REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW15-03 for Repaint Street Light Poles Project and Finding of CEQA Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $124,000 to Everlast Builders, Inc. of Canyon Country (Santa Clarita) for the Repaint Street Light Poles project (Public Works Project No. ST-13/08-14). Approval is also requested for a 2% construction contingency in the amount of $2,480, which is the balance in the project budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for this project is a categorical exemption pursuant to Section 15301(d), restoration or rehabilitation of deteriorated or damaged structures, facilities or mechanical equipment to meet current standards of public health and safety.
BACKGROUND AND DISCUSSION
Capital Project 820120 (Repaint Street Light Poles) was created to repaint the City's 2,300 fluted streetlight poles as they show wear and tear. This contract will repaint approximately 161 poles at various locations throughout the City. The improvements will refresh and update the poles, prevent further corrosion and preserve the City's investment in its street lighting infrastructure.
The scope of work for the project will include removing the existing paint, preparing the light pole surfaces, application of a prime coat and applying a final coat of the City specified paint product. The poles will remain in place while being painted. No disassembly of existing light poles is required.
The project was bid as follows:
Bid Notice: Advertised in The Sun on August 22, 2014;
Provided to 18 Bay Area Builder's Exchanges;
Posted on Onvia Demandstar public procurement network; and
Published on the City's website.
Bid Response: 10 contractors requested bid documents.
Bid Results: Sealed bids were publicly opened on September 10, 2014;
One responsive bid was received.
The single responsive bid received was from Everlast Builders, Inc. in the amount of $124,000. The bid amount is 6.9% above the engineer's estimate of $116,000. The Bid Summary is attached. Staff believes that only one bid was received as a result of timing and contractor workload. It is late in the construction season and due to excellent weather conditions general contractors are fully employed. Staff recommends the award of a 2% construction contingency on the project, which is the balance remaining in the project budget. Although the typical contingency for construction projects is 10%, the scope of work for this project is straight forward and the risk of contract changes is minimal. Therefore staff feels a 2% contingency is adequate to address any possible issues, and also maximizes the number of poles that can be included as part of the contract.
FISCAL IMPACT
Project costs are as follows:
Construction $124,000
Construction contingency (2%) $2,480
Total costs $126,480
Budgeted funds are available in Capital Project 820120 (Repaint Street Light Poles), funded by the Gas Tax fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Make a finding of CEQA categorical exemption Section 15301(d) for the restoration or rehabilitation of deteriorated or damaged structures, facilities or mechanical equipment to meet current standards of public health and safety; 2) Award a contract, in substantially the same format as Attachment 2 and in the amount of $124,000 to Everlast Builders, Inc., for the subject project, and authorize the City Manager to execute the contract when all the necessary conditions have been met; and 3) Approve a 2% construction contingency in the amount of $2,480
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract