TO: HONORABLE MAYOR FROM: Matt Loesch
AND CITY COUNCIL John Ristow
SUBJECT: SEE BELOW DATE: July 31, 2023
Approved Date
8/7/23
COUNCIL DISTRICT: 3
SUBJECT: REPORT ON BIDS AND AWARD OF CONTRACT FOR THE 10030 - 45 N.
MARKET STREET, 95 N. THIRD STREET, AND FOURTH STREET/SAN
FERNANDO STREET GARAGE ELEVATORS UPGRADE PROJECT
RECOMMENDATION
(a) Report on bids and award of a contract for the construction of 10030 - 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project to the lowest responsive, responsible bidder, W.E. Lyons Construction Co., in the amount of $4,499,092.
(b) Approve a 15% construction contingency in the amount of $674,864.
SUMMARY AND OUTCOME
This memorandum summarizes the bids received and requests the award of a contract for the construction of 10030 – 45 N. Market Street, 95 N. Third Street, and Fourth/San Fernando Street Garage Elevators Upgrade Project (Project). The Project supports the Parking Services’ goal to preserve and improve the elevator operations at the three City owned public garages. The Project will rehabilitate the aging elevators infrastructure and provide reliable elevator operation to the public.
Award of the contract to W.E Lyons Construction Co., will enable the Project to proceed into construction, and approval of a 15% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project.
COUNCIL AGENDA: 8/22/23
FILE: 23-1084
ITEM: 3.5
HONORABLE MAYOR AND CITY COUNCIL
July 31, 2023
Subject: Report on Bids and Award of Contract for Construction of 10030- 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
BACKGROUND
The Project includes the upgrade of 11 elevators located at three City of San José owned public garage buildings: two passenger elevators at 45 N. Market Street, three passenger elevators at 95 N. Third Street, and five passenger and one freight elevator at Fourth/San Fernando Streets. (See Attachment - 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade).
In 2022, staff from Public Works and Department of Transportation evaluated the elevators at all three garages. It was concluded that all 11 elevators assessed needed immediate upgrades due to unreliable operation and poor condition.
The two passenger elevators located at the 45 North Market Street garage are original to the building and were installed over 50 years ago, in 1965. The traction machines are well past their useful life and in need of replacement to increase overall reliability and performance. In addition, the elevator cabs have been exposed to constant vandalism activities. The Project will include replacement of the elevator cab flooring with new diamond steel flooring and vandal-proof lighting to help prevent future vandalism.
The 95 N. Third Street garage has three passenger elevators with traction machines. The elevators were installed in 1972 and modernized in 2014 with new controllers. The traction machines were retained during the 2014 modernization and are in good condition. However, the door equipment and the hoistway doors that were original to the building installation are in poor condition. The Project will refurbish the existing elevator machines and replace the elevator door equipment and hoistway doors. Since this facility is exposed to vandalism, diamond steel flooring and vandal proof lights will also be installed in the elevator cabs to aid in the prevention of future vandalism.
The Fourth Street/San Fernando Street garage has five passenger elevators and one freight elevator, all of which are the original elevator equipment that was installed in 2002. The typical lifespan for elevator equipment is 20-25 years. In this case, the control equipment is near the end of its manufacturing life has significant obsolescence issues. The Project will replace both the controllers and elevator machines. Additionally, due to vandalism and the outdoor exposure of the elevators, the door equipment, cab, and hall fixtures also need modernization. The interior of the elevator cabs will mostly remain in their current condition with minor improvements that will increase the vandal-resistance of the cab ceilings and a thorough cleaning of the cab glass.
Construction is scheduled to begin in September 2023, with anticipated completion in October 2025.
HONORABLE MAYOR AND CITY COUNCIL
July 31, 2023
Subject: Report on Bids and Award of Contract for Construction of 10030- 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
ANALYSIS
Bids were opened on June 29, 2023, with the following results:
Contractor Bid
Amount
Variance
Amount
Base Bid
Over/(Under)
Percent
Engineer’s Estimate $4,200,000 --- ---
W.E. Lyons Construction Co.
(Walnut Creek) $4,499,092 $299,092 7
City Building Inc.
