Agenda Item Wording:
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Presentation of the construction bids received for the Downtown Streetlight and Pavement Rehabilitation Project, authorize staff to begin the Measure N amendment process for the appropriation of $2,700,000 in additional funding, and appropriate an additional $2,141,800 in SB1 Funds.
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Deadline for Action: 4/4/2022
Submitting Department: Administration - CIP Engineering
Contact Name and Phone Number:
Eric Bons, Senior Civil Engineer, Eric.Bons@visalia.city, 713-4350
Frank Senteno, City Engineer, Frank.Senteno@visalia.city, 713-4331
Nick Mascia, Assistant City Manager, Nick.Mascia@visalia.city, (559) 713-4323
Department Recommendation:
Staff recommends that the City Council:
1. Receive the bid results for the Downtown Streetlight and Downtown Pavement Rehabilitation Projects for information.
2. Authorize staff to begin the Measure N amendment process for the additional appropriation of $2.7M towards the Downtown Streetlight Project (CP0345).
3. Authorize the additional appropriation of $2,141,800 from the SB1 RMRA (113) Fund to the Downtown Pavement Rehabilitation Project (CP0373) from SB1 RMRA funding allocation years:
a. $1,391,350 Funding Fiscal Year 2020-21
b. $750,450 Funding Fiscal Year 2022-23
Background Discussion:
The Downtown Street Light Project consists of replacing a 70+ years old lighting system in Downtown Visalia with a modern lighting system that meet current industry standards. The project will replace the existing system with a new multi-functional streetlight system which will provide greater serviceability, updated infrastructure per industry standards, lowered operational cost, and an aesthetically pleasing finished product. In addition, the project also includes installation of multiple underground conduits to provide for future lighting and communication needs, ADA parking installation, ADA ramp installation, and pavement rehabilitation. The installation of multiple underground conduits with this project takes advantage of construction efficiencies and minimize construction disruptions in the future.
Bidding Process:
These two projects were advertised together (RFB 21-22-18 and RFB 21-22-19) for the installation of the Downtown Streetlight Project and the Pavement Rehabilitation Project since they are complimentary projects. An alternative bid was included in the request for proposals for additional pavement rehabilitation of the adjoining streets, but the alternative bid is not being utilized due to budget constraints. The alternative bid was for the area of Floral Street from Acequia Avenue to Center Avenue and Church Street between Acequia Avenue to Main Street.
Staff advertised these two projects for the Downtown Streetlight and Pavement Rehabilitation Projects which closed on March 17, 2022. Two (2) companies responded with the following bids.
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A-C Electric Company, Inc. |
Papich Construction Company, Inc. |
|
Base Bid A |
$6,279,317.60 |
$6,798,370.85 |
|
Base Bid B |
$2,574,256.55 |
$3,049,006.99 |
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Alternative Bid C |
$369,839.10 |
$509,993.00 |
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Total: |
$9,223,413.25 |
$10,357,370.84 |
Staff has reviewed the bids and found that each bidder submitted the required information. A-C Electric Company, Inc. bid proposal was determined to be the lowest responsive bid and as part of the bid review process, the reference provided by A-C Electric Company, Inc. have been verified. The response from each reference was favorable and demonstrated that A-C Electric Company, Inc. and their listed sub-contractors, can perform the work for these two projects. A-C Electric Company has Yarbs Grading and Paving, Inc. as a subcontractor for the paving and concrete work associated with this project. Yarbs Grading and Paving has recently completed the Akers Street at Hwy-198 project and the Tulare at Santa Fe Roundabout project.
Staff recommends the award of Base Bid Schedule A in the amount of $6,279,317.60 for the Downtown Streetlight Project (CP0345) and Base Bid Schedule B in the amount of $2,574,256.55 for the Downtown Pavement Rehabilitation Project (CP0373). The total for Base Bid Schedule A plus Base Bid Schedule B is $8,853,574.15. Alternative Bid C, Additional Pavement Rehabilitation on Church and Floral Street, will not be awarded at this time due to the budget constraints.
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A-C Electric Company, Inc. |
Papich Construction Company, Inc. |
|
Base Bid A |
$6,279,317.60 |
$6,798,370.85 |
|
Base Bid B |
$2,574,256.55 |
$3,049,006.99 |
|
Total: |
$8,853,574.15 |
$9,847,377.84 |
Downtown Streetlights
The Downtown Streetlights was last before the City Council for the award of the Construction Management contract in December 2021. Prior to that, Staff had last presented a project estimate a year ago at the March 15, 2021 work session that went over the final decorative streetlight design and layout and authorization to begin procurement of streetlights. The estimate was based on a 75% design completion. A final engineer’s estimate was received towards the latter part of November 2021 along with the 100% completed plans. There was significant effort and detail work added to the plans that resulted in a higher estimate that was presented in March 2021. Bids received are approximately 30% higher than the final engineer’s estimate. A few items not included in the engineer’s estimate included temporary lighting, the addition of conduit for future irrigation, and an estimate for potholing. As shown in the attached bid comparison, these are significant costs. Staff attributes higher costs than typical due to several factors; risk of unknown existing infrastructure, working within a downtown and constraint phased environment, and nighttime work. Staff has reached out to the contractor for feedback on the higher costs received. The construction industry is experiencing a labor cost increase between 10% to 15% along with a 25% increase in the cost of materials from a year ago.
