CC SR 20151104 F - Rejection of Bids Hawthorne ROW Beautification ProjectCITY OF RANCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS -;w
NOVEMBER 4, 2015
SUBJECT: REJECTION OF BIDS RECEIVED FOR THE HAWTHORNE BLVD.
RIGHT OF WAY BEAUTIFICATION PROJECT
REVIEWED: DOUG WILLMORE, CITY MANAGER f/VV'-1
·~ Project Manager: Ron Dragoo, Principal Enginee ~-
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RECOMMENDATIONS
1. Reject all bids received for the Hawthorne Blvd. Right of Way Beautification
Project.
2 . Direct Staff to modify the scope of work to accomplish the tree planting in the
medians, with the goal of decreasing the construction cost, and re-advertise
the project as soon as possible.
EXECUTIVE SUMMARY
The City Council requested improvements be performed along Hawthorne Blvd to include
cleaning the existing median paving, planting trees, removing fencing in the Right of Way
near the intersection of Indian Peak and Hawthorne Blvd with a recommended budget of
$150,000. Both bids received significantly exceeded the engineer's estimate and the
recommended 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:
Additional Appropriation:
Account Number(s):
$ 150,000 (budget was recommended, not
appropriated)
N/A
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Account Number(s):
BACKGROUND/DISCUSSION
Staff developed this project to beautify the medians along Hawthorne Blvd. Trees with
deep root watering systems were specified keeping corridor views in mind. Watering the
newly planted trees with reclaimed water and an 18 month tree establishment period
were included in the specifications. Imperfections in the median paving were to be
ground smooth and the surface blasted to remove colored paint so an exposed
aggregate surface would be achieved, and removing the one remaining chain link fence
in RPV at Indian Peak and Hawthorne Blvd. was to be accomplished through this
project.
The project was publicly advertised and sealed bids were received and opened on
October 26, 2015. The bids were well over the Engineer's Estimate of $145,000 and the
recommended budget of $150,000. KASA Construction submitted the apparent low bid.
(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
KASA Construction $504,018. 75
Excel Paving Company $1,019,957.50
Awarding of a contract based on any of these bids would require a significant increase in
the City's anticipated general fund contribution to the project. Considering all activities
anticipated during construction, the City would be required to appropriate an additional
$354,018 beyond the recommended appropriation to award the project with the apparent
low bidder.
Lowering the cost of construction is possible by modifying the design and changing the
scope. Therefore, Staff recommends rejecting all bids and directing staff to re-examine
the scope of work and, modify it to include tree planting in the existing median openings
and removing the one remaining chain link fence. The remaining elements of this project
would be included in a project that would be part of the City's CIP.
CONCLUSION
Construction of the Project is considered a high priority project, but the recommended
budget will be exceeded if a construction contract is awarded at this time. Rejecting the
bids, revising the scope, 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.
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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 for the project.
Attachments
none
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