Subject:  CDBG: DELNO STREET RECONSTRUCTION PROJECT

 

COUNCIL DISTRICT:  3

SNI AREA:  N/A

 

RECOMMENDATION

 

Report on bids and award of contract for the CDBG: Delno Street Reconstruction Project to the lowest responsive bidder, JJR Construction, Inc., in the amount of $283,475, and approval of a contingency in the amount of $28,000.  CEQA:  ND.

 

BACKGROUND

 

The Pavement Management System (PMS) of the Infrastructure Management System has identified minor streets in need of reconstruction.  These streets were prioritized by the Department of Transportation on the basis of visible pavement defect data and the condition of existing sanitary and storm sewer facilities.

 

The PMS has identified Delno Street in the Sherwood residential area as a minor street in need of reconstruction (see attached map).   This project is partially funded by the Community Development Block Grant (CDBG) program.  Additional funding sources are the Sanitary Sewer and Storm Drain capital programs.

 

The scope of work for this proposed project includes replacement of nearly 300 feet of deteriorated asphalt pavement, curb, gutter, sidewalk, driveways, modifications of existing street lighting, and upgrading the existing sanitary sewers and storm drain facilities.

 

ANALYSIS

 

Bids were received on June 28, 2001 with the following results:

 

 

Variance

Over/(Under)

Contractor

Bid Amount

Amount

Percent

 

 

 

 

MCH General Engineering Contractor, Inc.

$339,935

$91,890

37%

 (San José, CA)

 

 

 

Wattis Construction Company, Inc.

  318,730

  70,685

29%

(San José, CA)

 

 

 

JJR Construction, Inc.

  283,475

  35,430

14%

(San Mateo, CA)

 

 

 

Norman B Hough, Inc.

  253,728

  5,683

  2%

(Campbell, CA)

 

 

 

Engineer's Estimate

  248,045

---

---

Vanguard Construction

  230,800

(17,245)

(7%)

(Oakland, CA)

 

 

 

 

There was one addendum to the plans and specifications issued during the project advertisement period.  The two lowest bidders, Vanguard Construction and Norman B Hough, Inc. submitted their bid proposals without copies of a signed addendum.  This omission is a cause for the rejection of their bids, in accordance with Section 2-1.14 of the Standard Specifications.

 

JJR Construction, Inc. had the next low bid.  Its bid, accompanied by a signed addendum, is 14 percent higher than the Engineer’s Estimate.   CDBG funding requires that the construction of the project be completed by December of 2001.  Due to this time constraint, it is not feasible to reject all bids and re-bid the project.  Staff recommends that the contract be awarded to JJR Construction Company, Inc., despite the variance from the EE.

 

The differences between JJR’s bid and the Engineer’s Estimate are mainly in the prices of roadway items such as asphalt paving and concrete curb, gutter, and sidewalk.  JJR’s unit prices may reflect uncertainties in the cost of raw materials due to volatility in the price of energy and petroleum.

 

This work includes numerous conform areas to existing improvements, and it is expected that unforeseen conditions may be encountered during construction.  Therefore, a $28,000 contingency is requested for this project to cover these and other potential unforeseen conditions.

 

PUBLIC OUTREACH

 

This project is being coordinated with the neighborhood association.  Additionally, it was listed on the City's Internet Bid Line and advertised in the San Jose Mercury News and San Jose Post Record.  Bid packages for all public works construction projects are routinely provided to a standard list of various contractor organizations, builder's exchanges and disadvantaged business organizations, including United Minority Business Enterprises and the San José Minority Business Development Center.

 

COORDINATION

 

This project was coordinated with utility companies, the Departments of Transportation and Parks, Recreation and Neighborhood Services, and the Offices of Equality Assurance, Risk Manager and the City Attorney.

 

COST IMPLICATIONS

 

1.         COST OF RECOMMENDATION:  $283,475

 

2.         ESTIMATED COST OF PROJECT:

 

Project Development                                                                     $   25,000

Construction                                                                                     283,475

Design & Construction Management                                                 120,000

Contingency                                                                                       28,000

                                                                 TOTAL                         $456,475

 

3.         SOURCE OF FUNDING:    441 – Community Development Block Grant Fund

                                                     545 – Sewer Service and Use Charge Capital Fund

                                                     469 – Storm Drainage Service Capital Fund

 

4.         ESTIMATED START DATE OF CONSTRUCTION:  September, 2001

 

5.         ESTIMATED COMPLETION DATE OF CONSTRUCTION:  December, 2001

 

BUDGET REFERENCE

 

Fund:                             441                              545                                469

Appn:                            6976                            4271                              4287

R.C.:                              TBD                             113423                          115833

Amount:                         $247,544                     $4,200,000                    $529,000

Budget Document:          Appropriation               Appropriation                2001 – 2002 Appropriation

                                      Ordinance #26415       Ordinance #26415         Ordinance #26415

                                      Sect. 13.01, Item 7e     Sect. 4.02, Item 1j         Sect. 3.07, Item 1f

 

NONDISCRIMINATION

 

The City of San José Nondiscrimination Requirements are included in this project as required by Chapter 4.08 of the San José Municipal Code.

 

CEQA

 

Exempt.

 

 

RAJEEV BATRA

Acting Director, Public Works Department