AGENDA REPORT
Meeting Date: April 12, 2022
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, City Engineer
Manu Dhaliwal, Associate Project Manager
Subject: AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, PALP, INC. DBA EXCEL PAVING COMPANY, FOR THE
ON-CALL PAVEMENT REPAIRS PROJECT, IN THE AMOUNT OF
$1,377,600 OVER A BASE ONE (1) YEAR CONTRACT TERM, AND
IF EXTENDED FOR TWO (2) ADDITIONAL ONE-YEAR RENEWAL
TERMS, IN THE TOTAL AMOUNT TO BE DETERMINED
THROUGH FUTURE CITY COUNCIL BUDGETARY PROCESS
FOR THREE YEARS; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA; AND
APPROVAL OF ISSUANCE OF A PURCHASE ORDER IN THE
AMOUNT OF $1,515,360 TO PALP, INC. DBA EXCEL PAVING
COMPANY FOR THE PROJECT OVER THE BASE ONE (1) YEAR
CONTRACT TERMS
Attachments: 1. Agreement
2. Categorical Exemption
RECOMMENDATION
Staff recommends City Council move to approve the award of a contract to the lowest responsible bidder, PALP, Inc. DBA Excel Paving Company for on-call pavement repair services in the amount of $1,377,600 over a base one (1) year contract term, and if extended for two (2) additional one-year renewal terms, in the total amount to be determined through future City Council budgetary process for three years of the contract upon successful performance by the Contractor; approve the plans and specifications therefor with respect to design criteria; approve a construction contingency of 10% in the amount of $137,760; and approve the issuance of a purchase order to PALP, Inc. DBA •
BEVERLY
HILLS
.�
D-18
Meeting Date: April 12, 2022
Excel Paving Company in the amount of $1,515,360 for the project over the base one (1) year contract term.
INTRODUCTION
The City operates and maintains water utility infrastructure throughout the City and in portions of West Hollywood. Ongoing maintenance and repair of the utility infrastructure requires the periodic removal of small areas of street pavement and sidewalks in the public right-of-way in order to access the utilities. Upon completion of the maintenance/repair work, temporary restoration of paving is installed by City maintenance staff. This project will provide for permanent pavement restoration at various locations where utility maintenance was performed. The City currently has a backlog of locations in need of permanent repairs.
DISCUSSION
During the course of repairing or upgrading the City’s water system, it is necessary to cut and trench streets and/or sidewalks. City crews make temporary patches, but permanent repairs of the asphalt pavement and concrete are beyond current staffing level capacity. This project will repair street and sidewalk infrastructure related to water system work within the City’s water service area. Of the current known locations needing repair, approximately 58% of the project is located in the City of West Hollywood and 42% in the City of Beverly Hills.
City Council originally awarded this project to Minako America Corporation, DBA Minco Construction on September 14, 2021. Prior to the start of work, staff received notification of Minco Construction’s disbarment by the State of California and as a result, Minco Construction could not perform the contract work. City Council approved the termination of the contract with Minako America Corporation, DBA Minco Construction on March 1, 2022.
A Notice Inviting Bids was published on Planetbids on March 17, 2022, in the BH Courier on March 25, 2022, and in the BH Weekly on March 31, 2022. On April 04, 2022, two (2) bids were received and opened as follows:
Contractor Bid Prices for one (1) year
contract term
PALP, Inc. DBA Excel Paving
Company
$ 1,377,600.00
Hardy & Harper Inc. $ 1,449,300.00
The Engineer’s Estimate was $950,000 for the base one (1) year contract term. Staff reviewed the bid proposals received and determined all documents submitted by these bidders were complete and complied with the bid proposal requirements. The above bid amounts were tabulated based on the bid proposals received and the lowest responsible bidder is PALP, Inc. DBA Excel Paving Company with a bid of $1,377,600.
Staff recommends the project be awarded to PALP, Inc. DBA Excel Paving Company in the amount of $1,377,600 over a base one (1) year contract term. Staff also recommends a 10% contingency allowance in the amount of $137,760.00 (for a total Meeting Date: April 12, 2022
authorization of $1,515,360.00 over the one year) to address potential extraordinary emergency or force majeure conditions during the life of the contract.
Based upon successful contractor performance in the most current contract period, the contract includes the option to renew for two (2) additional one-year terms. If the contract is extended beyond the first year, the contract cost of services may be increased by a maximum of 3% for the second and third years. The actual amount would depend upon future funding approved by City Council for water-related pavement repairs in CIP 00195, Street and Sidewalk Improvements, Water Enterprise Fund.
