HomeMy WebLinkAbout _ 4.11(d)--Approve Increase to Project Budget & Adopt Reso for Eastside Rd over Olney Creek BridgeC IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: February 6, 2024
FROM: Michael Webb, Public Works
ITEM NO. 4.11(d)
Director
***APPROVED
BY***
Am 6eau *'orksMirectcrs
t f9/2024ry
Jpis n, Ci ars e 1/30/2024
mwebb@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.11(d) --Approve Increase to Project Budget and Adopt Budget Resolution for
the Eastside Road Over Olney Creek Bridge Project
Recommendation
Authorize the following actions to approve increases to the project budget in the amount of
$1,250,000 for the completion of Bid Schedule No. 5180, Eastside Road over Olney
Creek Bridge Project as outlined below for additional project costs:
(1) Increase of $700,000 to the construction management budget, bringing the
construction management total to $947,000;
(2) Increase of $550,000 to the construction contingency budget, bringing the
construction contingency total to $1,240,000; and
(3) Adopt Resolution approving and adopting the 29th Amendment to City Budget
Resolution No. 2023-060 appropriating $0 for the project.
Fiscal Impact
The majority (88.53%) of the project is anticipated to be funded through the Federal Highway
Bridge Program (HBP) and the balance (11.47%) is funded with Citywide Transportation
Impact Fee Program (TIF) funds. 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. Staff anticipates additional HBP funds within nine
months and does not expect it to delay or impact any currently identified TIF projects. Any
additional HBP funds will be presented and budgeted in a separate resolution. Until those
additional funds become available, the TIF will cover the additional costs. TIF funds are
being re -budgeted from the Victor -Rancho -Churn Creek project as staff is anticipating grant
funding to complete construction. The total project cost, including the proposed increase and
change orders paid through December 2023, is expected to be just under $5,756,000.
Report to Redding City Council January 31, 2024
Re: 4.11(d) --Approve Increase to Project Budget & Adopt Reso for Eastside Rd over Olney
Creek Bridge Page 2
Alternative Action
The City Council (Council) may choose to reject the request and provide alternative
direction to staff. Should Council choose to reject this request, the project would need to be
terminated, repackaged and redesigned to show the current changes in the field, new
environmental permits would need to be processed and acquired, a new request for funding
through the Department of Transportation (DOT) would need to be processed and acquired
which could potentially place this project back in construction in about three years or more
with significant cost increases to design and the potential for the DOT to deny the
reimbursement request for funds.
BackgroundlAnalysis
The Eastside Road over Olney Creek Bridge Project (Project) includes 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 May 17, 2022, the Council awarded the construction contract for the Project to Abacus
Construction, Inc. The notice to proceed was issued June 23, 2022, but due to material lead
times (40-50 weeks) the project was suspended and construction did not begin until May 22,
2023. On June 5, 2023 Abacus was working to install a temporary diversion in the Olney Creek
channel when potentially contaminated soil was encountered on Union Pacific Railroad
(UPRR) property. Work was halted while sampling and testing was done to determine the
nature of contaminants and to prepare a removal plan of the contaminated soil. No work was
done onsite from June 6, 2023 through July 18, 2023. During this time, a City consultant
prepared the soil removal plan and it was approved by the various permitting agencies.
Work to remove the contaminated soil began on July 19, 2023, and on July 26, 2023, a utility
line belonging to UPRR was damaged while installing shoring used to remove the soil. UPRR
required the City to update the access agreement to UPRR's property, submit the contaminated
soil removal plan for their approval, make notifications to various UPRR entities, coordinate
UPRR preconstruction meetings and rail flaggers before granting access onto railroad property
to perform the contaminated soil removal. No work was done on site from July 28, 2023
through November 26, 2023, to complete UPRR's required process. On November 27, 2023,
the contaminated soil removal work began, and the work was completed, including re -opening
Eastside Road to two lanes, on December 8, 2023.
During the 2023 construction season, this project was delayed for about five and one-half
months in total. Abacus was paid on a time and materials basis for traffic control equipment,
pumping equipment, and daily pump maintenance. During construction, a transfer of
construction management fiends in the amount of $320,000 into the construction contingency
was necessary to fully fund the change orders resulting from the delays and extra work
described above.
Report to Redding City Council January 31, 2024
Re: 4.11(d) --Approve Increase to Project Budget & Adopt Reso for Eastside Rd over Olney
Creek Bridge Page 3
The additional work will cause the project budget to exceed the awarded amounts. An additional
$1,250,000 is requested to cover increases to the construction contingency ($550,000) and
construction management ($700,000) project components.
COST SUMMARY
Item
Awarded
Adjusted
Balance
Projected
This Increase
Contract Administration,
Inspection, Testing
$567,000
$(320,000)
$247,000
$947,000
$700,000
Construction Contingency
$370,000
$320,000
$690,000
$1,240,000
$550,000
Totals
$937,000
$0
$937,000
$2,187,000
$1,250,000
Environmental Review
This activity is not a project as defined by the California Environmental Quality Act (CEQA).
On February 6, 2018, the Council adopted the Mitigated Negative Declaration and the Mitigation
Monitoring Program and approved the Project, thereby satisfying the requirements of the CEQA
Guidelines Section 15074. No further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
^Resolution
^Location Map
Previous Staff Report 5-17-22
1 IN WIT11 R a IW ►t 1 A
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE
29TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2023-060
APPROPRIATING $0 IN FUNDING FOR THE EASTSIDE ROAD OVER OLNEY
CREEK BRIDGE PROJECT FOR FISCAL YEAR 2023-2024
BE IT RESOL VED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2023-060 be and is hereby amended as follows:
FUND DIVISION DESCRIPTION INCREASE DECREASE
151 1691 Construction Tax Capital $0
Projects
THAT account titles and numbers requiring adjustments by this Resolution are as follows:
Increase (Decrease) Expenditures
151-1691-7700004-00000 Streets
151-1691-7700010-00000 Bridges
USE SOURCE
OF FUNDS OF FUNDS
$ (1,250,000)
$ 1,250,000
Total $
THAT the purpose is to appropriate $0 in funding for the Eastside Road over Olney Creek bridge
project for the fiscal year 2023-2024.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City
Council of the City of Redding on the 6th day of February, 2024, and was duly adopted at said
meeting by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
ATTEST:
SHARLENE TIPTON, City Clerk
TENESSA AUDETTE, Mayor
CHRISTIAN M. CURTIS, City Attorney
---------------
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CITY OF REDDING EXHIBIT A
EASTSIDE RD AT OLNEY CREEK BRIDGE
Sulf PUBLIC WORKS REPLACEMENT PROJECT
,¢t'. DEPARTMENT LOCATION MAP
C IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE:
May 17, 2022
FROM: Ryan Bailey, Assistant
ITEM NO.
4.11(a)
Director of Public Works
***APPROVED
BY***
Ryan n Bailey, ant ircctoroF ubli`c 'orks
5i9!20221
ry tpp t�, C�i an e 5/10/2022
rbailey .d.redding.cams
11
btippin@cityofredding.org
SUBJECT: 4.11(a) --Award
Bid Schedule No. 5180 (Job No. 2477), Eastside Road over
OlneyCreek Brid e Project and Adopt
Budget Resolution
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.
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 Summar
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 Bud et
$ 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 2"d 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 Civil 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 $2,929,351.1.7. 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