REPORT TO THE CITY COUNCIL
January 28, 2016
FROM: BRIAN R. MARSHALL, Director
Department of Transportation
SUBJECT
Title
Award a construction contract to Teichert & Son, Inc., in the amount of $32,649,000 for construction of Bus Rapid Transit (BRT) stations and associated improvements along Blackstone Avenue and Ventura Avenue/Kings Canyon Road corridor - Bid File 3374 (Citywide)
Body
RECOMMENDATION
Staff recommends Council award a construction contract with Teichert & Son, Inc., in the amount of $32,649,000, as the lowest responsive and responsible bidder to construct the BRT stations and associated improvements along the Blackstone Avenue and Ventura Avenue/Kings Canyon Road. Staff also recommends Council authorize the Director of Transportation or designee to sign the contract on behalf of the City; the City Attorney shall verify appropriations match project expenses before the Notice to Proceed is issued.
EXECUTIVE SUMMARY
The Department of Transportation (FAX) seeks to construct a BRT project and associated improvements to improve the level of public transportation in the city of Fresno. Staff publicly advertised and opened bids for the BRT project and associated improvements. The bids were evaluated and staff determined the lowest responsive and responsible bid was from Teichert & Son, Inc., with a total bid amount of $32,649,000, including a base bid of $32,167,480 and add/deduct alternates of $481,520. Staff recommends the award of the construction contract for the total bid amount.
Given the significance and complicated nature of the project, staff recommends the following safeguards be included in the Council’s action:
• Specify no General Fund dollars be used to complete the project;
• Confirm with the City Attorney a non-appropriation clause is included in the construction contract;
• Require the City Attorney verify appropriations match project expenses before a Notice to Proceed is issued to the contractor;
• Specify a 10 percent contingency be maintained in the project budget; and
• Subject the BRT project to the Construction Management Act, which will provide independent oversight of construction management.
BACKGROUND
Staff is recommending the award of the construction contract to Teichert & Son, Inc., with a bid amount exceeding the current project funding by $4.4 million. The executed contract will include a non-appropriation clause enabling the City to terminate the contract should sufficient funds not be appropriated to cover the cost of the contract. FAX staff will work diligently with Teichert & Son, Inc., to implement cost-saving measures or eliminate line items from the scope. Environmental mitigation items will not be impacted with any identified reductions. Key components of the project will remain in the scope, including stations, security elements, and passenger amenities.
FAX will process change orders to reduce the total contract amount to align with the appropriated funds. A Notice to Proceed will not be issued until the project costs match the appropriations. City staff feels the award of the construction contract to Teichert & Son, Inc., for the total base bid amount plus add alternates is the best interest of the City. Rebidding the project could result in higher construction costs and a significant delay to the project.
The project budget for BRT construction along the Blackstone and Ventura/Kings Canyon corridors, and associated Van Ness/Mariposa improvements, is $28.2 million, with a construction bid submittal cost of $32.6 million from Teichert & Son Inc. FAX intends to partner with Tiechert &Sons, Inc., to identify opportunities to implement cost reductions ensure the total cost, including contingencies, are aligned with available funding. Staff has already identified $4.4 million in potential changes to reduce the overall project cost that include, but not limited to:
• Install upgraded mass produced type of passenger shelter ($1.2 million)
• Reductions in communications equipment and other Intelligent Transportation Systems (ITS) elements ($1.9 million)
• Obtaining pre-owned ticket vending machines (TVMs) from Las Vegas Transit $(1.1)
• Removal of corridor sequencing ($200,000).
In addition, FAX will be applying for $3.5 million in Measure C/New Technology grant funding to offset scope reductions of several ITS related elements for BRT stations. These elements include the purchase of state of the art TVMs, real-time departure/arrival signs, closed-circuit security cameras (CCTV), and free Wi-Fi connectivity at every BRT station. FAX expects to be successful in pursuing this grant; however, if the grant is not received, these elements will still be included in the project at a less advanced level.
For example, the Measure C New Technology grant will include state of the art TVMs with advanced features, including smartcard readers, credit cards acceptance and security, transfer validation, cameras, and other features. In the event that the Measure C/New Technology grant is not received, FAX has already made arrangement to acquire older TVMs that are currently used by Las Vegas Transit, which is in the process of updating its TVMs and has agreed to transfer its existing units to FAX.
Project Overview
The construction will consist of 15.7-mile BRT line connecting the major north-south corridor (Blackstone Avenue), and a major east-west corridor (Ventura avenue and Kings Canyon Road), to Downtown, including the construction of 51 BRT stops and improvements to the passenger waiting area located at Van Ness/Mariposa. Investment in the BRT project will provide a number of immediate benefits beyond the existing, traditional fixed-route transit service. BRT service, which is also funded for three years via a $3.5 million Congestion Mitigation and Air Quality Grant (CMAQ), will result in improved transit service that will better accommodate existing and new ridership through increased frequencies, improved station amenities and quicker access to other major transit corridors. Passenger waiting time will be reduced, with buses operating every 10 minutes. BRT will also provide faster trips, quicker transfers; secure bus stops; and more reliable bus schedules.
In addition to a much improved level of service, the Blackstone/Ventura/Kings Canyon BRT project will improve safety and passenger amenities through off-board TVMs, enhanced lighting, ADA accessibility; and enhanced passenger amenities (e.g., shelters, benches, and trash receptacles). ITS elements will contribute to the city-wide infrastructure with over 23 miles of fiber and the replacement and improvement of communication cabinets used by other City departments, including ISD and Public Works. Pedestrian access is enhanced through the replacement of asphalt with concrete bus pads, as well as curb, gutter, and sidewalk improvements at, and around, all BRT stations. Upgraded traffic signals along both corridors, needed to support BRT, will also benefit other traffic signal pre-emption projects related to public safety. ADA-compliance is also addressed by improvements to access and egress from streets, sidewalks, and crosswalks, including curb-cuts and other required ADA improvements. BRT stations will enhance customer safety and security through improved lighting and an increased presence of City personnel, including FAX police officers and dedicated maintenance personnel.
A separate Federal Livability grant funding is also included in the project that will result in a number of improvements to the Van Ness/Mariposa/Courthouse Park area. These improvements include lighting, security cameras, landscaping; railings; street, sidewalk, and American with Disabilities Act (ADA) accessibility improvements; new mid-block pedestrian crosswalks; new traffic lights; and a pedestrian bridge that will improve access to BRT stations, Courthouse Park and the newly restored Fulton Street corridor. Consistent with the recently adopted General Plan Update, it is anticipated BRT and the Van Ness/Mariposa/Courthouse Park improvements will improve transit service to the community, increase ridership, improve air quality through the reduction in vehicle miles traveled, and, importantly, encourage development along the Blackstone and Ventura corridors.
A Notice Inviting Bids was published in the Fresno Business Journal on June 10, 2015, posted on the City website and faxed to ten (10) building exchanges. The specifications were distributed to ten (10) prospective bidders. Two (2) sealed bid proposals were received and opened in a public bid opening on September 11, 2015. Base Bids ranged from $32,167,480 to $36,491,206 the lowest bid was received by Teichert & Son, Inc., in the amount of $32,649,000. The lowest bid amount includes a total base bid amount of $32,167,480 and a combination of add and deduct alternates totaling $481,520. The lowest bid will expire on February 26, 2016. The highest bidder declined to extend their bid beyond November 25, 2015.
ENVIRONMENTAL FINDINGS
A Mitigated Negative Declaration (MND), EA E201310000226, was adopted by the Council on January 30, 2014. The MND assessed the BRT project, an approximately 15.7-mile bus rapid transit line connecting the major north-south corridor (Blackstone Avenue) and a major east-west corridor (Ventura Avenue and Kings Canyon Road) in the city of Fresno to improve the level of transportation in Fresno. This approval is to implement construction of a portion of the BRT project, the BRT stations and associated improvements, as described in the MND. An analysis has been performed pursuant to CEQA Guidelines §15162 to determine whether subsequent environmental review is required for the project. Based on this analysis, the following findings are made to support the determination that no subsequent environmental review is required.
1. No substantial changes are proposed in the project, which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. The item before Council will award a contract to construct BRT stations and associated improvements as specified in the MND.
2. No substantial changes occur with respect to the circumstances under which the project is undertaken, which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. The item before Council will award a contract to construct BRT stations and associated improvements as specified in the MND.
3. There is no new information that was not known or could not have been known at the time of the previous MND that the project will have significant effects not discussed in the MND. The item before Council will award a contract to construct BRT stations and associated improvements as specified in the MND.
Furthermore, since a MND was previously adopted for this project, the considerations set forth in CEQA Guidelines §15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined no further environmental documentation is required for this project. Furthermore, the Federal Transit Authority (FTA) has identified this project qualifies as a categorical exclusion under the National Environmental Policy Act.
LOCAL PREFERENCE
As this is a federally-funded project, local preference does not apply.
FISCAL IMPACT
There is no impact on the General Fund. The total construction funding amount is $28.2 million. BRT construction will be financed through $26.4 million in federal and state funds, including a FTA Very Small Starts grant, a Federal CMAQ grant, and State Prop 1B funds. Construction costs for pedestrian safety and connectivity improvements to the Van Ness/Mariposa BRT station are funded by a $1.8 million FTA Livability grant.
No General Fund dollars will be used for operating expenses. Operating costs will be provided for the first three years through a CMAQ grant. Adequate funding sources have been identified to sustain the operational expense of the BRT service once the CMAQ grant expires.
Attachment:
Evaluation of Bid Proposal - Bid File No. 3374