For City Council Meeting July 25, 2023
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Tim Sullivan, Director of Maintenance and Facilities
Title
Request City Council to: (1) Adopt Budget Resolution No. 8118 Amending the 2023-2024 Fiscal Year Budget to Accept Additional HSIP Grant funds in the Amount of $577,710 and Appropriate $265,028 from the Local Measure I Fund; (2) Award a Construction Contract to I E General Engineering Inc., a California Corporation in the amount of $1,391,338.00 for the Base Bid Schedule for the Baseline Road Median Project, City Project No. 170812, Federal Project No. HSIP 5205-027; (3) Award Professional Services Agreement to Transtech Engineers, Inc. in the amount of $136,200 for Construction Management, Inspection and Materials Testing Services for the Baseline Road Median Project, City Project No. 170812; Federal Project No. HSIP 5205-027; (4) Delegate Authority to the City Manager to Approve Contract Change Orders in the Cumulative Amount of $200,000; and (4) Authorize the Acting City Manager to Execute all Related Documents.
(ACTION)
Body
BACKGROUND
On October 20, 2016, staff submitted a grant application for the Highway Safety Improvement Program (HSIP) Cycle 8 from the Federal Statewide Transportation Improvement Plan to improve safety for motorists and pedestrians traveling along Baseline Road between Willow Avenue and Meridian Avenue. Baseline Road does not have a raised median within these roadway limits.
The lack of a median is considered a factor in the traffic collisions that have occurred due to vehicles attempting to cross multiple lanes while turning left out of driveways and vehicles turning left across oncoming traffic while making turns into driveways. The installation of a raised median was identified as a measure to reduce traffic conflict points, to help reduce the number of head-on collisions caused by drivers merging into oncoming traffic, and to help reduce broadside collisions caused by drivers trying to cross oncoming traffic. The median can also be a deterrent to midblock, uncontrolled pedestrian crossings.
The City submitted a successful grant application and was awarded $1,057,320 in federal HSIP funds for the project. On September 12, 2017, the City Council accepted the $1,057,320 HSIP grant and amended the Capital Improvement Program to include this project.
On April 9, 2019, the City Council awarded a Professional Services Agreement to CNS Engineers in the amount of $246,462.29 to design the project.
In October 2019, staff presented preliminary plans for the new raised medians to the Economic Development Committee (EDC). At that time, the EDC requested that Staff coordinate public outreach to obtain input from the community along the corridor to review proposed access restrictions from driveways caused by the new median. As a result of this public outreach, the preliminary plans were revised to provide median openings to some of the commercial driveways between Willow Avenue and Sycamore Avenue and an extended gap between Acacia Avenue and Eucalyptus Avenue to allow full access to the three (3) residential properties located on the north side of Baseline Road east of Acacia Avenue.
In June 2022, the City of Rialto submitted the Plans, Specifications and Environmental package and a Request of Funding Allocation for Construction to Caltrans.
On August 15, 2022, Caltrans notified staff that they reviewed and processed the authorization request for the project through the Caltrans Division of Local Assistance and the Federal Highway Administration. With this notice, the City was authorized to begin the project’s construction phase.
On January 10, 2023, the City Council authorized the release of Request for Bids (RFB) for the Raised Median Island Improvements on Baseline Road between Willow Avenue and Meridian Avenue, Federal Project No. HSIP 5205-027, City Project No. 170812.
Staff released the RFB for the project on February 14, 2023, which closed on March 28, 2023.
On February 15, 2023, the City released Request for Proposals 23-016 for Construction Management, Inspection and Material Testing Services for the Raised Median Island Improvements on Baseline Road between Willow Avenue and Meridian Avenue.
On June 28, 2023, Staff presented the bid results to the EDC and requested that the EDC provide a recommendation on the construction award for the project. EDC recommended awarding the project solely on the Base Bid Schedule and separating Bid Schedule A to be advertised as a standalone project.
ANALYSIS/DISCUSSION
On February 14, 2023, the City released RFB No. 23-011 for the construction of the Baseline Road Median Project, City Project No. 170812, Federal Project No. HSIP 5205-027, and published the Notice Inviting Bids on the PlanetBids.com website.
On March 28, 2023, the City received seven (7) bids, tabulated in Table 1 below:
Table 1
The Request for bids included a Base Bid Schedule, which included the installation of a raised median from Riverside Avenue to Pepper Avenue, Bid Schedule A, which included the installation of a raised median and 330 feet of fence extending west of Willow Avenue to an existing median island and Bid Schedule B which included the installation of a raised median between Pepper Avenue and Meridian Avenue. The RFB requires that the determination of the lowest responsible bidder be based on the Base Bid Amount. The bid amounts shown in Table 1 are only based on the Base Bid Schedule amount. The total bid amount submitted by I E General Engineering Inc., which includes the Base Bid Amount, Bid Schedule A and B, was $2,477,593. A complete bid summary is included as Attachment 1.
Following the bid opening, City staff requested additional HSIP grant funds to construct the entire project, including Bid Schedules A and B. However, staff was unable to secure enough funding for the construction of the entire project due to a Low Benefit to Cost Ratio Calculation. Staff recommends only awarding a contract for the Base Bid Schedule scope and excluding Bid Schedules A and B. Bid Schedule A includes the installation of a raised median and 330 feet of fence extending west of Willow Avenue to an existing median island. The low bid amount for the construction of Bid Schedule A is $592,400.00 and is considered cost prohibitive for the scope involved. Staff anticipates significant savings in bidding this task separately from the project. Bid Schedule B consists of the construction of median islands between Pepper Avenue and Meridian Avenue. Staff recommends not proceeding with construction of the scope identified under Schedule B as it has minimal impact in preventing traffic collisions along that roadway segment. After further discussions with Caltrans Local Assistance, City staff was able to obtain funding for the construction of the Base Bid only. There will be a local funding match of $13,888. The funding amounts for construction are summarized in Table 2 below.
