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HomeMy WebLinkAboutPW Francisco Blvd MUP____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 5/07/2018 Disposition: Resolution 14505 Agenda Item No: 7.b Meeting Date: May 7, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Prepared by: Bill Guerin, Public Works Director TOPIC: FRANCISCO BLVD. WEST MULTI-USE PATHWAY SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE ADVANCE PURCHASE OF STRUCTURAL STEEL COMPONENTS TO SUPPORT THE MULTI-USE PATH CONSTRUCTION IN AN AMOUNT OF APPROXIMATELY $850,000 RECOMMENDATION: Adopt the resolution. BACKGROUND: Sonoma Marin Area Rail Transit (SMART) is moving forward with its Larkspur Extension project, which will extend the rail service from downtown San Rafael to Larkspur Landing. SMART competitively awarded a design/build contract to Stacey-Witbeck-Hertzog (SWH) and has begun their construction with work at Andersen Drive and in the Bettini Transit Center. SMART anticipates completing the work at Andersen Drive in early June and will shift its construction activities to the Francisco Blvd West “flip” in mid-June. The construction phase of the Larkspur Extension is anticipated to be complete by the end of 2018 with commercial operations estimated to begin after rail testing sometime in 2019. In connection with the March 2017 Memorandum of Understanding between the City and SMART for cooperation on the Larkspur Extension project, the City, anticipating the need to create a Multi-Use Path (MUP), obtained assurance, by letter dated March 17, 2017 from SMART’s General Manager Farhad Mansourian, that so long as all design, studies, approvals and funding for the MUP project are in place, then upon request by the City, SMART will accommodate a change order to integrate the MUP into SMART's Larkspur Extension project construction schedule, if doing so will not interfere with the Larkspur Extension Project completion. The City is working to incorporate a Multi-Use Path (MUP) adjacent to the new rail line and on November 6, 2017 the San Rafael City Council authorized the City Manager to execute an agreement with BKF Engineers to finalize the design of the Second to Andersen MUP. The final design will be complete in mid-May. The current construction estimate of the MUP is $4.7 million, and with a 20 percent contingency could cost as much as $5.8 million. Funding in an amount of approximately $4.35 million has been previously identified through sources from TAM, MTC, the City of San Rafael, and Marin County. Council approved an additional grant application request in an amount of up to $1.35 million with the Bay Area Air Quality Management District on March 19, 2018. BAAQMD anticipates making a decision on whether to provide grant funding for this project in mid- May, 2018. The permitting agencies including the California Department of Fish and Wildlife, the Corps of Engineers, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 and the California State Water Resources Control Board are working cooperatively with the design team and are poised to provide the appropriate permits in mid-May, in time for construction to begin. Staff is negotiating with SMART and SWH to incorporate the path as a change-order into SMARTs larger rail project with the understanding that this work can be performed at the same time the track is installed such that there is no impact to SMART’s schedule. If we cannot conclude negotiations for the entire MUP within the available funds, staff intends to negotiate two phases of construction beginning with the first phase between Anderson Drive and Rice Drive, followed by the stretch between Rice Drive and Second Street when other funding becomes available. The path from Anderson to Rice Drive must be put in place while SMART is constructing their rail project because of its proximity to the rail line. Rice to Second is adjacent to the realigned Francisco Boulevard West (FBW), away from the SMART tracks, and can be constructed later without the added challenges and cost associated with construction adjacent to active rail operations. SMART’s current realignment design of Francisco Blvd. West and Rice will still allow cyclists to utilize the roadway while pedestrians will be able to use the adjacent sidewalk until the new MUP is constructed. On April 16, 2018, Council approved the pursuit of a second Urban Greening grant application in an amount of up to $1.86 million. The results of that grant request are expected in November 2018 and could be the source of funds for a second phase of construction. ANALYSIS: The current design for the MUP from Andersen to Rice includes steel sheet piles and possibly rolled steel piles to support the pathway which represents a significant portion of the construction cost. Prices for steel have risen substantially over the last year because of the potential for tariffs on steel imports. In addition, steel production is a long lead item and the contractor has informed us that we need to order steel in mid-May to ensure that the piles, and other steel components needed for the path, are available so that the construction can begin in mid-June. Though the design includes steel piles, there is still an opportunity to save money by utilizing concrete piles instead of steel. SWH has committed to provide final pricing for both options within the next two weeks. Public Works Contract Policy (Ch. 11.50 of the municipal code) requires competitive bidding for all purchases that exceed $30,000. However Section 11.50.090 “Exception to bidding requirement— Waiver”, in part, states the following: B. The city council, after reviewing and considering the facts of a particular public works project, may waive the bidding requirements of this chapter by finding that any one or more of the following circumstances exist: 1. Limitations on the source or the scope and nature of the contract are such that no more than one contractor is available to meet the technical specifications and/or quality considerations of the project; 2. The work is of a highly specialized nature; 3. There would be no competitive advantage to requiring bidding for the contract; 4. The cost of the work would be significantly increased or its completion significantly delayed; 5. There exist other specific considerations justifying the waiver of the bidding requirements. Items 2, 4, and 5 apply to the construction of the MUP. The work, constructed adjacent to the rail line is of a highly specialized nature because of the need to ensure that the rail line and MUP work together. SWH is uniquely suited to perform the work of the combined rail line and MUP. If the project is competitively bid, the work will be delayed until at least 2019 and the cost will increase dramatically because SMART will need to complete the construction of their rail line before a second contractor can work in the same construction area. Because of limitations on constructing in a waterway, construction SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 in the waterway can only occur between June 15th and approximately November 15th each year. Therefore, the MUP project would be delayed until at least June 2019 and would need to be constructed while active rail operations are occurring immediately adjacent, significantly impacting construction costs because of safety considerations, the need to coordinate with SMART operations, and the need for additional shoring and other considerations required to ensure the rail line is not impacted. Finally, specific other considerations include the fact that SMART competitively procured SWH and the City Council anticipated incorporating the MUP as a change-order to that contract when it approved the MOU. The timeline for incorporation of the MUP is critical. SMART will begin construction of the rail line immediately after they complete their work at Anderson Drive in mid-June 2018 and will not incorporate the path if the inclusion significantly impacts their construction schedule. SMART is still reviewing the implications of this change order and may not include this work if it significantly impacts the installation of the rail system. The window for construction in the adjacent waterway begins on June 15th and the City needs to be positioned to have a change-order in place and steel ready to be placed at that time to have minimal impact on SMARTs rail construction. SWH is prepared to construct the path but is under tremendous pressure to deliver the rail project this year. Any delay could jeopardize the MUP construction. Should the City Council wish to proceed and make every effort to have this project prepared for construction in June 2018, the steel package would need to be approved at this time which would achieve the goal of being fully ready to begin construction of the MUP and driving piles, just after June 15th. Placing the order for steel represents a commitment to the MUP, but if negotiations with SMART for the MUP construction prove unsuccessful, or we do not receive permits for construction, we can withdraw our steel order before May 22, 2018 without penalty. However, if the order is withdrawn, there is no assurance that the path will be constructed as part of SMART’s rail project. If the path is constructed after SMART begins testing and/or commercial operations, the cost to construct will become significantly more expensive due to the need to construct adjacent to an operational rail line. In order to ensure that steel piles are available for placement on June 15th, staff recommends that Council authorize the expenditure of approximately $850,000 to purchase steel in advance of full project approval. FISCAL IMPACT: Currently, this project has an estimated construction cost of approximately $4.7 million and, with a 20 percent contingency, could cost as much as $5.8 million. Funding in the amount of approximately $4.35 million is available for construction as shown below: Description Amount Comment TAM (Design) $700,000 250,000 for Environmental + 450,000 for Design (already spent) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Description Amount Comments TAM (Construction) $1,000,000 Available for construction MTC (Construction $3,000,000 Available for construction Gas Tax Fund $200,000 Available for construction County of Marin $150,000 Available for construction Amount Available $4,350,000 Available for construction BAAQMD $1,350,000 Pending Authorization. Total $5,700,000 Therefore funding to support the advanced purchase of rolled steel piles and other critical structural steel is available. OPTIONS: The City Council has the following options: 1. Adopt the resolution as proposed; 2. Reject the resolution, resulting in a delay to the delivery of steel when it is needed to start construction. Electing this option may cause SMART to reject inclusion of the MUP into their construction project. RECOMMENDED ACTION: Adopt the resolution. ATTACHMENTS: 1. Resolution 1 RESOLUTION NO. 14505 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE ADVANCE PURCHASE OF STRUCTURAL STEEL COMPONENTS TO SUPPORT THE MULTI-USE PATH CONSTRUCTION IN AN AMOUNT OF APPROXIMATELY $850,000 ______________________________________________________________________________ WHEREAS, Sonoma Marin Area Rail Transit (SMART) has begun to construct a rail line from central San Rafael to Larkspur Landing (the “Larkspur Extension”); and WHEREAS, SMART is currently utilizing Stacey Witbeck Hertzog (SWH) for their design-build contract for the Larkspur Extension project; and WHEREAS, SWH is utilizing BKF Engineers to design portions of SMART’s Larkspur Extension related to the roadway realignments; and WHEREAS, the City of San Rafael desires to construct a Multi-Use Path (MUP) immediately adjacent to the new rail line; and WHEREAS, on November 6, 2017, City Council authorized staff to contract with BKF Engineers to design the MUP; and WHEREAS, design will be complete in mid-May, 2018; and WHEREAS, by letter dated March 17, 2017 from SMART General Manager Farhad Mansourian, the City obtained assurance that so long as all design, studies, approvals and funding for the MUP project are in place, then upon request by the City SMART will accommodate a change order to integrate the MUP into SMART's Larkspur Extension construction schedule, if doing so will not interfere with completion of the Larkspur Extension; and WHEREAS, SWH has begun construction of the new rail line and intends to begin work that could incorporate the MUP on June 15th; and WHEREAS, the City is negotiating with SMART and SWH to incorporate the MUP into the larger Larkspur Extension project as a change-order; and 2 WHEREAS, rolled steel piles are an essential component of the new pathway and are a long lead item for procurement; and WHEREAS, in order to have the piles fabricated and ready for installation on June 15, 2018, the fabrication order must be placed in mid-May, 2018; and WHEREAS, the Council finds that it is reasonable to waive formal bidding for the construction of the MUP and have that work done by SWH. SMART awarded the contract for construction of the Larkspur Extension to SWH through a competitive bidding process, and SWH will be uniquely positioned to perform the construction of the MUP so that the rail line and MUP work together; and WHEREAS, the cost of the pile fabrication is approximately $850,000; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby waives formal bidding and approves and authorizes the City Manager to execute a change-order with SWH through SMART to allow the advanced purchase and fabrication of rolled steel piles in order to ensure that the piles are available when construction begins on or about June 15, 2018, in an amount of approximately $850,000. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take any and all such actions and make changes as may be necessary to accomplish the purpose of this resolution. I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on the 7th day of May 2018, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: Gamblin ABSENT: COUNCILMEMBERS: None _______________________ Lindsay Lara, City Clerk