PROJECT NO. CIP 95-622 CITY HALL REMODEL – ADA UPGRADES
AWARD CONSTRUCTION CONTRACT

 

Recommendation:

It is recommended that the City Council:

If additional funds are available after the 2000-01 audit or at midyear budget review, consideration can be given to return some or all of the Equipment Replacement Fund or Compensated Absences Fund.

5. Remove the appropriation of $53,000 from CIP 95-622 Fund since the Police Station is no longer included in the scope of the project.
6. Authorize the Mayor to execute and the City Clerk to attest the construction contract subject to approval by the City Attorney;
7. Authorize the Director of Public Works to issue change orders within the approved budget, not to exceed $934,613.

Background:

On May 22, 2001, the City Council approved the plans and specifications for Project No. CIP 95-622 City Hall Remodel – ADA Upgrades and ordered the work and call for bids. On May 31, 2001, the project was advertised in the Easy Reader, Green Sheet (Construction News Reporter), and Construction Market Data. A total of 15 bid packages were picked up.

Analysis:

The City Clerk received 6 bids by the closing date of July 12, 2001. The bids were publicly opened and read aloud. The bid results are as follows:

BIDDER	CITY	BASE BID AMOUNT
1. Corona Constructors	Corona, CA	$849,648.00
2. Universal Const. & Maint.	San Pedro, CA	$903,000.00
3. Allied Eng. & Const. Inc.	Anaheim, CA	$905,200.00
4. Wang Milestone Const. Inc.	South Pasadena, CA	$1,085,000.00
5. Newman Midland Corp.	Los Alamitos, CA	$1,095,800.00
6. Ellis Building Contractors Inc.	Manhattan Beach, CA	$1,145,000.00

The engineer’s estimate is $960,000. The apparent low bidder is 11% less than the engineer’s estimate. The apparent low bidder, Corona Constructors, is in all respects responsive but they did not complete the following:

However, Staff views these omissions as minor irregularities. The City Attorney concurs with Staff’s recommendation that the City Council waive the irregularities in Corona Constructors’ bid on the grounds that the irregularities are of no consequence and did not create an advantage for Corona Constructors, and that the waiver is necessary for the public good in order to save the City the expense and delay in performing the project.

Staff has reviewed the qualification of Corona Constructors by contacting the State Contractors License Board, obtaining and reviewing their financial statements and contacting at least three references with projects of similar scope and dollar value. The background information received indicates that Corona Constructors is qualified to perform this project.

Section 20103.8 of the Public Contract Code provides that when a bid invitation includes prices for items that may be added to, or deducted from, the scope of work in the contract for which the bid is being submitted, the bid solicitation shall specify the method that will be used to determine the lowest bid. In the absence of such a specification, the lowest bid is to be determined on the basis of the base bid price alone. This section indicates that the local agency may add or deduct from the contract any of the alternates (additive or deductive items) after the lowest responsible bidder has been awarded the contract.

The bid invitation for the City Hall Remodel was silent as to the method for selecting the low bid; therefore the low bid was determined based on the lowest base bid, hence contract award is recommended to Corona Constructors.

On January 25, 2000, City Council authorized Staff to re-scope the project and remove the Police/Fire Station Improvements from this project. Therefore, the appropriated $53,000 Asset Forfeiture Fund for CIP 95-622 City Hall Remodel shall be removed.

After the award is made by the City Council and the contract is fully executed, Staff will bring this item back to the City Council to recommend approval of the other related work including the 5 additive alternates listed below:

A bid protest was received from Allied Engineering and Construction, Inc. protesting Corona Constructors’ bid because they did not acknowledge receipt of Addenda Nos. 4, 5 and 6 as required. Corona Constructors never received the Addenda since they’d been inadvertently left off the list of package holders. They couldn’t, therefore, acknowledge the existence of Addenda they hadn’t received. Corona Constructors has since received and reviewed the addenda’s and has informed the City that its price is not affected. Disallowing Corona Constructors bid due to failure to acknowledge the addenda’s would, in effect, penalize them for the City’s inadvertent error. The City Attorney reviewed this bid protest and advised Staff to recommend that City Council reject the bid protest.

Fiscal Impact :

Funding allocations are needed for the below listed items of work that are directly related to this project. Without this funding the project can not proceed.

Description	Estimated Cost
Base Bid	849,648
Alternates	405,897
Professional Services	70,000
Workstation Modulars & Appurtenances	300,000
Television Station Equipment	75,000
Window coverings	5,000
Moving	6,000
Subtotal	1,711,545
10% Contingency	171,155
CDBG Administration	14,438
Total	1,897,138
FY 2001-02 approved budget	(612,339)
Additional appropriation needed	1,284,799

Funding Sources:

General Fund	288,917
Building Improvement Fund	101,463
CDBG Fund	440,624
Equipment Replacement Fund	766,134
Compensated Absences Fund	300,000
Total	1,897,138

Alternatives :

1. Approve Staff’s recommendation.
2. Reject all bids, order modifications to the specifications and re-bidding of the project. By doing so, the City may be jeopardizing the CDBG (Community Development Block Grant) Fund and delay of the project.
3. Reject all bids and abandon the project.