City Council Agenda Report
Meeting Date: August 6, 2024
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Gerard Garcia, Assistant Engineer
Subject
Contract with Elka Construction, Inc. for 55th Street Recycle Center & Nursery – Soil & Miscellaneous Construction Material Removal
Recommendation
A. Find that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15304 (Minor Alterations to Land), part (a) (grading on land with a slope of less than 10 percent), because the project is merely making minor alterations to the land and involves negligible or no expansion of existing use;
B. Accept the bid proposal from Elka Construction, Inc. as the lowest responsive and responsible bidder for the 55th Street Recycle Center & Nursery – Soil & Miscellaneous Construction Material Removal, Contract No. 20250045 (20240407), and reject all other bids; C. Approve and authorize the City Administrator to execute Contract No. 20250045 (20240407) with Elka Construction, Inc., in substantially the same form as submitted, for the soil and miscellaneous construction material removal at 2221 E. 55th Street in an amount not-to-exceed $850,000; and
D. Authorize a contingency amount of twenty-five percent (25%) or $212,500 to cover necessary disposal fees for materials collected at the site and/or to cover unanticipated expenses in the event of an unexpected changed condition in the project; and grant authority to the City Administrator to issue change order(s) for an amount up to the contingency amount, if necessary.
Background
The proposed Facility Improvement Capital Project, Contract No. 20250045 (advertised as Contract No. 20240407) involves removal of approximately 14,000 cubic yards of soil and miscellaneous construction material at 2221 E. 55th Street City yard.
On April 2, 2024, the Public Works Department advertised the Notice Inviting Bids (NIB) for Contract No. 20240407 55th Street Recycle Center & Nursery – Soil & Miscellaneous Construction Material Removal in accordance with Vernon Municipal Code Section 3.32.070(A) for competitive bidding. The NIB was posted on the City’s PlanetBids website and published in the local newspaper. The Department utilized the template Notice Inviting Bids, Bid form and Project Specifications, Instruction to Bidders, and Specifications and Contract approved by City Council. The bids for the project were received and opened on April 30, 2024. The calculated results were as follows:
1. Elka Construction, Inc. $850,000.00
2. Integrated Demolition and Remediation, Inc. $973,000.00
3. CHI Construction $980,000.00
4. Remedial Transportation Services, Inc. $1,519,420.00
5. Power One, LLC $2,271,500.00
Public Works staff reviewed the bids and deemed that the bid received by Elka Construction, Inc. is the lowest responsive and responsible bid. Based on a thorough bid evaluation, staff recommends award of the proposed contract to Elka Construction, Inc. Given that the work will be performed in the current fiscal year (FY), the FY 2023-24 contract number previously advertised in the NIB (20240407) has since been updated to reflect a FY 2024-25 number and will be Contract No. 20250045.
Staff is also requesting a contingency amount of twenty-five percent (25%), as there may be significant additional funds needed depending on the final amount and types of material removed from the site which will in-turn impact disposal and manifest fees from the landfills. Since such costs will not be known until the work is in progress, having a sufficient contingency amount will prevent unnecessary delays in the project timeline. Use of the contingency funds would require approval from the City Administrator.
The proposed contract has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is estimated at $1,062,500, including a contingency of twenty-five percent (25%). Sufficient funds are available in General Fund, Public Works Department, Facilities Maintenance Division, Capital Outlay Account No. 011-040-415-660000 for the current fiscal year.
Attachments
1. Contract with Elka Construction, Inc. - Contract No. 20250045