Title
Recommendation to Award a Contract in the Amount of $3,353,576, Including Contingencies, to McGuire and Hester, for Cross Alameda Trail - Jean Sweeney Improvements Project, No. P.W. 05-16-11; Approve a $900,000 Interfund Loan for the Financing of Cross Alameda Trail - Jean Sweeney Improvements Project; and
Adoption of Resolution Amending the Capital Budget for Fiscal Year 2016-17. (Recreation and Parks 280)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Award a Contract in the Amount of $3,353,576, Including Contingencies, to McGuire and Hester, for Cross Alameda Trail - Jean Sweeney Improvements Project, No. P.W. 05-16-11; Approve an Interfund Loan for the Financing of Cross Alameda Trail - Jean Sweeney Improvements Project and Adoption of Resolution Amending the Capital Budget for Fiscal Year 2017-18
BACKGROUND
Jean Sweeney Open Space Park (Sweeney Park) is planned to be a new, 27-acre community park located in the central west area of the island. This site is the former Alameda Beltline Railroad property that was secured by the City at its original purchase price due to the advocacy efforts of long-time resident Jean Sweeney. The property is bounded by Constitution Way, Atlantic Avenue, and Sherman Street. The Cross Alameda Trail is a wide, lighted and paved trail that is 21 feet wide and 3,600 feet long with dedicated bike lanes in each direction, a pedestrian lane, and a jogging path made of decomposed granite for a softer surface. It will connect with the Cross Alameda Trail along Ralph Appezzato Memorial Parkway to the west and along Clement Avenue to the east. The Cross Alameda Trail Feasibility Study, adopted in 2005, laid the groundwork for a 4-mile long bicycle and pedestrian trail that will cross the entire island from Main Street to Broadway and provide a safe and convenient route for bicyclists and pedestrians between Alameda’s residential neighborhoods and transit access points.
On July 5, 2014, the City Council approved the Sweeney Park Master Plan, which includes the Cross Alameda Trail. And on July 9, 2016, the City Council approved the more detailed Sweeney Park design development plan.
DISCUSSION
On May 24, 2017, plans and specifications were sent out for a bidding period of 21 days. To solicit the maximum number of bids and the most competitive price, plans and specifications were provided to 12 separate builders’ exchanges throughout the Bay Area. A notice of bid was also published in the Alameda Journal and put on the City’s website. Bids were opened on April 20, 2017. Four contractors submitted bids. The list of bidders from lowest to highest for total project cost is as follows:
|
Bidder |
Location |
Bid Amount |
|
McGuire and Hester |
Oakland, CA |
$3,105,163 |
|
Gordon N. Bail, Inc. |
Alamo, CA |
$3,149,466 |
|
Ghilotti Bros., Inc. |
Oakland, CA |
$3,376,395 |
|
Goodland Landscape Construction, Inc. |
Tracy, CA |
$3,490,586 |
Public Works staff contacted several references provided by the lowest bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of their work. Staff recommends awarding a contract to McGuire and Hester for a total amount of $3,353,576, which includes an eight percent contingency in the amount of $248,413. The contractor is not guaranteed any of the contingency amount, and use of the contingency will be at the sole discretion of the City Engineer for work not originally anticipated in the plans and specifications. The project specifications and contract inform the successful bidder that they must pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. The specifications and contract also inform the contractor that this project is subject to the City’s Project Stabilization Agreement. The contractor has agreed to comply with these provisions as well as all of the other provisions in the contract. A copy of the contract is attached as Exhibit 1.
FINANCIAL IMPACT
Cross Alameda Trail - Jean Sweeney Park project design and construction costs are accounted for in the Capital Improvement Program (Project 91614). The project is currently funded by a combination of the Active Transportation grant, city matching funds from the Open Space Fund and Measure B, and General Fund. The construction costs were higher than the engineer’s estimate due to the extremely competitive bidding climate that is being experienced region-wide. The project team is already looking at ways to value engineer the project to significantly reduce the final project cost, but this must occur after contract award.
