That the City Council:

A.  Approve the Plans and Specifications for the Old Reservoir Improvement Project, City Project No. 2-P-20;

B.  Award a construction contract for the Old Reservoir Improvement Project, City Project No. 2-P-20 to EC Construction Company of South El Monte, California, in the amount of $1,677,000 and reject all other bids;

C.  Authorize the City Manager to execute an agreement with EC Construction Company of South El Monte, California, in the amount of $2,012,400; which includes a 20 percent contingency; and,

D.  Approve an appropriation of $522,186 of available unencumbered Development Impact Fees to cover additional Project construction costs, inspection, and materials testing for the Old Reservoir Improvement Project, City Project No. 2-P-20.

The Old Reservoir Improvement Project, City Project No. 2-P-20 (Project) will improve the Old Reservoir Park that is located on Brookdale Avenue west of Harbor Boulevard. Construction elements include grading, the construction of a new retaining wall, new landscaping and irrigation, purchase and installation of new playground equipment, new ADA benches and exercise equipment, a walking path, installation of safety lighting and security cameras throughout the park, mobilization, and implementation of Storm Water Best Management Practices.

On October 5, 2022, the City received five (5) bids with the following results:

After reviewing the bids and conducting a thorough analysis of the bid documents, staff determined that EC Construction Company, of South El Monte, California, submitted the lowest responsive bid in the amount of $1,677,000.  Staff reviewed past work references provided by EC Construction Company and found them to be satisfactory.
 
The lowest responsive bid came in approximately 9% higher than the Engineer's estimate. Staff found all submitted bids to be higher than expected due to inflationary impacts on material prices and escalating labor costs. Therefore, in order to fully fund this project, staff recommends that the City Council appropriate $522,186 of available unencumbered Development Impact Fee funds to this Project.

This Project is included in the Fiscal Year (FY) 2022-2023 Capital Improvement Program (CIP) with a total approved budget of $1,600,000 ($483,000 from CDBG Funds, $100,000 from General Capital Projects Funds, and $1,017,000 from Park Capital Funds).

Due to higher than anticipated project costs, staff recommends that the City Council appropriate $522,186 of available unencumbered Development Impact Fee funds to cover construction costs, inspections, and material testing to fully fund the Project. The appropriation of these funds will not impact any other capital projects budgeted this fiscal year.

If approved, the revised Project budget will be as follows: