City of Hermosa Beach --- 03-27-01

PROJECT NO. CIP 00-171 ARDMORE AVENUE STREET
IMPROVEMENTS – VARIOUS LOCATIONS,
AWARD CONSTRUCTION CONTRACT

 

Recommendation :

It is recommended that the City Council:

  1. Award the Construction Contract to Nobest, Inc. of Westminster, California, based upon their lowest responsible bid of $197,016.00; and
  2. Authorize the appropriation of $110,000 from the 150 STIP fund; and
  3. Authorize the Mayor to execute and the City Clerk to attest the construction contract subject to approval by the City Attorney; and
  4. Authorize the Director of Public Works to make minor changes as necessary within the contingency of $19,702.

 

SUMMARY:

On March 1, 2001, Project No. CIP 00-171 was advertised in the Easy Reader, Green Sheet (Construction News Reporter), and Bid America. A total of 10 bid packages were picked up. The City Clerk received 4 bids by the closing date of March 19, 2001. The bids were publicly opened and read aloud. The bid results are as follows:

BIDDER

CITY

TOTAL BID AMOUNT

1. Nobest, Inc.

Westminster, CA

$197,016.00

2. Palp, Inc. dba Excel Paving

Long Beach, CA

$200,480.00

3. PIMA Corp. dba Advanced Const.

Los Angeles, CA

$224,800.00

4. All American Asphalt

Corona, CA

$251,981.50

All bids were responsive. The price of the apparent low bidder, Nobest, Inc., is $2,984 (approximately 1.49%) below the engineer’s estimate of $200,000.

 

Background:

Construction for this project is funded by the 301 Capital Improvement Fund in the amount of $160,480 and by an allocation of $110,000 State Transportation Improvement Program (STIP) Funds. The STIP Funds were not previously budgeted because the City had not received an executed Administering Agency-State Master Agreement from Caltrans until after the FY 2000-01 Budget was approved.

Per the Administering Agency-State Master Agreement, the State set a time restriction requiring the City to award a construction contract by April 1, 2001. Staff requested a three month time extension in December 2000. Although Caltrans and Los Angeles County Metropolitan Transportation Authority both endorsed the Request for Time Extension, it was denied by the California Transportation Commission (CTC) during their February 2001 meeting. Recognizing that this is a time sensitive project, Staff has streamlined this project in order to award a construction contract prior to April 1, 2001. Failure to award by this date will cause the project to lose State funding.

The Public Works Commission reviewed the plans, specifications, and estimate and received public comments on this project during the March 14, 2001 meeting. The Commission is in support of the project and Staff’s efforts to streamline this project in order to meet the State’s deadline to award a construction contract by April 1, 2001.

 

Analysis:

Staff has reviewed the low bidder documents and has found them to be in order. Reference calls have been supportive of the contractor’s work habits.

 

Fiscal Impact :

The project funding sources are as follows:

FUNDING SOURCE

CURRENT
BALANCE

PROPOSED
APPROPRIATIONS

1) 301 Capital Improvement

160,480

0

2) 150 STIP

0

110,000

TOTALS

160,480

110,000

  • Funds Available                            $ 160,480

  • Proposed Approp. (Rec. 2)         $ 110,000

  • Total Project Budget                     $ 270,480

The bid price and contingency amount to $216,718; therefore, both the current balance and proposed appropriation are needed to accommodate the cost of construction.

 

Alternatives:

  1. Approve Staff’s recommendation.
  2. Reject all bids. If a construction contract is not awarded at this time, the City will lose the $110,000 STIP funding.
  3. Take no action.