RPVCCA_CC_SR_2012_11_07_D_Rejection_Of_Bids_RPV_CA_Coastal_Trail_ProjectCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
JIM HENDRICKSON,INTERIM DIRECTO..R OF PUBLIC WO~\\/'
NOVEMBER 7,2012 .,.V"
REJECTION OF BIDS RECEIVED FOR RANCHO PALOS
VERDES CALIFORNIA COASTAL TRAIL PROJECT (SUPPORTS
2012 CITY COUNCIL GOAL No.10,CITY TRAIL SYSTEM
ENHANCEMENT)
REVIEWED:CAROLYN LEHR,CITY MANAGER G9---
Staff Coordinator:Siamak Motahari,Senior Engineer
RECOMMENDATIONS:
1.Reject all bids received for the subject project on September 18,2012.
2.Direct Staff to:
a.Modify the scope of work without impacting the essential elements of the project,with the
goal of decreasing construction cost.
b.Upon preparation of the new bid documents,present revised plans,specifications and
construction cost estimate for the City Council's review,at which point the Council may
consider rebidding the project and/or a possible increase in the City's fund contribution for
this project.
BACKGROUND
The California Coastal Act,Public Resources Code section 31000 et seq.,calls for the California
Coastal Conservancy (Conservancy)to have a principal role in the implementation of a system of
public access ways to and along the State's coastline,including development of the California Coastal
Trail (CCT).The Conservancy pursues this mandate in part by awarding grants to public agencies andD-1
nonprofit organizations to acquire land,or any interest therein,or to develop,operate,or manage
lands for public access purposes to and along the California coastline.The CCT,once completed,will
extend 1,200 miles from the Oregon to Mexico boundary lines,including a segment through the City of
Rancho Palos Verdes.
According to the City's Conceptual Trails Plan and the Council-adopted Vision Plan,the City's
segment of the CCT extends the entire length of the City's coastline between the boundary lines of the
City of Palos Verdes Estates and the City of Los Angeles.The total length of the RPV segment of the
CCT is approximately 9 miles.This project will improve 2.5 miles of this segment.The rest of the trail
length has either been improved previously or is part of the naturally compacted surface trails which
exist in the preserve.
In an effort to reduce City costs while enhancing public access and recreational opportunities and
pursuant to City Council authorization,on June 30,2010,the City of Rancho Palos Verdes and the
Palos Verdes Peninsula Land Conservancy submitted a grant application to the Conservancy
completing the City's segment of the CCT.On October 21,2010,the Conservancy awarded the City
$500,000 for the project and required that the City contribute $60,000 in matching funds.Pursuant to
the State requirements for the grant,on May 17,2011,the Council adopted Resolution No.2011-31
acknowledging the grant and its terms.On February 7,2012,the Cquncil awarded a contract to Alta
Planning and Design to prepare plans,specifications and a cost estimate for this project.
DISCUSSION
The project was advertised and sealed bids were received and opened at 10 a.m.on September
18,2012.The following table summarizes the bids received:
RANCHO PALOS VERDES CALIFORNIA
COASTAL TRAil PROJECT
Enaineer's Estimate:$595,000
Bid Opening on September 18,2012
Bidder Bid Amount
STL Landscape,Inc $790,000
Marina Landscaping Inc.$816,043.50
Environmental Constr.,Inc.$960,391
Minco Construction $1,715,215
The bids received are significantly above the engineer's cost estimate of $595,000.This will
require a considerable increase in the City's fund contribution.The current budget of $560,000
allocated for this project is not sufficient to cover the total engineering cost,permit fees,labor
compliance fees and the estimated construction and contingency costs.Staff therefore
recommends rejecting all bids and directing staff to re-examine the scope of work and,to the
extent possible,modify it without impacting the essential elements of the project.In this way the
additional fund contribution by the City can be lowered.
Grant Restrictions
The grant conditions require the trail to cover the entire path between the City borders of Palos
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Verdes Estates and San Pedro (Los Angeles),therefore phasing of this project is not an option.
The State has agreed to extend the project's construction completion deadline in order for the City
to be able to re-bid this project.
CONCLUSION
Construction of the City's segment of the CCT is considered a high priority project for the public's
benefit as reflected in the Council-adopted Capital Improvement Program (CIP).Rejecting the current
high bids,reviewing the scope of the project,and re-bidding this project with revised specifications and
plans are positive steps toward the completion of the City's segment of the CCT at a reasonable cost
and making the trail available for public use and enjoyment in August 2013.
FISCAL IMPACT
There is no direct fiscal impact of rejecting all bids.Modifying the scope of work and rebidding the
project will take some staff time.However,once that is accomplished,Staff expects to receive
lower bids tha~are more in line with the City's fiscal policies.
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