AGENDA REPORT
Meeting Date: August 2, 2022
Item Number:
To:
D-7
Honorable Mayor & City Council
From: Daren Grilley, Assistant Public Works Director/ City Engineer Kevin Riley, Senior Transportation Engineer
Subject: AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, KDC, INC. FOR PHASE 2 CITY WIDE TRAFFIC SIGNAL
SYSTEM UPGRADE PROJECT WITHIN THE CITY OF BEVERLY
HILLS, CALIFORNIA, IN THE AMOUNT OF $3,057,963; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS THEREFOR;
AND
APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF
$3,363,759 TO KDC, INC. FOR THE PROJECT
Attachments: 1. Agreement with KDC, Inc.
2. Notice of Exemption
3. Elecnor Belco – Request to Withdraw Bid
RECOMMENDATION
Staff recommends City Council move to approve the award of a contract to the lowest responsive and responsible bidder, KDC, Inc., for the Phase 2 City wide Traffic Signal System Upgrade Project in the amount of $3,057,963; and approve the plans and specifications for the project with respect to design criteria; approve a contingency of 10% in the amount of $305,796 and delegate the authority to approve change orders to the Director of Public Works; and approve the issuance of a purchase order to KDC, Inc. in the amount of $3,363,759.
INTRODUCTION
In April 2018, staff developed and issued an RFP for consultant services to conduct an inventory and assist with developing a bidding document to upgrade the City’s traffic signal control systems. The existing signal systems were nearing the end of their useful life, were becoming more difficult to maintain and lacked the ability to support emerging technologies. In May 2018, the City received three (3) proposals and ultimately selected
BEVERLY
HILLS
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Meeting Date: August 2, 2022
The KOA Corporation (KOA) to complete this task. In September 2018, KOA started conducting the inventory and collaborated with staff to develop a needs assessment.
Based on intersection needs, staff completed a bid document in April 2019, which included the plans and specifications for implementing the project in two phases.
Phase 1 of the City wide signal upgrade, which consisted of 41 intersections, was completed in spring of 2022. This Phase 2 installation project will include updated hardware/software upgrades at fifty intersections, CCTV cameras at nine intersections, video detection at eighteen intersections and complete intersection battery backup system to support power outages and hardware/software installation in the Traffic Management Center (TMC) located in the Public Works building. These updated software and hardware features will improve system reliability and the experience for all modes of transportation. The expanded software/hardware features will allow for our City operators to spend less time in the field and operate the system remotely to make on demand adjustments.
DISCUSSION
The plans and specifications for the project, dated May 2022, were prepared by City staff and a Notice to Bidders was published in the Beverly Hills Courier (May 27, 2022), the Beverly Hills Weekly (May 26, 2022) and PlanetBids. On June 16th, 2022, six bids were received through PlanetBids. Bid results were as follows: Elecnor Belco - $2,561,998 (non-responsive) Crosstown Electrical & Data - $2,783,500 (non-responsive) KDC, Inc. - $3,057,963 BES Bear Electrical Solutions - $3,071,900
Comet Electric, Inc. - $3,162,209 (non-responsive) Select Electric, Inc. - $3,185,000 Upon review, the bids from Elecnor Belco, Crosstown Electrical & Data and Comet Electric, Inc. were found to be non-responsive due to exceeding the maximum allowance for the Mobilization line item ($10,000). This information was stated in the bid document as well as communicated to all prospective bidders during the mandatory pre-bid meeting.
Elecnor Belco also provided a letter requesting to withdraw their bid due to an error in their bid tabulation (Attachment 3). KDC, Inc. is the lowest responsive and responsible bidder and has successfully completed several past projects for the City.
ENVIRONMENTAL ASSESSMENT
The 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.). Upon review by Public Works Department staff, the project appears to qualify for a Class 1 Categorical Exemption (Existing Facilities) in accordance with the requirements of Section 15301 (c) of the state CEQA Guidelines. This exemption is applicable to the maintenance or minor alteration of existing public facilities involving negligible or no expansion of existing or former use.
FISCAL IMPACT
A construction contingency allowance in the amount of $305,796 (10%) has been included in the total purchase order amount of $3,363,759. Any change orders that require Meeting Date: August 2, 2022
expenditures from this allowance shall be made only upon written request in accordance with the Beverly Hills Municipal Code §3-3-111 regarding change orders. Funds for this project are available in the Infrastructure Fund 600 and budgeted as part of Capital Improvement Project No. 00210 as follows:
ACCOUNT NUMBER FUND / CIP DESCRIPTION AMOUNT
60007603-850000-00210
Infrastructure Fund /Traffic
Signal Communication
Equipment
$3,363,759
Shana Epstein,
Director of Public Works
Approved by
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 2nd day of August, 2022, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as “City”, and KDC, Inc.
4462 Corporate Center Drive
Los Alamitos, CA 90720-2539
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:
Phase 2 - City Wide Traffic Signal System Upgrade
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Three Million, Fifthy Seven Thousand Nine Hundred & Sixty Three Dollars & Zero Cents ($3,057,963) 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 Clerk
APPROVED AS TO CONTENT:
____________________________________________
GEORGE CHAVEZ, City Manager
____________________________________________
SHARON L’HEUREUX DRESSEL, Risk Manager
____________________________________________
DAREN GRILLEY, Assistant Director of Public Works/
City Engineer
___________________________________________
SHANA EPSTEIN, Director of Public Works
APPROVED AS TO FORM:
____________________________________________
LAURENCE S. WIENER, City Attorney
CITY OF BEVERLY HILLS,
A municipal corporation
____________________________________________
LILI BOSSE, Mayor
CONTRACTOR: KDC, Inc.
____________________________________________
EARNEST LEE BROWN, President/CEO
FUNDS AVAILABLE:
____________________________________________
JEFFREY MUIR, Director of Finance
Attachment 2
Statutory Exemptions. State code number:
_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:
Project Location - City: ______________________ Project Location - County:
Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):
Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:
Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:
1. Attach certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:
Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:
Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011
Attachment 3
14320 Albers Way
Chino, CA 91710
We think about a better world (909) 993-5470 Office
www.elecnorbelco.com (909) 993-5476 Fax
CA License 738518
June 29, 2022
City of Beverly Hills
Department of Public Works – Transportation Division
345 Foothill Rd.
Beverly Hills, CA 90210
Attention: Mr. Kevin Riley, T.E., Transportation Engineer Reference: Phase 2 – Citywide Traffic Signal System Upgrade Project City of Beverly Hills Job NO. 8059, Bid No. 22-350-49
Bid Date June 16, 2022
Subject: Request to Withdraw Bid Proposal
Dear Mr. Riley:
Please consider this as Elecnor Belco Electric’s Request to Withdraw Bid Proposal for the above referenced project as a result of an inadvertent clerical error in our bid proposal. The clerical error has subjected our bid proposal to be materially different than what our firm intended it to be. The error made in completing our bid proposal is not due to error in judgement or carelessness in inspecting the work site or in reading the plans or specifications.
After the bid opening, a review of our bid estimate discovered an error that occurred which resulted in a bid amount that our firm would not be able to support and proceed with. For Bid Item No. 9 (System Integration), our bid coordinator inadvertently inputted a bid item unit price of $36,737.00 instead of $136,757.00. The error resulted in a difference of $100,000.00 that should have been captured and included in our total bid amount. Our estimator reviewed bid estimate and discovered the discrepancy of our inputted unit price and what was in the estimate.
To move forward with our submitted bid will subject our firm in performing the work at additional costs not considered in our bid. Elecnor Belco Electric respectfully requests that our bid proposal be withdrawn from any consideration. Please accept our sincere apologies for any inconvenience this may have caused and appreciate your understanding in this important matter. 14320 Albers Way
Chino, CA 91710
We think about a better world (909) 993-5470 Office
www.elecnorbelco.com (909) 993-5476 Fax
CA License 738518
Should you have any questions or concerns, please do not hesitate to contact me at (909) 993-5470 ext. 254 or via email at [email protected].
Respectfully submitted by,
Elecnor Belco Electric, Inc.
John L. Wong
Vice President
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