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HomeMy WebLinkAbout2008-07-28 City Council Agenda Packet 1 07/28/08 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting July 28, 2008 5:30 PM ROLL CALL Council Conference Room CLOSED SESSION This item may occur during the recess or after the Regular Meeting. Public Comments: Members of the public may speak to the Closed Session items(s); three minutes per speaker. A. Public Employment Title: City Auditor Authority: Government Code section 54957(b) SPECIAL ORDERS OF THE DAY B. Interview of a Candidate for the Utilities Advisory Commission Attachment 6:15 PM or as soon as possible thereafter STUDY SESSION 1. Annual Joint Meeting With Planning and Transportation Commission Regarding Planning Issues Attachment COUNCIL CHAMBERS 7:15 PM to 9:30 PM or as soon as possible thereafter ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes. 07/28/08 2 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. STUDY SESSION 2. Joint Meeting With Planning and Transportation Commission on the Comprehensive Plan Amendment Work Program CMR Attachment Spreadsheet SPECIAL ORDERS OF THE DAY 3. Appointment of Two Candidates to the Planning and Transportation Commission for Two Terms Ending July 31, 2012 Attachment CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 4. Finance Committee Recommendation to Adopt a Resolution Authorizing the City Manager to Execute Agreements for the Short-Term Assignment of the City’s Share of Entitlements on the California- Oregon Transmission Project to Other Members of the Transmission Agency of Northern California CMR Attachment 5. Approval of a Contract With O’Grady Paving Inc. in the Total Amount Not to Exceed $1,402,354 for the 2008 Street Maintenance Program, Phase 2 Capital Improvement Program Project PE-86070 CMR Attachment 6. Approval of a Utilities Enterprise Fund Blanket Purchase Order with E.J. Pires Trucking Inc. in a Not to Exceed Amount of $400,000 for Sand, Rock, and Cutback Asphalt for Utilities Construction CMR Attachment AGENDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of five minutes per speaker unless additional time is granted by the presiding officer. The presiding officer may reduce the allowed time to less than five minutes if necessary to accommodate a larger number of speakers. 07/28/08 3 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. CLOSED SESSION This item may occur during the recess or after the Regular Meeting. Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 7. Conference with Labor Negotiator Agency Designated Representative: Sherry Lund Unrepresented Employees: City Manager Authority: Government Code section 54957.6 8. Conference with Labor Negotiator Agency Designated Representative: Sherry Lund Unrepresented Employees: City Clerk Authority: Government Code section 54957.6 9. Conference with Labor Negotiator Agency Designated Representative: Sherry Lund Unrepresented Employees: City Attorney Authority: Government Code section 54957.6 COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. CMR: 323:08 Page 1 of 5 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: JULY 28, 2008 CMR: 323:08 SUBJECT: JOINT CITY COUNCIL/PLANNING & TRANSPORTATION COMMISSION STUDY SESSION ON THE COMPREHENSIVE PLAN AMENDMENT WORK PROGRAM PURPOSE The purpose of the study session is for staff to outline the scope, schedule and budget of the Comprehensive Plan Amendment and the expected approach to each of the key work plan components. Staff recommends that the City Council and Planning & Transportation Commission provide comments and input to staff and the consultant team regarding implementation of the work program. BACKGROUND On April 7, 2008, the City Council approved the selection of two consultants for completion of the Comprehensive Plan amendment contract work plan: Design, Community & Environment (DC&E), the lead planning and design firm, and Applied Development Economics (ADE), an economic consultant. In conjunction with approving the consultant team, the Council also requested that staff schedule a joint study session with the Planning & Transportation Commission within approximately 90 days to further discuss the components of the work program and to provide direction to staff and the consultant team regarding its implementation. The City Council had initiated the amendment in 2006 with approval of a Colleague’s Memo that outlined the general parameters of the work program. The focus of the amendment is to ensure that sufficient public services are available to serve new housing development, that sufficient land for neighborhood-serving retail uses is retained, that impacts of increased housing on public services such as parks, libraries and schools are mitigated and that the City’s commitment to reduce global warming is addressed. The Council indicated at the time the work program was developed that the amendment was to continue the direction of the 1998 Comprehensive Plan and underscore its major themes, including: CMR: 323:08 Page 2 of 5 • Building Community and Neighborhoods • Maintaining and Enhancing Community Character • Reducing Reliance on the Automobile • Meeting