TO: HONORABLE MAYOR FROM: John Ristow
AND CITY COUNCIL Matt Loesch
SUBJECT: SEE BELOW DATE: May 1, 2023
Approved Date
5/9/23
COUNCIL DISTRICTS: 4, 5, 6 & 8
SUBJECT: REPORT ON BIDS AND AWARD OF CONTRACT FOR THE 10272 – 2023 LOCAL STREETS RESURFACING NORTH PROJECT
RECOMMENDATION
(a) Report on bids and award of contract for the 10272 – 2023 Local Streets Resurfacing North Project, to the lowest responsive, responsible bidder, MCK Services, Inc., in the amount of $11,460,866 and;
(b) Approve a 10% contingency in the amount of $1,146,000.
SUMMARY AND OUTCOME
Award of this contract to MCK Services, Inc. enables the completion of approximately 28 miles of resurfacing to streets within the Local and Neighborhood Streets Network. Approval of the 10% contingency provides funding for any unanticipated work necessary for the proper completion or construction of the project.
BACKGROUND
The Department of Transportation (DOT) will maintain approximately 161 miles of streets on the Local and Neighborhood Streets 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 the Measure T Bond program which designates $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition.
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 COUNCIL AGENDA: 5/23/23
FILE: 23-746
ITEM: 5.2
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: 10272 – 2023 Local Streets Resurfacing North Project
with Disabilities Act curb ramps. The Americans with Disabilities Act work is conducted using minor contracts to provide more opportunities for local and 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 Streets 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 attraction 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” (EPC), 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 EPC areas will be maintained by 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 EPC miles since 2019 and will be maintaining an additional 22 EPC miles in 2023, representing 14% of the 161 miles of Local and Neighborhood Streets selected for maintenance for the year. This project includes 15 EPC miles, which is about 54% of the total planned 28 resurfacing miles.
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: 10272 – 2023 Local Streets Resurfacing North Project
The attachment to this memorandum contains the list of streets to be resurfaced (Refer to Attachment – List of Streets). The list may change if unforeseen circumstances arise or new information regarding other projects becomes available.
ANALYSIS
Bids were opened on April 13, 2023, with the following results:
Contractor Bid Amount Variance
Amount
Over/(Under)
Percent
MCK Services, Inc.
(Concord, CA) $11,460,866.00 ($810,904.50) (7)
A. Teichert & Son, Inc.
(Pleasanton, CA) $11,862,854.00 ($408,916.50) (3)
DeSilva Gates Construction, LLC
(Dublin, CA) $12,180,000.00 ($91,770.50) (1)
Engineer's Estimate $12,271,770.50 -- --
The Engineer’s Estimate for this project is $12,271,770.50 and was based on bids received from similar past projects and current estimated construction prices. The low bid, submitted by MCK Services, Inc., is $11,460,866.00 and is approximately 7% below the Engineer’s Estimate. Staff considers the bid to be acceptable for the work involved and recommend awarding the contract to MCK Services, Inc.
MCK Services, Inc. has previously completed multiple major pavement maintenance projects for the City of San José. In the 2022 construction season, MCK Services, Inc. resurfaced approximately 114 miles of City streets through five different projects. In 2023, MCK Services Inc. has been awarded three major construction contracts to repave an additional 81 miles.
Construction is scheduled to begin in July 2023 and be completed by the end of November 2023.
Contingency
San José 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.
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: 10272 – 2023 Local Streets Resurfacing North Project
Project Labor Agreement Applicability
The Project Labor Agreement is applicable to this project as 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 9,126 vendors, and documents were downloaded by 16 vendors, three 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 miles, and six additional local and neighborhood street pavement maintenance projects totaling 133 miles are scheduled for City 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* (10%) $1,146,000 Construction Contract $11,460,866
Contingency (10%) $1,146,000
TOTAL PROJECT COSTS: $13,752,866
*
Programmatic Project Delivery Estimate includes approximately $458,000 (4%) for design services and $688,000 (6%) for construction management and inspection services.
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: 10272 – 2023 Local Streets Resurfacing North Project
2. COST ELEMENTS OF CONTRACT:
Contract Elements Extension
Mobilization $73,000
Materials and Placement $9,224,616
Utility Adjustments $1,694,100
Striping/Markings $469,150
TOTAL AGREEMENT/CONTRACT AMOUNT $11,460,866
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memorandum.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, and the Department of Planning, Building, and Code Enforcement.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the May 23, 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.
Fund
#
Appn
# Appn Name Total
Appn
Amt. for
Contract
2022-23
Adopted
Capital
Budget Page
Last Budget
Action
(Date, Ord.
