Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
CONSIDER AWARD OF CONSTRUCTION CONTRACT TO PCN3, INC FOR PROJECT NO. 1726: COMMUNITY CENTER COURTYARD & EAST PARKING LOT (CITY COUNCIL)
Body
I. SUMMARY
Project No. 1726: Community Center Courtyard & East Parking Lot, is listed in the City’s CIP. The Invitation for Bids (IFB) No. 24-10 was advertised in the Daily Journal, and through the PlanetBids portal from June 6, 2024 to July 30, 2024. Three firms submitted bids which were opened by the Purchasing Division Manager in the City Clerk’s office and read aloud on July 30, 2024. The bid submitted by PCN3, Inc. was determined to be the lowest responsive and responsible bidder, with a total bid amount of $9,989,558.13
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AWARD a Construction Contract to the lowest responsive and responsible bidder, PCN3, Inc., Inc. for Project No. 1726: Community Center Courtyard & East Parking Project, in an amount not to exceed $9,989,558.13.
2. AUTHORIZE the Mayor to execute a Construction Contract with PCN3, Inc., following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. REJECT all bids.
2. DO NOT APPROVE the above recommendations. However, staff will not be able to proceed with construction of the project.
3. TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
Project No. 1726: Community Center Courtyard & East Parking Lot, is listed in the City’s CIP. The construction project involves grading a small portion of the landscaped mound for the proposed stage and audience area. The 1,000 square foot stage will be accompanied with an audience area for seating or other event features. To compliment the audience area, a new pergola will be installed adjacent to the audience section, abutting Hall A. As part of this project, the current courtyard outside of Room 107 will be remodeled and its footprint will slightly expand. The newly remodeled courtyard will have a waterfall feature with lighting accents and landscape features. A similar pergola will also be installed abutting Room 107. The entire site will have new lighting, decorative pavement and new landscape layout (Exhibit No. 1).
Included in this project is the reconfigured parking area at the east parking lot of the Carson Event Center. The project will eliminate the landscaped planter portion of the parking lot to allow an open flat area for outdoor events usually held in this section of the Community Center. The elimination of the raised landscaped area will not remove, nor will it reduce any of the parking stalls.
The City released IFB No. 24-10 and the project was advertised on PlanetBids and in Daily Journal for construction bid from June 6, 2024 to July 18, 2024. The bid opening was extended to July 30,2024 to address inquiries by prospective bidders.
Three bids were received and were opened by the Purchasing Division Manager in the City Clerk’s office and read aloud on July 30, 2024. The apparent lowest bidder, Pub Construction Inc., had errors on the summation of their bid. The true calculated bid amount verified by staff is $8,391,467.10 which is $18,854.90 more than the bid amount submitted by Pub Construction Inc. (Exhibit No. 2). On August 2, 2024, Pub Construction Inc., submitted a letter requesting to withdraw its bid (Exhibit No. 3).
Thereafter, PCN3, Inc., was eventually determined to be the lowest responsive and responsible bidder with a total bid in the amount of $9,989,558.13 (Exhibit No. 4).
The bid results are listed below:
No. Bidder Place of Business Bid Amount
1 Pub Construction Inc Diamond Bar, CA $8,372,612.20
2 PCN3, Inc. Los Alamitos, CA $9,989,561.90
3 Legion Contractors Inc. Los Angeles, CA $10,263,040.00
It needs to be noted here that PCN3, Inc.’s bid contained errors in tabulation of the subtotals using unit pricing. Staff rectified these errors to compute the actual, accurately calculated subtotals, resulting in a total project cost of $9,989,558.13; this is the reason PCN3, Inc.’s bid as submitted is different from the contract amount ($3.77 higher than the actual aggregate unit pricing). 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.”
PCN3, Inc is a bonafide contractor licensed by the State of California. The bid bond, in the amount of 10% of the total bid, as supplied by PCN3, 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 similar projects in an acceptable manner.
The approximate timeline of this project is as follows:
Advertise for Construction Bid June 6, 2024
Bid Opening July 30, 2024
Approval of PS&E and Award of Contract September 17, 2024
Contract Execution September 4, 2024
PO Issuance September 9, 2024
Start Construction September 30, 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, PCN3, Inc., in the amount of $9,989,558.13.
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 $9,989,558.13.
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. Concept Plans (pgs. 5)
2. Bid Registry & Bid Results (pgs. 6-8)
3. Letter of Withdrawal of Bids (pg 9)
4. Bid Submittal (pgs. 10-46)
5. Construction Contract (pgs. 47-87)
Prepared by: Dr. Arlington Rodgers Jr., Public Works Director and Raymond Velasco, PE, Public Works Operations Manager