Staff is proposing a variety of ways to close the funding gap, including contributions from the Recreation Fund reserves, the Open Space Fund, General Fund (Park Maintenance) savings, as well as an interfund loan from the Transportation Development Impact Fee (DIF) Fund to the Park DIF Fund.
The Transportation DIF funds that will be loaned to the Park DIF Fund were intended to fund the Cross Alameda Trail project along Ralph Appezzato Memorial Parkway from Webster Street to Main Street (CAT RAMP). However, due to the more immediate need for these funds for the “shovel ready” Sweeney Park trail, staff recommends using them for the Sweeney Park section of the trail and using anticipated grant funds received by November 2017 for the CAT RAMP project. This proposal would provide staff more time to obtain other funds. If the grant funds prove insufficient; the CAT RAMP project is still in the construction design phase and is not currently expected to be ready to go out to bid until December 2017. If sufficient funds are obtained through the grant, the repayment of the Transportation DIF loan from the Park DIF fund (which is anticipated to receive additional funds in the next several months), or other eligible source of funds, the CAT RAMP project will stay on schedule and go out to bid in December 2017. If sufficient funds do not exist by the end of the year then staff will provide the City Council with an update on the CAT RAMP project and present options on possible next steps.
Staff proposes to amend Fiscal Year (FY) 2016-17 Project Budget for the Jean Sweeney Improvements Project, No. P.W. 05-16-11, as described below:
|
Fund/Account |
Project |
Amount |
|
Development Impact Fees Transportation (340.11) |
|
|
|
Increase Transfer Out |
|
$900,000 |
|
Recreation Fund (280) |
|
|
|
Increase Transfer Out |
|
$268,000 |
|
General Fund - Park Maintenance (51210) |
|
|
|
Decrease Services & Supplies |
|
($150,000) |
|
Increase Transfer Out |
|
$150,000 |
|
Open Space Fund (318) |
|
|
|
Increase Transfer Out |
94614 |
$15,000 |
|
Capital Improvement Projects (310) |
|
|
|
Increase Transfer In (from DIF Transportation) |
91614 |
$900,000 |
|
Increase Transfer In (from Recreation Fund) |
91614 |
$268,000 |
|
Increase Transfer In (from Parks Maintenance) |
91614 |
$150,000 |
|
Increase Transfer In (from Open Space Fund) |
91614 |
$15,000 |
|
Increase Contractual Services |
91614 |
$1,333,000 |
The total project budget including the above proposed budget amendment will be $4,014,000. This includes all soft costs for construction such as construction administration, construction management, water meter, permit fees, testing and inspections, and plan check fees.
The interfund loan from DIF Transportation Fund to DIF Parks Fund is proposed to be secured by a promissory note (Exhibit 2). The principal amount of the loan is $900,000 and will be repaid over a five year period or sooner from the collected DIF Parks. The annual interest rate on the loan will be based on the Local Agency Investment Fund (LAIF) rate of return in effect at the time, which, as of April 2017, was 0.884%. The expenditures for the Cross Alameda Trail - Jean Sweeney Park project are eligible to be funded by DIF Transportation. If the Cross Alameda Trail project along Ralph Appezzato Memorial Parkway from Webster Street to Main Street (CAT RAMP) obtains sufficient grant or other funding sources and DIF Transportation funding is no longer needed (partially or in full), then the interfund loan maybe forgiven in part or in full.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities and 15304(b) - Minor Alterations to Land and 15304(h). In accordance with the National Environmental Policy Act, this project is a Categorical Exclusion under 23 Code of Federal Regulations 771.117(c): activity (c)(3) - Construction of bicycle and pedestrian lanes, paths and facilities.
RECOMMENDATION
Award a contract in the amount of $3,353,576, including contingencies, to McGuire and Hester, for Cross Alameda Trail - Jean Sweeney Improvements Project, No. P.W. 05-16-11 and approve a $900,000 interfund loan for the financing of Cross Alameda Trail - Jean Sweeney Improvements Project; and adopt a resolution amending the Capital Budget for Fiscal Year 2017-18.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Contract
2. Interfund Loan Promissory Note