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HomeMy WebLinkAbout _ 4.11(e)--Accept Grant Funds and Adopt Budget Resolution CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize the following actions regarding Highway Bridge Program funding: (1) Accept additional grant funds awarded to the City of Redding for the Eastside Road over Olney Creek Bridge Project (Project); and (2) Adopt Resolution approving and adopting the 85th Amendment to City Budget Resolution No. 2021-078 appropriating $867,600 for the project. Fiscal Impact An additional $867,593 in grant funds has been allocated to the City of Redding (City) for the Eastside Road over Olney Creek Bridge Project. These additional grant funds will allow previously allocated Transportation Impact Fee (TIF) funds, used to fill the funding gap, to be returned to the TIF Program. Alternative Action The City Council (Council) may choose to not accept the additional grant funding. In this case, the City would lose $867,593 in grant funding for the project and additional TIF or Streets Division funds would need to be used to complete the project. Background/Analysis On July 21, 2015, the Council appropriated Highway Bridge Program (HBP) funds in the amount of $1,853,850 for the project. Subsequently, on May 17, 2022, the Council appropriated additional HBP funds in the amount of $2,056,690 for the project. Along with the action in May 2022, TIF funds were appropriated to temporarily cover the lowest responsive bid amount which was higher than the engineer’s estimated cost. This allowed staff to complete and submit the necessary paperwork to the California Department of Transportation (Caltrans), the agency that administers the HBP Program, to request additional HBP funds needed to fully fund the project. Caltrans has processed and approved the City’s request for additional HBP funding in the amount of $867,593 which are being allocated to the project. MEETING DATE: April 18, 2023 ITEM NO. 4.11(e) FROM: ***APPROVED BY*** caukland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(e)--Accept Grant Funds from State of California Department of Transportation and Adopt Budget Resolution Appropriating Funds Chuck Aukland, Public Works Director Report to Redding City Council April 12, 2023 Re: 4.11(e)--Accept Grant Funds and Adopt Budget Resolution Page 2 Environmental Review This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments ^Resolution Previous Staff Report 072115 Previous Staff Report 051722 RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 85TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2021-078 APPROPRIATING $867,600 FOR THE EASTSIDE ROAD OVER OLNEY CREEK BRIDGE PROJECT FOR FISCAL YEAR 2022-23 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2021-078 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 128 566 Transportation Grant Projects $ 867,600 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FUNDS Increase (Decrease) Revenue 128-566-6-2650-18 Federal Grant - Capital - Transportation 867,600$ Increase Expenditures 128-566-4908-10 Eastside/Olney Bridge 867,600$ Total 867,600$ 867,600$ THAT the purpose is to appropriate $867,600 for the Eastside Road over Olney Creek bridge project for fiscal year 2022-23. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 18th day of April, 2023, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MICHAEL DACQUISTO, Mayor ATTEST: FORM APPROVAL: PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney CITY OF REDDING REPORT TO REDDING CITY COUNCIL Recommendation Authorize the following action relative to Request for Proposal No. 4691, Engineering Services for Eastside Road Bridge over Olney Creek Replacement Project and Sharon Avenue Bridge over ACID Replacement Project: (1) Award to Dokken Engineering; (2) Authorize the Mayor to execute contracts with Dokken Engineering to provide project management, preliminary and final design, environmental compliance, right-of-way coordination, and technical assistance during bidding and construction services for the Eastside Road Bridge over Olney Creek Replacement Project, for a not-to-exceed fee of $290,850 and Sharon Avenue Bridge over ACID Replacement Project, for a not-to-exceed fee of $207,006; (3) Adopt resolution approving the 2nd Amendment to City Budget Resolution No. 2015 -057 appropriating $2,759,856 ($1,853,850 for the Eastside Road Bridge and $906,006 for the Sharon Avenue Bridge) for Fiscal Year 2015-16; and (4) Authorize the City Manager to approve contract amendments