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 Columbia Electric, Inc. In An Amount Of $1,399,650.00; Authorizing The City Manager To Approve Payments Of Possible Additional Costs As Contingency Expenditures Up To $140,000, All For The Construction Of The Marina Park and Powell Street Lighting Project, Project No. EPW-22105 (CIP No. 17495012); Appropriating $490,000 From Fund 495 Into CIP No. 17495012 Recommendation
Staff recommends that the City Council adopt the above-entitled resolution.
Background
The Capital Improvement Program (“CIP”) adopted by the City Council in June 2016 included funding for the Marina Park and Powell Street Lighting Project (“Project”), (CIP No. 17495012). The existing lighting system is 45 years old, and the poles and anchor bolts are experiencing rust due to the saltwater bay environment. Several light poles have failed in the past decade and require new foundations for replacement. In addition, many of the pole bases are buried in the topsoil and are not easily accessible.
The Project entails upgrading street light poles and lighting throughout the Marina Park and parking lot areas. The upgrades also include replacement of standard streetlights along Powell Street from Frontage Road to the Marina turnaround.
In order to expedite delivery of CIP projects, staff proposed combining the 40th Street Bridge Railing and Lumec Light Pole Painting Project (CIP No. 15475015 And 15475028) 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 with intent 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 November 14, 2022 and four responsive bids were received.
Construction Bids:
On December 7, 2022, the following responsive bids for the project were received:
Columbia Electric, Inc. $ 944,250.00
Ray’s Electric $ 1,111,404.00
St Francis Electric, LLC $ 1,243,300.00
Bay Area Lightworks, Inc. $ 1,291,000.00
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 $1,399,650.00. The combined base bid and add alternative items cost in the proposal from Columbia Electric, Inc. was still the lowest combined total from all four proposals. The bids received are in line with other bids received at other nearby agencies with recent lighting projects.
Staff recommends that the City Council authorize the City Manager to enter into a Construction Contract with Columbia Electric, Inc. of San Leandro, CA, who submitted the lowest responsible base bid in the amount of $944,250.00. In addition, staff recommends to include all add alternative bid items which will bring the total contract amount to be $1,399,650.00. The amount of the proposed contract with Columbia Electric, Inc. is 1.8% less than the Engineer’s Estimate of $1,425,000.
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 $140,000, 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
17495012
495 – Marina Fund
$ 1,050,000
New Funds
Unallocated
495 – Marina Fund
$ 490,000
Staff recommends appropriating $490,000.00 from the Marina Fund (Fund 495) in order to fund the construction contract for this project 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 $1,540,000. With the new appropriation, there will be adequate funding encumbered into the Project as shown above to fully fund the construction of the Marina Park and Powell Street Lighting Project (CIP No. 17495012).
Staff Communication with the Public
Staff communicated with numerous contractors leading up to the December 7, 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 – Marina Park and Powell Lighting Project City Council Meeting | January 17, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM