ST. JOHN STREET BIKEWAY AND PEDESTRIAN IMPROVEMENTS PROJECT (BETWEEN SAN PEDRO ST. AND FIRST ST.) FEDERAL PROJECT NO.

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1 COUNCIL AGENDA: 11/29/16 ITEM: CITY OF SAN JOSE CAPITAL OF SILICON VALLEY Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Barry Ng Jim Ortbal SUBJECT: SEE BELOW DATE: November 7, 2016 Approved A) ' CAST<-^ Date ////?//«= COUNCIL DISTRICT: 3 SUBJECT: ST. JOHN STREET BIKEWAY AND PEDESTRIAN IMPROVEMENTS PROJECT (BETWEEN SAN PEDRO ST. AND FIRST ST.) FEDERAL PROJECT NO. CML-5005(131) RECOMMENDATION Report on bids and award of contract for the St. John Street Bikeway and Pedestrian Improvements Project to the low bidder, Granite Rock Company, for the base bid and the Add Alternate item in the total amount of $1,565,564, and approve a contingency in the amount of $156,556. OUTCOME Approval of the recommendation would enable the City to enhance pedestrian and bike accessibility to public transit including VTA's light rail and bus system and provide a multi-use pedestrian/bike corridor connecting transit, the San Pedro Square Urban Market, the Little Italy commercial area, Guadalupe River Trail, SAP Center, businesses, high density residential, and the greater Downtown San Jose area. Approval of a ten percent contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the project. BACKGROUND The City of San Jose, Department of Transportation applied for the Federal Highway Administration (FHWA) grant for the St. John Street Bikeway and Pedestrian Improvements Project through the FHWA's One Bay Area Grant (OBAG) Program administered by the Metropolitan Transportation Commission (MTC). The MTC provides the funds to local county agencies through arrangement with the Valley Transportation Authority (VTA). In 2013, the MTC approved the City's grant request for the St. John Street Bikeway and Pedestrian Improvements Project in the amount of $1,185,000 through the OBAG's City Guarantee Program

2 November 7, 2016 Page 2 and Countywide Competitive Complete Streets Program. These programs provide grants for pedestrian/bicycle/signal system transportation capital projects and pedestrian/bicycle/signal system projects designed to support dense development and use of alternate modes of transportation. The St. John Street Bikeway and Pedestrian Improvements Project implements pedestrian-oriented improvements along St. John Street between North San Pedro Street and North First Street. This project will provide a safer walking/biking corridor to and from VTA Light Rail and nearby bus transit, and provide better connectivity to neighborhood amenities, restaurants, commercial and residential neighborhoods. The project scope includes widening the sidewalk, installing accessible curb ramps, constructing new sidewalk on the south side of St. John Street between North San Pedro Street and Market Street, extension of the sidewalk to the 'pork chop' island on the northwest corner of Market Street and St. John Street, enhancing crosswalks, modifying the traffic signal at Market Street and St. John Street, upgrading and installing new street lights, and beautifying the area with trees and planter boxes. Other aspects of the project include surface seal treatment of the roadway, roadway striping, drainage facilities, utility adjustments, and bicycle and directional/wayfmding signage. In addition to the base bid scope of work, there was one Add Alternate bid item as follows: Upgrade a designated area of sidewalk construction from regular concrete to stamped and integrally-colored concrete. Construction is scheduled to begin in January 2017 with a completion in August On June 1, 2016, Caltrans approved the City's Request for Authorization to Proceed (E-76), which is required under federally funded grant projects for the City to begin any reimbursable work on the project. A separate project the St. John Street Multi-Modal Improvements Project is expected to be awarded contemporaneously with this one. The St. John Street Multi-Modal Improvements Project will continue the pedestrian-oriented improvements along St. John Street between North San Pedro Street and North Montgomery Street. ANALYSIS Contractors' Bids On September 29, 2016, the City received a total of 6 bids with the following results:

3 November 7,2016 Page 3 Contractor Base Bid Amount Add Alt No. 1 Total Bid Variance Amount Over/(Under) Percent Engineer's Estimate $1,327, $33,000 $1,360, Granite Rock Company 1,549, ,500 1,565, $221, (San Jose) Galeb Paving 1,653, ,480 1,672, , (Saratoga) Wattis Construction Co. 1,710, ,430 1,733, , (San Jose) Redgwick Construction Co. (Oakland) Interstate Grading & 1,747, ,075, ,900 21,450 1,757, ,096, , , Paving, Inc. (San Francisco) FBD Vanguard Construction (Livermore) 2,842, ,800 2,862, ,515, The low base bid submitted by Granite Rock Company is 17 percent over the Engineer's Estimate. The reasons for this are likely due to the working constraints within busy downtown streets, underground utilities, an active construction site where other contractors are also working in, and a competitive market for skilled construction laborers. Staff finds that Granite Rock Company's bid is reasonable, and represents a market-based cost for constructing the project. DBE Program Requirements As a recipient of the federal highway funds, the City of San Jose must comply with the requirements of Title 49 CFR 26 entitled "Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs" (DBE Program). The primary objective of the DBE Program is to provide small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded transportation contracts. Under the DBE Program, a contractor bidding on a federally-funded transportation project must document one of the following to be eligible for award of the construction contract: 1. That it has sufficient commitments for participation by "disadvantaged business enterprises" to meet a pre-established goal for the specific contract (DBE Goal); or 2. If it does not have sufficient commitments to meet the DBE Goal that it made "good faith efforts" to achieve the goal by taking all "necessary and reasonable steps" to do so.

