SNI: Winchester

RECOMMENDATION

Report on bids and award of contract for the Winchester Boulevard Median Island Landscape Project to the lowest responsive bidder, Wattis Construction Co. Inc., in the amount of $1,461,313, and approval of a contingency in the amount of $102,000.

CEQA: Exempt, PP03-03-079.

BACKGROUND

The Winchester Boulevard Median Island Landscape Project is located on Winchester Boulevard between Moorpark Avenue and Impala Drive (map attached). The project will provide for the construction of new raised median islands with protected left turn pockets and landscaping on Winchester Boulevard. The project improvements were included in the No. 1 priority of the top ten priorities developed by the Neighborhood Advisory Committee (NAC) of the Winchester SNI Planning area.

The median island landscape improvements will be City Type 1 enhanced, which is defined as low maintenance landscaping consisting of decorative paving, tree plantings, flowering shrubs with mulch surfacing. The medians will improve vehicular circulation and safety conditions. The landscaping will enhance the appearance of this major commercial arterial and will serve as a catalyst for new development and reinvestment in this business area.

Construction is scheduled to begin in February 2004 with completion in August 2004.

ANALYSIS

Bids were opened on November 13, 2003 with the following results:

Contractor	Bid Amount	Variance Amount	Over/(Under) Percent
Valley Crest Landscape Development (Pleasanton)	$1,785,000	$139,600	8
Sposeto Engineering, Inc. (Union City)	1,683,849	38,849	2
Engineer’s Estimate	1,645,000	--	--
J S Brar Company (Clovis)	1,572,247	(72,753)	(4)
Blossom Valley Construction, Inc. (San Jose)	1,497,355	(147,645)	(9)
Robert A. Bothman, Inc. (San Jose)	1,494,169	(150,831)	(9)
McGuire and Hester (Oakland)	1,492,000	(153,000)	(9)
Granite Rock Company DBA Pavex Construction Division (Redwood City)	1,479,000	(166,000)	(10)
Jose J. Albanese, Inc. (Santa Clara)	1,471,749	(173,251)	(11)
Wattis Construction Co. Inc. (San Jose)	1,461,313	(183,687)	(11)
O. C. Jones & Sons, Inc. (Berkeley)	1,304,000	(341,000)	(21)
O’Grady Paving, Inc. (Mountain View)	1,287,000	(358,000)	(22)

The apparent low bidder, O’Grady Paving, Inc., should be relieved of its bid because of clerical error. Section 2-1.095 of the Standard Specifications provides for a bidder to be relieved of its bid for clerical error when the bidder requests such relief within 5 days of the opening of the bids. On November 17, 2003 O’Grady Paving, Inc. submitted a letter to the City requesting relief from their bid and submitted supporting documentation showing a clerical error of $134,000 in the prices quoted for the landscape work. After reviewing the letter and supporting documentation, staff believes that it is appropriate to relieve O’Grady Paving based upon the clerical error.

The bid of the second apparent low bidder, O. C. Jones & Sons, Inc., should be rejected because it is nonresponsive. O. C. Jones & Sons failed to sign and return with its bid two of the four Addendums. Section 2-1.14 of the Standard Specifications states “The bidder’s failure to sign and submit any or all addenda with the bid shall be a cause for rejection of the bid.” The two addendums include changes to the specifications dealing with the manner in which the work is to be performed and are therefore material. Accordingly, the failure to sign the addendums cannot be waived as a minor irregularity under Section 2-1.06 of the Standard Specifications.

The lowest responsive bid, submitted by Wattis Construction Co. Inc., is 11 percent below the Engineer’s Estimate. The bid is considered acceptable for the work involved in the project. Staff is recommending that the construction contract be awarded to Wattis Construction Co. Inc.

Council Policy provides for a standard contingency of five percent on public works projects for new construction. A seven percent contingency in the amount of $102,000 is recommended for this project because of heavy traffic conditions on Winchester Boulevard. The project budget has sufficient funding to cover these increased costs.

PUBLIC OUTREACH

The San Jose Redevelopment Agency presented the Project concept during past meetings of the Winchester SNI Neighborhood Advisory Committee and the Winchester Business Association, and the Project was subsequently accepted by both of these groups. The Public Works Department and the San Jose Redevelopment Agency presented the Project Design Development Plan at Winchester SNI NAC meetings on December 4, 2002 and January 15, 2003.

To solicit contractors, this project was listed on the City’s Internet Bid Line, and advertised in the San Jose Post Record. Bid packages for all Public Works Department construction projects are provided to various builders’ exchanges and Peninsula Digital Inc.

COORDINATION

This project and memo have been coordinated with the City Attorney’s Office, the Departments of Finance, Planning, Building and Code Enforcement and Transportation, San Jose Redevelopment Agency and the City Manager’s Budget Office.

COST IMPLICATIONS

1.	AMOUNT OF RECOMMENDATION: $1,461,313
2.	COST OF PROJECT:
		Project Delivery		404,687
		Construction		1,461,313
		Contingency		102,000
		TOTAL		$1,968,000
3.	SOURCE OF FUNDING:		465 – Construction Excise Tax Fund 450 – Services for Redevelopment Capital Projects Fund
4.	FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy. In the first year, the project will have a neutral effect on the General Fund. After the one-year maintenance period is completed, O&M costs are estimated at $17,000 a year.

BUDGET REFERENCE

Fund No.	Appn No.	Appn Name	RC#	Total Appn FY 03-04:	Amt. For Contract	Budget Page	Last Budget Action (Date, Ord. No.)
465	4583	Winchester Blvd MIL	125260	$66,000	$50,000	Page 792	10-14-03 Ord. No. 26997
450	4585	Winchester Blvd Median Island Improvements	123730	$1,874,000	$1,411,313	Appropria- tion Ordinance, Section 20.05	11-18-03 Ord. No. 26997
		Total		$1,940,000	$1,461,313

CEQA

Exempt, PP03-03-079.

KATY ALLEN

Director, Public Works Department

SNI: Winchester

BACKGROUND

Contractor

Valley Crest Landscape Development

Sposeto Engineering, Inc.

Engineer’s Estimate

J S Brar Company

Blossom Valley Construction, Inc.

Robert A. Bothman, Inc.

McGuire and Hester

Granite Rock Company DBA Pavex Construction Division

Jose J. Albanese, Inc.

Wattis Construction Co. Inc.

O. C. Jones & Sons, Inc.

O’Grady Paving, Inc.

(Mountain View)

BUDGET REFERENCE

CEQA