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14. S.T.P. Overlay City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 (408) 777-3354 FAX (408) 777-3333 CITY OF CUPEIUINO PUBLIC WORKS DEPARTMENT Summary AGENDA ITEM I~ AGENDA DATE August 15.2006 SUBJECT AND ISSUE Review bids and award contract for 2006 S.T.P. Overlay Program, Project No. 2006-01 to O'Grady Paving, Inc., in the amount of$ 518,293.10, and approval ofa construction contingency of $ 51,906.90, to cover any unforeseen work required to complete the project, for a total of $570,200.00. BIDS RECEIVED REPORT The following is a summary of bids received for the 2006 Annual Overlay project: Bidder O'Grady Paving, Inc. Engineer's Estimate Base Bid $ 518,293.10 $ 471,009.79 The sole bidder is O'Grady Paving, Inc., for the amount of $ 518,293.10. The engineer's estimate is $ 471,009.79. Although this represents a 10% variation from the engineer's estimate, given the current wide price fluctuation in petroleum-based products, staff considers this bid acceptable and recommends award of the contract. Granite Construction, Inc., was also a planholder for this project and would have submitted a bid, but was disqualified by provision number 9 of the City's Bidder's General Qualifications regarding civil penalties for environmental violations, because the company had two such violations over $500.00 within the last four years. Although the violations were by branches of the company other than the Bay Area Branch, the branch that would have bid on this present contract (see attached letter), the City provision disqualified the entire company. BACKGROUND Because the City has continued its maintenance of effort on the City's pavement management program by allocating at least $750,000.00 annually in the Capital Improvement Program (CIP) to carry out an annual Pavement Management project, the City has retained its eligibility for state and federal road maintenance and rehabilitation funds. Because of this, the City will receive up to $468,000.00 for the 2006 S.T.P. Program in federal grant funds for local streets and roads rehabilitation projects for funding under the Federal Surface Transportation Program (S.T.P.) for Printed on Recycied Paper /4-( Local Streets and Roads Rehabilitation. The S.T.P. is a portion of the federal Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). SAFETEA- LU, an extension of the Transportation Equity Act for the 21 5t Century (TEA-21) that was signed into law on August 10,2005. In order for an individual road segment to be a candidate for STP funds, it must have a Pavement Condition Index (pCI) less than 70 and be recommended for rehabilitation treatment by the City's Pavement Management System. PCI's for the City's pavement network are derived from a rating system that evaluates the condition of the pavement of individual roadway segments on a scale from 0 to 100. PCI's of 70 and above are classified as "Very Good," of 50 to 69 as "Good," of26 to 49 as "Poor," and 0 to 25 as "Very Poor." In addition, the road segment must be a federal aid route, which generally means it must be on the national highway system or be an arterial or major collector street. By these criteria, the City has eligible segments on Bollinger Road, McClellan Road, Stelling Road, and Tantau Avenue that are included in this STP pavement rehabilitation project. City Pavement Maintenance Commitment In keeping with the City's continuing commitment to the maintenance of effort in sustaining the good condition of its streets, the City will, with this award, have awarded about $ 1.5 Million in pavement maintenance projects with capital improvement project (CIP) funds budgeted in Fiscal Year 2005-2006. Those projects, with contingencies, include the following: Proiect 2006 Annual Overlay Pavement Restoration Surface Transportation Program (STP) Overlay Amount (rounded, incl. contingency) $ 768,000.00 $ 160,000.00 $ 570.000.00 Total $1,498,000.00 Together with projects planned for Fiscal Year 2006-2007, the City will devote over $ 3 Million to pavement maintenance over the two-year period 2005-2007. Including