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    22.    
City Council Regular
Meeting Date: 05/22/2018  

SUBJECT:
CONTRACT WITH LOS ANGELES ENGINEERING, INC. FOR THE GRAND AVENUE PARK ARTIFICIAL TURF INSTALLATION PROJECT
RECOMMENDATION:
  1. Deem the minor defect in the bid by Los Angeles Engineering, Inc. not to be material and waive it.
     
  2. Award a contract to Los Angeles Engineering, Inc. in the amount of $1,058,241.30 for the Grand Avenue Park Artificial Turf Installation Project. 
     
  3. Authorize staff to issue a Notice of Award. 
     
  4. Authorize staff to accept the performance and payment bonds, proof of insurance, and issue a Notice to Proceed upon receipt and acceptance of such. 
     
  5. Approve an appropriations budget amendment in the amount of $600,000 from the CFD's fund balances to Grand Avenue Park Artificial Turf Installation Project. 
     
  6. Authorize the City Manager, at his discretion, to approve cumulative change orders up to 10% ($105,824.13) of the awarded contract amount.
BACKGROUND/ANALYSIS:
On April 24, 2018, the City Council approved the plans and specifications for the Grand Avenue Park Artificial Turf Installation Project and authorized staff to solicit bids.
 
On May 10, 2018, five (5) bids were received and are summarized as follows:
 
CONTRACTOR BID
  1. Los Angeles Engineering, Inc.
$1,058,259.30
  1. Asphalt Fabric & Engineering, Inc.
$1,226,154.44
  1. Horizon Construction, Int’l Inc.
$1,243,009.10
  1. Ohno Construction Company
$1,304,333.19
  1. Byrom-Davey, Inc.
$1,518,545.42
                        
Contracts for competitively bid public projects must be awarded to the lowest responsible bidder.  As shown above, Los Angeles Engineering, Inc. submitted the lowest base bid and is considered the apparent low bidder.  Following the conclusion of the bid opening, the bid was verified and found to have a minor mathematical error in the amount of $18.00 with an actual total base bid amount being $1,058,241.30.  Case law has held that a City has the discretion to waive a mathematical error if the mistake did not give a bidder an advantage or benefit not allowed other bidders.  MCM Const., Inc. v. City & County of San Francisco (1998) 66 Cal.App.4th 359, 373-74.  Since the error is small compared to the amount of the contract and did not provide Los Angeles Engineering with any benefit relative to other bidders, staff recommends that the bid provided by Los Angeles Engineering be deemed responsive and the minor defect waived.  
 
In addition, as part of the bidder’s qualification, the contractor must meet the minimum required qualifications for synthetic turf fabric projects by providing project listings of previous related projects.  Staff reviewed and evaluated the bidder’s qualifications and Los Angeles Engineering has fulfilled the minimum required qualifications.   Staff received favorable reports from references regarding the work performed by Los Angeles Engineering.   Los Angeles Engineering currently has a contract with the City of Chino Hills and thus far has performed acceptable work on the construction project.  Therefore, staff recommends that the City Council award a contract in the amount of $1,058,241.30.
 
Los Angeles Engineering’s bid was below the engineer’s base bid cost estimate, however, the current available funding in the amount of $1,800,000 will not cover the cost for contingencies, project management and construction inspection costs.  Staff estimates the project will need an additional $600,000 from the CFD Fund balance to cover the shortfall in the project funding.
ENVIRONMENTAL (CEQA) REVIEW:
The project has been determined to be exempt as a Class 2(c) Categorical Exemption (Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity), pursuant to Section 15302 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code Section 21000 et seq.
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Amount
Design $      89,110.00
Contract for Synthetic Field Turf (FieldTurf, USA, Inc.) materials and installation $    939,585.00
Construction Contract Amount (Los Angeles Engineering, Inc.) $ 1,058,241.30
Contingencies (10%)   $    105,824.13
Construction Project Management, Inspection, & Testing $    207,239.57
Grand Total Estimated Project Cost $ 2,400,000.00
 
 
Funding for this project will come from the following source:
 
Project No. Funding Source Current Funding Amount Additional Appropriation Requested
P18003 CFD-1 $      21,400.00 $     6,000.00
CFD-2 $      66,900.00 $   24,000.00
CFD-4 $ 1,436,200.00 $ 480,000.00
CFD-6 $    214,300.00 $   72,000.00
CFD-8 $      61,200.00 $   18,000.00
Subtotal Project Funding   $ 1,800,000.00 $ 600,000.00
Grand Total Project Funding $2,400,000.00
 
The total approved budget for this project is $1,800,000 with funding coming from CFD Funds.  Staff is requesting the City Council to appropriate an additional $600,000 from CFD-1, CFD-2, CFD-4, CFD-6 and CFD-8 reserves for regional facilities (in the same budget allocation percentage) to cover the shortfall.  There are sufficient funds available in the CFD funds balances to cover the $600,000 amount.  There is no impact to the General Fund.
REVIEWED BY OTHERS:
This item has been reviewed by the Community Services Director, Finance Director, and the City Attorney.
Attachments
Agreement

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