Subject: GREAT OAKS – ROUTE 85 COMMUNITY FACILITIES DISTRICT No. 6
COUNCIL DISTRICT: 2
SNI: N/A
In order to award the construction contract concurrent with the bond closure that will occur on December 18, 2001.
Report on bids and award of contract for Community Facilities District No. 6 (Great Oaks-Route 85) to the lowest responsive bidder, McGuire and Hester, in the amount of $4,642,560, and approval of a contingency in the amount of $696,384. CEQA: Resolution No. 69699.
BACKGROUND
The Community
Facilities District No. 6 (Great Oaks – Route 85) (CFD) area has been planned
for industrial development since 1979 when it was adopted as a part of the
Redevelopment Project Area. The formation of the CFD was approved by the City
Council on March 6, 2001, and a public hearing was held on March 27, 2001, in
which 100 percent of the qualified landowner electors voted for the
establishment of the District.
Additionally, on June 19, 2001, City Council approved the authorization
to proceed with the issuance of bonds.
The boundaries of the District are shown on Attachment A.
Public improvements
proposed to be constructed by the CFD will include traffic mitigation and
infrastructure improvements. Traffic
mitigation improvements will occur at 12 locations and are needed for
development to continue in Old Edenvale.
Other public improvements to be built include modifications to median
islands, streetlights, sanitary and storm sewers and the extension of Great
Oaks Boulevard. These intersection
improvements serve as mitigation of anticipated traffic impacts from the
build-out of Old Edenvale, which is expected to generate over 3 million square
feet of R&D, office and manufacturing space and over 9,000 new jobs to the
area.
Bids for this project were received on November 8,
2001. The bid results are as follows:
|
Contractor
|
Bid Amount |
Variance Amount |
Over/(Under) Percent |
|
|
|
|
|
|
Wattis Construction (San José, CA) |
$5,665,605 |
$359,055 |
9 |
|
Granite Construction (San José, CA) |
5,308,570 |
2,020 |
2 |
|
Engineer’s Estimate |
$5,306,550 |
--- |
--- |
|
Golden Bay Construction, Inc (San Carlos, CA) |
5,074,288 |
(232,262) |
(3) |
|
Top Grade Construction, Inc (Livermore, CA) |
4,857,775 |
(448,775) |
(7) |
|
Pavex Construction (Redwood City, CA) |
4,786,600 |
(519,950) |
(8) |
|
O’Grady Paving (Mountain View, CA) |
4,713,900 |
(592,650) |
(10) |
|
O. C. Jones and Sons (Berkeley, CA) |
4,683,040 |
(623,510) |
(10) |
|
McGuire and Hester (Oakland, CA) |
4,642,560 |
(663,990) |
(11) |
|
(Livermore, CA) |
4,607,525 |
(699,025) |
(12) |
The bid proposal submitted by RGW
Construction, Inc in the amount $4,607,525 is considered non-responsive. The bid specification required that
contractors bid not less than $350 per day for bid item #1, Street
Cleanup. RGW did not use the required
minimum specified amount and bid this item at $100 per day, therefore, their
bid must be rejected as non-responsive.
McGuire and Hester is the lowest
responsive bidder. The bid submitted by
McGuire and Hester in the amount of $4,642,560 is 11 percent lower than the
Engineer’s Estimate and is considered as a reasonable price for the work to be
performed. The bid documents have been
reviewed and found to be in order.
A contingency of $696,384 (15% of the cost of construction) is requested for any unforeseen conditions that may arise during construction. The project will be constructing traffic signal improvements at 12 different intersections. In part, this contingency request – an increase over the standard 10% of construction costs – is being sought to cover costs for potential utility conflicts at these intersections.
The construction bid process for the CFD was listed on the City’s Internet bid line and advertised in the San José Mercury News and San José Post Record. Bid packages for all Department of 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.
This project has been coordinated with the Departments of Planning, Building and Code Enforcement, Transportation, and Finance and the Offices of the City Attorney, Risk Manager, and Equality Assurance, the Redevelopment Agency (the Agency) and the Great Oaks Water District.
1. COST OF RECOMMENDATION:
Costs of Contract ($4,642,560 contract amount and $696,384 contingency) will be funded through the proceeds of the sale of the City of San José Limited Obligation Improvement Bonds, Special Tax Bond CFD 6. The bonds will be paid through a special tax imposed upon each property owner in the CFD and secured by liens recorded upon each of these properties.
2. ESTIMATED COST OF TOTAL PROJECT:
Construction $5,338,944
Land Acquisition 2,282,431
Utility Fee (Great Oaks Water) 450,000
Project Development 195,000
Consultant Services 858,150
Design & Construction Services 568,824
District Financing 2,710,913
TOTAL $12,404,262
3. SOURCE OF FUNDING:
Sale of Improvement Bonds $12,200,000
Cash Prepayment 204,262
TOTAL $12,404,262
4. ESTIMATED START DATE OF CONSTRUCTION: January, 2002
5. ESTIMATED COMPLETION DATE OF CONSTRUCTION: January, 2003
Fund: Established after the receipt of bond proceeds
Amount: $12,404,262
The City of San José Nondiscrimination Requirements are included in this project as required by Chapter 4.08 of San José Municipal Code.
RAJEEV BATRA
Acting Director, Public Works Department