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    5.    
Finance Committee
Meeting Date: 09/13/2022  
FROM: Bill Gallardo

Subject:
Award the Berry Street Sidewalk Project, CIP Project No. 7324
RECOMMENDATION
  1. Approve the Plans and Specifications; 
  2. Receive bids; 
  3. Award Contract to the lowest responsive and responsible bidder, Towo Enterprise, Inc. in the amount of $370,846.25; and,
  4. Authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 15% of the Contract Price.
BACKGROUND/DISCUSSION
Berry Street Sidewalk Project (“Project”) was programmed within the FY 21-22 Capital Improvement Program (“CIP”) and is located along the west side of Berry Street, a north-south arterial road within an industrial/commercial area, between Lambert Road and Central Avenue (Exhibit A).
 
The Project scope of work includes, but is not limited to: removal and reconstruction of PCC sidewalk, curb and gutter, curb ramps, and landscape and irrigation.  This Project will provide sidewalk connectivity and continuous pedestrian and ADA access in the area.
 
On February 7, 2022, the Final Plans and Specifications (“Bid Documents”) were accepted by staff, and the Project was advertised for bids. A hard copy of the Bid Documents is available at the City Clerk’s Office for review (Exhibit B). There was one addendum to the Plans and Specifications. Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.    
 
On March 8, 2022, staff received a total of eight bid proposals. Following the bid opening, staff reviewed the apparent low bidder, CJ Concrete Construction, Inc. ($352,178.25), as well as the next two (2) bidder's proposals, Doja, Inc. ($390,000.00) and L.A. Design Group ($414,194.55).
 
Soon thereafter on March 8, 2022, CJ Concrete Construction provided a formal letter notifying the City that their bid contained a clerical error on one of the bid items and requested to withdraw their bid.  Subsequent to the bid opening, Staff reviewed the bids with respect to conformance with the proposal requirements and to identify any bid irregularities and determined that there were several bid irregularities with the second lowest bidder’s proposal. After consultation with the City Attorney with respect to the first bidder’s request to withdraw and second bidder's bid irregularities, staff recommended that the City Council reject all bids, return all Bid Bonds, and re-advertise the Project.
 
On May 03, 2022, the City Council rejected the bids and authorized staff to re­bid the project. Soon thereafter, staff re­-advertised the bids and on August 09, 2022, whereas ten (10) bids were received. Below are the results of the bids:
 
Table 1 – Total Bid Summary
Bidder Number Bidder Amount Bid
1 Towo Enterprise, Inc. $370,846.25
2 Premo Construction $371,783.00
3 All Cities Engineering $433,177.55
4 S & H Civil Works $497,452.00
5 Doja, Inc. $521,573.00
6 Falkon Construction $525,197.13
7 Gentry General Engineering $542,807.50
8 CT&T Concrete Paving $575,209.50
9 IE General Engineering $589,810.00
10 Garza Construction $637,000.00
  Engineer's Estimate $400,000.00
 
The lowest responsible bidder was Towo Enterprise, Inc. (“Towo”) of Fullerton, California in the total amount of $370,846.25. Their California Contractor’s license (986567) has been verified by staff and their bid package has met the City requirements. Towo has been in the construction business for 9 years and has completed construction of similar improvement projects for various cities such as the cities of Anaheim, Norwalk, and La Puente with satisfactory reviews.  If awarded, construction could begin in November 2022, and take approximately two (2) months to complete.
SUMMARY/FISCAL IMPACT
The Project was programmed in the FY 2021-2022 CIP with a budget amount of $535,000. The total cost for the Project going into construction is estimated at $470,000 based on the apparent low bid amount, a 15% contingency, and construction engineering costs. The sources of funds within the approved budget are from the Gas Tax (Fund 220) and Measure M (Fund 260). Therefore, there are sufficient funds in the budget for the Project.  Upon completion of the Project, the remaining fund balance within each fund will be de-obligated and transferred back into the respective funds.  There is no fiscal impact to the General Fund from this Project.
 
This Project will provide sidewalk connectivity and continuous pedestrian and ADA access. The Project includes removal and reconstruction of PCC sidewalk, curb and gutter, ADA curb ramps, and landscape and irrigation. Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid; award a Construction Contract to Towo in the amount of $370,846.25; and authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 15% of the Contract Price.  
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by:   Raymond Contreras, Associate Engineer
Concurrence:  Michael Ho, Public Works Director/City Engineer
Attachments
Exhibit A - Location Map - Phase 1 Boundary
Exhibit B - Bid Documents
Exhibit C - Towo Enterprise, Inc. Bid Proposal

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