CC 07-06-2023 Item No. 11. Award Construction Contract Regnart Road Improvements - Amended Staff Report_Desk Item
CITY COUNCIL STAFF REPORT
Meeting: July 6, 2023
(Report amended on July 6, 2023)
Subject
Award a construction contract for the Regnart Road Improvements Phase 1 Project to
Brannon Corporation for road reconstruction to mitigate roadway embankment failure.
Recommended Action
1. Award a construction contract for the Regnart Road Improvements Phase 1
Project (Project No. 2019-08) in the amount of $1,290,120 to Brannon
Corporation;
2. Authorize the City Manager to execute the contract;
3. Authorize the Director of Public Works to execute any necessary construction
change orders up to a construction contingency amount of $129,012 (10%) for a
total authorized contract amount of $1,419,132; and
4. Adopt Resolution No. 23-082 approving budget modification #2324-285,
increasing appropriations in the Capital Improvement Program Capital Projects
Fund (420-99-068) and Capital Reserve (429-90-001) by $876,765.99, and
transferring said funds from the Capital Reserve (429-90-001) to Capital
Improvement Program Capital Projects Fund (420-99-068).
Reasons for Recommendation
Regnart Road Improvements Phase 1 Project (Project) has an adopted budget of
$1,405,235 for the investigation and repair of various stability concerns along Regnart
Road.
Regnart Road has experienced numerous failures in the past 40 years due to slope
stability issues. The most recent failures occurred in 2017 due to extreme rain events that
Santa Clara County experienced in January of that year. The City of Cupertino initiated
two projects in response to these failures. The first, the 2017 Outfall Repair and Slope
Stabilization project, was conducted under an emergency response, and the City was
able to receive Federal Emergency Management Act (FEMA) and California Office of
Emergency Services (Cal OES) funding for approximately 88% of the project total. The
second was the 2018 Regnart Road Retaining Wall project that replaced approximately
130 linear feet of retaining wall that had failed.
As a result of these failures, the City initiated a geotechnical reconnaissance
investigation in 2018. The investigation identified numerous deficiencies along Regnart
Road including many areas where existing drainage patterns were causing excessive
erosion, as well as numerous trees that were unstable and which could result in
extensive road failures. The investigation also identified six locations where repairs are
necessary to address existing stability concerns. The City, in response to this
investigation, removed the unstable trees identified in the report and installed asphalt
berms along portions of Regnart Road to direct drainage to established stormwater
inlets. These efforts have helped to mitigate or lessen some of the stability concerns. The
investigation, tree removals, and asphalt berm installation efforts cost approximately
$107,320 of the authorized budget.
The Project will repair and stabilize the two highest-priority sites identified in the
geotechnical reconnaissance report consisting of approximately 140 linear feet of
Regnart Road. This work will address an undermined embankment by constructing a
retaining wall, asphalt pavement, and drainage facilities. The proposed improvements
will prevent costly road and slope failures, lengthy road closures, and the potential for
extreme hardship to the residents beyond this portion of Regnart Road.
Environmental permitting for the Project has taken longer than was originally
anticipated, and the cost for this clearance and permitting has also been higher than
expected. The delay has also resulted in higher construction costs than were originally
estimated since the project budget was adopted.
Due to the condition of the existing road, the results of the bid proposals, and effort and
expenditures to date to attain the necessary environmental clearances and permits, staff
recommends that the budget adjustment be made, and that the construction contract be
approved so that the project can be completed.
Discussion
The City advertised the Regnart Road Improvements Phase 1 Project for bid on June 15.
Two responsive bids were received for the Project as detailed in the table below. The low
bid was submitted by Brannon Corporation, which is approximately 15.7 % above the
Engineer’s Estimate.
Bidder Total Bid Amount
Brannon Corporation $1,290,120.00
Granite Construction Company $1,779,029.90
Engineer’s Estimate $1,115,080
The Department of Public Works reviewed the Brannon Corporation bid documents for
completeness and confirmed the contractor’s experience and qualifications and
determined the bid to be the lowest responsive and responsible bid per the Instruction to
Bidders and Cupertino Municipal Code. Construction is expected to begin in August.
Therefore, staff recommends awarding a construction contract to Brannon Corporation
for the contract amount of $1,290,120.00 and a 10% construction contingency in the
amount of $129,012.00 for a total contract amount not-to-exceed $1,419,132.00.
Construction contingency allows for unforeseen conditions and are a typical contracting
best practice. It is recommended that the Council authorize the award of the
construction contract to the low bidder, Brannon Construction. A Draft Construction
Contract is included as Attachment B, and the other bid documents are included as
Attachments C, D, E, and F.
Sustainability Impact
This project enhances public health, safety, and resiliency while being environmentally
responsible, consistent with the Climate Action Plan.
Fiscal Impact
The Capital Improvement Programs (CIP) project fund for the Regnart Road
Improvements Phase 1 Project (budget unit 420-99-068) contains $891,095.69. This
budget is inadequate to implement the project due to the overall increase in costs of
materials and services since project initiation, as well as the expenditures to date for
other road improvements and for environmental permits. Due to these factors, there is
an additional fund appropriation request for $876,765.99. The Capital Reserve Fund will
supply the additional appropriations through a transfer from (budget unit 429-90-001) to
(budget unit 420-99-068). If approved, the total project budget will be $2,282,000.99.
Current Fiscal Summary:
Current Funding Status Amount
Budgeted Funds for Regnart Road
Improvements (Capital Reserve CIP Project
Fund)
$1,405,235.00
Expenses/Encumbered to Date (Investigations,
Remediation Work, Geotechnical and
Construction design, Environmental Clearance)
($514,139.31)
Subtotal $891,095.69
Proposed Funding Impact Amount
Projected Construction Management Costs ($157,157.00)
Projected Misc. Costs (Special, Geotechnical, and
Environmental Inspections) ($191,572.68)
Projected Construction Total, including
Contingency (this agreement) ($1,419,132.00)
Subtotal ($1,767,861.68)
Deficiency Total ($876,765.99)
Requested Budget Modification Amount: $876,765.99
California Environmental Quality Act (CEQA)
The project is categorically exempt under CEQA Guideline, sections 15301 (b) (existing
facilities), 15302 (c) (replacement or reconstruction of existing structures), and 15304 (d)
(minor alterations to land).
_____________________________________
Prepared by: Evelyn Moran, Project Manager
Reviewed by: Susan Michael, Capital Improvement Programs Manager
Reviewed by: Chad Mosley, Interim Director of Public Works
Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Draft Resolution_amended
B – Draft Contract
C – Project Manual
D – Project Drawings
E – Project Addendum 1
F – Project Addendum 2