not to exceed $35,000 per contract. Background On September 7, 2010, the City Council (Council) approved the submittal of several applications for federal funding for the rehabilitation or replacement of local structures – two of these structures were the Eastside Road Bridge over Olney Creek and the Sharon Avenue Bridge over the Anderson-Cottonwood Irrigation District (ACID) canal. The Eastside Road Bridge was constructed in 1954 and is currently designated as "functionally obsolete," per Caltrans Bridge Inspection Reports. The project will replace the existing 30-foot- MEETING DATE: July 21, 2015 ITEM NO. 4.11(b) [B-050-020/B-130-070/G-100-070/S-070-050] FROM: SUBJECT: 4.11(b)--Award Request for Proposals No.4691, Adopt the Budget Resolutions, and Authorize Execution of Consulting and Professional Services Contracts for the Eastside Road Bridge over Olney Creek Replacement and the Sharon Avenue Bridge over ACID Replacement Projects ***APPROVED BY*** Department Director: City Manager: Brian Crane, Public Works Director Report to Redding City Council July 14, 2015 Re: 4.11(b)--Award RFP No. 4691, Eastside Rd Bridge over Olney Creek & Sharon Ave Page 2 wide, two-lane bridge with a 54-foot-wide bridge that includes two 12-foot lanes with 8-foot shoulders and 7-foot-wide, Type 26 sidewalk barriers on each side. The Sharon Avenue Bridge was constructed in 1976 and is also currently designated as “functionally obsolete,” per Caltrans Bridge Inspection Reports. The project will replace the existing 21.5-foot-wide, one-lane bridge with a 36-foot-wide bridge that has shoulders and sidewalk meeting American Association of State Highway and Transportation Officials (AASHTO) requirements. The total combined project costs for the replacement of the Eastside Road and Sharon Avenue bridges are expected to be in the $2.5 million to $3 million dollar range including design, environmental clearance and permitting, right-of-way, construction including contingencies, and construction management. CONSULTANT SELECTION PROCESS In December 2014, a formal Request for Proposals (No. 4691), outlining the specific scope of work for each bridge, was advertised. Proposals were required to include a separate scope and proposed fee for each bridge so that two separate contracts could be prepared. Proposals and fee schedules were received on January 5, 2015, from three firms. A review and selection panel was formed with members from the Public Works Department. Based upon proposal review and experience, the panel ranked the firms as follows: FIRM RANK Dokken Engineering (Folsom, CA) 1 Morrison Structures, Inc. (Redding, CA) 2 TRC (Rancho Cordova, CA) 2 Proposals were evaluated based on their understanding of the scope of work, ability to meet the proposed schedule and maintain the project budget, experience and qualifications of the proposed staff, ability to work with City staff, project approach, familiarity with state and federal procedures, and geographic location of the team. Applying the criteria to the proposals, the selection panel determined that Dokken Engineering (Dokken) was more suited and qualified to provide the required services for this project. Dokken’s proposed fees were opened, evaluated, and negotiated to reasonable costs based on the scope of services as well as previous similar projects and proposed fees. Federal funding requirements dictate that the consultant selection process be qualification-based, not by cost, as long as the fee is reasonable, therefore staff did not open the fees for the other consultants. The consultant fee is estimated and the contracts will be for actual work performed. However, because these are complex projects, staff recommends the approval of an additional $35,000 in contingency reserve for each contract. If this reserve needs to be utilized, a contract amendment would be negotiated with the consultant and the contract would be modified with approval of the City Manager. Report to Redding City Council July 14, 2015 Re: 4.11(b)--Award RFP No. 4691, Eastside Rd Bridge over Olney Creek & Sharon Ave Page 3 Issue Should Council award Request for Proposal No. 4691 to Dokken Engineering and direct staff to execute contracts for engineering and design services for the Projects for a not -to-exceed fee of $290,850 and $207,006, and authorize the City Manager to approve contract amendments not to exceed $35,000, and adopt the attached budget resolutions appropriating $1,853,850 and $906,006? Alternatives; Implication of Alternatives