4 November 7,2016 Page 4 In accordance with the Federal Regulations, 49 CFR Part 26, a DBE goal of 6% was established for this Project. Granite Rock Company, the low bidder, met the 6% DBE goal and committed to $94,000 (6.1%) DBE participation. As a result of staffs evaluation of bids and DBE Program Requirements, staff recommends award of contract to Granite Rock Company in the total amount $1,565,564 that includes $1,549,064 for the base bid and $16,500 for the Add Alternate. Granite Rock Company has been in the construction business for more than 30 years, and has done numerous roadway and sidewalk improvement projects for public agencies in California, including Caltrans, the City of San Jose, and several other cities in northern California. Currently, they have several roadway projects with contract values ranging from $200,000 to more than $5,000,000. Staff also recommends a contingency of 10 percent to address potential issues related to unforeseen conditions. This contingency meets the standard contingency established by Council Policy for this type of public works project. EVALUATION AND FOLLOW-UP This project is currently within budget and expected to be completed in August No additional follow up action with the City Council is expected. PUBLIC OUTREACH To solicit contractors, this project was listed on BidSync and advertised in the San Jose Post Record. The complete bid package and project information for all Department of Public Works construction projects are available on BidSync for interested contractors, contractor organizations, and builders' exchanges. This memorandum will be posted on the City's website for the November 29, 2016 Council Agenda. During the project development phase, staff from the Departments of Public Works and Transportation met with the public to present information about the project. Recently, staff met with the nearby residents and businesses on May 25, 2016, and with the Arena Event Operations Committee at the SAP Center on June 9, Staff and the contractor will continue public outreach to the affected neighborhoods and businesses prior to and during construction.

5 November 7, 2016 Page 5. COORDINATION This project and memorandum have been coordinated with the City Attorney's Office, the Planning, Building, and Code Enforcement Department, and the City Manager's Budget Office. COMMISSION RECOMMENDATION/INPUT No commission recommendation or input is associated with this action. FISCAL/POLICY ALIGNMENT The project also aligns with the Transportation and Aviation Services CSA outcomes to provide viable transportation choices that promote a strong economy and to provide a transportation system that enhances community livability. COST SUMMARY/IMPLICATIONS 1. AMOUNT OF RECOMMENDATION/COST OF PROJECT: $2,533,433 Project Delivery $811,313 * Construction 1,565,564 Contingency (10 %) 156,556 TOTAL PROJECT COSTS $2,533,433 Prior Cost Expenditures 414,313 REMAINING PROJECT COSTS $2,119,120 * Project Delivery includes $414,313 for Design Services and $397,000 for Construction Management and Inspection Services. COST ELEMENTS OF CONTRACT: Clear and Grub, Permits, Cleanup, and other Miscellaneous Work $190,790 Storm Drain Facilities $90,225 Sanitary Sewer Facilities $4,000 Asphalt Concrete Pavement $319,575 Concrete Work $471,325 Traffic Signal Work $206,650 Electrical Work $148,299 Landscaping Work $118,200 Add Alternate (Upgraded Colored Concrete) $16,500 TOTAL AGREEMENT/CONTRACT AMOUNT $1,565,564

6 November 7, 2016 Page 6 3. SOURCE OF FUNDING: Building and Structure Construction Tax Fund (Fund 429) and General Purpose Parking Fund (Fund 533). 4. OPERATING COSTS: The proposed operating and maintenance costs of this project have been reviewed and it has been determined that the project will have no significant adverse impact on the General Fund operating budget. BUDGET REFERENCE The table below identifies fund and appropriations proposed to fund the contract recommended as part of this memorandum. Fund # Appn # Appn Name RC# Total Appn Amt for Contract Remaining Project Costs $2,119,120 $1,565,564 Funding Allocation St. John Street Bike Pedestrian Improvements (OBAG) Greater Downtown Area Multi-Modal/ Streetscape Improvements Adopted Capital Budget Page Last Budget Action (Date, Ord. No.) $1,249,000 $1,249,000 V /18/2016, Ord $2,100,000 $316,564 V-746 6/21/2016, Ord Total Current Funding Available $3,349,000 $1,565,564 CEOA Exempt, File No. PP Is/ BARRY NG Director of Public Works /s/ JIM ORTBAL Director of Transportation For questions please contact Michael O'Connell, Deputy Director, Public Works Department, at (408) Attachments: Location Map

7 7653 St. John Street Bikeway and Pedestrian Improvements Project (between San Pedro Street and North First Street)