Pavement Rehabilitation
Bids received are approximately 19% over the engineer’s estimate. Staff identified pavement related items to be significantly underestimated, likely attributed to volatility in the energy sector, night time work premiums, project imposed limitations related to the construction phasing. The overall cost increase is higher due to material cost escalation since originally budgeted in addition to more accurately reflecting a better understanding of costs based on a detailed engineering set of plans and estimate. Note that a good proportion of the cost difference is due to a high level of custom work requisite to meet existing conditions along Main Street in the downtown area. This is especially evident in the unique parking stall, pedestrian ramp, and/or related sidewalk work at approximately 50-locations along Main Street between Willis and Santa Fe Avenues. This work is highly detailed in order to maintain the existing character conditions, while meeting code compliance.
Cost Savings Efforts:
Staff will work with the contractor to identify any cost savings efforts, particularly if there any savings to be recognized in the area of phasing. There may be cost savings to combine, separate, or re-order the phases to achieve greater efficiencies. Staff is also carefully reviewing all items to identify any potential reductions in scope or identify areas for value engineering.
Construction Schedule and Outreach:
The contractor will be providing their detailed construction schedule after the award of the construction contract. The construction schedule and phasing plan will be used in the public outreach portion of this project which will be coordinated through the construction management team of NV5, Inc. and their subconsultant The Lockwood Agency for the public outreach portion of this project. The project specifications dictate the work to be done at night, Sunday through Thursday, from 9 PM to 6 AM.
Fiscal Impact:
Downtown Streetlight Project (CP0345)
The streetlight component of the Downtown project is funded by the Measure N (141) Fund with a total project budget of $6.9M.
The table below shows the budget summary for the Downtown Streetlight Project:
Project Funding:
Measure N Fund (141) - Streetlighting $6,900,000
Total Project Funding: $6,900,000
Project Costs:
Design Staff Time (Estimated) $350,000
Design -Consultant (QK Inc.) $460,590
Construction Management -Staff Time (Estimated) $196,000
Streetlight Procurement $822,050
Construction Management (NV5, Inc.) $515,386
Construction -Streetlighting $6,279,318
Construction Contingency (Estimated 15%) $942,000
Total Project Costs: $9,565,344
Summary:
Total Project Funding: $6,900,000
Total Project Cost: $9,565,344
Approximate Funding Needed: ($2,665,344)
Total Proposed Funding:
Measure N Fund (141) - Streetlighting: $6,900,000
Measure N Transfer Request: $2,700,000
Total Proposed Funding: $9,600,000
Due to the identified budget shortfall and in order to complete the project for the Downtown Streetlight, staff requests the City Council to authorize staff to begin the process for a Measure N amendment appropriating the additional funds in the amount of $2,700,000 towards the Downtown Streetlight Project.
The request for the additional Measure N funds will be presented to the Measure N committee for approval followed by two public hearings at the next available City Council meetings for adoption of the Measure N Amendment. At the second public hearing, staff will also make the recommendation for the award of the construction contract and authorization of the additional funding. Over the past couple of years, revenues from Measure N have been higher than anticipated. Those additional revenues are being proposed to facilitate this project’s need without impeding previously identified programs or projects within Measure N.
Downtown Pavement Rehabilitation Project (CP0373)
The pavement rehabilitation component of the Downtown Project is funded by funds from the Senate Bill 1- Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund (113) with a total project budget of $1,379,000. These funds are for the design and construction of pavement rehabilitation, limited sidewalk repairs & curb ramps, and ADA-compliant parking stalls.
The table below shows the budget summary for the Downtown Pavement Project:
Project Funding:
SB1 Funding (113) - Pavement Rehabilitation $1,379,000
Current Total Project Funding $1,379,000:
Project Costs:
Design Staff Time (Estimated) $56,230
Design -Consultant (QK Inc.) $325,388
Construction Management -Staff Time (Estimated) $49,000
Construction Management (NV5, Inc.) $128,847
Construction -Pavement $2,574,257
Construction Contingency (Estimated 15%) $387,000
Total Project Costs: $3,520,722
Summary:
Total Project Funding: $1,379,000
Total Project Cost: $3,520,722
Approximate Funding Needed: ($2,141,722)
Total Proposed Funding:
SB1 Funding (113) - Pavement Rehabilitation (Current Budget): $1,379,000
1. SB1 (113) (Funding Fiscal Year 2020-21 Appropriation: $1,391,350
2. SB1 (113) Funding Fiscal Year 2022-23 Appropriation: $750,450
Total Proposed Funding: $3,520,800
For the pavement portion of the project, the construction cost increase is generally due to the increase in labor costs and material costs. More specifically, the unit cost of the asphaltic concrete pavement has increased significantly due to the cost of crude oil and the nighttime work associated with this portion of the project.