Housing Supply Challenges • Protecting and Repairing Natural Features • Meeting Residential and Commercial Needs • Providing Responsive Governance and Regional Leadership The Council has allocated $850,000 for this work effort over a 3 to 4 year period. This budget and timeframe is premised on retaining the focused scope outlined below. DISCUSSION The joint City Council and Planning & Transportation Commission (PTC) study session provides an opportunity for the City Council, the PTC and the public to review and comment on the process developed by staff for implementing the Comprehensive Plan amendment work program, at the initial stage of the process. The main work plan elements for the Comprehensive Plan amendment approved by Council in 2006 are listed below. For each major element of the work program staff has provided a summary of the proposed approach to implementation. Staff has also included a detailed schedule for the work program (Attachment A) that identifies the major components and a timeframe for their completion. • Revise existing conditions and update growth projections Recent trends in development patterns and new data will be incorporated into base conditions staff and ADE will identify a realistic growth rate for development through 2015- 2020. ADE will review available projections from various data sources and evaluate historic growth patterns to provide a context for the projections. ADE will prepare a housing needs assessment, which will focus on local demographic and household characteristics that affect local demand. ADE will also complete a comprehensive assessment of commercial growth opportunities in Palo Alto. Policy L-8 of the Comprehensive Plan limiting non-residential growth will be evaluated. Staff and the consultant team will present their recommendations regarding growth projections at a Council/PTC study session(s) in early 2009. • Prepare two area studies and update land use map DC&E will prepare concept plans for the East Meadow Circle/Fabian Way/ West Bayshore area and the California Avenue PTOD area (including the existing Fry’s Electronics site and adjacent properties). These concept plans will address land use and circulation and provide policy guidance for each area. Although the focus of the potential land use changes will be in these two specific areas, an overall evaluation of land use patterns within an area generally bounded by Highway 101, El Camino Real, Embarcadero Road and San Antonio Road will be completed. Three neighborhood workshops for each of the two study areas will be held to identify issues, develop alternatives and select a preferred alternative. The resulting plans will establish a vision for each area. Council and Commission input regarding the scope of the area plans is appropriate at the study session. CMR: 323:08 Page 3 of 5 For the Cal Avenue PTOD/Fry’s area, it is anticipated that the concept plan will also include evaluation of the functionality of California Avenue for autos, bicyclists and pedestrians and potential for redevelopment or intensification near the transit station. The designation of the Park Boulevard Bicycle Boulevard in the area plan will also be an important component of this study. Staff anticipates that the preparation of the concept plan may lead to a more specific plan for this area, with possible funding available from ABAG as a designated Planned Development Area (PDA). For the East Meadow/Fabian Way/West Bayshore concept plan, primary issues of concern will be the balance of residential and non-residential uses and assuring that any new housing in the area is adequately supported by infrastructure and community services, including support retail, bikeways and trails, parks and community facilities. The actual boundaries of this study have yet to be determined but could be expanded to incorporate the potential Foothill College campus at Cubberley on Middlefield. • Review and modify appropriate Comprehensive Plan text Staff will carefully evaluate all policies and programs for relevance and clarity and review potential changes with the PTC through a series of meetings in the fall/winter 2008/2009. The vision statements will also be evaluated although it is anticipated that the current vision statements will continue to serve as the framework for the amendment to the Comprehensive Plan. Existing land use definitions will be evaluated and appropriate uses under each definition will be further refined. After PTC review, staff will review all of the policies and programs with Council in early 2009. Policies that currently allow conversion of non- residential land to residential uses will be modified to ensure sufficient retail potential and to prevent loss of potential tax dollars. Policies and programs that limit the loss of retail serving uses will be strengthened or added. • Develop a Sustainability theme for inclusion in Comprehensive Plan Sustainability will be addressed by adding an eighth major theme to the Comprehensive Plan and incorporating relevant concepts throughout each chapter of the Plan from the City’s existing programs, policies and initiatives including the City’s Climate