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Motion to accept the construction improvements of the Grand Boulevard Initiative Phase III Project (No. st1807, Bid No. 2658) as complete and increase the construction contingency for a total construction cost of $4,751,899.88. (Jeffrey Chou, Senior Civil Engineer)
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RECOMMENDATION
Recommendation
It is recommended that the City Council, by motion, accept the construction improvements of the Grand Boulevard Initiative Phase III Project (No. st1807, Bid No. 2658) as complete in accordance with the approved plans and specifications; and increase the construction contingency to reflect a total construction cost of $4,751,899.88.
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BACKGROUND/DISCUSSION
The Grand Boulevard Initiative is a regional collaboration among 19 cities, counties, and local and regional agencies focused on improving the performance, safety, and aesthetics of El Camino Real. The Complete Streets Improvements on El Camino Real (SR 82) Project between Arroyo Drive and Kaiser Way represents the third and final phase of the South San Francisco portion of the original 2006 Grand Boulevard Initiative.
The City's approximately one-mile corridor extends from McLellan Drive to Chestnut Avenue and was implemented in three phases. Phase I, from Arroyo Drive to Chestnut Avenue, and Phase II, from McClellan Drive to Kaiser Way, have been completed. Phase III, from Arroyo Drive to Kaiser Way, connects the previously completed phases and provides a more consistent corridor for pedestrians, bicyclists, and motorists.
On April 12, 2023, the City Council awarded a construction contract to McGuire and Hester for the Grand Boulevard Initiative Phase III Project. The project included a variety of complete streets and streetscape improvements along El Camino Real, including enhanced pedestrian crossings, new Americans with Disabilities Act (ADA)-compliant curb ramps, pervious sidewalks and shared-use paths, new bicycle lanes, upgraded landscaped medians, and other improvements.
The project also included construction of a new pedestrian pathway connecting El Camino Real to Del Paso Drive. This pathway provides residents in the Buri Buri neighborhood with a safer and more direct connection to El Camino Real, nearby transit, commercial areas, and community destinations.
During construction, several unforeseen site conditions and utility conflicts required modifications to the original contract scope. Most notably, existing underground utility conflicts were identified along the proposed pedestrian pathway between El Camino Real and Del Paso Drive. The pathway design was subsequently revised to avoid conflicts and allow the improvement to be constructed.
As a result of El Camino Real being located within Caltrans right-of-way, construction activities were also subject to Caltrans purview and restrictions on lane closure hours. Additional restrictions resulted in extended construction time and affected the contractor’s ability to complete certain work within the originally anticipated schedule.
Additional work was also incorporated during construction to address field conditions and take advantage of the contractor's existing mobilization. This work included additional ADA curb ramps, expanded landscaping improvements within previously completed Grand Boulevard Initiative phases, additional dewatering operations, adjustments to final bid item quantities, and other miscellaneous improvements necessary to complete the project.
The Engineering Division inspected the completed improvements and determined that the work was completed in accordance with the contract documents as of May 9, 2025. A project location map and project photos are included as Attachments 1 and 2, respectively.
FISCAL IMPACT
Construction of the project was primarily funded through the Metropolitan Transportation Commission's One Bay Area Grant 2 (OBAG 2) Program and the Safe and Seamless Mobility Quick-Strike Program in the amounts of $875,000 and $2,120,000, respectively. The remaining project costs were funded through the City's Infrastructure Reserves, Senate Bill 1 (SB 1) Road Maintenance and Rehabilitation Account, and Citywide Traffic Impact Fees.
Sufficient funding was available to complete the project. The final construction costs are summarized below:
Projected Actual
Construction Contract $3,257,557.00 $3,257,557.00
Construction Contingency $ 667,743.00 $1,494,342.88
Total Project Construction Budget $3,925,300.00 $4,751,899.88
The final construction cost of $4,751,899.88 is $826,599.88 greater than the original construction budget. The increase was primarily due to unforeseen site conditions and utility conflicts encountered during construction, including the redesign of the El Camino Real-to-Del Paso Drive pedestrian pathway, additional dewatering operations, Caltrans-directed lane closure restrictions, and adjustments to final bid item quantities.
The construction contingency was also used to complete additional improvements that were determined to be beneficial while the contractor was mobilized. These improvements included additional ADA curb ramps and enhanced landscaping within previously completed phases of the Grand Boulevard Initiative.
The previous resolution authorizing the construction contract award also provided the City Manager with authority to utilize unspent funds within the overall project budget for additional construction contingency. Sufficient project funding is available to accommodate the increased construction costs without requiring additional project funding.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of this action will contribute to the Quality of Life major focus area by maintaining and improving infrastructure to serve the public.
CONCLUSION
Staff recommends that the City Council increase the construction contingency and accept the project as complete for a total construction cost of $4,751,899.88.
Upon acceptance, a Notice of Completion will be filed with the County of San Mateo Recorder’s office. At the end of the thirty-day lien period, the retention funds will be released to the contractor after the City receives a one-year warranty bond.
ASSOCIATED DOCUMENTS
1. Project Location Map
2. Project Photos