The City receives annually an allocation of funds from the SB1 Road Maintenance and Rehabilitation Account (RMRA). Per the SB1 RMRA guidelines, Council approval is required to apportion RMRA funds to a specific project for each fiscal year in which funds are allocated. Staff recommends SB1 RMRA in the total amount of $2,141,800 be appropriated to the Downtown Pavement Rehabilitation project consisting of funding from the following fiscal years:
1. $1,391,350 SB1 RMRA Funding Fiscal Year 2020-21
SB1 RMRA Fiscal Year 2020-21 funds were approved by Council at the meeting held on April 20, 2020, to be allocated towards both the Downtown Pavement Rehabilitation Project (CP0373) and Tulare Avenue and Akers Street Rehabilitation Project (CP0482). Staff recommends funds available from the 2020-21 SB1 allocation be appropriated towards CP0373 from CP0482 because the City was successful in securing federal funding (Surface Transportation Block Grant Program) through TCAG to perform CP0482. SB1 RMRA funds are geared towards road maintenance and this action by City Council will fulfil the State requirement in reporting where the SB1 funds are spent.
2. $750,450 SB1 RMRA Funding Fiscal Year 2022-23
The remaining balance needed to address the budget shortfall for the pavement component of the Downtown project (Base Bid B) is $750,450. To continue in keeping the funding source the same, staff recommends funds be advanced from the SB1 fiscal year 2022-23 allocation in the amount of $750,450 be utilized towards the Downtown Pavement project (CP0373). There are sufficient funds available in the SB1 RMRA (113) to advance these funds to CP0373. Estimates published by the State as of January 2022 show the City of Visalia is projected to receive $3 million from the SB1 RMRA in fiscal year 2022-23. Staff will return to Council at a future date to request approval to designate the remaining 2022-23 allocation to a specific project(s).
The appropriation of the additional funding is to construct the Downtown Pavement Rehabilitation per the Base Bid “B” and not constructing the Alternative Bid “C”. The next round of SB1 RMRA pavement rehabilitation projects encompass Center Avenue and Acequia Avenue to which the Alternative Bid “C” segments (Floral Street and Church Street) may be incorporated as an alternate. By incorporating Alternative Bid “C” with the next SB1 RMRA pavement rehabilitation project there is the possibility for cost savings.
Prior Council Action:
December 6, 2021 - City Council authorized the City Manager to execute an agreement with NV5, Inc. to provide the construction management services for the Downtown Streetlight Project and Pavement Rehabilitation Project in the amount of $644,233.00.
November 15, 2021 - City Council authorized the City Manager to purchase the streetlight poles for the Downtown Streetlight Project from AV Poles and Lighting of Lancaster, CA, in the amount of $822,050.25.
November 15, 2021 - City staff presented the preliminary construction staging plans for the Downtown Streetlight Project and Downtown Pavement Rehabilitation Projects.
June 7, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the second public hearing. The committee reviewed and approved the recommendations.
May 17, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the first public hearing. The committee reviewed and approved the recommendations.
April 22, 2021 - City Staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight project to the Measure N Oversight Committee. The Committee reviewed and approved the recommendation.
March 15, 2021 - City Staff presented decorative streetlight options for the downtown streetlight project. City Council approved the recommendation for the layout option 3 and streetlight scenario 3 and Measure N amendment process to approve the appropriation of $2.4M for the Streetlight project.
December 07, 2020 - City Staff presented standards for installing Back Flow Preventors within the public right of way. City Council approved the recommendation for the standards.
July 21, 2020 - City Staff presented revised layout options for the Downtown Streetlight Project. City Council approved the recommendation for a core decorative streetlight style.
June 01, 2020 - City Staff presented layout options for the Downtown Streetlight Project. City Council requested additional information from City Staff.
October 21, 2019 - Council authorized award of the design contract for the Downtown Streetlight Project to Quad Knopf for an amount not to exceed $407,098.00.
October 15, 2018 - City Staff presented an update of the downtown streetlights project to City Council during a work session item.
April 16, 2018 - Council approved Resolution No. 2018-25 to designate various road projects for 2018/19 funding from the State of California Road Repair and Accountability Act of 2017 (Senate Bill SB1).
Alternatives:
Not authorize staff to begin process for a Measure N amendment for additional funding.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to accept the presentation of the Downtown Streetlight and Pavement Rehabilitation Projects construction bid proposals and authorize staff to begin the Measure N amendment process for the appropriation of $2,700,000 in additional funding for the Downtown Streetlight Project; and appropriate $2,141,800 from the SB1 RMRA (113) Fund to CP0373.
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Environmental Assessment Status:
No NEPA Environmental Assessment required for this project.
CEQA Review:
Categorical Exemption, Section 15301(c), issued February 06, 2020 for the Downtown Streetlight Project.
Attachments:
Project Location Maps
Bid Results
Ownership Disclosure Statement