No.)
498 415Y Pavement Maintenance
– Measure T Bond $51,433,000 $11,460,866 1016 10/18/22, 30833
Total Current Funding Available $51,433,000 $11,460,866
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: 10272 – 2023 Local Streets Resurfacing North Project
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: 10272 – 2023 Local Streets Resurfacing North Project
List of Streets
Street Name Street From Street To Council District
ALVISO-MILPITAS
RD 237 W END 4
ALVISO-MILPITAS
RD 237 E END 4
BAYPOINTE PY TASMAN DR E ZANKER RD 4
BONAVENTURA
DR N 1ST ST ZANKER RD 4
ELIZABETH ST TRAIN TRACKS GOLD ST 4
FORTRAN CT BAYTECH PY S END 4
FORTRAN DR NORTECH PY BAYTECH DR 4
GOLD ST ELIZABETH ST CATHERINE ST 4
GRAND BL E END N 1ST ST 4
HEADQUARTERS
DR N 1ST ST N END 4
INNOVATION EB N 1ST ST ZANKER RD 4
INNOVATION WB ZANKER RD N 1ST ST 4
JUNCTION AV TRIMBLE RD ZANKER RD 4
LAMPLIGHTER
WY N FIRST ST W END 4
MOFFAT ST LIBERTY ST E END 4
MORGRIDGE WY TASMAN DR E END 4
NICHOLSON LN N 1ST ST EL BOSQUE AV 4
NORTECH PY N 1ST ST E END 4
PACIFIC AV STATE ST N END 4
RENAISSANCE DR TASMAN DR VISTA MONTANA 4
RIO ROBLES TASMAN DR N 1ST ST 4
ROSE ORCHARD
WY
HEADQUARTERS
DR N 1ST ST 4
SPRECKLES AV STATE ST N END 4
TONY P SANTOS
ST WILSON WY 1ST ST N 4
VISTA MONTANA N 1ST ST TASMAN DR 4
WILSON AV GRAND BL
TONY P SANTOS
ST 4
ALEXANDER AV 750'S/MADDEN AV ALUM ROCK AV 5
ALEXANDER AV MADDEN AV 750'S/MADDEN AV 5
ATTACHMENT
Subject: 10272 – 2023 Local Streets Resurfacing North Project
Street Name Street From Street To Council District
ALEXANDER CT ALEXANDER AV ALEXANDER AV 5
ALFRED WY HOPKINS DR CATHAY DR 5
ALPINE AV
SPRING GARDEN
D
WARM SPRINGS
DR 5
AVENUE A PALA AV W END 5
AVENUE B CAPITOL AV N CEDAR LN 5
BAL HARBOR WY STORY RD PALMVIEW WY 5
BARLETTA LN
722' W /MADELINE
DR WHITE RD N 5
BARLETTA LN MADELINE DR
530' W/ MADELINE
DR 5
BARLETTA LN
530' W /MADELINE
DR
722' W/ MADELINE
DR 5
BERMUDA WY OCALA AV BISCAYNE WY 5
BIGWOOD DR MINIDOKA AV N WHITE RD 5
BISCAYNE WY CATHAY DR KING RD S 5
CEDAR LN GAY AV
ALUM ROCK
FRONTAGE RD 5
CHALET AV
WARM SPRINGS
DR
SPRING GARDEN
DR 5
CHALET AV
WARM SPRINGS
DR LITTLEWOOD DR 5
CHALLENGER AV MCKEE RD
SPRING GARDEN
DR 5
CHALLENGER AV
SPRING GARDEN
DR
WARM SPRINGS
DR 5
CHIPLAY DR EVERGLADE AV CLIFFWOOD DR 5
CLAYTON RD PINE RIDGE WY
3100' E/ PINE
RIDGE WY 5
CLIFFWOOD DR BISCAYNE WY EVERGLADE AV 5
CORTEZ AV ORLANDO DR BAL HARBOR WY 5
DARWIN WY BERMUDA WY OCALA AV 5
DECATUR DR BAL HARBOR WY CATHAY DR 5
DOLLAR
MOUNTAIN DR RIVERRUN DR N END 5
EASTSIDE DR MCKEE RD 155' S OF MCKEE 5
EASTSIDE DR E END N WHITE RD 5
ELODIE WY MADDEN AV GEBHART AV 5
ATTACHMENT
Subject: 10272 – 2023 Local Streets Resurfacing North Project
