Agenda Item
City Council
Item #: 3.14. 12/12/2023 File #: 23-0756
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Rejection of all bids for Community Development Block Grant El Modena Basin Public Restroom Improvement Project; adoption of a resolution authorizing the use of City employees to perform site preparation and installation as needed for the Project; and authorization to purchase the restroom building from Public Restroom Company. Resolution No. 11509.
2. SUMMARY
Bids for the Community Development Block Grant El Modena Basin Public Restroom Improvement Project were received and opened on November 16, 2023. Two bidders responded to the notice inviting bids. Since the bid from the apparent low bidder is higher than the budgeted amount, staff recommends rejecting all bids, and based on its determination that the work can be performed more economically using City employees, for the City Council to adopt a resolution authorizing City employees to perform site preparation and installation as needed, and the purchase of the restroom building with a cooperative purchasing contract, as permitted by State law and Orange Municipal Code and policies.
3. RECOMMENDED ACTION
1. Reject all bids received for Bid No. 23-24.15 (SP-4257); Community Development Block Grant El Modena Basin Public Restroom Improvement Project (“Project”).
2. Adopt Resolution No. 11509. A Resolution of the City Council of the City of Orange Making a Declaration Pursuant to the Uniform Public Contracting Cost Accounting Act (Public Contract Code Section 22038) and Orange Municipal Code Section 3.08.550 that the El Modena Basin Public Restroom Improvement Project can be performed more economically by City Employees and further declaring pursuant to the Local Agency Public Construction Act (Public Contract Code Section 20167) that the materials may be furnished at a lower price in the open market.
3. Approve the purchase of the restroom building from Public Restroom Company under Sourcewell Contract # 081721-PRM.
4. FISCAL IMPACT
The total project expenditure is estimated to be $275,407 representing the purchase of a restroom building from Public Restroom Company in the amount of $155,407, plus City’s estimated cost $120,000 to perform site preparation and installation as needed. This project will be funded by the Community Development Block Grant (310), the El Modena Basin Restroom Improvement Project City of Orange Printed on 12/7/2023Page 1 of 2
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Item #: 3.14. 12/12/2023 File #: 23-0756
(30226), account # 310.5028.56015.30226. This was included in the FY24 adopted budget.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
The City Council previously approved advertisement for bids on October 10, 2023. The bid solicitation was advertised on October 12, 2023, for a period of five weeks and bids were opened on November 16, 2023. Two bids were received as follows:
1. HZS Engineering Inc., Orange, CA $367,730
2. Lucas Builders, Inc., La Habra, CA $580,665
Since the bids are higher than the budgeted funds of $300,000 allocated for this project, staff recommends rejecting all bids received. Staff undertook an evaluation and determined that the Project could be performed more economically using City employees and materials purchased at a lower price in the open market. Staff will purchase the restroom building under Sourcewell Contract #081721-PRM and utilize City employees to perform site preparation and installation as needed. This method of procurement is a cooperative purchasing arrangement that several government agencies use to minimize costs and staff resource impacts. By using Sourcewell, a public agency that competitively bids on construction tasks, specifications, materials, equipment, and labor costs, the City can access highly qualified specialty contractors and lower overall capital costs. The City of Orange is a member of Sourcewell and has used the cooperative agreements procurement process.
This approach not only ensures the project cost stays under budget, but the project can also be completed about 45 days sooner mainly due to time saved with the elimination of the contract award and execution process that’s typically associated with a construction contractor.
7. ATTACHMENTS
· Bid Abstract
· Resolution No. 11509
City of Orange Printed on 12/7/2023Page 2 of 2
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