Protection Plan. The Comprehensive Plan will underscore the City’s commitment to addressing climate change concerns. At this time Staff and the consultants are proposing to incorporate sustainability components into each of the existing Plan chapters, however, creating a new Sustainability Chapter is another option. • Retail Market Analysis/Fiscal Study ADE will evaluate the fiscal impacts of land-use options through use of a fiscal model. The model will be useful for understanding how the past and present land use mix has affected the City’s fiscal conditions. ADE will also prepare a comprehensive assessment of commercial opportunities in Palo Alto and Palo Alto’s current retail market. Staff has requested ADE to particularly focus on the viability of neighborhood serving retail areas and potential opportunities for commercial growth. • Housing Element and Housing Sites Inventory CMR: 323:08 Page 4 of 5 The Housing Element programs and polices will be reviewed and modified to address recommendations from the Below Market Rate Study that was recently approved by Council and from the May 14, 2008 PTC study session on housing. The focus of the changes is likely to include policies that encourage more affordable, higher density, smaller units near transit that appeal to lower income seniors, singles or couples. Staff will initially develop a Housing Inventory that establishes criteria for recommending sites to place on the inventory. These criteria may include: proximity to transit along a major transportation corridor, existing zoning that allows higher density residential either alone or in a mixed use configuration, and the site potential for redevelopment and/or intensification. Staff will work closely with the community and the PTC over the next year to develop the housing policies and programs and a list of potential sites for the Inventory, and will then share those with the PTC and Council in early 2009 to solicit direction on the City’s approach to the Housing Element. After completion of the Area Studies, staff will add any additional housing from those studies to the list of potential inventory sites. From this expanded list, the PTC and Council will determine the composition of the inventory and finalize the approach addressing housing needs. It is anticipated that the draft Housing Element will be completed by the end of July 2009 and forwarded to the State for an initial compliance review. • Infrastructure and Community Facilities Analysis The Comprehensive Plan Amendment will also provide a thorough analysis of levels of service needs for schools, parks and libraries relative to current and projected growth (particularly housing growth) through 2020. General areas for new parks and community facilities will be identified based on unmet need. Policies to support neighborhood connections to enhance and integrate a pattern of walkable neighborhoods will be developed and potential connections identified. Staff and the consultants will coordinate with the Palo Alto Unified School District (PAUSD) to identify school capacity constraints and thresholds and potential options to accommodate an increased number of students. • Public Outreach The main components of the public outreach program for the Comprehensive Plan amendment that have been identified consist of a variety of methods to engage public participation and include: 1. A dynamic interactive website with blog that is frequently updated with project status and a schedule of upcoming events; 2. Newsletters for periodic inclusion in residents’ utility bills; 3. Stakeholder meetings for Area Plans; 4. Neighborhood Workshops for each Area Plan; 5. Community Workshops for overall plan discussion; 6. Integration with PAUSD outreach and programs; 7. A Youth Community Workshop; and 8. A series of PTC Comprehensive Plan meetings Another major component of the work program will include preparation of an environmental impact CMR: 323:08 Page 5 of 5 report and integration of CEQA significance thresholds used in the EIR into an appendix to the Comprehensive Plan amendment. Policies to support neighborhood connections to enhance and integrate a pattern of walkable neighborhoods will be developed and potential connections identified. • Schedule of Work Attachment A provides a detailed draft timeline for the entire Comp. Plan amendment process. The main components are: • Completion of Background Studies – through December 2008 • Review of Comp. Plan policies/programs – October 2008 to March 2009 • Area Concept plan preparation – January 2009 to May 2010 • Draft Housing Element preparation – August 2008 to July 2009 • Comprehensive Plan EIR Preparation – July 2009 to May 2010 • Comprehensive Plan Amendment for Review and Adoption – June 2010 to December 2010 RESOURCE IMPACTS There are no fiscal impacts resulting from the study session. The Council approved a budget of $850,000 in April 2008 for the amendment process, to be spread over 4 years beginning in FY 07/08. POLICY IMPLICATIONS Although this study session will result in no policy decision, the Comprehensive Plan amendment process enables the Comprehensive Plan to be updated to focus on current City policy and adequately reflect the City’s vision consistent with the goals of the existing Comprehensive Plan. The updated plan is intended to provide an effective guide for future growth in the City. PREPARED BY: __________________________________ JULIE CAPORGNO Chief Planning & Transportation Official DEPARTMENT HEAD: __________________________________ CURTIS WILLIAMS Interim Director of Planning & Community Environment CITY MANAGER APPROVAL: __________________________________ KELLY MORARIU/STEVE EMSLIE Interim Deputy City Managers ATTACHMENTS A. Schedule of Work for Comprehensive Plan Amendment CMR: 331:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: JULY 28, 2008 CMR: 331:08 SUBJECT: FINANCE COMMITTEE RECOMMENDATION TO ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS FOR THE SHORT TERM ASSIGNMENT OF THE CITY’S SHARE OF ENTITLEMENTS ON THE CALIFORNIA-OREGON TRANSMISSION PROJECT TO OTHER MEMBERS OF THE TRANSMISSION AGENCY OF NORTHERN CALIFORNIA RECOMMENDATION Staff and the Finance Committee recommend that the City Council adopt the attached resolution authorizing the City Manager or his designee to execute Agreements for the short-term assignment of the City’s share of the electric high voltage California-Oregon Transmission Project (COTP) to the Turlock Irrigation District (TID) and the Sacramento Municipal Utility District (SMUD), thereby lowering the cost to serve the electric utility customers of the City. BACKGROUND The City of Palo Alto is a member of the Transmission Agency of Northern California (TANC), a California Joint Powers Agency, whose membership also includes: SMUD; TID; Modesto Irrigation District (MID); and the California cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Redding, Roseville, Santa Clara, and Ukiah. TANC currently owns approximately 87 percent of the COTP, a 1600 MW, 340 mile long electric transmission line from the California-Oregon Border (COB) to the 500 kilovolt Tracy Substation in Northern California. The City has a share of approximately 50 MW of TANC’s entitlement on the COTP. While the City has utilized the COTP to manage the cost of its electric supply portfolio, the value of this transmission right in recent years has been lower than the cost of ownership. While the City continues to consider the COTP a strategic asset for future years when the cost of ownership can be offset by its market value, the projected short-term value of the asset has prompted staff to explore temporary assignment options to other members of TANC. The Utilities Advisory Commission in April conceptually approved staff’s recommendation to assign the City’s share of the COTP to interested parties. Since then, staff has been pursuing a 15-year assignment agreement with SMUD, TID, and MID. The effective date of this long-term 4 CMR: 331:08 Page 2 of 3 assignment was projected for July or August 2008, but negotiations have taken longer than expected. When the negotiations are completed in the coming months, staff will bring the final 15-year assignment agreement to Council for approval. In the interim, until the 15-year assignment agreement is completed, SMUD and TID have requested a temporary assignment of the City’s rights in the COTP for the months of August 2008 through January 2009, or until the 15 year agreement becomes effective, whichever is earlier. MID is not interested in participating in the temporary assignment and is waiting for completion of the 15-year assignment: SMUD and TID will take MID’s share during the temporary assignment. Such a short-term assignment agreement is expected to have a savings of $128,000 to $144,000 per month to the City and will be based on the following terms: 1. The Contract shall be negotiated with SMUD and TID, with each entity receiving one- half of the City’s share of COTP. 2. The Contract will be based on industry standard Western System Power Pool Agreement. 3. Term of the Contract shall not extend beyond January 31, 2009, and shall terminate on the effective date of the 15-year Assignment Agreement. 4. Compensation for the assignment shall recover the full monthly cost the City incurs to own the asset (approximately $160,000/month). FINANCE COMMITTEE REVIEW AND RECOMMENDATIONS The Finance Committee reviewed and unanimously approved the staff recommendation on July 15, 2008 (CMR:307:08, Attachment C). The Committee discussed how savings from the assignment would be reflected in the budget and/or utilized. The Committee also discussed the possibility of increased price differentials between the Northern California and Pacific Northwest markets, and the difference in generation resource types sold in the two markets. RESOURCE IMPACT The net impact on the Electric Fund from the short-term assignment of the COTP is the difference between revenues from SMUD and TID (equal to the cost of owning the asset of approximately $160,000 per month), and the value to the City from the use of the COTP asset, expected to be between $16,000 and $24,000. Thus, the short-term assignment will result in a net savings of $128,000 to $144,000 per month. POLICY IMPLICATIONS This recommendation is consistent with the