Title
Report regarding a resolution awarding a construction contract to McGuire and Hester for the Caltrain Access & Bay Trail Gap Closure Project (No. ST2003) in an amount not to exceed $565,646, authorizing a total construction contract authority budget of $650,493. (Jason Hallare, Senior Civil Engineer; Jeffrey Chou, Associate Civil Engineer)
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RECOMMENDATION
Recommendation
Staff recommends the City Council adopt a resolution awarding a construction contract to McGuire and Hester of Alameda, California for the Caltrain Access & Bay Trail Gap Closure Project (No. ST2003, Bid No. 2668) in an amount not to exceed $565,646, authorizing a total construction contract authority budget of $650,493, and authorizing the City Manager to execute the agreement on behalf of the City.
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BACKGROUND/DISCUSSION
The Caltrain Access & Bay Trail Gap Closure Project (Project) will construct pedestrian and bicycle improvements along East Grand Avenue to connect the East Plaza of the new South San Francisco Caltrain station to the areas of East Grand Avenue & Gateway Boulevard and East Grand Avenue & Forbes Boulevard/Harbor Way.
The East Grand Avenue and Grand Avenue intersection will be reconstructed to improve bicycle and pedestrian safety. These improvements include eliminating the “slip lane” that provides a free right turn movement at the southeast corner, enhanced pavement markings, and reducing pedestrian crossing distance across East Grand Avenue.
Along East Grand Avenue heading east from the intersection of East Grand Avenue and Grand Avenue, the roadway will be improved to add buffered Class II bike lanes with plastic channelizers and green lane transition markings in both directions through the East Grand Avenue & Harbor Way/Forbes Avenue intersection.
The Project will close a significant gap in the City’s Bicycle and Pedestrian Master Plan. It will improve safety for all users through a combination of off-street bicycle and pedestrian paths, intersection, traffic signal, and on-road bicycle lanes improvements.
Staff previously submitted this Project for the Transportation Development Act Article 3 (TDA3) Pedestrian and Bicycle Program and was awarded state grant funding in the amount of $400,000 for the Project's construction and construction engineering phases.
Overview of City’s Procurement Process
The City’s procurement process is governed by both state and local law. State law requires contracts for construction to be competitively bid pursuant to a set of specific, established rules. In particular, the City is required to award construction contracts to the “lowest responsible bidder” after providing notice in accordance with law. (Pub. Contract Code §§ 20162, 20164.)
However, in awarding contracts for the purchase of professional services, equipment and supplies, the City has some latitude. State law requires the City to adopt regulations and policies to govern such service and supplies procurement, but otherwise provides the City flexibility in determining relevant requirements as long as they are consistent with applicable state law. (Gov. Code § 54202.) Chapter 4.04 of the Municipal Code and the City’s Purchasing Procedures (Administrative Instruction Section IV, No. 1) govern the City’s purchasing policies and contract procurement processes.
The City’s purchasing ordinance distinguishes between three primary types of procurement methods as follows:
1. Competitive Bidding for Construction Projects
Public projects are specifically defined under the Public Contract Code, and generally involve any construction project that is paid with public funds or those projects involving improvements, demolition or other work on public property or facility. Public projects are required to be procured through competitive bidding and the City must award the contract to the lowest bidder whose bid complies with all of the City’s solicitation requirements and demonstrates that the bidder is able to perform the work. Under the City’s policy, different levels of competitive bidding are required depending on the dollar limit of the underlying Project.
For these contracts, cost is generally the sole determining factor, and the lowest responsible bidder is awarded the Project even if another bidder appears to be more skilled but is more expensive.
2. Open Market Procedures for Vendors (Supplies and Equipment)
Open Market Procedures is the City’s vendor selection process for purchase of goods, supplies, and professional services. These rules do not apply to, and may not be used for public construction projects.
Contracts for the purchase of goods and services that exceed $10,000 requires staff to utilize open market procedures. If the contract is $25,000 or less, staff must obtain at least three quotes, which are informal offers to perform work at a stated price. If the contract is greater than $25,000, staff will be required to solicit the Project, such as issuing a Request for Proposals (“RFPs”) and obtain at least three written responses.
Under this vendor selection process, cost can be only one factor in determining which vendor the City will ultimately select for services, equipment, or supplies. This requirement is similarly reflected under SSFMC § 4.04.080.
Thus, when utilizing the open market vendor selection process, the City is focused on the skill, ability, and expertise of the entity or person to be able to provide the service, equipment, or goods to the City. The selection is based on competence, professional qualifications, and overall value to the City with cost being only one factor in the determination of an award.
