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AGENDA BILL Agenda Item No. 5(C) Date: August 20, 2013 To: El Cerrito City Council From: Yvetteh Ortiz, Interim Public Works Director/City Engineer Subject: Reject Bids for the Ohlone Greenway Natural Area and Rain Garden Project, City Project No. C-3067 ACTION REQUESTED Adopt a resolution for the Ohlone Greenway Natural Area and Rain Garden Project, City Project No. C-3067 approving the following actions: 1) Grant the request for relief of bid from Star Construction; 2) Reject the two remaining submitted bids; and 3) Authorize City Staff to proceed with value engineering measures and re-advertise the project for public bid. BACKGROUND California voters passed the Safe Drinking Water, Water Quality and Supply, Flood Control and Coastal Protection Bond Act of 2006 (Proposition 84), authorizing the legislature to appropriate $70 million for urban greening projects that reduce energy consumption, conserve water, improve air and water quality, and provide other community benefits. The Strategic Growth Council manages the resulting Urban Greening program which provides competitive grant funds to preserve, enhance, increase or establish community green areas. Criteria for the grant program include using natural systems and creating, enhancing or expanding community green spaces; providing multiple benefits; and maintaining consistency with the State’s planning policies pursuant to Section 65041.1 of the Government Code. The specific priorities to maintain pursuant to Section 65041.1 include promoting infill development and investment in existing communities, enhancing environmental and recreational resources, and encouraging location and resource-efficient new development. On January 18, 2011, the City was notified by the Strategic Growth Council that it had been awarded $903,721 to implement the project. The project was one of 23 awards made by the State out of a pool of 140 applications. The project includes improvements along the Ohlone Greenway from Brighton Avenue in Albany to Fairmount Avenue in El Cerrito. The project includes elements to treat urban stormwater runoff; create an informal play/exploration and gathering area; improve walkability; utilize and demonstrate low-maintenance, low-water and native landscaping; improve riparian habitat; and foster connection to nature in this busy, dense location adjacent to neighborhoods, schools, retail, transit and future in-fill Transit-Oriented Development. The project implements ---PAGE BREAK--- Agenda Item No. 5(C) Page 2 the vision and goals of the Ohlone Greenway Master Plan (adopted by Council June 15, 2009) including: establishing focal points along the Greenway, providing better connections through the site to commercial and civic areas; improving safety and security; developing a more maintainable site; providing modern amenities; increasing opportunities for stewardship and community involvement. City staff has worked with BART and the City of Albany throughout the planning and design phases of the project. Albany will maintain all improvements in its jurisdiction. The project was advertised for bid in the West County Times on June 10 and 17, 2013. Notices were mailed directly to all contractors on our bidders list and several plan rooms. ANALYSIS Three bids were received on July 3, 2013 with the following results: Name Location Bid Star Construction, Inc. San Bruno $ 568,629.87 Bay Construction, Inc. Oakland $ 923,066.76 W.R. Forde, Inc. Richmond $ 930,012.50 Engineer’s Estimate $ 642,000.00 On July 8, 2013, Staff received a written request from the apparent low bidder, Star Construction, requesting to be relieved of their bid. In their request, they cited a transcription error in one of the bid item unit prices. This error resulted in a lower bid price for this item than they intended; the difference being $180,000. Their low bid of $568,629.87 was thus intended to be $748,629.87. Staff reviewed their request, explanation, and entire bid proposal, along with the bid proposals of the other two bidders, in detail and found merit to their claim of a transcription error. Therefore, Staff recommends acceptance of Star Construction’s request for relief of bid. The next low bid from Bay Construction of $923,066.76 is approximately 44% above the engineer’s estimate of $642,000. The difference between the next low bid and the third bid received is only $6,945.74 (or 1% of the lowest bid). This suggests that the bids were reasonable for the work represented on the project plans. Staff contacted the bidders who explained that various elements of the project were very expensive and could be redesigned. The project design consultants agreed with the bidder’s comments. Staff believes that by applying value engineering principals and redesigning certain elements of the project, the project costs would be greatly reduced. However, this approach would be a significant re-design that cannot be correlated to the current bid results; therefore, an award is not recommended at this time (as has been done with other recent projects). Staff recommends rejection of the current bids, re-tooling the design, and rebidding the project in the near future. Also, Staff intends to include various prioritized alternate bid items which would facilitate a ---PAGE BREAK--- Agenda Item No. 5(C) subsequent award by Council of a reduced scope project, if necessary, that would be within budget. Staff recommends acceptance of Star Construction's request for relief of bid, rejection of all other bids, and authorization to apply value engineering principals to reduce the cost of the project to within budget limits andre-advertise the project for public bid. FINANCIAL CONSIDERATIONS This project is included in the current Capital Improvement Program. The funding for this project is provided by a California Prop 84 Urban Greening Grant of$903,721. Scott Hanin, City Manager Attachments: 1. Accompanying Resolution Page 3 ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 RESOLUTION 2013 – XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO GRANTING THE REQUEST FOR RELIEF OF BID FROM STAR CONSTRUCTION, REJECTING THE TWO REMAINING SUBMITTED BIDS, AND AUTHORIZING CITY STAFF TO PROCEED WITH VALUE ENGINEERING MEASURES AND RE-ADVERTISE FOR PUBLIC BID, THE OHLONE GREENWAY NATURAL AREA AND RAIN GARDEN PROJECT, CITY PROJECT NO. C-3067 WHEREAS, the City Council previously authorized bids for this project as part of the Capital Improvement Program; and WHEREAS, the project was advertised for bids on June 10, 2013 and on June 17, 2013 and three bids were received on July 3, 2013; and WHEREAS, Star Construction, the apparent low bidder, requests relief of their bid due to a transcription error; and WHEREAS, the next lowest bidder was Bay Construction, Inc. whose total bid, in the amount of $923,066.76, was 44 percent above the Engineer’s Estimate, exceeding the projects’ fundable budget; and WHEREAS, staff has determined that modifying the design through the value engineering process will significantly lower the cost of the project, and that such design modification cannot be correlated with the current bids. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito approves the following actions: 1) Grant the request for relief of bid from Star Construction; 2) Reject the two remaining submitted bids; and 3) Authorize City Staff to proceed with value engineering measures and re-advertise the project for public bid. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on August 20, 2013 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on August XX, 2013. Cheryl Morse, City Clerk APPROVED: Gregory B. Lyman, Mayor