AGENDA REPORT
Meeting Date: November 21, 2023
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Samer Elayyan, Engineering Services Manager
Subject: AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, R2BUILD, FOR THE CONSTRUCTION OF THREE
RESERVOIR MANAGEMENT SYSTEMS IN COLDWATER,
SUNSET, AND GREYSTONE RESERVOIR SITES WITHIN THE
CITY OF BEVERLY HILLS, CALIFORNIA, IN THE AMOUNT OF
$3,960,000; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA; AND
APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF
$4,356,000 (INCLUDING A 10% CONTINGENCY) TO R2BUILD FOR THE PROJECT; 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
Attachments: 1. Agreement with R2BUILD
2. Categorical Exemption
RECOMMENDATION
Staff recommends City Council:
Approve the award of a contract to the lowest responsible bidder, R2BUILD, for the construction of three reservoir management systems in the three largest water reservoirs (Coldwater, Sunset and Greystone) in the amount of $3,960,000; approve the plans and specifications for the project with respect to design criteria; approve a construction contingency of 10% (for a total not to exceed amount of $4,356,000); approve the issuance of a purchase order to R2BUILD in the amount of $4,356,000; and, pursuant to the Meeting Date: November 21, 2023
provisions of the California Environmental Quality Act (CEQA), City Council will also consider finding the project exempt from further review under CEQA.
INTRODUCTION
The purpose of this project is to retrofit the three largest drinking water storage reservoirs (Coldwater, Sunset, and Greystone) that have a total storage capacity of 33.7 MillionGallons (MG) with Reservoir Management Systems (RMSs) to increase emergency storage and enhance reliability. Currently, to maintain excellent water quality, the City cycles the volume of storage in its distribution system reservoirs from approximately 35% to full once every one to two weeks. The proposed RMSs can maintain excellent water quality with a lower volume of cycling (60% to full), thus adding 25% of water storage (8.45 MG) to the City’s available emergency storage as described below.
DISCUSSION
On September 18, 2023, a Notice to Bidders was published on the City’s web portal PlanetBids (planetbids.com) and published in the Beverly Hills Weekly and the Beverly Hills Courier. A mandatory pre-bid meeting was also conducted on September 26, 2023.
On November 6, 2023, two (2) bids were received, and the bid results were as follows:
Bidder Bid Total
R2BUILD $3,960,000
Zusser Company, Inc. $4,466,700
Staff tabulated and analyzed all bids and determined that R2BUILD was a responsible bidder and a very qualified contractor based on similar projects it constructed for other agencies. Staff recommends the contract be awarded to R2BUILD for the Three Reservoir Management Systems Project (Attachment 1).
ENVIRONMENTAL ASSESSMENT
The proposed 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. Upon review, 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 operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. This includes existing facilities of publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. The proposed project will upgrade the mixing system of three existing water reservoirs, which will be located within the footprint of the existing public facility. Therefore, the project would be consistent with this exemption. A Notice of Exemption is attached to this report (Attachment 2).
Meeting Date: November 21, 2023
FISCAL IMPACT
Funds for these contracts are available in the Capital Improvement Budget in CIP No. 00972.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 21st day of November 2023, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as “City”, and R2BUILD
23441 S. Pointe Dr. Suite 280
Laguna Hills, CA 92653
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:
CONSTRUCTION OF THREE RESERVOIR MANAGEMENT SYSTEMS IN COLDWATER, SUNSET, AND GREYSTONE RESERVOIR SITES WITHIN
THE CITY OF BEVERLY HILLS, CALIFORNIA
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Three Million Nine Hundred Sixty Thousand Dollars and Zero Cents ($3,960,000.00) 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 Clerk
CITY OF BEVERLY HILLS,
A municipal corporation
____________________________________________
JULIAN A. GOLD, M.D., Mayor
APPROVED AS TO CONTENT:
____________________________________________
NANCY HUNT-COFFEY, City Manager
CONTRACTOR:
____________________________________________
____________________________________________
SHARON L’HEUREUX DRESSEL, Risk Manager
____________________________________________
____________________________________________
SHANA E. EPSTEIN, Director of Public Works
____________________________________________
DAREN GRILLEY, Assistant Director of Public Works/
City Engineer
APPROVED AS TO FORM:
____________________________________________
LAURENCE S. WIENER, City Attorney
FUNDS AVAILABLE:
____________________________________________
JEFF S. MUIR, Director of Finance
Attachment 2
CITY OF BEVERLY HILLS
Department of Public Works and Transportation
345 North Foothill Road
Beverly Hills, CA 90210-4817
(310) 285-2524
FAX: (310) 278-1838
BeverlyHills.org
Notice of Exemption
Name of Project: Construction of Three Reservoir Management Systems in Coldwater, Sunset, And Greystone Reservoir Sites
Location: City of Beverly Hills – Los Angeles County
Type of Business (if commercial): N/A
Project Description: The project scope includes the construction of three reservoir management systems in the three largest water reservoirs (Coldwater, Sunset and Greystone).
Agency Approving Project: City of Beverly Hills
Phone: 310-285-2524
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 Section 15301 Comments:
The project is exempt from CEQA because it includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
Reviewed by: Samer Elayyan Date: 11/15/2023
Samer Elayyan, Engineering Services Manager