAPPY VALLEY AV PARKFIELD AV DOYLE RD 1
HAPPY VALLEY AV WILLIAMS RD PARKFIELD AV 1
HEATHCOT CT CAMPERDOWN WY S END 8
HEATHER CT HEATHER DR N END 9
HEATHER DR WARWICK RD UNION AV 9
HERBERT DR SCHOOL HERSHNER DR 9
HERSHNER DR CITY LIMIT CITY LIMIT 9
HOMEPARK CT YERBA BUENA RD N END 8
HURSTGLEN WY EAGLEHURST DR YERBA BUENA RD 8
HURSTWOOD CT HURSTGLEN WY W END 8
KAY DR SHARON LN LEIGH AV 9
KELLY DR WILMINGTON AV PARKFIELD AV 1
KENTFIELD DR HERSHNER DR SCHOOL 9
KENTFIELD DR LOS GATOS
ALMADEN RD HERSHNER DR 9
KINGSPARK DR GREENPARK WY ROSENBAUM AV 2
LASSENPARK CR KINGSPARK DR KINGSPARK DR 2
LAURINDA DR 685'W/MAITLAND
DR LEIGH AV 9
LAURINDA DR LEIGH AV NERISSA WY 9
LAURINDA DR MAITLAND DR 685'W/MAITLAND
DR 9
LEO DR WILLIAMS RD VENICE WY 1
LOCH NESS CT LOCH NESS WY S END 8
LOCH NESS WY BAGPIPE WY BEN LOMOND WY 8
LONE HILL RD 600'N/LOS GATOS
ALMADEN RD LAURINDA DR 9
LONE HILL RD LOS GATOS
ALMADEN RD
600'N/LOS GATOS
ALMADEN RD 9
LORWICK WY ASHRIDGE LN CARRYDUFF WY 8
MAC DUEE CT MAC DUEE WY E END 8
MAC DUEE WY THREADNEEDLE
WY BAGPIPE WY 8
MAITLAND DR MICHON DR LAURINDA DR 9
MALIBU DR VENICE WY DOYLE RD 1
MARASCHINO DR WILLIAMS RD MORAN DR 1
MARILLA AV DOYLE RD PIPER DR 1
MARILLA AV PIPER DR WILLIAMS RD 1
MARSH MANOR WY SILVER CREEK RD MEADOW GLEN WY 8
MARTI WAY BLUEFIELD DR COTY WY 2
MARY JO CT MARY JO WY E END 9
ATTACHMENT
Subject: 2023-2025 Local Streets Resurfacing (Multi-Term) Project
Street Name From To Council District
MARY JO WY BLOSSOM HILL RD CHEVALIER DR 9
MEADOW GLEN CT MARSH MANOR WY E END 8
MEADOW GLEN WY CARICK PLACE WY COLT WY 8
MEADOW GLEN WY MARSH MANOR WY CARICK PLACE WY 8
MIA CR BRANHAM LN BRANHAM LN 2
MICHON CT MICHON DR E END 9
MICHON DR HARWOOD DR CARDEL WY 9
MOCKING PLACE
WY RUTHER PLACE WY SILVER CREEK RD 8
MONET CR ROSENBAUM AV SNELL AV 2
MONET PL MONET CR S END 2
MORAN DR E/S LEO DR WILL RODGERS DR 1
MORAN DR MARASCHINO DR W/S LEO DR 1
NERISSA WY LAURINDA DR S END 9
OSUNA PL DOYLE RD E END 1
PARK ARCADIA DR BRANHAM LN PARK PAXTON PL 2
PARK BELMONT PL PARK PAXTON PL N END 2
PARK CHERRY PL PARK PAXTON PL N END 2
PARK ELLEN DR PARK ARCADIA DR PARK SOMMERS
WY 2
PARK MILFORD PL PARK ELLEN DR N END 2
PARK NORTON PL PARK ELLEN DR N END 2
PARK OXFORD PL PARK PAXTON PL N END 2
PARK SHARON DR PARK ELLEN DR PARK ARCADIA DR 2
PARK SUTTON PL PARK SHARON DR N END 2
PARK WATSON PL PARK SHARON DR E END 2
PARKFIELD AV DEL CAMBRE DR WILMINGTON AV 1
PEACEFUL GLEN CT MEADOW GLEN WY S END 8
PINEWOOD DR WILLIAMS RD S END 1
PIPER DR LEO DR E END 1
PIPER DR MARILLA AV LEO DR 1
PROVANMILL WY CAMPERDOWN WY NIEMAN BL 8
QUIET MEADOW CT MEADOW GLEN WY S END 8
RAVENS PLACE WY DEANS PLACE WY SILVER CREEK RD 8
ROMFORD DR CHEVALIER DR ROXANNE DR 9
ROSENBAUM AV SNELL AV CAPITOL EX 2
ROX PLACE CT COLT WY S END 8
ROXANNE DR RUCKER DR CHEVALIER DR 9
RUTHER PLACE CT RUTHER PLACE WY N END 8
RUTHER PLACE WY COLT WY MOCKING PLACE
WY 8
ATTACHMENT
Subject: 2023-2025 Local Streets Resurfacing (Multi-Term) Project
Street Name From To Council District
SANDY LN LAURINDA DR LOS GATOS
ALMADEN RD 9
SAYOKO CL SNELL AV SNELL AV 2
SELINDA LN LAURINDA DR S END 9
SILVER GLEN CT GARDIE PL N END 8
SILVER MEADOW
CT GARDIE PL N END 8
SLEEPY MEADOW
CT MEADOW GLEN WY S END 8
SPOSITO CL KINGSPARK DR CLEARPARK PL 2
SPOSITO CL KINGSPARK DR KINGSPARK DR 2
SPRINGPARK CL VISTAPARK DR VISTAPARK DR 2
SUNPARK CT SUNPARK LN S END 2
SUNPARK LN VISTAPARK DR GREENPARK WY 2
SUNPARK PL SUNPARK LN S END 2
SWEET AV WILLIAMS RD MORAN DR 1
TESORO CT DEL ORO DR W END 9
THURESON WY GILDA WY BLOSSOM HILL RD 9
TORYGLEN WY NIEMAN BL CAMPERDOWN WY 8
TURNHOUSE LN BRIGADOON WY LADDIE WY 8
TWEEDSMUIR CT NIEMAN BL W END 8
VENICE WY SARATOGA AV MARILLA AV 1
VIA ALEGRIA CT SILVER CREEK RD W END 8
VIEWPARK CL VISTAPARK DR (N) 920'E/VISTAPARK
DR (N) 2
WALLY PLACE WY COLT WY CEDAR KNOLL CT 8
WARWICK RD LOS GATOS
ALMADEN RD N END 9
WENDOVER LN NIEMAN BL 400'W/NIEMAN BL 8
WHINNEY PLACE
WY YERBA BUENA RD RAVENS PLACE WY 8
WILL ROGERS DR SARATOGA AV ZARICK DR 1
WILMINGTON AV PARKFIELD AV HAPPY VALLEY AV 1
WIVEN PLACE WY RAVENS PLACE WY WHINNEY PLACE W 8
ZARICK DR WILL ROGERS DR WILLIAMS RD 1