City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: MARCH 25, 2025 FROM: PARKS, RECREATION AND COMMUNITY WARD: 3
SERVICES DEPARTMENT
SUBJECT: RESCIND AWARD OF BID NO. 8110 WITH ZECO, INC. OF SANTA ANA, CALIFORNIA FOR the nichols Park PLAYGROUND, shade structure, and resilient surfacing INSTALLATION PROJECT IN THE AMOUNT OF $234,850; AWARD BID NO. 8110 TO PACIFIC TIDE CONSTRUCTION OF NORTHRIDGE, CALIFORNIA FOR the nichols Park PLAYGROUND, shade structure, and resilient surfacing INSTALLATION PROJECT IN THE AMOUNT OF $222,867.20 AND AUTHORIZE 10% CHANGE ORDER AUTHORITY OF $22,286.72 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $245,153.92, AND TOTAL PROJECT COST NOT TO EXCEED $256,297.28 – SUPPLEMENTAL APPROPRIATION AND INTERFUND TRANSFER ISSUES:
Rescind Award of Bid No. 8110 with Zeco, Inc. of Santa Ana, California for the Nichols Park Playground, Shade Structure, and Resilient Surfacing Installation Project in the amount of $234,850; Award Bid No. 8110 to Pacific Tide Construction of Northridge, California, for the Nichols Park Playground, Shade Structure, and Resilient Surfacing Installation Project in the amount of $222,867.20; authorize 10% change order authority of $22,286.72 for a total contract amount not to exceed $245,153.92.
RECOMMENDATIONS:
That the City Council:
Rescind Award of Bid No. 8110 with Zeco, Inc. of Santa Ana, California in the amount of $234,850; With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation and interfund transfer in the amount of $10,772.28 from the General Fund to the Capital Outlay Fund, and appropriate the same amount in the Capital Outlay Fund for the Citywide Park Improvements Project – Nichols Park Playground Project revenue and expenditure accounts; Award Bid No. 8110 to Pacific Tide Construction of Northridge, California, in the amount of $222,867.20 for the Nichols Park Playground, Shade Structure, and Resilient Surfacing Installation Project; Authorize 10% change order authority in an amount up to $22,286.72 for project changes including, but not limited to, unforeseen conditions or necessary design changes, for a total contract amount not-to-exceed $245,153.92; and Authorize the City Manager, or designee, to execute a Construction Agreement with Pacific Tide Construction of Northridge, California including making minor and non-substantive changes.
BACKGROUND:
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 $1.6 million 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 Parks and Recreation Commission received an update on the ARPA funding received and the planned projects.
On October 10, 2023, the City Council approved the $2,534,063.54 purchase of playground equipment, including Nichols playground equipment and shade structure, through a Sourcewell cooperative purchasing agreement with Landscape Structures, Inc. This equipment has been delivered to the City and is ready to be installed. Community Development Block Grant funds in the amount of $200,000 were used for the purchase of the shade shelter.
On December 10, 2024, the City Council received an update on the ARPA expenditure plan and accepted staff’s recommendations to safeguard unexpended funds, both obligated and unobligated. Council approved the allocation of all unexpended funds to Revenue Replacement – Provision of Government Services, supported by qualifying public safety expenditures, to allow the City to safely meet the obligation deadline for all unobligated funds, and report all ARPA funding as fully expended well in advance of the expenditure deadline. Leveraging public safety expenditures as qualifying costs, the savings generated by the ARPA coverage of those qualifying costs can be utilized for the obligated funds’ previously approved purpose. Unobligated funds were transferred into the General Fund as an unappropriated revenue source pending the first quarter analysis of the City’s financial performance for fiscal year (FY) 2024/25.
The Citywide Park Improvement Program included unobligated funds of approximately $4.5 million which were reallocated to the Revenue Replacement – Provision of Government Services program and transferred to the General Fund as unappropriated revenue. The Nichols Park Playground Project described in this report comprises a portion of those unobligated and unappropriated funds.
DISCUSSION:
The Parks, Recreation and Community Services Department (PRCSD) is committed to maintaining playgrounds at park sites to provide safe and healthy recreational opportunities for children. Playgrounds are highly valued in the City of Riverside and often serve as the heart of a public neighborhood park. Playgrounds improve quality of life for families. The existing playground in this project is over 20 years old, making it difficult to find spare parts for repairs and upgrades. This investment will revitalize the park and create a positive gathering space for new parents, grandparents, and children to build a strong and healthy community.
