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AGENDA BILL Agenda Item No. 7(C) Date: October 16, 2012 To: El Cerrito City Council From: Jerry Bradshaw, Public Works Director I City Engineer Subject: Potrero Avenue Intersection Safety Improvements between 55th and 56th Streets, City Project No. C-3045, Federal Project No. HSIP 5239 (013) ACTION REQUESTED Adopt a resolution approving plans, rejecting the bid from J.A. Gonsalves & Sons Construction, Inc. as non-responsive and accepting all other bids; and authorizing the City Manager to award a contract, contingent on successfully securing additional grant funding and/or successful negotiations with Redgwick Construction Company (the lowest responsible bidder for the project) for a deductive change order after undergoing. a value engineering process which is not inconsistent with the approved budget for the Potrero Avenue Intersection Safety Improvements between 55th and 56th Streets Project, Contract No. C-3045. BACKGROUND In 2008, Public Works staff applied for Highway Safety Improvement Program grant funds through Caltrans for the Potrero Avenue, between S. 55th and S. 56th Streets, Safety Improvements Project. The City was fortunate in being awarded a grant in the amount of$584,910. Potrero A venue has four closely spaced intersections within approximately 500 feet from west to east as follows: unsignalized at S. 55th Street and the 1-80 Westbound On- Ramp, signalized at Eastshore Boulevard/! -80 Eastbound Off-Ramp and unsignalized at S. 56th Street. This area has a disproportionately high collision rate, which was confirmed by a Traffic Safety Audit conducted by the City in 2006. The project improvements include: • Remove the right-tum island at the 1-80 Eastbound Off-Ramp. Eliminating the free ("uncontrolled") right-tum movement is expected to address safety concerns created by the limited sight distance and short merging distance between the I -80 Off-Ramp and S. 56th Street. This change is also anticipated to improve safety for pedestrians crossing the off-ramp. A marked crosswalk and pedestrian signals will also be added on the west leg of Potrero Avenue as a pedestrian accommodation. • Modify and upgrade the traffic signals at this intersection to provide protected left-tum phasing for the 1-80 Eastbound Off-Ramp, Eastshore Boulevard, and ---PAGE BREAK--- Agenda Item No. 7(C) Potrero A venue approaches. The new left-tum phasing will assign right of way as well as address sight distance problems created by the existing roadway alignment. • Add signing and pavement markings to emphasize the existing I -80 West bound On-Ramp entrance at the signalized Eastshore Boulevard/! -80 Eastbound Off- Ramp intersection, install a narrow median to prohibit left-turns onto the I-80 Westbound On-Ramp at the unsignalized location nearS. 55th. These changes are expected to address safety concerns created by drivers on eastbound Potrero A venue who have difficulty assessing if westbound cars are turning onto I -80 Westbound on-ramp or onto S. 55th Street. · • Modify the median on Potrero Avenue at S. 56th Street and prohibit parking at the very end of northbound S. 56th Street. The current shape of the median obstructs northbound left turns from S. 56th Street to westbound Potrero Avenue. The three existing parking spaces along the east curb of E. 56th Street obstruct and delay northbound drivers turning right to eastbound Potrero A venue. This delay causes drivers to become frustrated and accept less than optimum gaps in traffic. Prohibiting on-street parking from 3 to 6 p.m. on weekdays and striping a right-tum lane is expected to facilitate the left turns as well. In addition to the major components outlined above, the project will also include: • Installation, removal and replacement of traffic signal standards, including mast arm poles and foundations, vehicle and pedestrian signal heads, and pedestrian push buttons. • Traffic signing, striping and pavement markings. • Modification of storm drains. • Resurfacing of the intersection. The project is expected to result in the reduction of the predominant collision patterns along this roadway segment, for motorists and bicyclists. The project will bring all elements of the intersection to the latest requirements of the Americans with Disabilities Act (ADA) and make accommodations for pedestrians and bicyclists. The project involves State right of way under the I -80 freeway, and requires a Caltrans Encroachment Permit. The project was advertised for bid in the West County Times on August 2 and 8, 2012. Notices were mailed directly to all contractors on our bidders list and several plan rooms. ANALYSIS Three bids were received on August 28, 2012 with the following results: Page2 ---PAGE BREAK--- Agenda Item No.7(C) Name Location Bid J.A. Gonsalves & Sons Construction Napa $ 509,868.00 Redgwick Construction Company Newark $ 560,764.00 WR. Forde Associates Richmond $ 659,324.00 Engineer's Estimate $ 534,235.00 The low bid submitted by J Gonsalves & Sons Construction, Inc did not acknowledge receipt of Addendum No. 1 and the bid was not submitted in the prescribed form. Since the Addendum made significant changes to the project's contract documents, including the Bid Proposal form itself, waiver of the resulting irregularities in their bid would not provide for a level playing field for all the project bidders. As such, Staff recommends rejection of J.A. Gonsalves & Sons Construction's bid as non-responsive. The next low bidder is Redgwick Construction Company (contractor's license # 140057, Class Their bid of$560,764.00 for the Base Bid and Additive Alternate One is 4.9% above the engineer's estimate. Their bid of $531,964.00 for the Base Bid work only is, 2.6% over the Engineer's Estimate for this work. The original 2009 Engineer's Construction Estimate was $460,000 which