Council-approved Utilities Strategic Plan with regard to managing supply portfolio risk to preserve a supply cost advantage. These bilateral transactions by TANC members are also sanctioned under the TANC Commission-approved Procedures for Allocations of COTP Transmission (one year or less). ENVIRONMENTAL REVIEW Approval of this agreement does not require review under the California Environmental Quality Act (CEQA) because it does not meet the definition of a “project” pursuant to California Public Resources Code Section 21065. CMR: 331:08 Page 3 of 3 ATTACHMENTS A: Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute Agreements for the Short-Term Assignment of the City’s Share of Entitlements on the California-Oregon Transmission Project to other TANC Members B: Draft Transaction Confirmation (WSPP) Agreements for Short-Term Assignment of COTP Entitlements to TID and SMUD. The complete Western System Power Pool (WSPP) Master Agreement is available at: www.wspp.org Report that went to the Committee C: CMR:307:08 – Recommendation to adopt a Resolution authorizing the City Manager or his designee to execute Agreements for the short-term assignment of the City’s share on the electric high voltage California-Oregon Transmission Project (COTP) to the Turlock Irrigation District (TID) and the Sacramento Municipal Utility District (SMUD) D: PowerPoint presentation made at the July 15, 2008 Finance Committee meeting E: Excerpted minutes from the July 15, 2008 Finance Committee meeting PREPARED BY: DEBRA LLOYD Senior Resource Planner SHIVA SWAMINATHAN Senior Resource Planner DEPARTMENT APPROVAL: ________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: ________________________________ STEVE EMSLIE/KELLY MORARIU Deputy City Managers CMR:317:08 Page 1 of 5 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: JULY 28, 2008 CMR: 317:08 SUBJECT: APPROVAL OF A CONTRACT WITH O’GRADY PAVING INC. IN THE TOTAL AMOUNT NOT TO EXCEED $1,402,354 FOR THE 2008 STREET MAINTENANCE PROGRAM, PHASE 2 CAPITAL IMPROVEMENT PROGRAM PROJECT PE-86070 RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract in the amount of $1,402,354 with O’Grady Paving Inc. for the 2008 Street Maintenance Program, Phase 2 - Capital Improvement Program Project PE-86070; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with O’Grady Paving Inc for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $140,235. BACKGROUND Annually, Public Works Engineering manages the resurfacing and reconstruction of various City streets. The candidate streets are surveyed and rated biannually by a computerized pavement management system. The annual project typically encompasses about eight lane miles of asphalt concrete paving and eight lane miles of slurry sealing, with a project budget averaging $2.2 million annually for all phases of the project. Prior to 2005, projects were bid as one project consisting of slurry and cape seal (preventive maintenance work), concrete street repairs and asphalt concrete resurfacing. In 2005, staff implemented a two phase program: the first phase for preventative maintenance work utilizing cape and slurry sealing with the second phase for concrete street repairs and asphalt concrete resurfacing. This phasing proved to be more cost- effective avoiding the typical 15% markup previously included in asphalt resurfacing contracts where preventative maintenance work was subcontracted out. The proposed 2008 Street Maintenance Project includes cape sealing six (6) lane miles of collector/resident streets, overlaying six (6) lane miles of backlog streets, and slurry sealing eleven (11) lane miles of collector/resident streets. The additional lanes miles are a result of increased project funding from a State of California Prop 1b grant ($807,120) and savings from the typical 15% markup for subcontracted work. CMR:317:08 Page 2 of 5 DISCUSSION Attachment B provides a list of streets to be resurfaced under the attached Phase 2 Contract. Part of the work under this contract includes related work such as lane striping and various concrete work including replacement of curb ramps, curb and gutters, driveway approaches and sidewalks. Curb ramps will be installed to comply with the guidelines of the Americans with Disabilities Act (ADA). In addition, the contract will incorporate the removal and replacement of approximately 200,000 square feet of asphalt and replace any pavement striping in Foothills Park that was not completed in the 2007 Resurfacing Project with funds from Parks CIP OS- 07000. The bids for this project were 15% below the engineer’s estimate which allows for inclusion of five add alternate bid items allowing for more streets (and 2.3 lane miles) to be included. The additional streets included in these alternates are listed at the bottom of Attachment B. The 2008 Street Maintenance Project will award the base bid and add alternates 2 through 6. Add alternate 2 is to remove and replace all of the asphalt concrete on Northampton and Southampton Streets, with three inches of new asphalt. These streets were coordinated with the Water Main Replacement CIP program to finish their street trenching within months of the