Street Name Street From Street To Council District
EVERGLADE WY CATHAY DR KING RD S 5
GAY AV
1575'W/WHITE RD
N WHITE RD N 5
GAY AV PALA AV
1575' W/O WHITE
RD 5
GEBHART AV ELODIE WY N END 5
GORDON AV KIRK AV 640'E/KIRK AV 5
GRAMERCY PL MADDEN AV MUELLER AV 5
KETCHUM DR RIVERRUN DR N END 5
LA PORTE AV BERMUDA WY SEAVIEW DR 5
LAPALA DR MCKEE RD S END 5
LITTLEWOOD DR MINIDOKA AV CHALET AV 5
LOYOLA DR BERMUDA WY CATHAY DR 5
MADDEN AV N CAPITOL AV ELODIE WY 5
MADELINE DR DECKER WY KIRK AV 5
MANDARIN WY CATHAY DR BAL HARBOR WY 5
MANNING AV ALUM ROCK AV CITY LIMIT 5
MARTEN AV MT PLEASANT RD
505' N/ MT
PLEASANT RD 5
MARTEN AV
505'N/MT
PLEASANT RD CLAYTON RD 5
MINIDOKA AV
WARM SPRINGS
DR
125'S/WARM
SPRINGS DR 5
MINIDOKA AV
125'S/WARM
SPRINGS DR GAY AV 5
MT VISTA DR WHITE RD S LOCHNER DR 5
MUELLER AV GRAMERCY PL N CAPITOL AV 5
NAPLES DR BAL HARBOR WY CATHAY DR 5
NEWTON AV HOPKINS DR CATHAY DR 5
ORLANDO DR CORTEZ AV OCALA AV 5
PALA AV GAY AV
ALUM ROCK
FRONTAGE RD 5
PALMVIEW WY EVERGLADE AV PALMWOOD DR 5
PALMVIEW WY PALMWOOD DR BISCAYNE WY 5
PALMWOOD DR PALMVIEW WY EVERGLADE AV 5
PLEASANT RIDGE
AV GAY AV
ALUM ROCK
FRONTAGE RD 5
ATTACHMENT
Subject: 10272 – 2023 Local Streets Resurfacing North Project
Street Name Street From Street To Council District
RIVERRUN DR SHOSHONE DR PALA AV 5
ROSEMAR AV JULIET PARK DR JULIET AV 5
ROSEMAR AV FLEMING AV JULIET PARK DR 5
SHOSHONE DR
WARM SPRINGS
DR PRAIRIE LN 5
SPRING GARDEN
DR CHALET AV CHALLENGER AV 5
SPRING GARDEN
DR CHALLENGER AV ALPINE AV 5
SULLIVAN AV CATHAY DR HOPKINS DR 5
TYBALT CT TYBALT DR END 5
TYBALT DR ROSEMAR AV E END 5
VISTA AV CITY LIMIT MCKEE RD 5
WARM SPRINGS
DR N WHITE RD SHOSHONE DR 5
ARNOLD AV N END FERRARI AV 6
FERRARI AV W END KEONCREST AV 6
FORRESTAL AV SONORA AV GISH RD W 6
FORRESTAL AV W GISH RD FERRARI AV 6
GISH RD W N 1ST ST W END 6
KEONCREST AV FERRARI AV SONORA AV 6
MCKENDRIE ST SPRING ST RUFF DR 6
ROSEMARY ST W 1ST ST N W END 6
RUFF DR N END MCKENDRIE ST 6
RUFF DR MCKENDRIE ST HEDDING ST W 6
SAN JUAN AV SONORA AV FERRARI AV 6
SAN PEDRO ST N FERRARI AV N END 6
SANTA PAULA AV FERRARI AV SONORA AV 6
SONORA AV N 1ST ST SAN JUAN AV 6
SPRING ST MCKENDRIE ST N END 6
SPRING ST HEDDING ST W MCKENDRIE ST 6
ANDORA DR HAYWORTH DR FLINT AV 8
COLDWATER DR FLINT AV HAYWORTH DR 8
HAYWORTH DR MARTEN AV FLINTCREST DR 8
RUBION CT RUBION DR W END 8
RUBION DR MT PLEASANT RD MARTEN AV 8
SYLVAN DR WHITE RD S HAYWORTH DR 8
ATTACHMENT
Subject: 10272 – 2023 Local Streets Resurfacing North Project
Street Name Street From Street To Council District
SYLVAN DR HAYWORTH DR FLINT AV 8
TOKAY CT TOKAY WY S END 8
TOKAY WY RUBION DR MT PLEASANT RD 8