additional STP funding, the City will spend over $ 1 Million on pavement maintenance in Fiscal Year 2007- 2008, and at least $ 0.75 Million per year through Fiscal Year 2010-2011. Staffwill continue to seek additional funds for pavement maintenance through the Federal Highway Administration and state and regional sources to augment the City's maintenance dollars. FISCAL IMPACT Awarding the S.T.P. Overlay Program, Project No. 2006-01 to O'Grady Paving, Inc., would require expenditure from the approved Pavement Management Account No. 270-9450-7014 in the amount of $ 570,200.00. Sufficient funds are available in the account. (4 - L STAFF RECOMMENDATION That the City Council award the project for 20.0.6 S.T.P. Overlay Program, Project No. 20.0.6-0.1 to O'Grady Paving, Inc., in the amount of $ 518,293.10., and approval of a construction contingency of $ 51,90.6.90., to cover any unforeseen work required to complete the project, for a total of $570.,20.0..0.0.. Submitted by: Attest as to bids received: Approved for submission: Ralph A. Qualls, Jr. Director of Public Wor .. ~~dndL Kimberly Smith City Clerk ~ David W. Knapp City Manager l y-J List of Streets to Receive Overlay STREET FROM TO Bollinger Road DeFoe Drive End McClellan Road Byrne Avenue Orange Avenue Stelling Road Alves Drive Greenleaf Drive Stelling Road Prospect Road Waterford Drive Tantau Avenue Muriel Lane Cozette Lane (Y~Lf IGRAI1ITE ml15TRucnon InCORPORATED Augus13,2006 Glenn Goepfert City of Cupertino 10300 Torre Avenue Cupertino, CA 95014-3202 Fax (408) 777-3333 Ref: 2006 STP Overlay Program Dear Glenn, Granite conStruction Company (GCCQ) is interested in submitting a bid for the above referenced project, bid date of August 8, 2006. Our response to item #9, on the Bidder's General Qualifications fOIm would disqualify us from participating in this bid. Our response to this item would be a Yes response, as we have 2 Environmental violations, over $500, in the past four years. The bidding branch, Bay Area Branch, that will be perlorming the work has they have had NO environmental violations in the past four years. We would like to be able to respond to the questionnaire with both GeCO (Company wide) and bidding branch responses and be qualified to participate in the August 8th bid and any future bids with the City of Cupertino. I have attached a copy of our GCCO environmental violations for your review and considerntion. Again, we want to participate in the bId and can not jeopardize being disqualified from our responses and would like to know of your acceptance of our qualification prior to submitting our bid package. Granite Construction Company, in its 84th year of bus mess, does over $2.3 billion worth of construction work annually on hundreds of construction projects throughout the country. We would like to be considered for this project and don't want out size of our company and our exposure hinder us in the bidding process. Granite has an excellent reputation in the industry, as evidenced by its sound credit Tecord and substantial bonding capacity. ~ you Or this opportunity and I look forward to your response. f\- a . olle ill Accountant (831) 761-7801 cc: Penn Shortes ene: Environmental Violations Box 50085 W'atsonville, CA 95077 -S085 Phone S3V724.1011 FAX S3V722-9657 1'1-5 A:. I ~ Granile Conslrucllon Com pany Environmental Vlolal1Dl1s South.ern California Region, Notice Dr 1m perfal County No permit for BO hp diesel fueled Permits obtained, settlement January 7, lOGS Imperial County, Alder sewer ViDlatlon APCD compressDr diesel pump and gel)Crator; 3 $750 $250 per violation line project separate vlolatlollS July 27, 2005 HCD-Sanla Ana CA NOV South Coast lrnckoot frum construction site Corrected AQMD Oc;tober 20, 2005 HCl>-Santa Ana CA NOV South Coast Caused a nuisance $10,000 Corrected AQMD January 20, 2006 HCO=Santa Ani! CA NOY South Coast Visible emissions exceeded pennttted Defidencles noted were AQMD lirnl ts corrected Apr11 2<1, 2.006 Northern California NOY Placer County fugitive Dust rrom Construction Project $500 CDrrected APCD SIGNED: Environmental Manager Geaff Borastan 813J.2{J06