Federally Funded Procurements for Vendors (Supplies and Equipment)
Contracts that receive federal funding are required to incorporate and comply with additional terms and conditions. The City’s Purchasing Procedures also provide guidance on procuring supplies and equipment contracts that are federally funded. Federally funded procurements also require a written procedure for conducting evaluations and for selecting recipients and awarding the contract to the responsible McGuire and Hester whose proposal is most advantageous to the City with price being only one factor. It is also important to note that federally funded procurements do not include state or local geographical preferences unless specifically authorized by federal law. Each evaluation is a non-discrimination and equal opportunity for all vendors.
3. Open Market Procedures for Architectural and Engineering (A&E) Professional Services
For certain professional services such as architectural, engineering, environmental, land surveying, or construction project management, the Government Code also specifically requires that such services not be awarded solely based on price, but instead based on demonstrated competence. (Gov. Code § 4526.) Both the state law provision and the City’s policy reflect the legislative view that when acquiring such services, the City does not necessarily receive the best value when it pays the lowest price. (See e.g., California Attorney General Op. No. 94-819 (February 9, 1995)).
Current Project: Caltrain Access & Bay Trail Gap Closure Project, ST2003, Bid No. 2668
This Project falls under Procurement Type 1: Competitive Bidding for Construction Projects.
Staff advertised a notice inviting bids for the Project on February 1, 2022, and February 7, 2022. On February 24, 2022, staff received ten (10) bid proposals in response to the notice inviting bids. Staff reviewed all bid proposals and identified that the lowest responsible bidder was McGuire and Hester of Alameda, California. Staff has verified the low bidder’s current contractor’s license with the California State Licensing Board and found it to be in good standing.
The Project was advertised with a “Base Bid”, “Alternative Bid No.1”, “Alternative Bid No.2” and “Alternative Bid No.3” schedules. Description of alternative schedules as follows:
• “Alternative Bid No. 1” schedule is for the optional bid to reconstruct the ADA curb ramp at Poletti Way.
• “Alternative Bid No. 2” schedule is for the optional bid of modifying the lighting systems along the East Grand Avenue.
• “Alternative Bid No. 3” schedule is for the optional bid to reconstruct the bicycle and pedestrian path along East Grand Avenue.
The award of a contract selection is based on the lowest responsive bid for only the Base Bid schedule.
The following is a summary of all bids received:
|
Contractor |
"Base Bid" Schedule Results |
"Alternative Bid No.1" Schedule Results |
"Alternative Bid No.2" Schedule Results |
"Alternative Bid No.3" Schedule Results |
|
McGuire and Hester |
$565,646.00 |
$74,004.00 |
$49,500.00 |
$253,756.00 |
|
Interstate Grading & Paving, Inc |
$627,812.50 |
$53,370.00 |
$55,000.00 |
$304,840.00 |
|
Gordon N. Ball, Inc |
$698,636.00 |
$82,590.00 |
$108,700.00 |
$503,630.00 |
|
RK Engineering, Inc |
$710,140.00 |
$92,364.00 |
$90,000.00 |
$366,010.00 |
|
Golden Bay Construction, Inc |
$710,192.75 |
$50,975.00 |
$50,125.00 |
$383,891.00 |
|
Sposeto Engineering, Inc |
$769,282.50 |
$65,546.00 |
$49,250.00 |
$393,991.00 |
|
Galeb Paving Inc |
$841,466.00 |
$52,569.00 |
$50,100.00 |
$407,365.00 |
|
Ray's Electric |
$865,580.00 |
$72,690.00 |
$40,000.00 |
$374,689.00 |
|
CF Contracting, Inc |
$898,830.00 |
$78,343.00 |
$66,365.00 |
$374,382.00 |
|
Kerex Engineering, Inc |
$965,593.00 |
$72,500.00 |
$57,709.00 |
$362,800.00 |
|
|
|
|
|
|
|
Engineer’s Estimate (by Mark Thomas) |
$878,508.00 |
$54,564.00 |
$50,000.00 |
$232,035.00 |
Staff recommends awarding the Base Bid schedule to McGuire and Hester and not the alternative bid schedules as the proposed development at 121 East Grand Ave will construct improvements at these alternative bid locations.
The project construction budget is:
|
Construction Contract |
$ 565,646.00 |
|
Construction Contingency (15%) |
$ 84,847.00 |
|
Total Project Construction Budget |
$ 650,493.00 |
The construction contingency will be used for any additional costs related to design changes during the construction operations.
There are no Disadvantaged Business Enterprise (DBE) requirements, as no federal funds are being utilized on the Project.
FISCAL IMPACT
This Project (CIP No. ST2003) is included in the City of South San Francisco’s fiscal year 2021-2022 Capital Improvements Program. There are sufficient funds in FY 2021-2022 to cover the total construction contract costs.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public.
CONCLUSION
Awarding the construction contract to McGuire and Hester of Alameda, California, for the Caltrain Access & Bay Trail Gap Closure Project will improve pedestrian and bicycle connections from the East Plaza of the new South San Francisco Caltrain Station to East Grand Avenue and the East of 101 area.
Attachments:
1. Project Vicinity Map