anticipated resurfacing. Alternates 3 and 4 include two blocks of Bowdoin Street and one block of College Avenue, in the College Terrace neighborhood. This neighborhood is the City of Palo Alto’s second designated targeted work zone (TWZ). A TWZ is a location in which all utility work has been installed at accelerated schedules and most private development has been finalized to accommodate the paving restoration schedule of Public Works. The College Terrace street restoration schedule will be done in phases over the next four years and is expected to complete by 2011 as funding allows. The paving phase in 2011 will include College Avenue following permanent traffic circle modifications and/or improvements. Staff will update the College Terrace residents each year as this work progresses. Alternates 5 and 6 include one block of Homer Avenue, one block of Ramona Street and one block of Bryant Street all located in the South of Forest Avenue (SOFA) area, the City’s first TWZ. This work will complete 90% resurfacing of the streets in the South of Forest Area neighborhood (SOFA). Add alternate 1 was to place rubberized asphalt concrete (RAC) on Alma Street using a California Integrated Waste Management Board (CIWMB) grant in the amount of $97,000. During the time this project was out to bid, however, the City was selected for federal grant funding, from the Highway Safety Index Program (HSIP). These funds include $900,000 for Alma Street improvements from Colorado Street to the Mountain View City limits (the same limits planned under the CIWMB grant). Because the HSIP grant provides almost ten times the funding as the CIWMB grant for rubberized asphalt and covers additional work such as guard rails at select locations, staff recommends doing the Alma Street work under the HSIP grant next year and not including add alternate 1 in this contract. Staff will identify another candidate street(s) for rubberized asphalt application under the CIWMB program for the 2009-10 Street Maintenance project. CMR:317:08 Page 3 of 5 Project Coordination Staff from the Utilities Department, Public Works Department and Transportation Division, continue to meet monthly coordinating infrastructure projects city wide. The Phase 2 work in this contract was also coordinated with the Utilities Department by meeting independently with Utilities’ project managers that may have a direct impact on the project. During the coordination meetings, staff has aggressively targeted the South of Forest Area (SOFA) and the College Terrace neighborhoods. Paving the last remaining street in the SOFA area will occur with this project. Staff has developed plans and timelines to complete work in localized geographical areas for College Terrace and other neighborhoods, some of which is included in this project as described above. The targeted areas will be resurfaced over the next several years once utility work is completed in each area to prevent trenching in newly repaved streets. Streets planned for resurfacing were either postponed due to utility projects or accelerated as a result of obtaining federal/state funding. Staff has made it a priority to ensure newly paved streets are not trenched unless there is a private development project and/or emergency work which could not be scheduled in advance of street paving. Bid Process A notice inviting formal bids for the 2008 Street Maintenance Program Phase 2 was posted at City Hall on May 21, 2008 and sent to ten (10) builders' exchanges and 11 bidders. The bidding period was thirty-five days. Bids were received from four (4) qualified contractors on June 24, 2008 as listed on the attached bid summary (Attachment A). The total for all bids, including base bid and add alternate Nos. 1-6, ranged from a low bid of $2,078,987 to a high of $2,355,777. As mentioned above the low bid is fifteen percent below the engineer’s estimate of $2,459,507. The engineer’s estimate was based on a standard rate of 5% inflation increase in costs received on the prior street maintenance project in 2007. Summary of Bid Process Bid Name/Number 2008 Street Maintenance Program Phase 2 / IFB #126732 Proposed Length of Project 120 calendar days Number of Bids Mailed to Contractors 11 Number of Bids Mailed to Builder’s Exchanges 10 Total Days to Respond to Bid 35 Pre-Bid Meeting? No Number of Company Attendees at Pre-Bid Meeting N/A Number of Bids Received: 4 Bid Price Range (including all 5 alternates) Low bid $2,078,987 to a high of $2,355,777 The Certification of Nondiscrimination is Attachment D. CMR:317:08 Page 4 of 5 Staff recommends that the base bid, including add/alternates 2 through 6, of $1,402,353 submitted by O’Grady Paving Inc. be accepted and that O’Grady Paving Inc. be declared the lowest responsible bidder. The change order amount of $140,235 (which equals 10% of the total contract) is requested to resolve unforeseen problems and/or conflicts that may arise during the construction period. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. Staff also checked with the Contractor's State License Board and found that the contractor has an active license on file. Following the award of contract, businesses and residents affected by the project will be notified by notices describing the work on their streets. Staff will hand deliver notices to affected residents 2 weeks prior to construction start up. “No Parking – Tow Away” signs will be posted on the affected streets three (3) days prior to construction. If the street will be closed during the construction, the contractor will also hand deliver door hanger notices seven days and 24 hours in advance of the construction work on each street. Work is expected to start in July and be complete in 120 days. RESOURCE IMPACT Due to the size of this annual maintenance project, City staffing levels are not adequate to accomplish the construction work in-house. In addition, the City does not own the type of equipment needed to perform this work and staff believes that it is cost effective to have the work performed by outside contractors. Funds for this project include the following sources: the Street Maintenance Capital Improvement Program Project PE-86070, Prop 1b, and Foothills Park Road Improvements OS- 07000. Funds are budget in this project for this fiscal year. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project has been determined to be categorically exempt from review under the California Environmental Quality Act (CEQA) as repair and maintenance of existing streets and similar facilities pursuant to CEQA Guidelines, Section 15301 (c). ATTACHMENTS Attachment A: Contract Attachment B: List of Streets Attachment C: Bid Summary Attachment D: Certification of Nondiscrimination PREPARED BY: ________________________________ ELIZABETH AMES Senior Engineer CMR:317:08 Page 5 of 5 DEPARTMENT HEAD: ________________________________ GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: ________________________________ STEVE EMSLIE/ KELLY MORARIU Deputy City Managers CMR: 327:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DE PARTMENT:UTILITIES DATE: JULY 28, 2008 CMR: 327:08 SUBJECT: APPROVAL OF A UTILITIES ENTERPRISE FUND BLANKET PURCHASE ORDER WITH E. J. PIRES TRUCKING INC. IN A NOT TO EXCEED AMOUNT OF $400,000 FOR SAND, ROCK, AND CUTBACK ASPHALT FOR UTILITIES CONSTRUCTION RECOMMENDATION Staff recommends that the Council approve and authorize the City Manager or his designee to purchase sand, rock, and cutback asphalt through a blanket purchase order for trench and street restoration used by the Utilities Department in daily construction operations from E. J. Pires Trucking Inc. in a not-to-exceed amount of $400,000. Staff also recommends that the Council approve and authorize the City Manager or his designee to exercise the option to extend the contract for the second and third years, provided the supplier is responsive to the City's needs, and the quality of the contractor's work/product is acceptable during the previous year of the contract. DISCUSSION Project Description The materials to be purchased include: sand, rock, and cutback asphalt. These materials are used during the daily operations of the Utilities Department and are required for filling trenches and pits and restoring streets after utility work is performed. The bid process was used to determine the lowest unit cost supplier of the specified materials. When materials are needed, they are ordered under a blanket order at the specified price in the bid. 6 CMR: 327:08 Page 2 of 3 Summary of Bid Process Bid Name/Number Sand and Rock for WGW Utilities Proposed Length of Project 36 months Number of Bids Mailed to Contractors 10 Number of Bids Mailed to Builder’s Exchanges 0 Total Days to Respond to Bid 19 Pre-Bid Meeting? No Number of Company Attendees at Pre-Bid Meeting N/A Number of Bids Received: 6* Bid Price Range From a low of $344,480 to a high of $416,670 *Bid summary provided in Attachment B. Staff has reviewed all bids submitted and recommends that the bid of $ 344,480 submitted by E. J. Pires Trucking Inc. be accepted and that E. J. Pires Trucking Inc. be declared the lowest responsible bidder. Two bidders on the bid summary bid lower total dollar amounts than E. J. Pires Trucking Inc. because they did not include the cutback asphalt. The total for the items that they provided bids for was higher than the low bid. This contract establishes unit prices for materials that are ordered on an as-needed basis. The quantities in the bid are estimated amounts, so actual quantities may be greater or lesser than the bid amounts. Staff is requesting that the spending limit for the blanket purchase order be set at $400,000 to accommodate the potential purchase of quantities greater than the estimated amounts. RESOURCE IMPACT The purchase of materials under this contract will be funded from the operating budgets of the Electric, Water, Gas, and Wastewater Utilities. POLICY IMPLICATIONS None. ENVIRONMENTAL REVIEW Not applicable. CMR: 327:08 Page 3 of 3 ATTACHMENTS A: Bid Summary B: Certificate of Non-Discrimination PREPARED BY: __________________________________ TOMM MARSHALL Assistant Director of Utilities DEPARTMENT HEAD: __________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: __________________________________ STEVE EMSLIE/KELLY MORARIU Deputy City Managers