The Council has the option of selecting one of the following alternatives: 1. Award the Request for Proposals No. 4691 to Dokken Engineering, and authorize staff to negotiate, and the Mayor to execute, two consultant services contracts with Dokken for design services for the Eastside Road Bridge over Olney Creek Replacement Project for a not-to-exceed fee of $290,850 and the Sharon Avenue Bridge over ACID Replacement Project for a not-to-exceed fee of $207,006, and adopt the budget resolutions. Further, authorize a contingency of $35,000 for each contract, and authorize the City Manager to execute contract amendments up to the contingency amount. This will allow staff the flexibility to refine the scope of services as needed to complete each project that is in the best interests of the City. (Staff Recommendation) 2. Do not award the Request for Proposals No. 4691 at this time and direct staff not to pursue these projects. This alternative will delay or eliminate the construction of the improvements. Since these bridges are designated as “functionally obsolete,” delaying or eliminating construction of these projects will continue providing unsafe conditions for motorists and pedestrians. 3. Provide other direction to staff. Fiscal Impact Funding for these projects will come from the Federal Highway Bridge Program (HBP) with an 88.53 percent share. The Sharon Avenue Bridge will be matched with 11.47 percent Toll Credits via the State and will be 100 percent federally funded. The Eastside Road Bridge will be matched with 11.47 percent City Traffic Impact Fees. Budget resolutions appropriating $906,006 and $1,853,850 respectively, are attached. The combined total project cost (for both projects) is estimated in the $2.5 million to $3 million range. Conclusion These bridges have both been designated as “functionally obsolete” per Caltrans Bridge Inspection Reports. Dokken has the necessary resources and expertise to provide the required services to prepare these projects for construction. Therefore, staff recommends that the Council select Alternative 1 as listed above. c: Chuck Aukland, Public Works Assistant Director Corri Vandiver, Associate Civil Engineer Report to Redding City Council July 14, 2015 Re: 4.11(b)--Award RFP No. 4691, Eastside Rd Bridge over Olney Creek & Sharon Ave Page 4 Attachments: Location Map Resolution CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize the following actions relative to Bid Schedule No. 5180 (Job No. 2477), Eastside Road over Olney Creek Bridge Project (Project): (1) Reject the apparent low bid by Stewart Engineering Inc. (SEI) as nonresponsive and award the project to the second low bidder Abacus Construction, Inc., in the amount of $3,703,683.84; (2) Approve an additional $567,000 to cover the cost of contract administration and inspection fees and $645,000 for project development costs; (3) Approve $370,000 to provide construction contingency funding; (4) Authorize the City Manager to approve additional increases, in either the construction management or construction contingency amounts, up to a total of $15,000; and (5) Adopt Resolution approving and adopting the 42nd Amendment to City Budget Resolution No. 2021-078 appropriating $2,056,690 in federal grant funds and $1,380,390 in Transportation Impact Fee funds for the Project. Fiscal Impact The Eastside Road over Olney Creek Bridge Project (Project) is being funded by two sources which consist of the Federal Highway Bridge Program (HBP) and the City of Redding (City) Citywide Transportation Impact Fee Program (TIF). The HBP will fund 88.53 percent of the project while the remaining 11.47 percent will be through TIF. Since the bids were higher than the engineer’s estimated cost, staff will be working with California Department of Transportation (Caltrans) to obtain additional HBP funding for the project. Staff anticipates the HBP to fully fund its share of the project total costs based upon previous experience with other bridge HBP funded projects. Until those additional funds become available, the TIF will cover the costs above the estimate. Any additional HBP funds will be presented and budgeted in a separate resolution. The HBP funds being appropriated at this time are currently authorized funds that were not previously budgeted. MEETING DATE: May 17, 2022 ITEM NO. 4.11(a) FROM: ***APPROVED BY*** rbailey@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(a)--Award Bid Schedule No. 5180 (Job No. 2477), Eastside Road over Olney Creek Bridge Project and Adopt Budget Resolution Ryan Bailey, Assistant Director of Public Works Report to Redding City Council May 10, 2022 Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 2 Cost Summary Item Estimated Project Development Costs $ 645,000 Construction Contract + Contingency $ 4,073,683.84 Contract Administration, Inspection, Testing $ 567,000 Additional City Manager Authority $ 15,000 Total Project Costs $ 5,300,683.84 Project Budget $ 5,300,700 Project cost components are estimated, and some shifting of the funds may be necessary to balance the project within the approved budget. Alternative Action Without this project, the bridge will not be replaced, and unsafe conditions for pedestrians and motorists will remain. In addition, the City would be at risk of losing federal funds and may have to reimburse project development federal funds spent to date. The City Council has the following alternative actions: • Choose not to award the bid for the Eastside Road over Olney Creek Bridge Project to the second low bidder Abacus Construction Inc (Abacus), determine that SEI, the low bidder, did make adequate Good Faith Efforts (GFE), and award the project to SEI. This may jeopardize current or future federal funding if the City is audited and the audit determines that SEI did not perform an adequate GFE. • Choose not to award the bid for the Eastside Road over Olney Creek Bridge Project and re-advertise the project. This action would delay the project; thereby missing the 2022 construction season and potentially requiring staff to update current environmental permits which would further delay the project. Re-advertising the project would, most likely, increase the number of bids received, and there are no guarantees the low bidder will meet the project’s Disadvantaged Business Enterprise (DBE) goal or that it would perform an adequate Good Faith Effort (GFE). • Provide staff with other direction. Background/Analysis Attached is a tabulation of bids opened on January 25, 2022. The low bid in the amount of $3,539,305 was received from SEI of Redding, California. Because the HBP grant funds are from a federal source, the City was required to establish a Disadvantaged Business Enterprise (DBE) participation goal specifically for the project, and a goal of 19 percent was established for this project. SEI did not achieve the goal, therefore, per federal regulations, the contractor must perform a Good Faith Effort (GFE) to be awarded the project. Staff’s evaluation of a bidder’s GFE is based on Section 9 of the Caltrans Local Assistance Procedures Manual (LAPM) as well as Appendix A of Title 49 CFR Part 26 of the Code of Federal Regulations (CFR). Staff performed the following process in GFE evaluation for SEI. • Staff received SEI GFE documentation per the specified five days after bid opening. • Staff received a bid protest letter (January 31, 2022) from the 2nd low bidder, Abacus, which did not provide any reasonable argument as to why the City should reject SEI’s bid. It simply stated that because SEI did not meet the goal regardless of an adequate Report to Redding City Council May 10, 2022 Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 3 GFE, SEI’s bid should be rejected and the project should be awarded to Abacus, which is not allowed per the CFR. • Staff completed its GFE evaluation and determined that SEI did demonstrate an adequate GFE. • Per LAPM Section 9.8 (Local Public Agency Responsibilities), because the project contract exceeds $2 million and the low bidder did not meet the DBE goal, the City must submit the low bidder’s GFE documentation to the Caltrans Division of Local Assistance (DLA). In addition, the City may not award the contract without receiving a memorandum from the DLA indicating that Caltrans has determined that the low bidder made a GFE. The City submitted SEI’s GFE to Caltrans District 2 DLA for review. • Staff received, via email from Caltrans District 2 DLA, a memorandum (March 2, 2022) stating that Caltrans did not concur with the City’s determination that SEI had demonstrated an adequate GFE and concluded that SEI did not demonstrate it performed a GFE. Caltrans DLA relies on Caltrans Office of Civi l Rights (OCR) to perform the GFE evaluations. • Staff received the Abacus DBE complaint on March 9, 2022. • Per LAPM Section 9.8, because Caltrans did not concur with the City, the City must take Caltrans feedback and re-evaluate the GFE. The City did re-evaluate SEI’s GFE and determined that SEI did not demonstrate