City of Hermosa Beach --- 07-11-00

GOLDEN AVE. STREET IMPROVEMENTS & 24TH STREET IMPROVEMENTS
AWARD OF CONSTRUCTION CONTRACT
PROJECT NO. NON-CIP 003-99

 

Recommendation:

It is recommended that the City Council:

  1. Award the Construction Contract to Palp Inc. dba Excel Paving of Long Beach, California based upon their lowest responsible bid of $34,900.00;
  2. Authorize the Mayor to execute and the City Clerk to attest the construction contract subject to approval by the City Attorney;
  3. Authorize the Director of Public Works to make minor changes as necessary not to exceed $3,490.00; and
  4. Approve the re-appropriation of $61,218 from FY 1999-00 budget (001-3104-4201) to the FY 2000-01 budget.

 

Background:

The bid opening for the 24th Street and Golden Ave. was held on Thursday, June 15, 2000. The project was advertised in the Easy Reader, Beach Reporter, and Green Sheet (Construction News Reporter). A total of five bid packages were sold, and three were submitted to the City Clerk. The bids were publicly opened and read aloud. The bid results are as follows:

BIDDER

CITY

TOTAL BID AMOUNT

RSB Group

Irvine, CA

$28,614.00

Palp, Inc., dba Excel Paving

Long Beach, CA

$34,900.00

Sully-Miller

Anaheim, CA

$38,540.00

 

Analysis:

The price of apparent low bidder, RSB Group, is 26% below the engineer’s estimate of $38,640.00. However, a review of the bid documents revealed that RSB Group is non-responsive for the following reason:

  • RSB Group made several alterations to the original document. The bidder crossed out the original quantities of the bid and put in its own numbers, consequently, the bidder failed to quote on the basis stipulated in the invitation for bids.

Staff is of the opinion that the above is not an informality or an irregularity that may be waived. Therefore, Staff recommends that Palp, Inc., dba Excel Paving Co., be awarded the construction contract as the lowest responsible bidder. Palp Inc., dba Excel Paving Co.’s bid price is 10% lower than the engineer’s estimate. Staff has reviewed the low bidder documents and has found them to be in order and reference calls have been supportive of the contractors work habits.

 

Fiscal Impact:

Sufficient funds were available in the 1999-00 project budget; however, there was no opportunity to spend all funds appropriated for this project. Therefore, Staff is requesting that the funds ($61,218 in account number 001-3104-4201) be re-appropriated in the FY 2000-01 budget.

 

Alternatives:

  1. Approve Staff’s recommendation.
  2. Reject all bids. Send back to Staff for downscale of the project.
  3. Take no action.

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