provided for $189,900 for construction contingency and all soft costs. As the project has developed from the initial planning phase through the design and bidding phases over the last 3 years, construction costs have risen. For this reason, staff developed the bid document to include a bid alternate to enable scaling down of the project after bidding. However, the extent to which costs have increased was not anticipated. In comparing the lowest responsive bid to the original 2009 Engineer's Estimate the cost of construction of the project has risen by approximately 22%. This is a trend being experienced by other Local Agencies in the Bay Area as well. The City has several options: 1. Reject all bids, redesign the project, and go out to bid again. With prices rising, staff does not recommend this option as it would take longer and expose the City to even higher prices. 2. Secure additional funding. This may involve infusing new grant funds, diverting existing El Cerrito grant funds from other approved projects to this project, and/or increasing the current grant allocation for this project. Work continues. 3. Award the project and rely on the value engineering process to reduce the total project costs through deductive change orders. Staff has worked with the designers on several value engineering options to bring the project within the current budget without jeopardizing any of the safety elements of the project or the intent of the original federal grant application. Page 3 ---PAGE BREAK--- Agenda Item No.7(C) If no additional funding can be secured, staff feels confident that a deductive change order can be negotiated with the contractor in an amount to fit within budget. FINANCIAL CONSIDERATIONS This project is funded through the HSIP grant with matching funds from Measure J return-to-source and Proposition 1B for a total project budget of $649,900. The expenditure budget is shown below for both the base budget scenario and the full funding budget scenario. The difference in the construction contract amount is $97,919. Other differences are in the construction contingency amounts (1 0% for each case), and the construction management/administration costs, which would be commensurately lower with a reduced construction scope. Design Construction Construction Contingency Const Mgt/Admin Total Surplus (Shortfall) Base Budget 83,000 462,845 46,285 57,770 649,900 0 Full Funding Budget 83,000 560,764 56,076 66,000 765,840 (115,940) The final construction cost (and associated project cost) will depend on the extent to which staff can secure additional funding. Scott Hanin, City Manager Attachment: 1. Accompanying Resolution Page4 ---PAGE BREAK--- RESOLUTION 2012- XX Agenda Item No. 7(C) Attachment 1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO ADOPTING A RESOLUTION APPROVING PLANS; REJECTING THE BID FROM J.A. GONSALVES & SONS CONSTRUCTION, INC. AS NON-RESPONSIVE AND ACCEPTING ALL OTHER BIDS; AND AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT, CONTINGENT ON SUCCESSFULLY SECURING ADDITIONAL GRANT FUNDING AND/OR SUCCESSFUL NEGOTIATIONS WITH REDGWICK CONSTRUCTION COMPANY (THE LOWEST RESPONSIBLE BIDDER FOR THE PROJECT), IN AN AMOUNT TO BE DETERMINED AFTER UNDERGOING A VALUE ENGINEERING PROCESS WHICH IS NOT INCONSISTENT WITH THE APPROVED BUDGET FOR THE POTRERO A VENUE INTERSECTION SAFETY IMPROVEMENTS BETWEEN 55TH AND 56TH STREETS PROJECT, CONTRACT NO. C-3045 WHEREAS, City Council previously authorized bids for this project as part of the Capital Improvement Program; and WHEREAS, the project was advertised for bids on August 2 and 8, 2012 and three bids were received on August 28, 2012; and WHEREAS, the bid received by J .A Gonsalves and Sons, Inc. 1s determined to be non- responsive; and WHEREAS, the lowest responsive, responsible bidder's total bid, in the amount of $560,796.00, was Redgwick Construction Company; and WHEREAS, the lowest responsive, responsible bid was 4.9% above the engineer's estimate and 22% over the original2009 grant application engineer's estimate and corresponding project budget; and WHEREAS, staff intends to pursue value engineering options to bring the project within the current budget without jeopardizing any of the safety elements of the project or the intent of the original federal grant application; and WHEREAS, staff also intends to pursue additional grant funding to supplement the project budget which may involve infusing new grant funds, diverting existing El Cerrito grant funds from other approved projects to this project, and/or increasing the current grant allocation for this project; and WHEREAS, the current funding for this project is provided through the Highway Safety Improvement Program, Measure J return-to-source, and Proposition 1B; and WHEREAS, the City has the authority to authorize the City Manager to award the contract for this project pursuant to the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App. 3d 631. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito approves plans; rejects the bid from J.A. Gonsalves & Sons Construction, Inc. as non-responsive and accepts all other bids; and authorizes the City Manager to award a contract, contingent on successfully securing additional grant funding and/or successful negotiations with Redgwick Construction Company (the lowest responsible bidder for the project), in an amount to be determined after undergoing a value ---PAGE BREAK--- Agenda Item No. 7(C) Attachment 1 engineering process which is not inconsistent with the approved budget for the Potrero A venue Intersection Safety Improvements between 55th and 56th Streets Project, Contract No. C-3045. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on October 16, 2012 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on October XX, 2012. Cheryl Morse, City Clerk APPROVED: William C. Jones III, Mayor