DATE:
January 17, 2023
TO:
Adam Politzer, Interim City Manager
FROM:
Mohamed Alaoui, Public Works Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Enter Into A Contract With Euro Style Management In An Amount Of $1,658,878.00; Authorizing The City Manager To Approve Payments Of Possible Additional Costs As Contingency Expenditures Up To $165,000, All For The Construction Of The 40th Street Bridge Railing And Lumec Light Pole Painting Project, Project No. EPW-20103 (CIP No. 15475015 And 15475028); Appropriating And Transferring $844,038 From The General Fund 101 Into Fund 475 For CIP No. 15475015 Recommendation
Staff recommends that the City Council adopt the above-entitled resolution.
Background
On December 21, 2021, the City Council approved a scope of work and authorized the City Engineer to advertise for public bids for the 40th Street Bridge Railing and Lumec Light Pole Painting Project, EPW-20103 (“Project”), (CIP No. 15475015 And 15475028). The scope of work for this project generally included, but was not limited to, the preparation and repainting of all designated metal surfaces of Lumec light poles and bridge railings and repairing light fixtures on the 40th Street Bridge.
In order to expedite delivery, staff proposed combining the Marina Park and Powell Street Lighting Project (CIP No. 17495012) with the Project’s scope of work. Cost savings were expected to be realized in managing the combined projects, mobilizing the Contractor, and other discounts due to economies of scale related to items on the combined scope of work. On March 1, 2022, the City Council approved a scope of work and authorized the City Engineer to advertise for public bids for the combined projects.
On June 28, 2022, three bids were received for the combined projects with the lowest responsive bid being 91.6% greater than the engineer’s estimate. On July 19, 2022, the City Council rejected all bids and approved the revised scope of work to separate the projects back into their original scope (Resolution No. 22-105).
Discussion
Staff re-compiled the original bid package to be clearer and to create plans with more balanced bid items in order to receive less mark-up in the bids. The bid items were also split into base bid items and add alternative items in order to facilitate a scenario where a project could still be funded if higher than expected bids were received again.
The Project was re-advertised on October 26, 2022 and three responsive bids were received.
Construction Bids:
On November 17, 2022, the following proposals for the project was received:
Euro Style Management $ 627,428.00
Color New Company $ 913,758.00
OnPoint Construction $ 1,050,335.00
Staff recommends that it is in the City’s best interest to move forward with this contract including the add alternative bid items. The total contract cost with add alternative bid items is $1,658,878.00. The combined base bid and add alternative items cost in the proposal from Euro Style Management was still the lowest combined total from all three proposals. The bids received are in line with other bids received at other nearby agencies with recent painting projects.
Staff recommends that the City Council authorize the City Manager to enter into a Construction Contract with Euro Style Management of Sacramento, CA, who submitted the lowest responsible base bid in the amount of $627,428.00. In addition, staff recommends that all add alternative bid items be included which will bring the total contract amount to be $1,658,878.00. The amount of the proposed contract with Euro Style Management is 11% less than the Engineer’s Estimate of $1,870,000.
It is reasonable to also consider contingencies to address matters that cannot be known until construction is underway. Staff recommends that the City Council grant the City Manager a Contingency Amount for possible additional costs up to $165,000, considering the change order items that arise during these type of construction projects.
Fiscal Impact
Funding summary for this Project is shown below:
Project No.
Fund
Current Balance
Existing Funds
15475015
475 – Gen Cap
$818,804
15475028
475 – Gen Cap
$161,036
New Funds
Unallocated
101 - General Fund
$844,038
Staff recommends appropriating $844,038.00 from the General Fund 101 and transferring into Fund 475 for the Project in order to fund the construction contract as well as potential contingency expenditures.
With the funds identified above, there is sufficient funding available to cover the Construction Contract and Contingencies which total $1,823,878. With the new appropriation, there will be adequate funding encumbered into the Project as shown above to fully fund the construction of the 40th Street Bridge Railing and Lumec Light Pole Painting Project, (CIP No. 15475015 And 15475028).
Staff Communication with the Public
Staff communicated with numerous contractors leading up to the November 17, 2022, public bid opening.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council adopt the above-entitled resolution.
PREPARED BY: Ryan O’Connell, Senior Civil Engineer
Approved and Forwarded to the
City Council of the City of Emeryville:
Adam Politzer, Interim City Manager
Attachments
Draft Resolution
Construction Contract
Contract Award – 40th St Bridge and Lumec Pole Painting Project City Council Meeting | January 17, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM