TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Len Gorecki, Assistant City Manager/Director of Public Works Bernardo Iniguez, Public Works Manager
SUBJECT: Consideration and possible action to waive a minor irregularity and award a contract to JR Universal Construction, Inc. for the Public Works Yard Office Renovation (Specifications No. 22/23-02); and authorize the City Manager to execute a contract with JR Universal Construction, Inc., in a form approved by the City Attorney.
DATE: November 14, 2022
EXECUTIVE SUMMARY
This action would award a contract to JR Universal Construction, Inc. (JR Universal), to perform the work described in the Plans and Specification documents for the Public Works Yard Office Renovation (the Project).
RECOMMENDATION TO CITY COUNCIL
1) Waive a minor irregularity as to JR Universal’s listed price for Bid Item No.1 and award a contract to JR Universal for the Project and authorize the City Manager to execute a contract with JR Universal, in a form approved by the City Attorney; and
2) Authorize a budget amendment to establish $200,000 project funding in Account No. 022-47260-9000 (Public Facilities Fund) and reduce the funding in Account No. 013-47260-9000 by $200,000 (DOT Highway Relinquishment Fund); or
3) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
JR Universal submitted the lowest responsive bid in the amount of $2,007,711. The Engineer’s estimated cost plus contingency to perform the work was $1,700,000.
Sufficient funds are available in Account Nos. 013-47260-9000 (DOT Highway Relinquishment Fund), 011-47260-9000 (General Capital Projects Fund), and 022- 47260-9000 (Public Facilities Fund).
DISCUSSION
In 2002, the City purchased a modular office unit to serve as the offices for Public Works management staff. Since that time, Public Works has added administrative staff while office space has remained the same. As part of our ongoing efforts to improve the management and delivery of City services, on January 14, 2016, the City entered into an agreement with architect Pretty Smart to prepare the plans and specifications for the construction of offices at the Maintenance Yard.
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Staff Report – Award of Contract – Spec. No. 22/23-02
November 14, 2022
DISCUSSION – Continued
On July 11, 2022, the City Council adopted Resolution No. 22-38 authorizing solicitation of bids. The City advertised Specifications No. 22/23-02 for bids in accordance with BMC Section 3.28.090. Five bids were submitted at the formal bid opening on October 20, 2022. The names of those bidders and their bid amounts are listed below:
BIDDER BID PRICE
JR Universal Construction, Inc. $2,007,711
AP Construction Group, Inc. $2,070,000
Acro Constructors $2,137,380
MCEC, Inc. $2,330,000
MLC Constructors, Inc. $2,343,756
BID ANALYSIS
JR Universal submitted a complete bid package. Staff has verified its contractor’s license status, references, and registration with the Department of Industrial Relations.
JR Universal is qualified to perform the work described and has fulfilled the requirements set forth in the Specification documents. Following staff’s calculations of the individual bid items, it was discovered that JR Universal’s bid contained a minor irregularity since their total bid price did not add up to their total written price on their bid. On October 20, 2022, JR Universal confirmed that it had made a mathematical error on the price for Bid Item No. 1, but that its overall total bid price was still accurate.
JR Universal’s listed amount for Bid Item No. 1 was $396,575.43, but the correct amount should have been $386,674.98. Public Works staff recommends that the City Council waive this mathematical error as a minor bid irregularity since it does not impact the total bid price. Staff concludes JR Universal is the lowest responsive and responsible bidder and recommends that the City Council award a contract to JR Universal.
SPECIFICATIONS
The Plans and Specification documents are available for public inspection at the Public Works Department Office, 9944 Flora Vista Street, Bellflower, California until completion of the Project and, subsequently, as official records, will be maintained by the City Clerk’s Office.
ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code §§ 21000, et seq.) and CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000, et seq.), the City conducted an environmental assessment. Based on the environmental assessment, the project was determined to be categorically exempt pursuant to CEQA Guidelines § 15303 (Class 1 – Existing Facilities). -2-