Table 2
The engineer’s estimate was $1,700,000 for the entire project. I E General Engineering Inc. submitted the lowest responsible and responsive bid in the amount of $1,391,338.00 for the Base Bid Schedule. Staff reviewed the bid and found I E General Engineering Inc. to be properly licensed and qualified. I E General Engineering’s Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 2. Staff recommends that City Council accept the bid from I E General Engineering Inc. as the lowest responsible and responsive bid and award a construction contract with I E General Engineering Inc. for the project’s Base Bid Schedule. The construction contract with I E General Engineering Inc. is included as Attachment 3.
Staff also recommends that the City Council authorize the City Manager to review and approve contract change orders in a cumulative amount not to exceed $200,000.00.
Construction Management and Inspection
On February 15, 2023, the City released Request for Proposals 23-016 for Construction Management, Inspection and Material Testing Services for the Baseline Median Project, Federal Project No. HSIP 5205-027, City Project No. 170812.
On March 16, 2023, the City received seven (7) proposals from the following firms, listed in alphabetical order:
1. AECOM Technical Services, Inc.
2. KOA Corporation
3. Onward Engineering
4. S2 Engineering, Inc.
5. Southstar Engineering & Consulting Inc.
6. TKE Engineering, Inc.
7. Transtech Engineers, Inc.
Following a review of the proposals by the evaluation panel, Transtech Engineers, Inc. was identified as the top-ranked firm. The primary factors involved in the selection process were the firm’s qualifications, experience and background, understanding of the demands of providing construction management, inspection & materials testing services, references, and past performance and experience with other agencies. Staff recommends awarding a Professional Services Agreement to Transtech Engineers, Inc. in the amount of $136,200 for Construction Management, Inspection, and Material Testing Services.
A copy of the PSA and Disclosure statement is included as Attachment 4 and 5, respectively.
ENVIRONMENTAL IMPACT
As this project is funded with federal HSIP funds, Caltrans, the lead agency pursuant to the National Environmental Policy Act (NEPA), was required to complete an environmental review under NEPA. Caltrans completed an environmental determination that this project does not individually or cumulatively have a significant impact on the environment as defined by NEPA and is excluded from the requirements to prepare an Environmental Assessment (EA) or Environmental Impact Statement (EIS) and that it qualifies for a Categorical Exclusion in accordance with 23 CFR 771.117(c) pursuant to activity(c)(4). A copy of the NEPA Categorical Exclusion is included as Attachment 6.
The project also required the City to complete an environmental analysis as the lead agency pursuant to Section 21084 of the California Public Resources Code - Guidelines for Implementation of the California Environmental Quality Act (CEQA). The City evaluated this project and determined it is categorically exempt from the requirement for the preparation of environmental documents under the provisions of Sections 15301 and 15304 of CEQA. A copy of the CEQA Notice of Exemption is included as Attachment 7.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The project is currently funded by the Federal HSIP grant in the Special Grant Project Fund Account No. 22234420-53001-170812 in the amount of $1,057,320 and by the Measure I Fund Account No. 22014310-53001-170812 in the amount of $117,480.
A budget resolution to amend the Fiscal Year 2023-2024 budget is necessary to appropriate the additional HSIP funding received in the amount of $577,710. Additionally, the Measure I Fund will budget a required local match of $65,028 and $200,000 for Contract Change Orders. The budget resolution is included as Attachment 8.
90% of construction capital costs will be covered by Fund 223, with 10% covered by local matching funds from Fund 201. Staff recommends revising the original project budget to reflect the 90%/10% federal grant/local match split for construction capital costs and all other costs funded from Fund 201, as shown in Table 3 below.
Table 3 - HSIP Baseline Median, Project Budget
After the adoption of the requested Budget Resolution, funds to appropriate for the award of the construction contract with I E General Engineering Inc. will be budgeted and available from the following two sources:
• Special Grant Project Fund Account No. 22234420-53001-170812-05 in the amount of $1,377,450; and
• Measure I Fund Account No. 22014310-53001-170812-22 in the amount of $13,888.
After the adoption of the requested Budget Resolution, funds to appropriate for the PSA with Transtech Engineers, Inc. will be budgeted and available in Measure I Fund Account No. 22014310-53001-170812-15 in the amount of $13,620 and in the Special Grant Project Fund Account No. 22234420-53001-170812-16 in the amount of $122,580.
The recommended authorization for Contract Change Orders in the amount of $200,000 will be budgeted and available in Measure I Fund Account No. 22014310-53001-170812-22.
Licensing
Prior to the execution of the Construction Contract and Professional Services Agreement, the vendor shall submit a business license application and pay a Business License tax as well; as Administration and State fees.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Budget Resolution No. _____ Amending the 2023-2024 Fiscal Budget to Accept HSIP Grant funds in the amount of $577,710 from the Grant Project Fund 223 and Appropriate $265,028 from Local Measure I;
2. Award a Construction Contract to I E General Engineering Inc. in the amount of $1,391,338.00 for the Baseline Road Median Project, City Project No. 170812, Federal Project No. HSIP 5205-027;
3. Award a Professional Services Agreement to Transtech Engineers, Inc. in the amount of $136,200.00 for Construction Management, Inspection, and Materials Testing Services;
4. Delegate authority to the City Manager to Approve Contract Change Orders in the Cumulative Amount of $200,000.00; and
5. Authorize the Acting City Manager to Execute all Related Documents.