PROJECT NO. CIP 01-628 COMMUNITY CENTER IMPROVEMENTS - COURTYARD AWARD CONSTRUCTION CONTRACT AND APPROVE APPLICATION
FOR GRANT FUNDS

 

Recommendation:

It is recommended that the City Council:

SUMMARY:

Staff requests that City Council award the construction contract to Torres Construction of Los Angeles in the amount of $138,500.72 for Project No. CIP 01-628 Community Center Improvements – Courtyard. Additionally, Staff requests approval and adoption of the resolution for the general grant fund from the Department of Parks & Recreation in the amount of $246,250.00.

BACKGROUND:

On July 24, 2001, City Council authorized advertising for bids. The project was advertised in the Easy Reader, Green Sheet (Construction News Reporter), and Construction Market Data. A total of 7 bid packages were picked up by the contractors. The City Clerk received 5 bids by the closing date of September 17, 2001. The bids were publicly opened and read aloud. The bid results are as follows:

BIDDER	CITY	TOTAL BID AMOUNT
1. Southland Construction	Anaheim, CA	$ 92,528.00
2. Torres Construction	Los Angeles, CA	$116,849.00
3. Minco Construction	Torrance, CA	$139,462.50
4. Thomsen Landscape	Reseda, CA	$156,229.00
5. MJ Contractor	Long Beach, CA	$166,986.00

The apparent low bidder, Southland Construction, requested in writing to withdraw their bid (Attachment 1). Staff believes it is in the City’s best interest to allow Southland Construction to withdraw their bid. The apparent second low bidder, Torres Construction, has minor errors in the bid schedules. After correcting the errors, the final bid amount reads $138,500.72., and this still ranks them as the next low bidder. The bid amount of Torres Construction is 38% higher than the engineer’s estimate of $100,000. This is partly due to the low engineer’s estimate and the current market economy. Staff has reviewed Torres Construction’s documents, aside from the minor errors in unit price, the rest of the bid documents are found to be in order. Therefore, Staff is recommending that Council waive the irregularities in Torres Construction’s bid. Additionally, the references were verified by calling the Cities of Monrovia, Arcadia and Long Beach for whom the firm has done work.

On August 9, 2000, the Department of Park & Recreation, State of California approved the grant in the amount of $246,250 for renovation of the Community Center. The grant was approved at the request of Assembly Member George Nakano. Under the terms for receiving the grant, City Council must approve the resolution and it needs to be filed along with the completed application. In order to file the completed application, the project must have a well-defined scope of work, project location map, site plan, cost estimate and Notice of Exemption for non-environmental impact. These items are now completed; therefore, Staff recommends that Council adopt the resolution so that it can be filed with complete application to the State.

Fiscal Impact :

The contract amount of $138,500.72 plus the contingency of $14,000 brings the total construction cost to $152.500.72. Sufficient funds are available in the project budget; therefore, no additional appropriation is needed.

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RESOLUTION NO. 01-

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE COMMUNITY CENTER IMPROVEMENTS

 

WHEREAS , the California Department of Parks and Recreation has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and

WHEREAS, said procedures established by the California Department of Parks and Recreation require the Grantee to certify by resolution the approval of application(s) before submission of said application(s) to the State; and

WHEREAS, the Grantee will enter into a contract with the State of California for subject project(s);

NOW, THEREFORE, BE IT RESOLVED that the City of Hermosa Beach

1. Approves the filing of an application for local assistance for the above project(s); and
2. Certifies that Grantee understands the assurances and certification in the application form; and
3. Certifies that Grantee has or will have sufficient funds to operate and maintain the project(s); and
4. Certifies that Grantee has reviewed and understands the General Provisions contained in the Project Contract shown in the Procedural Guide; and
5. Appoints the Director of Public Works/City Engineer as agent to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s).

PASSED, APPROVED , and ADOPTED this 9th day of October, 2001.

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