Item No. 6.
| MEETING DATE: 04/19/2021 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Elias Saykali, Public Works Director |
| SUBJECT: | APPROVE TO AWARD CONTRACT TO OCLA CONSTRUCTION FOR CONSTRUCTION OF OLD RESERVOIR PARK BLOCK WALL, CITY PROJECT NO. 2-P-20 IN THE AMOUNT OF $52,126.80, WHICH INCLUDES A 10 PERCENT CONTINGENCY |
RECOMMENDATION:
That the City Council:
A. Approve Plans and Specifications for Old Reservoir Park Block Wall, City Project No. 2-P-20; and
B. Award construction contract for Old Reservoir Park Block Wall, City Project No. 2-P-20 to OCLA Construction of Laguna Niguel, California, in the amount of $47,388 and reject all other bids; and
C. Approve and authorize the City Manager to execute an agreement with OCLA Construction of Laguna Niguel, California, in the amount of $47,388 and authorize staff to issue a purchase order to OCLA Construction of Laguna Niguel, California, in the amount of $52,126.80, which includes a 10 percent contingency.
DISCUSSION:
The proposed Old Reservoir Park Block Wall Project consists of demolishing 162 feet of an existing block wall at Old Reservior Park that is failing, grading the project site, constructing a new wall, and repairing the disturbed landscape. After finalizing the plans, specifications, and estimate, the project was advertised.
On March 17, 2021, the City of La Habra received a total of 8 bid proposals for the project. On March 18, 2021, the City of La Habra publicly opened the eight bid proposals per COVID-19 Guidelines with the following results:
The lowest bid was submitted by OCLA Construction. While reviewing OCLA Construction's bid, staff discovered that the Contractor's License had lapsed due to its failure to maintain Worker's Compensation Insurance. In addition, OCLA Construction's bid contained mathematical errors that resulted in an incorrect bond amount.
The City Attorney was contacted to review the issues surrounding OCLA Construction's bid. After reviewing the bid documents, City Attorney's office determined that unless Worker's Compensation and License is expressly required at the time of the bid submission, then this is not a sufficient justification to reject the bid as non-responsive. While Worker's Compensation Insurance is required, the specification only requires the low bidder to promptly secure the insurance if an award is made. While a Contractor's License is required, the specification does not expressly require that it be active at the time of bid submission. In addition, the City Attorney's office determined that mathematical errors that resulted in an incorrect bond amount are minor and that the City should waive minor irregularities.
After a thorough review of the bid submission and in consideration of the City Attorney's opinions, staff has determined that OCLA Construction submitted the lowest responsive bid in the amount of $47,388. The references and past performance of OCLA Construction were checked and found to be satisfactory. There is no record of excessive change order requests from this Contractor, and they now maintain a valid Contractor's License.
On March 17, 2021, the City of La Habra received a total of 8 bid proposals for the project. On March 18, 2021, the City of La Habra publicly opened the eight bid proposals per COVID-19 Guidelines with the following results:
| No. | CONTRACTOR | TOTAL BID |
| 1 | OCLA Construction | $47,388.00 |
| 2 | SDC Engineering, Inc. | $51,326.76 |
| 3 | FS Contractors, Inc. | $59,545.00 |
| 4 | J. Cardenas, Inc. | $61,476.20 |
| 5 | Cheloletty Engineering | $79,680.80 |
| 6 | CEM Construction Corporation | $97,280.00 |
| 7 | HYM Engineering, Inc. | $97,450.00 |
| 8 | Senitica Construction, Inc. | $113,845.00 |
The City Attorney was contacted to review the issues surrounding OCLA Construction's bid. After reviewing the bid documents, City Attorney's office determined that unless Worker's Compensation and License is expressly required at the time of the bid submission, then this is not a sufficient justification to reject the bid as non-responsive. While Worker's Compensation Insurance is required, the specification only requires the low bidder to promptly secure the insurance if an award is made. While a Contractor's License is required, the specification does not expressly require that it be active at the time of bid submission. In addition, the City Attorney's office determined that mathematical errors that resulted in an incorrect bond amount are minor and that the City should waive minor irregularities.
After a thorough review of the bid submission and in consideration of the City Attorney's opinions, staff has determined that OCLA Construction submitted the lowest responsive bid in the amount of $47,388. The references and past performance of OCLA Construction were checked and found to be satisfactory. There is no record of excessive change order requests from this Contractor, and they now maintain a valid Contractor's License.
FISCAL IMPACT/SOURCE OF FUNDING:
This project was approved for Fiscal Year 2020-2021 in the amount of $75,000 from the Park Acquisition budget, which provide sufficient funds needed to complete this project.
GENERAL PLAN RELEVANCE:
LU 2.5 Places supporting the Quality of Life
LU 2.6 Places that Support Healthy Lifestyles
LU 8.3 Parks and Open Spaces Amenities
LU 16.9 Buffering from Adjacent Properties
LU 17.6 Parks and Open Spaces
H 2.3 Supportive Public Facilities
OS 2.13 Sustainable Parks
OS 2.14 Heathy Parks
OS 2.16 Park Maintenance
W 1.7 Landscaping
LU 2.6 Places that Support Healthy Lifestyles
LU 8.3 Parks and Open Spaces Amenities
LU 16.9 Buffering from Adjacent Properties
LU 17.6 Parks and Open Spaces
H 2.3 Supportive Public Facilities
OS 2.13 Sustainable Parks
OS 2.14 Heathy Parks
OS 2.16 Park Maintenance
W 1.7 Landscaping
Attachments
- Old Reservoir Park Block Wall - Agreement
- Old Reservoir Park Block Wall - Plans and Specifications
- Old Reservoir Park Block Wall - Proposal