That the City Council
A.  Approve Plans and Specifications for Montwood Park Lighting Project, City Project No. 3-P-22;

B.  Award a construction contract for Montwood Park Lighting Project, City Project No. 3-P-22 (Project), to California Custom Electric of Corona, California, in the amount of $54,413; and,

C.  Authorize the City Manager to execute an Agreement with California Custom Electric of Corona, California in the amount of $54,413 and authorize staff to issue a purchase order to California Custom Electric of Corona, California in the amount of $65,000, which includes an approximate 20 percent contingency.

The proposed Montwood Park Lighting Project, City Project No. 3-P-22, consists of, but is not limited to, the installation of: above and underground conduit, pull boxes, lighting poles, electrical conductors, foundation, and all associated work as identified on the Plans and Specifications.

On November 30, 2022, the City received one bid from Scansys, Inc., for the Project for the amount of $158,344.12. After reviewing the bid proposal, staff determined that the bid was not competitive as the bid amount was fifty percent higher than that of the Engineer's estimate.  Although the proposal met the requirements, the submitted bid was well above what staff considered to be reasonable and fair for a project of this size and scope.  At its regular meeting of December 19, 2022, the City Council rejected the one bid received and directed staff to explore other potential methods to complete the project, such as purchasing the materials separately to reduce cost and possibly accelerate the construction process.

Staff solicited proposals from multiple vendors for the procurement of the poles and lighting fixtures with the following results:

To continue proceeding with this project, staff has already issued a purchase order to and ordered poles from Sequoia Lighting in accordance with the City's purchasing policy.
 
Staff has also solicited proposals from multiple contractors for the construction and installation of the poles, with the following results:

The combination of purchasing poles from Sequoia Lighting and selecting California Custom Electric to perform the work will total approximately $75,819.44. If City Council approves a contract with California Customs Electric, this approach will result in a savings of approximately $82,524.68 compared to the original total project bid amount of $158,344.12 received on November 30, 2022. The Public Works Department has utilized California Custom Electric for electrical work at various City facilities in the past and have found their work performance to be satisfactory. Staff found no record of excessive change order requests by California Custom Electric, and they currently possess a valid Contractor's License. 

This project is included in the City's adopted Fiscal Year 2022-2023 budget, with a total budget amount of $255,555.  This includes a grant in the amount of $55,000 from St. Jude, and $200,000 in Park Acquisition Funds. The project has sufficient available funds for the proposed equipment and supply procurement, as well as construction and installation of the lights at Montwood Park, that is estimated to cost $86,406.44, which includes an approximate 20 percent contingency