(San Mateo) $5,441,869 $1,241,869 29
The low bid submitted by W.E. Lyons Construction Co. is 7% above the Engineer’s Estimate.
Staff considers this is reasonable for the work involved.
In 2022, W.E. Lyons Construction Co. successfully completed a similar elevator project for the City of San José, the 9166 – PAB and PAC Building Elevators Upgrade, with no significant issues or concerns from project management staff.
Contingency
San José Municipal Code Section 27.04.050 provides for a standard contingency of 15% on public works contracts involving the renovation of a building or buildings. The standard contingency of 15% is appropriate for this Project.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is applicable to this Project because the Engineer’s Estimate is over $1.22 million.
Local and Small Business Analysis
The recommended contractor is not a local or a small business enterprise. In addition, no local or small business enterprises are listed as subcontractors.
HONORABLE MAYOR AND CITY COUNCIL
July 31, 2023
Subject: Report on Bids and Award of Contract for Construction of 10030- 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
EVALUATION AND FOLLOW-UP
No additional follow up action with the City Council is expected at this time.
COST SUMMARY/IMPLICATIONS
The 2024-2028 Proposed Capital Improvement Program focuses on maintaining existing parking facilities and rehabilitating the aging garage elevator infrastructure portfolio wide. The construction of the Project will provide safe elevator operation to the public for 11 elevators at the three downtown parking garages. The source of funding for this Project is through the 559- General Purpose Parking Capital Fund. The Project will have no net operating and maintenance costs.
1. AMOUNT OF RECOMMENDATION/COST OF PROJECT:
*Project delivery includes a total of $435,128 for Design Services, and $690,916 for Construction Management, Commissioning, and Inspection Services.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Mobilization and Demobilization $25,207
Site survey, construction documents, submittal preparation, and inspection.
75,621
45 N. Market Street Elevator Work 807,709
95 N. Third Street Elevator Work 794,363
Fourth Street/Fernando Street Elevator Work 2,701,047 Start-up, testing, commissioning support and training. 75,621 Closeout Documentation 19,524
TOTAL CONSTRUCTION CONTRACT $4,499,092
Project Delivery* $1,126,044
Construction 4,499,092
Contingency 674,864
TOTAL PROJECT COSTS $6,300,000
Prior Years’ Expenditures and Encumbrances 429,904
TOTAL REMAINING PROJECT COSTS $5,870,096
HONORABLE MAYOR AND CITY COUNCIL
July 31, 2023
Subject: Report on Bids and Award of Contract for Construction of 10030- 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memorandum.
*The 2023-2024 Adopted Capital Budget was approved on June 13, 2023 and adopted on June 20, 2023 by the City Council.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, Fire, and Planning, Building, and Code Enforcement.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the August 22, 2023 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Categorically Exempt, File No. ER23-152. CEQA Guidelines Section 15301, Existing Facilities.
Fund
#
Appn
# Appn Name
Current
Total
Appn
Amt. for
Contract
2023-2024
Proposed
Capital
Budget
Page*
Last Budget
Action
(Date, Ord.
No.)
559 409B Garage Elevator
Upgrades
$5,800,000 $4,499,092 696 06/20/2023
Ord. No.
30933
HONORABLE MAYOR AND CITY COUNCIL
July 31, 2023
Subject: Report on Bids and Award of Contract for Construction of 10030- 45 N. Market Street, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
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
Director of Public Works Director, Department of Transportation
For questions, please contact Sal Kumar, Interim Deputy Director, at [email protected] or (408) 793-5307.
Attachment – Location Map - 45 N. Market St, 95 N. Third Street, and Fourth Street/San Fernando Street Garage Elevators Upgrade Project
Attachment-Location Map
10030- 45 N. MARKET ST, 95 N. THIRD ST, AND FOURTH/
SAN FERNANDO ST GARAGE ELEVATORS UPGRADE
PROJECT
NOT TO SCALE
PROJECT SITE:
Fourth/San Fernando Street Garage,
88 S 4th St, San Jose,
CA 95112
PROJECT SITE:
Market Street Garage,
45 N Market St, San Jose,
CA 95113
PROJECT SITE:
Third Street Garage,
95 N 3rd St, San Jose,
CA 95112