an adequate GFE for the reasons noted in the re- evaluation and a letter was sent to SEI dated March 21, 2022. Therefore, in accordance with 49 CFR 26.53, the City must allow the bidder/offeror an opportunity for administrative reconsideration as outlined below: 1. As part of this reconsideration, the bidder/offeror must have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made an adequate GFE to do so. 2. City decision on reconsideration must be made by an official who did not take part in the original determination that the bidder/offeror failed to meet the goal or make adequate GFE to do so. 3. The bidder/offeror must have the opportunity to meet in person with the City reconsideration official to discuss the issues of whether it met the goal or made an adequate GFE to do so. 4. City must send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make an adequate GFE to do so. 5. The result of the reconsideration process is not administratively appealable to the Department of Transportation. The City’s March 21, 2022, letter to SEI was notification of the City’s determination and its right to reconsideration. SEI responded by email on March 21, 2022, requesting reconsideration and on March 28, 2022, provided the City with a written argument that it made an adequate GFE to meet the goal. The City acknowledged SEI’s request for reconsideration and began the reconsideration process as provided in the City’s letter to SEI, which was dated April 1, 2022. The reconsideration hearing was held on April 14, 2022, and in attendance were SEI, two Reconsideration Officials (Officials), and staff. All parties agreed on the meeting format and presented positions regarding the SEI GFE to the Officials. After the reconsideration meeting, the Officials deliberated independently to make a final determination. The Officials’ final determination concluded that SEI did not perform an adequate GFE to meet the DBE participation goal for the reasons identified in the final GFE determination letter to SEI dated Report to Redding City Council May 10, 2022 Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 4 April 22, 2022. All correspondence is attached for reference. Therefore, SEI’s bid is deemed nonresponsive to the bid solicitation. It should be noted that a nonresponsive bid is not unusual in the industry, and in no way provides a reflection of the contractor’s ability to perform the work, nor does it reflect the quality of work or affect the ability to bid on future public works projects. The City proceeded to evaluate the second low bidder, Abacus, of Redding, California in the amount of $3,703,683.84. The City reviewed Abacus’s proposal and DBE commitment form. Abacus achieved a 23.18 percent participation goal, thereby exceeding the project goal of 19 percent. Since Abacus met the project DBE goal, the CFR does not require the bidder to submit a GFE, although one was provided by Abacus. Staff recommends awarding the project to the second low bidder, Abacus Construction, Inc. The engineer’s estimate was $2,929,351.17. Total project development costs for this project are estimated to be $645,000. Project development costs include engineering, surveying, right-of-way, environmental, and consultant services. This project includes the replacement of the Eastside Road bridge over Olney Creek and the rehabilitation of the approach roadway. The work will include removal of the existing bridge in stages, construction of a new bridge over two summer seasons, construction of retaining walls, sidewalk, curb and gutter, utility relocation, roadway construction, and other miscellaneous items of work. On February 6, 2018, the Council adopted the Mitigated Negative Declaration (MND) and the Mitigation Monitoring Program (MMP) and approved the project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines Section 15074 (CEQA). Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments ^Resolution ^Location Map ^Bid Tab ^Mitigated Negative Declaration 01-31-2022 Abacus BS 5180 Protest of Apparent Low Bidder 02-15-2022 Stewart GFE Evaluation Final 03-02-2022 Caltrans GFE Memo 03-09-2022 Abacus DBE Complaint Form 03-21-2022 COR GFE Letter to SEI 03-21-2022 Stewart GFE Re-Evaluation final 03-28-2022 SEI Response Letter to GFE Evaluation 04-01-2022 COR Response to SEI GFE Evaluation Letter 04-01-2022 COR Reconsideration Meeting Letter 04-22-2022 COR SEI GFE Reconsideration Final Determination Letter Title 49 CFR 26.53 Title 49 CFR 26.53 Appendix A Caltrans LAPM Section 9.8