REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW16-15 for the Concrete, Sidewalk, Curbs, Gutters and Driveway Approaches 2016-17 Project and Finding of California Environmental Quality Act (CEQA) Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $867,728 to Spencon Construction Inc. of Danville for the Concrete, Sidewalk, Curbs, Gutters and Driveway Approaches 2016-17 project (Public Works Project ST-15-11). Approval is also requested for a 10% construction contingency in the amount of $86,773.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contracts to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for this project is a Class 1 categorical exemption pursuant to CEQA Guidelines Section 15301 for maintenance or repair of existing facilities involving negligible or no expansion of use beyond which presently exists.
BACKGROUND AND DISCUSSION
Capital Project 829400, Sidewalk, Curbs and Gutter Replacement, provides annual funding for the replacement of damaged or raised sidewalks, curbs, gutters and driveway approaches throughout the City. Locations requiring repair or replacement are generally identified by residents and then inspected, prioritized and scheduled by the Department of Public Works Street Maintenance Division. Traditionally the requirements for each year are bundled together and contracted out through the competitive bid process. On October 27, 2015, City Council awarded a project for FY 2015/16 in the amount of $2, 218,567. The current project being considered for award consists of concrete replacement at approximately 236 locations throughout the City and is utilizing available funds from the FY 2016/17 budget. Included in the scope of work is the removal and replacement of trees that are deemed to cause damage and severe displacement to the concrete hardscape.
The project was advertised for competitive bidding in the Sunnyvale Sun on February 5, 2016, distributed to eighteen Bay Area Builder’s Exchanges, and published on the City’s website through the Demandstar public procurement network. Eight contractors requested bid documents. Sealed bids were opened on February 24, 2016, with two responsive bids being received. The lowest responsive and responsible bid was submitted by Spencon Construction Inc. The bid summary is contained in Attachment 1.
A third bid was received from JJR Construction Inc. of San Mateo, but the bid included a material math error which affected their bid result by $71,859 (i.e., the total of their bid items equaled $1,043,278 but a lower amount of $971,419 was written as the grand total). JJR Construction was notified of the error and afforded the opportunity to withdraw their bid in accordance with sections 5103 and 5015 of the California Public Contract Code, but they declined and requested that the City waive the error as a minor irregularity and allow their bid of $1,043,278 to remain in place (as the second lowest bid). While City staff has the ability to waive minor defects or irregularities in a bid, the waiver cannot affect the bid amount or give the bidder an advantage over other bidders.
Staff asked JJR Construction to articulate the lawful basis for the City to waive the bid defect, but no additional information was provided. In that JJR’s bid is the second lowest (with a reasonable possibility of being awarded the bid if Spencon could not execute the contract for whatever reason), and staff cannot alter the bid amount, it is recommended that Council make a determination that JJR Construction’s bid is non-responsive due to a material math error.
FISCAL IMPACT
The project costs consist of the construction contract in the amount of $867,728, and a 10% construction contingency in the amount of $86,773, for a total of $954,501. Budgeted funds are available in Capital project 829400, Sidewalk, Curb and Gutter Replacement.
Funding Source
This project is funded by the General Fund with excess funds from the State’s Educational Revenue Augmentation Fund (ERAF).
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 pursuant to CEQA Guidelines Section 15301 (Class 1, Existing Facilities) as it relates to the rehabilitation of existing streets involving negligible or no expansion of existing use; 2) award a construction contract, in substantially the same format as Attachment 2 to the report and in the amount of $867,728 to Spencon Construction Inc.; 3) approve a 10% construction contingency in the amount of $86,773; and 4) determine that the bid submitted by JJR Construction, Inc. is non-responsive.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director, Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract