Report to Mayor and City Council
Tuesday, September 17, 2024
Discussion
SUBJECT:
Title
CONSIDER AWARD OF CONSTRUCTION CONTRACT TO PUB CONSTRUCTION INC., FOR PROJECT NO.1610: FOISIA PARK IMPROVEMENTS (CITY COUNCIL)
Body
I. SUMMARY
Project No. 1610 Foisia Park Improvements is listed in the City’s Capital Improvement Program (CIP). The Invitation for Bids (IFB) No. 24-09 was advertised in the Daily Journal, and through the PlanetBids portal from June 6, 2024 to July 08, 2024. Two (2) firms submitted bids which were opened by the Purchasing Division Manager in the City Clerk’s office and read aloud on July 8, 2024. Environmental Construction, Inc. (ECI) was the apparent lowest responsive and responsible bidder, with a total base bid amount of $9,935,503.46. The second lowest bidder was submitted by PUB Construction, Inc. in the amount of $12,757,062.40.
However, on July 12, 2024, ECI submitted a letter requesting to withdraw bid due to their oversight of two bid items that were miscalculated which underestimated their bid by at least $348,750. The second lowest bidder, PUB Construction Inc., was determined to be responsive responsible bidder.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a construction contract to the lowest responsive and responsible bidder, PUB Construction Inc., for Project No. 1610: Foisia Park Improvements, in an amount not to exceed $12,757,062.40.
2. AUTHORIZE the Mayor to execute a Construction Contract with PUB Construction Inc., following approval as to form by the City Attorney.
Body
III. ALTERNATIVES
1. DO NOT APPROVE the above recommendations. However, staff will not be able to proceed with the construction of the project.
2. TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
The Foisia Park Improvement, Project No. 1610, involves a new culturally themed community stage area, new picnic/barbeque areas with shade structures, new outdoor exercise stations, new ball field improvement with lighting, new pathway/security lighting, new pedestrian walking/jogging pathways, renovations to the children’s playground, parking lot improvements, new park marquee sign, new irrigation system, and new planting throughout the park (Exhibit No. 1).
Project No. 1610 is listed in the City’s Capital Improvement Program (CIP). Plans, Specifications and Estimate (PS&E) were completed in June 2024. The City released IFB No. 24-09 and the project was advertised for construction bids on PlanetBids and in the Daily Journal from June 6, 2024 to July 08, 2024.
Two bids were received and were opened by the Purchasing Division Manager in the City Clerk’s office and read aloud on July 8, 2024 (Exhibit No. 2). After reviewing bid documents and checking the bidder’s references, Environmental Construction, Inc. (ECI) was the apparent lowest responsive and responsible bidder with a total bid in the amount of $9,935,503.46.
However, on July 12, 2024, ECI submitted a letter requesting to withdraw their bid due to their oversight of two bid items that they miscalculated which underestimated their bid by at least $348,750 (Exhibit No. 3). After discussions with the Assistant City Attorney, it was concluded that ECI followed the public contract code to legally withdraw their bid without being subject to assessment of any penalty.
The second lowest bidder, PUB Construction Inc., was determined to be responsive and a responsible bidder with a total bid in the amount of $12,757,062.40 (Exhibit No. 4).
The bid results are listed below:
|
No. |
Bidder |
Place of Business |
Validated Bid Amount |
|
1. |
Environmental Construction Inc. |
Woodland Hills, CA |
$9,935,503.46 |
|
2. |
PUB Construction Inc. |
Diamond Bar, CA |
$12,757,062.40 |
It needs to be noted here that PUB Construction Inc.’s bid contained errors in the calculation of its bid amount. While its submitted bid amount was $12,686,864.32, when staff tabulated the subtotals for individual items as submitted by contractor, the actual amount was $13,166,863.52. Moreover, contractor’s bid contained errors in tabulation of the subtotals using unit pricing. Staff rectified all these errors to compute the actual, accurately calculated subtotals, resulting in a total project cost of $12,757,062.40; this is the reason PUB Construction Inc.’s bid as submitted is different from the contract amount. City is permitted to make such adjustments because the bid package states “the City reserves the right to reject any or all bids and to waive any informality or irregularity in any bid received and to be the sole judge of the merits of the respective bids received” and “in case of variations between the unit price and the extended total, the unit price will prevail.”
PUB Construction Inc., is a licensed contractor by the State of California. The bid bond, in the amount of 10% of the total bid, as supplied by PUB Construction Inc., is in order, and was submitted with the bid. The contractor’s references have been checked, and it has been verified that the contractor has completed projects in an acceptable manner.
The approximate timeline of this project is as follows:
Advertise for Construction Bid June 6, 2024
Bid Opening July 8, 2024
Award of Contract September 17, 2024
Contract Execution September 18, 2024
PO Issuance September 23, 2024
Start Construction October 7, 2024
Complete Construction June 2025
The project may experience delay depending on weather conditions and other unknown items and staff may have to adjust the schedule accordingly. Staff requests that the City Council award a construction contract to the lowest responsive and responsible bidder, PUB Construction, Inc., in the amount of $12,757,062.40.
If any unforeseen construction work such as substructure conflicts, lead containing materials removal and disposal, material testing shall arise, resulting in a need to execute change orders, staff will bring the matter to Council and ask for additional funds at that time.
V. FISCAL IMPACT
The total construction bid amount for this improvement project is $12,757,062.40.
The total project cost is included in the FY 2024-2025 CIP budget utilizing CIP-General Fund Account 101-99-999-904-8008.
VI. EXHIBITS
1. Foisia Park Improvements Concept Plan (pg. 4-8)
2. Bid Registry & Bid Results (pg. 9-11)
3. Environmental Construction Inc., Withdrawal Letter (12-13)
4. PUB Construction Bid (pg. 14-47)
5. Contract (pg. 48-88)
Prepared by: Dr. Arlington Rodgers Jr., Public Works Director and Raymond Velasco, PE, Public Works Operations Manager