REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:December 10, 2024
Subject: Public Works Construction Agreement for Endresen Development Inc. Bid Set ‘E’ and ‘F’ Cement Plaster and Exterior Brick Walls on the New City Hall Project (CIP Project #Z20006)
Recommendation
Approve and authorize the City Manager to execute a Public Works Construction Agreement with Endresen Development Inc. in an amount not to exceed $960,000.00 for Bid set ‘E’ and ‘F’ Cement Plaster and Exterior Brick Walls on the new City Hall Project (CIP Project #Z20006) in such final form as approved by the City Attorney.
Background
On September 10, 2024, the City posted on PlanetBids the notice inviting bids for the City Hall, Bid Set ‘E’ and ‘F,’ Cement Plaster and Exterior Brick Walls. During the open bid time frame, seven prospective contractors reviewed the bid document; however, on the bid date deadline of October 9, 2024, no bids were submitted. Although several of the prospective bidders were contractors that have provided bids and were awarded contracts with the City in the past, it was determined through discussions with them that these contractors are currently heavily committed and unable to take on additional work of this scale.
City Hall Cement Plaster and Exterior Brick Walls
Discussion
Following these efforts to receive competitive bidding, the City engaged and negotiated an agreement amount to satisfy all of the requirements in Bid Set ‘E’ and ‘F’’, Cement Plaster and Exterior Brick Walls on the new City Hall Project (CIP Project #Z20006). If no bids are received, the California Contract Code Chapter 22038 provides exceptions to notices inviting bids. Stated, “If no bids are received through the formal or informal procedure, the project may be performed by the employees of the public agency by force account or negotiated contract without further complying with this contract code article.” Therefore, the City has negotiated a change order for the entire scope. This negotiated amount is well within the designed architectural anticipated cost and stucco, as well as masonry standards for comparable work.
In this negotiated agreement, all the scope of work elements in the notice inviting bid, Bid Set ‘E’ and ‘F,’ Cement Plaster and Exterior Brick Walls, are sustained. The Lake Elsinore City Hall Complete Bid Set ‘E’ and ‘F’, Cement Plaster, and Exterior Brick Walls is available upon request.
Due to its large size, it will not be attached. It is further understood that the Contractor, Endresen Development Inc., will provide a fully bonded (Labor, Material, and Performance bonds) agreement from a California-admitted surety for the additional scope of work.
Fiscal Impact
The City Hall Project (CIP Project Z20006) is included in the Fiscal Year 24/25 – 28/29 Capital Improvement Plan (CIP) budget.
Attachments
Attachment 1 - Agreement
Exhibit A - Negotiated Proposal Dated November 7, 2024
City Manager’s Office