AGENDA REPORT
Meeting Date: December 6, 2022
Item Number: e-8
To: Honorable Mayor & City Council
From: Daren Grilley, City Engineer
Manu Dhaliwal, Associate Project Manager
Subject: ALLOW THE WITHDRAWAL OF THE LOWEST BIDDER DUE TO A CLERICAL ERROR UNDER PUBLIC CONTRACT CODE 5103;
AND
AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, ENVIRONMENTAL CONSTRUCTION, INC., FOR THE
ROBERTSON BOULEVARD SIDEWALK IMPROVEMENTS
PROJECT, IN THE AMOUNT OF $7,050,294.00; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS
THEREFOR WITH RESPECT TO DESIGN CRITERIA; AND
APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF
$7,755,323.40, (INCLUDING A 10% CONTINGENCY) TO
ENVIRONMENTAL CONSTRUCTION, INC. FOR THE PROJECT;
AND
MAKE A DETERMINATION OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Attachments: 1. Agreement with Environmental Construction, Inc.
2. Categorical Exemption
RECOMMENDATION
Staff recommends City Council move to allow the withdrawal of the apparent lowest bidder due to clerical error under Public Contract Code 5103; approve the award of a contract of the base bid plus the add alternate item AA1 to the lowest responsible bidder.
Environmental Construction, Inc. for the sidewalk improvements on Robertson Boulevard
Meeting Date: December 6, 2022
in the amount of $7,050,294.00; approve the plans and specifications for the project with respect to design criteria; approve a construction contingency of 10% in the amount of $705,029.40; approve the issuance of a purchase order to Environmental Construction, Inc. in the amount of $7,755,323.40 and pursuant to the provisions of the California Environmental Quality Act (CEQA), City Council will also consider finding the project exempt from further review under CEQA.
INTRODUCTION
This report is a request for City Council approval to award a contract to the lowest responsible bidder for the Robertson Boulevard Sidewalk Improvements project.
DISCUSSION
Robertson Boulevard is one of the City's major commercial corridors with a large number of thriving businesses and relatively high pedestrian traffic. The existing sidewalk has a high frequency of repair needs due to the trees located adjacent to the sidewalk. The Robertson Sidewalk Improvements project will address existing and future sidewalk issues by replacing the existing sidewalk, inspecting and removing any trees deemed necessary by the City Arborist, installing lighting and outlets for holiday decor lighting, installing irrigation for the new trees and the installation of storm water capture devices to screen pollutants and replenish the groundwater table after storm events. New trees will be planted by the City Arborist's contractor. In addition, one block of Robertson has completed the property owner-initiated tree replacement process with approval by the Public Works Commission. Staff will be in constant contact with businesses to mitigate construction impacts as much as possible.
The Robertson Boulevard Sidewalk Improvement project originally opened bids on August 29, 2022, with three bids received ranging from $7,183,410 to $9,162,000. Due to significantly higher costs for many bid items than previous projects in the City and surrounding agencies, staff recommended rejecting all bids and rebidding the project. City Council rejected the bids on September 12, 2022.
On October 14, 2022, a Notice Inviting Bids was published on the City's PlanetBids page.
Nine contractors downloaded the project construction documents as prime contractors.
On November 07, 2022, three bids were received and opened as follows:
Gentry General Engineering, Inc. $3,931,141
Environmental Construction, Inc. $6,265,056
Toro Enterprises, Inc. $6,432,755
The above bid amounts were tabulated using unit prices for the base bid, which take precedence over the submitted total bid amounts. All documents submitted by these bidders were in order. Contract award amount is based off the base bid plus add alternate price.
The evening of the bid opening staff received a notice of clerical error from Gentry General Engineering, Inc. requesting the withdrawal of their bid per Public Contract Code Section 5103. Gentry General Engineering made an omission error when filling the bid forms on a lump sum item entering $176,000 instead of $1,176,000. After reviewing a breakdown of the line item costs in question, staff agrees the clerical error is legitimate and is
Meeting Date: December 6, 2022
requesting City Council allow the withdrawal of the bid from Gentry General Engineering, Inc.
The second lowest bidder, Environmental Construction, Inc. of Woodland Hills, CA, is a registered contractor in good standing. Staff recommends that the second lowest bid be accepted and a contract awarded to the lowest responsible bidder Environmental Construction, Inc.
ENVIRONMENTAL ASSESSMENT
The Project has been assessed In accordance with the authority and criteria contained in the Caiifornia Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines[1] (California Code of Regulations, Title 14, Section 15000 et seq.), and the environmental regulations of the City. 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 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.
Therefore, it is recommended that City Council find the Project exempt from further review under the provisions of CEQA.
FISCAL IMPACT
A construction contingency allowance in the amount of $705,029.40 has been included in the total purchase order amount of $7,755,323.40. Any change orders that require 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 budgeted in Fiscal Year 2022/23 Capital Improvement Program and are provided as follows:
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
60005901-850000-00946 Sidewalk Repairs - Street Tree Replacement $2,893,561 60005901-850000-00945 Street Tree Irrigation $628,000
60012402-850000-00195 Street and /Vlley Improvements $4,233,762.40 TOTALS $7,755,323.40
Shana Epstein,
Director of Public Works
Approved By
The CEQA Guidelines and Statute are available online at http://ceres.ca.aov/ceQa/ouidelines
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this M day of December 2022. by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as "City", and Environmental Construction, Inc.
21550 Oxnard St., Suite 1060
Woodland Hills, CA 91367
hereinafter referred to as "Contractor";
WITNESSETH
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:
ROBERTSON BOULEVARD SIDEWALK IMPROVEMENTS
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Seven Million FKIy Thousand Two Hundred Ninety-four Dollars (7,050,294.00) 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: CITY OF BEVERLY HILLS,
A municipal corporation
Huma Ahmed, City Clerk
APPROVED AS TO CONTENT:
LILI BOSSE, Mayor
CONTRACTOR:
GEORGE CHAVEZ, City Manager
SHARON L'HEUREUX DRESSEL, Risk Manager
SHANA EPSTEIN, Director of Public Works
APPROVED AS TO FORM:
FUNDS AVAILABLE:
LAURENCE S. WIENER, City Attorney
JEFF S. MUIR, Director of Finance
Attachment 2
CITY OF BEVERLY HILLS
COMMUNITY DEVELOPMENT DEPARTMENT- PLANNING DIVISION
455 North Rexford Drive
Beverly Hills, OA 90210-4817
(310) 285-1123
FAX; (310) 858-5966
BeverlyHills.org
Notice of Exemption
Name of Project: Robertson Boulevard Sidewalk Improvements Location: City of Beverly Hills - Los Anoeles County
Type of Business (if commercial): N/A
Project Description: This project invoiyes the removal and replacement of sidewalk, curb & gutter, installation of irrigation and removal of street trees that are impacting the adjacent Infrastructure on Robertson Boulevard within the existing right-of-way.
Agency Approving Project: City of Beverly Hills Phone: 310-285-1000 Address: 455 N Rexford Drive
City: Beverly Hills Zip: 90210
Person or Agency Carrying Out Project (If different):
Agent's Name: Same - City of Beverly Hills Phone
Agent's Address
City Zip
The City Council reviewed the project and concluded that it qualifies for exemption under the State CEQA Guidelines and no further environmental assessment is necessary.
Applicable Exemption Class: CEQA Guidelines Sections 15301(a) Comments: The project includes the repair of existing public structures - in this case, sidewalk, curb and gutter - involving neQiiaible or no expansion of use.
Reviewed by: Date:
Manu Dhallwal, Associate Project Manager