REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW19-08 to Kevin Johnson Painting for Repaint Street Light Poles 2018 Rebid 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 $147,825 (base bid in the amount of $136,025 and Additive Alternate in the amount of $11,800) to Kevin Johnson Painting of San Jose for Repaint Street Light Poles 2018 Rebid (Public Works Project No. ST-18-06). Approval is also requested for a 10% construction contingency in the amount of $14,783.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contracts to be awarded to the lowest responsive and responsible bidder.
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The California Environment Quality Act (CEQA) determination for the project is a categorical exemption pursuant to CEQA Guidelines Section 15301(d) for the restoration or rehabilitation of deteriorated or damaged structures.
BACKGROUND AND DISCUSSION
Repaint Street Light Poles (Capital Project 820120) was created to repaint the City’s 2,300 metal streetlight poles, which are showing wear and tear. The capital project repaints approximately one fifth of the City’s metal pole inventory every two years, with the expectation that the coating will have a 20-year life. This project will repaint approximately 612 (553 base bid plus 59 additive alternate) 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 original paint, preparing the light pole surfaces, application of a prime coat and applying a final coat of the City specified paint product. Signage attached to the poles would be removed during painting and reinstalled after the final paint coat. The poles will remain in place while being painted and no disassembly of existing light poles is required.
An Invitation for Bids issued on May 25, 2018 with six responsive bids received on June 13, 2018. On September 25, 2018, Council rejected all bids (RTC No. 18-0745), due to the discovery of questions that were not addressed during the bid period which may have provided additional clarity to the proposing contractors.
The rebid project was re-advertised on the City’s DemandStar public procurement network and distributed to Bay Area Builders Exchanges on November 30, 2018. There were 14 contractors that requested bid documents. Sealed bids were opened on December 19, 2018, with 10 responsive bids received (see Attachment 1 - Bid Summary). The lowest responsive and responsible bid was submitted by Kevin Johnson Painting in the amount of $136,025. The lowest bid is approximately 61% below the engineer’s estimate.
FISCAL IMPACT
Project costs include the base bid of $136,025, an Additive Alternate in the amount of $11,800, and a recommended 10% contingency in the amount of $14,783, for a total of $162,608. Budgeted funds are available in Capital Project 820120.
Funding Source
Capital Project 820120 is 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 a California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines Section 15301(d); 2) award a contract in substantially the same form as Attachment 2 to the report in the amount of $147,825 to Kevin Johnson Painting for Repaint Street Light Poles 2018 Rebid, and authorize the City Manager to execute the contract when all necessary conditions have been met; and; 3) approve a 10% construction contingency in the amount of 14,783.
Staff
Prepared by: Gregory S. Card, Purchasing Manager
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract