That the City Council:
A.  Approve Plans and Specifications for Park La Habra Mobile Homes Park and View Park Mobile Home Estates Park Street Improvements, City Project No. 3-R-17; and

B.  Reject bid proposal for Park La Habra Mobile Homes Park and View Park Mobile Home Estates Park Street Improvements, City Project No. 3-R-17 submitted by MBC Enterprises, Inc., of Huntington Beach, California, as non-responsive; and

C.  Award construction contract for Park La Habra Mobile Homes Park and View Park Mobile Home Estates Park Street Improvements, City Project No. 3-R-17 to Sully-Miller Contracting Company of Brea, California, in the amount of $1,521,725.25 and reject all other bids; and

D.  Authorize the City Manager to execute an agreement with Sully-Miller Contracting Company of Brea, California, in the amount of $1,521,725.25 and authorize staff to issue a purchase order to Sully-Miller Contracting Company of Brea, California, in the amount of $1,673,897.78, which includes a 10 percent contingency; and

E.  Appropriate $300,011.33 from the View Park Mobile Home Park Fund and $187,020.05 from the Park La Habra Mobile Home Park Fund to cover the additional costs needed to complete this project.

The City owns and operates two adjacent mobile home parks, Park La Habra Mobile Homes Park and View Park Mobile Home Estates Park, located on Lambert Road just east of Beach Blvd. This project, if approved, will install new drainage and street rehabilitation improvements to both parks. Elements of the project shall consist of, but not be limited to the following:  mobilization, preparation and implementation of Storm Water Best Management Practices; traffic control; construction survey and monument perpetuation; excavation and disposal; cold mill; construction of asphalt concrete pavement; removal and construction of PCC longitudinal gutters, curbs and gutters; traffic striping and signing; adjustment of onsite utilities to grade; and all associated work as identified on the construction drawings.

One addendum was issued by staff on August 9, 2021, during the project bid solicitation period.  Addendum No. 1 clarified that access to the entry/exit of each Mobile Home Park must remain open at all times.  Addendum No. 1 also answered bidder questions and modified the bid opening date.

On Wednesday, August 18, 2021, at 2:00 P.M., the City received five bids with the following results:
 

 

After reviewing the bid proposals, it was determined that MBC Enterprises, Inc., did not meet the solicitation requirements as stated on the Reference Sheet (Sheet D-12).  Those requirements state that references provided by the Contractor are to be for work similar in scope, magnitude, and degree of difficulty completed by the Contractor within the past three (3) years.  Under Public Contract Code 1103, a “Responsible Bidder” is a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract.  The references provided by MBC Enterprises, Inc., do not qualify them as a “Responsible Bidder”.

Sully-Miller Contracting Company submitted the lowest responsible bid in the amount of $1,521,725.25, which is approximately 28% higher than the Engineer’s estimate of $1,185,905.00.  In addition, Sully-Miller Contracting Company references have been checked and found to be satisfactory.  Sully-Miller Contracting Company has previously conducted work for the City of La Habra and has completed similar projects for the City of Burbank, City of Sierra Madre, and the City of Torrance.  There is no record of excessive change order requests from Sully-Miller Contracting Company and they maintain a valid Contractor’s License.

The adopted Capital Improvement Program budget for the Park La Habra Mobile Homes Park and View Park Mobile Home Estates Park Street Improvements Project is $1,360,000 ($838,000 from View Park Mobile Home Park Fund and $522,000 from Park La Habra Mobile Home Park Fund). Costs associated with the design of the project, bid advertising, and construction management has reduced the project budget available for construction to $1,186,866.40, which is insufficient to complete the project; therefore, staff recommends the appropriation of an additional $487,031.38 ($300,011.33 from the View Park Mobile Home Park Fund and $187,020.05 from the Park La Habra Mobile Home Park Fund) to complete the construction.  Both park funds have sufficient available fund balances to appropriate the necessary additional funding to complete this project.