On August 28, 2024, the Purchasing Division posted Bid No. 8110 on the City’s website for the Playground Installations Project. The City notified 1,558 vendors, additionally an advertisement that was posted in the Press Enterprise informing the public of the procurement. The bid had 73 Prospective Bidders listed, 38 of them being listed as prospective Prime Bidders. No pre-bid meeting was held as locations are easily accessible to the public during reasonable and adequate hours.
On September 18, 2024, 11 bids were received, and 8 were deemed responsive. On January 7, 2025, City Council awarded Bid No. 8110 to Zeco, Inc., however, the bid pricing was valid through December 17, 2024. As a result, Zeco, Inc. was unable to hold the pricing initially submitted, causing them to withdraw their bid, as their costs significantly increased due to price changes, and their subcontractors could not maintain the original pricing. The award is now being transferred to the second lowest responsive and responsible bidder, who can complete the work within the initial bid amount submitted. Staff’s review of this bidder’s references revealed no negative information. Additionally, review of the State Contractor’s Licensing Board confirms that this bidder’s license is current, active, and in good standing.
Bidders
Amount
Ranking
Estate Design and Construction
$188,800.00
Non-Responsive*
ZECO, Inc.
$213,500.00
Bid Withdrawn**
Pacific Tide Construction
$222,867.20
1 R E Schultz Construction, Inc.
$252,740.00
2 Western State Builders, Inc.
$260,750.00
Non-Responsive*
KYA Services, LLC
$262,000.00
3 Jergensen Concrete, Inc.
$338,500.00
4 California Landscape & Design, Inc.
$368,500.00
5 RAMSA Construction, Inc.
$397,700.00
6 Zuma Construction Groupe, Inc.
$444,777.00
7 VM Construction Firm, Inc.
$449,900.00
Non-Responsive*
*Contractors were deemed non-responsive due to not listing sub-contractors at the time of the bid submission, not submitting a response to clarification and submitting an invalid bid bond and not being able to complete the work within the original bid amount. **Contractor withdrew bid due to being unable to hold the pricing initially submitted.
The PRCSD recommends that a construction contract in the amount of $222,867.20 be awarded to Pacific Tide Construction for the Project including:
Base Bid Item I-A: Playground Installation
Base Bid Item I-B: Shade Structure Installation
Base Bid Item I-C: Resilient Surfacing Installation
This is in accordance with Purchasing Resolution No. 24101 Section 508 which 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 to award Bid No. 8110 to Pacific Tide Construction 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 – In the spring of 2023, the City conducted a community survey, advertised through the City website, social media, and site signs, to get input on the look and functionality of playground renovations.
Equity – Project outcomes will benefit the entire community by providing supporting infrastructure for safe and fun recreation opportunities for all residents. The projects are geographically spread throughout the City.
Fiscal Responsibility – The competitive procurement of services for these projects are in accordance with Purchasing Resolution No.24101 Section 508.
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.
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 $256,297.28, which includes 10% construction contingency and other costs associated with the project that are listed in Table 1 below. A portion of the contingency, $10,772.28, will be funded by unappropriated General Fund revenue generated from savings due to ARPA coverage of qualifying public safety expenditures Upon Council approval, a supplemental appropriation and interfund transfer in the amount of $10,772.28 will be recorded from the General Fund to the Capital Outlay Fund, Nichols Park Playground Project as indicated in Table 2 below.
Table 1. Project Costs:
Construction Contract Award
$222,867.20
Construction Contingency (10%)
$22,286.72
Permits, testing, inspections, administration (5%)
$11,143.36
TOTAL
$256,297.28
Table 2. Project Funding
Fund
Program/Project
Account
Amount
Transfers
General Fund
Transfer In – Previously Recorded
$10,772.28
Transfer Out
7223600-990401
($10,772.28)
Capital Outlay
Nichols Park Playground
9929500-985101
$10,772.28
9929500-440301
$10,772.28
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: Jack Liu, Interim City Attorney
Attachments:
Bid Award Recommendation
Presentation
Bid 8110 - Nichols Park Playground, Shade Structure, and Resilient Surfacing Installation Project ● Page 2