Agenda #: 5.5
Meeting Date: July 18, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AWARD OF CONSTRUCTION CONTRACT TO G&A NELOS
CONSTRUCTION, INC., FOR THE GROUNDWATER DRAINAGE
IMPROVEMENTS PHASE 4 & 5 PROJECT (CIP# PW23401).
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
A. Determine that approving the construction contract for the proposed project is exempt from the California Environmental Quality Act pursuant to Section 15301(c) and 15302 of the CEQA Guidelines; and
B. Approve, and authorize the Mayor to sign, a Contract Agreement with G&A Nelos Construction, Inc. in the amount of $223,788 approving Bid Schedule, plus a contingency amount of $22,378.80, for Contract Change Orders to be approved by the City Manager, for a total authorization amount of $246,166.80.
FINANCIAL IMPACT:
This project is a carry-over from the FY 2022/23 Capital Improvement Program (CIP) and includes available funding resources as follows:
Groundwater Drainage
Improvement Phases 4 & 5
CIP Project #PW23401
FY2022-23
Budget
Appropriation
Expenditure Balance
Measure W Fund $530,000.00 $530,000.00
G&A Nelos Construction, Inc.
Construction Contract $223,788.00 $306,212.00
Construction Contingency (10%) $22,378.80 $283,833.20
Balance $283,833.20
The total contingency amount of $22,378.80 for G&A Nelos Construction, Inc. will only be used in the event of unforeseen circumstances that will warrant a contract change
order.
BACKGROUND:
The Groundwater Drainage Improvements Phase 4 & 5 (includes locations 6 & 7) Project with CIP Project# PW23401 (Project) is part of the multi-phase Citywide Comprehensive Drainage Study recommendation from 2015. The study identified eleven (11) locations in the City that have experienced groundwater discharge onto public sidewalks and/or roads, causing disruptions to vehicular and pedestrian traffic. A priority list was created, along with preferred design scenarios and projected costs for each location. The locations with the most significant impacts on vehicular and pedestrian use were given the highest priorities.
Locations #1 through #5 were completed in previous phases in previous years.
Locations 6 and 7, namely Copley Drive and Moonlake Street, were approved for improvements in the Fiscal Year 2022/23 Capital Improvement Program (CIP). Please refer to Attachment 2 for the Location Maps.
ANALYSIS:
Due to the initial Engineer’s Estimate being lower than the CUPCA threshold, the plans and specifications were approved under the City Engineer’s authority, and the Project was advertised, through an informal bidding process on PlanetBids, on April 5, 2023.
However, both received bids exceeded the original Engineer's Estimate of $145,000, leading to their rejection by staff. The cost increase was, among other things, a significant increase in the unit price of materials and, to a lower extent, labor costs in a relatively short period of time. Following this, plans and specifications were approved at the May 16, 2023, City Council meeting, and the project was subsequently re-advertised through a formal bidding process on PlanetBids. For this procurement process, the engineer's estimate was revised and updated to $268,000, taking into account labor and material shortages. This latest estimate provides a more accurate cost for the Project based on the current market conditions.
Award of Contract for Construction
On May 19, 2023, the City re-advertised the Project on PlanetBids to solicit and receive bids from qualified contractors. By the deadline of June 7, 2023, four (4) bids were received. G&A Nelos Construction, Inc. emerged as the lowest responsible bidder with a Base Bid amount of $223,788.00.
The results for the bids are shown below:
Contractor Base Bid
G&A Nelos Construction, Inc. $223,788.00
GCI Construction, Inc. $278,600.00
Zusser Company, Inc. $326,700.00
CEM Construction $334,100.00
Staff has verified that G&A Nelos Construction, Inc. possesses a valid contractor license and maintains a commendable level of experience with similar projects. The tentative schedule for the Project is outlined below:
Award Construction Contract July 18, 2023
Start of Construction August 2023
Completion of Construction September 2023
Environmental Review
This Project has been determined to be exempt from the California Environmental Quality Act (CEQA) provisions pursuant to the California Code of Regulations, guidelines for the implementation of the CEQA, Section 15301(c) and 15302 (Replacement and Reconstruction).
LEGAL REVIEW:
The City Attorney has reviewed and approved the Agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.5.a Agreement with G&A Nelos Construction, Inc.
2. 5.5.b Location Maps