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Item No. 4. 
MEETING DATE: 05/03/2021
 
TO: HONORABLE MAYOR AND COUNCILMEMBERS
 
FROM: JIM SADRO, CITY MANAGER
By:  Elias Saykali, Public Works Director

 
SUBJECT: APPROVE AWARD OF CONTRACT TO GRANVILLE CONTRACTING AND MANAGEMENT, INC., FOR COMMUNITY CENTER PARKING LOT DEMOLITION OF STRUCTURES AT 115 AND 121 NORTH EUCLID STREET, PROJECT NO. 1-D-20

RECOMMENDATION:


That the City Council:
A.  Approve Plans and Specifications for Community Center Parking Lot Demolition of 115 and 121 North Euclid Street, Project No. 1-D-20; and

B.  Award a contract for the Community Center Parking Lot Demolition of 115 and 121 North Euclid Street, City Project No. 1-D-20 to Granville Contracting and Management, Inc., of Brea, California, in the amount of $108,190 and reject all other bids; and

C. Authorize the City Manager to Execute an agreement with Granville Contracting and Management, Inc. of Brea, California, in the amount of $119,009.00, which includes a 10 percent contingency.

DISCUSSION:

The proposed Community Center Parking Lot Demolition of 115 and 121 North Euclid Street consist of lead and asbestos abatement and demolishing two existing buildings. After finalizing the plans, specifications, and estimate the project was advertised in the Orange County Register on February 26, 2021, and March 6, 2021.  On March 30, the City of La Habra received a total of four bid proposals for the project, as follows:
 
NO. CONTRACTOR TOTAL BID
1 Granville Contracting and Management, Inc. $108,190,00
2 UBD, Inc. $113,444.00
3 NR Development, Inc. $116,451.63
4 Interior Demolition, Inc. Non-Responsive

After reviewing the bid proposals, it was determined that Interior Demolition, Inc., did not meet the solicitation requirement and is non-responsive by not providing any of the required documentation in Appendix C of the bid specification.  The next lowest submitted bid was from Granville Contracting and Management, Inc. During the process of analyzing their bid, it was discovered that there were mathematical errors that resulted in an incorrect total bid price and incorrect bond amount.  It was also discovered that a document that was required for verification purposes was not submitted, and a form within the bid was also not completely filled out.
 

Staff consulted with the City Attorney's office regarding the issues pertaining to the Granville Contracting and Management, Inc. bid. After reviewing the matter, the City Attorney's office determined that mathematical errors causing an incorrect bond amount was minor and that the City should waive this minor irregularity.  They further determined that the missing document needed for verification purposes, as well as the incomplete form in the bid submission were also minor irregularities that could be waived.

After a thorough review of the bid submission, staff determined that Granville Contracting and Management, Inc. submitted the lowest responsible bid in the amount of $108,190.  The references of Granville Contracting and Management, Inc. were found to be satisfactory and prior projects completed for other clients were found to be of similar scope.  In addition, there was no record of excessive change orders by the contractor and they maintain a valid Contractor's License.

FISCAL IMPACT/SOURCE OF FUNDING:

The project was approved for Fiscal Year 2020-2021 with the total amount of $646,623 appropriated from the General Capital Project Fund and Community Development Block Grant for both demolition and construction of a new parking lot.  The budgeted funds are sufficient to complete this portion of the project.

GENERAL PLAN RELEVANCE:

LU 5.5 Revitalization of Obsolete and Underused Properties
LU 13.5 Downtown Parking
LU 17.1 Adequate Community Support Uses
RN 1.7 Street System Improvements
RN 1.8 Safe Street Design
AT 3.3 Accessible Facilities
AT 3.5 Street Walkability
AT 3.6 Pedestrian Connectivity

Attachments