CC SR 20150915 H - Rejection of Bids for Sunnyside Ridge Trail ProjectCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM: MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS
DATE: SEPTEMBER 15, 2015
SUBJECT: REJECTION OF BIDS RECEIVED FOR THE SUNNYSIDE RIDGE
TRAIL SEGMENT PROJECT (SUPPORTS 2014 CITY COUNCIL
GOAL #2, INFRASTRUCTURE)
REVIEWED: DOUG WILLMORE, CITY MANAGER f/1/' -'J
Project Manager: Andy Winje, Senior Engineer
RECOMMENDATIONS
1. Reject all bids received for the Sunnyside Ridge Trail Segment Project.
2. Direct Staff to modify the scope of work without impacting essential elements
of the project, with a goal of decreasing the construction cost, and re -advertise
the project as soon as possible.
EXECUTIVE SUMMARY
The City Council approved design documents for the Sunnyside Ridge Trail Segment
Project and bids were received and opened on August 27, 2015. All three bids received
significantly exceeded the engineer's estimate and the available budget for the project.
Therefore, Staff recommends a rejection of all bids with direction to re -scope in an effort
to reduce construction costs.
FISCAL IMPACT
Budgeted Amount: $ 465,000 (FY14-15, continuing appropriation pending)
Additional Appropriation: N/A
Account Number(s): 330-3033-461-73-00
September 15, 2015
Page 2 of 3
BACKGROUND
The City's Conceptual Trails Plan describes Sunnyside Ridge Trail Segment as a
pointto-point trail for equestrians and pedestrians that provides a connection between
Sunnyside Ridge Road and Palos Verdes Drive East. This trail segment is part of the
Palos Verdes Loop Trail, connecting the Sol Vista and Dead man's Curve (also known
as the Conestoga Trail) segments. The Sunnyside Trail Segment is located within a
recorded trail easement that traverses two privately -owned lots, which are currently
developed with single-family residences, one of which was formally part of the old
Narbonne right-of-way.
On July 7t" of this year the City Council approved the design of and authorized Staff to
advertise bid documents for the Sunnyside Ridge Trail Segment Project. Bid documents
were advertised and a pre-bid meeting and site walk held to explain the nuances of the
project to prospective bidders.
DISCUSSION
The project is currently funded by a $300,000 grant from the County of Los Angeles and
a General fund contribution from the City of $165,000. Of that total $465,000 budget,
design and survey encumbrances to date total $146,730, leaving $318,270 available for
construction related activities (construction, inspection, materials testing, contingency,
etc.)
The project was publicly advertised and sealed bids were received and opened on August
27, 2015. All bids were well over the Engineer's Estimate of $316,195 and the available
budget of $318,270. GRFCO, Inc. submitted the apparent low bid out of the three bids
received. (The term "apparent low bid" indicates the bids need to be further analyzed.)
The following table summarizes the bids received:
BID SUMMARY
Construction Companies
Bid Amount
GRFCO, Inc.
$519,620.00
Minco Construction
$542,400.00
Beador Construction Co., Inc.
$574,300.00
Awarding of a contract based on any of these bids would require a significant increase in
the City's general fund contribution to the project. Considering all activities anticipated
during construction, the City would be required to appropriate an estimated $270,000 to
complete the project with the apparent low bidder.
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Lowering the cost of construction may be possible by modifying the design or changing
the scope. Therefore, Staff recommends rejecting all bids and directing staff to reexamine
the scope of work and, to the extent possible, modify it without impacting the essential
elements of the project. It is still likely an additional fund contribution from the City will
be necessary, but it should be lower than $270,000.
Rejection of Bids for Sunnyside Ridge Trail Segment Project
September 15, 2015
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The design firm will provide services for re -scoping and re -design at no additional cost to
the City. Staff intends to have new documents ready to advertise for bidding within four
weeks.
CONCLUSION
Construction of the Project is considered a high priority project by the Public Works
Department but the budget appropriation of the City will be exceeded if a construction
contract is awarded at this time. Rejecting the bids, reviewing the scope of the project
and re -bidding the project with revised plans and specifications should allow the project
to be completed at a lower cost, albeit with some delay.
ALTERNATIVES
City Council may wish to award the contract based on current bids, in which case Staff
will need to return with a complete bid analysis to determine the amount of the bid of the
lowest responsive and responsible bidder and a budget appropriation to cover the budget
exceedance.
Attachments
none
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