City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 22, 2024 FROM: PARKS, RECREATION AND COMMUNITY WARDS: 1, 3 and 6
SERVICES DEPARTMENT
SUBJECT: AMERICAN RESCUE PLAN ACT - AWARD BID NO. 8100 TO R. E. SCHULTZ CONSTRUCTION, INC., FOR THE PLAYGROUNDS RUBBER SURFACING PROJECT AT MYRA LINN, REID AND WASHINGTON PARKS IN THE AMOUNT OF $539,700; AND AUTHORIZE 10% CHANGE ORDER AUTHORITY UP TO $53,970 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $593,670 AND $26,985 FOR PERMITS, TESTING, INSPECTIONS, AND ADMINISTRATION FOR A TOTAL PROJECT COST OF $620,655 ISSUE:
Award Bid No. 8100 to R. E. Schultz Construction, Inc., of Orange, California, for Playgrounds Rubber Surfacing Project at Myra Linn, Reid and Washington Parks in the amount of $539,700; authorize a 10% change order authority up to $53,970 for a total contract amount not-to-exceed $593,670 and $26,985 for permits, testing, inspections and administration for a total project cost of $620,655.
RECOMMENDATIONS:
That the City Council:
Award Bid No. 8100 to R. E. Schultz Construction, Inc. of Orange, California, in the amount of $539,700 for Playgrounds Rubber Surfacing Project at Myra Linn, Reid and Washington Parks; Authorize 10% change order authority in an amount up to $53,970 for project changes including, but not limited to, unforeseen conditions or necessary design changes, for a total contract amount not-to-exceed $593,670 and $26,985 for permits, testing, inspections and administration for a total project cost of $620,655; and Authorize the City Manager, or designee, to execute a Construction Agreement with R. E. Schultz Construction, Inc. of Orange, California including making minor and non-substantive changes.
LEGISLATIVE HISTORY:
On March 11, 2021, President Biden signed into law the American Rescue Plan Act to facilitate the recovery from the devastating economic and health effects of the COVID-19 pandemic. The American Rescue Plan Act established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which provides a combined $350 billion in assistance to eligible state, local, territorial, and Tribal governments to assist in the economic and health recovery by providing resources to address impacts resulting from the crisis.
BACKGROUND:
The American Rescue Plan Act (ARPA) established the Coronavirus Local Fiscal Recovery Fund to provide resources to support communities that are struggling with the impacts resulting from the COVID-19 pandemic. The US Department of the Treasury (Treasury) first released the Interim Final Rule providing eligibility guidance as well as regularly updated Frequently Asked Questions (FAQ). The Interim Final Rule provided initial guidance and served to help communities develop proposals for funding.
On November 9, 2021, the City Council approved the ARPA funding Expenditure Category Plan for the first allocation in the amount of $36,767,594 following the Interim Final Rule guidelines. Additionally, the City Council directed staff to return with an itemized list for Parks infrastructure needs during the second allocation of funding for consideration. The Final Rule was issued on January 6, 2022, and became effective on April 1, 2022.
On February 7, 2023, the City Council approved the ARPA expenditure plan for the second allocation of grant funds in the amount of $36,767,594 and reallocated $1,600,000 from the first plan to the Park Maintenance Project funding. These approvals allocated $10 million for Parks Deferred Maintenance Projects. The approval of the ARPA funding allows the City to make an initial investment towards addressing the City’s deteriorating park infrastructure priority needs, including renovations of parking lots, the replacement of HVAC systems, flooring replacements and playground renovations equitably throughout all wards.
On June 21, 2023, the Park and Recreation Commission received an update on the ARPA funding received and the planned projects.
DISCUSSION:
The Parks, Recreation and Community Services Department (PRCSD) is dedicated to maintaining playgrounds at park sites to ensure safe and healthy recreational opportunities for children. In the City of Riverside, playgrounds are highly valued and often serve as the centerpiece of public neighborhood parks. They significantly enhance the quality of life for families.
The rubber surfacing is a crucial safety component of our playgrounds and needs replacement to ensure the play areas remain safe. This investment will revitalize the parks, creating a positive gathering and play space for new parents, grandparents, and children, and fostering a strong and healthy community.
On August 7, 2024, the Purchasing Division posted Bid No. 8100 on the City’s website for the Playground Rubber Surfacing Project at Myra Linn, Reid and Washington Parks. The City notified 560 vendors, in addition to an advertisement that was posted in the Press Enterprise informing the public of the procurement. The bid had thirty-seven (37) Prospective Bidders listed, fourteen (14) of them being listed as prospective Prime bidders. No pre-bid meeting was held as locations are all easily accessible to the public during daylight hours.
On September 6, 2024, five (5) bids were received, four (4) of which were deemed responsive. Per the attached Bid Award Recommendation, the lowest responsive and responsible bidder is R. E. Schultz Construction, Inc., of Orange, California. Staff’s review of this bidder’s references has elicited no negative information. Further, the State Contractor’s Licensing Board records indicate that this bidder’s license is current, active, and in good standing.
Bidders
Amount
Ranking
R. E. Schultz Construction, Inc.
$539,700.00
1 ZECO Inc.
$566,074.00
2 General 2 Construction
$580,000.00
3 KYA Services, LLC
$620,000.00
4 *No Fault, LLC
$654,970.00
5 *Vendor was deemed unresponsive due to failing to provide registration with SAM.gov as required.
The Parks, Recreation and Community Services Department (PRCSD), therefore, recommends that a construction contract in the amount of $539,700 be awarded to R. E. Schultz Construction, Inc. for the Project including:
Base Bid Item I-A: Myra Linn Park Play Lot Rubber Surfacing Installation ($161,700) Base Bid Item I-B: Washington Park Play Lot Rubber Surfacing Installation ($165,300) Base Bid Item I-C: Reid Park Play Lot Rubber Surfacing Installation ($212,700) The Purchasing Resolution No. 24101 Section 508 states that “Contracts procured through Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder.” The Purchasing Manager concurs that the recommendation is in compliance with Purchasing Resolution No. 24101, Section 508.
STRATEGIC PLAN ALIGNMENT:
The work contributes to the “Arts, Culture and Recreation” priority of the Envision Riverside 2025 Strategic Plan, which aims to provide diverse community experiences and personal enrichment opportunities for people of all ages.
The work contributes to goals 1.3, to improve parks, recreational amenities, open space, and trail development, and fulfill critical lifecycle and facility maintenance needs, and goal 1.4, to prioritize safety at parks, trails, arts, cultural and recreational facilities.
Community Trust – This project promotes community trust by ensuring the rubber surfacing at our playgrounds continue to meet safety standards to provide a fun and safe place for children to play.
Equity – Project outcomes will benefit the entire community by providing supporting infrastructure for safe and fun recreation opportunities for all residents. Projects are geographically spread throughout the City using ARPA funds allocated in Rounds 1 and 2 for deferred maintenance for park playgrounds, parking lots, flooring, and HVAC. ARPA funds have also been delegated to parks that do not meet the criteria for grant funds from other typical state and federal sources.
Fiscal Responsibility – The competitive procurement of services for these projects are in accordance with Purchasing Resolution No. 24101.
Innovation – Riverside is committed to responding to the community’s on-going and changing needs and preparing for the future through fulfillment of projects extending the usable life of facilities and infrastructure using ARPA funding.
Sustainability & Resiliency – This project extends the usable life and longevity of existing infrastructure, ensuring facilities are available for future use.
FISCAL IMPACT:
The total fiscal impact for this action is $620,655 which includes a 10% construction contingency, and other costs associated with the project that are listed in Table 1 below. Sufficient funding is available in the ARPA Citywide Park Improvement Program (Playgrounds) project account as indicated in Table 2 below.
Table 1. Project Costs:
Construction Contract Award
$539,700
Construction Contingency (10%)
$53,970
Permits, testing, inspections, administration (5%)
$26,985
Total
$620,655
Table 2. Project Funding:
Fund
Project
Account
Amount
Grants & Restricted Programs
Citywide Park Improvement Program
9279500-440120
$620,655.00
Prepared by: Ali Borujerdi, Park Project Manager
Approved by: Pamela M. Galera, Parks, Recreation and Community Services Director Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Bid Award Recommendation
Playgrounds Rubber Surfacing Project at Myra Linn, Reid and Washington Parks● Page 2