If the Contractor satisfactorily performs the required services to support the Public Works Department during the base one (1) year contract period, staff recommends the contract be extended up to two (2) additional one-year terms with PALP, Inc. DBA Excel Paving Company per unit prices with a maximum 3% cost of services increase specified therein in an amount to be determined through future City Council budgetary process for the second (2nd) year and the third (3
rd) year of the contract.
ENVIRONMENTAL ASSESSMENT
This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.) and the environmental regulations of the City. Pursuant to Section 15301(b)(c) (Existing facilities) of the CEQA guidelines, the project would be exempt from CEQA because it would involve ongoing repair and maintenance of existing facilities involving no expansion of use. Therefore, it is recommended that City Council find the Project exempt from further review under the provisions of CEQA.
FISCAL IMPACT
The proposed project budget summary table is below. A construction contingency allowance in the amount of $137,760 has been included in the purchase order total amount of $1,515,360 for the base one (1) year contract term. If extended by the City Manager or his designee for two additional years, the total purchase order amount shall be determined through future City Council budgetary process. Project Budget Summary Table Contract Terms Base 1-Years
(FY21/22)
Optional
Year 2
(FY22/23)
Optional
Year 3
(FY23-24)
Total
Years 1 to 3
Not-To-Exceed
Contract Value $1,377,600 $ TBD $ TBD $ TBD
Maximum 10%
Contingency $137,760 $ TBD $ TBD $ TBD
Maximum Purchase
Order Amount $1,515,360 $ TBD $ TBD $ TBD
Meeting Date: April 12, 2022
Funds for this project are budgeted in Fiscal Year 2021/22 Capital Improvement Program (CIP Project No. 00195 – Street and Sidewalk Improvements, Water Enterprise Fund) as follows:
Shana Epstein, Director of Public Works
Approved By
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
80006003-850000-00195 Water Enterprise $ 1,515,360
TOTALS $ 1,515,360
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 12 day of April, 2022, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as “City,” and PALP, INC. DBA EXCEL PAVING COMPANY
2230 Lemon Ave
Long Beach, CA 90606
hereinafter referred to as “Contractor”;
W I T N E S S E T H
In this consideration of their covenants the parties hereto agree as follows:
1. Contractor shall furnish all labor, materials and equipment necessary to perform the following work in the City of Beverly Hills, California, strictly in accordance with the Notice to Bidders, Proposal form, Plans and Specifications for such improvement, Standard Contractual Requirements and inclusive of Addendums, each of which documents are made a part of this Contract as though fully set forth herein:
ON-CALL PAVEMENT REPAIRS
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of One Million Three Hundred Seventy Seven Thousand Six Hundred Dollars and Zero Cents ($1,377,600.00) in the manner provided in subject Plans and Specifications and subject to adjustment provided therein.
3. Concurrently with the execution of this Contract, Contractor shall file with the City the bonds and certificates of insurance specified in said Standard Contractual Requirements.
4. This Contract shall not be assigned without the written permission of the City Council.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written.
ATTEST: ____________________________________________ HUMA AHMED, City ClerkCITY OF BEVERLY HILLS, A municipal corporation
____________________________________________
LILI BOSSE, Mayor
APPROVED AS TO CONTENT: ____________________________________________ GEORGE CHAVEZ, City ManagerCONTRACTOR: ____________________________________________ ____________________________________________ SHARON L’HEUREUX DRESSEL, Risk Manager ____________________________________________ ____________________________________________ SHANA EPSTEIN, Director of Public Works APPROVED AS TO FORM: ____________________________________________ LAURENCE S. WIENER, City Attorney
FUNDS AVAILABLE: ____________________________________________ JEFFREY MUIR, Director of Finance
Attachment 2
ATTACHMENT 2
CITY OF BEVERLY HILLS
COMMUNITY DEVELOPMENT DEPARTMENT- PLANNING DIVISION
455 North Rexford Drive
Beverly Hills, CA 90210-4817
(310) 285-1123
FAX: (310) 858-5966
BeverlyHills.org
Categorical Exemption
Name of Project: On-Call Pavement Repairs
Location: Within the Cities of Beverly Hills and West Hollywood Type of Business (if commercial)
Project Description: This project includes pavement repairs related to the BH Water Utility in the Cities of West Hollywood and Beverly Hills. Applicant’s Name: City of Beverly Hills Phone: 310-285-1000 Applicant’s Address: 455 N Rexford Drive
City: Beverly Hills Zip: 90210
If different, provide:
Agent’s Name Phone
Agent’s Address
City Zip
The undersigned, having received this project for processing, has reviewed it for environmental impact and concluded that the project qualifies for a categorical exemption under the procedures adopted by the City of Beverly Hills and no further environmental assessment is necessary.
Applicable Exemption Class
Comments:
Reviewed by Date