Agenda

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Finance Committee

Meeting Date:	09/10/2019
FROM:	Yvonne Lopez

Subject:

Rejection of Bids and Authorize Staff to Rebid the Senior Center Kitchen Enhancements, CIP Project No. 7944

RECOMMENDATION

Reject all bids and direct City Clerk to return all bid bonds and authorize staff to re-advertise for bids.

BACKGROUND/DISCUSSION

Over the past two years, the City has secured a series of Community Development Block Grants (CDBG) to renovate the Brea Senior Center Kitchen, including a new design, purchase of new equipment and construction. The goal of this project is to proactively address the growing need for senior nutrition services in our community by creating a space prepared to accommodate an increase in participation and volunteerism.

The first phase of this project, which included creating a new design and purchasing new equipment, has been completed. Staff is now in the process of implementing the second phase of the project – construction.

On August 23, 2019, staff received four bids for construction, summarized in Table1 – Bid Summary below. Subsequent to the bid opening, staff reviewed the apparent low bid, as well as the next lowest bidder’s proposals with respect to conformance with the proposal requirements and to identify any bid irregularities.

Table 1 – Bid Summary

Contractor	Bid Amount
1. Harbor Coating and Restoration	$429,000
2. iBuild Spectrum, Inc.	$538,000
3. R. Dependable Construction, Inc.	$800,000
4. Dalke & Sons Construction, Inc.	$886,890

The Engineer’s Estimate within the approved CIP Budget for this Project is $350,000.

Upon review of the bids received, it became apparent to staff that the plans and specifications were unclear about what equipment was to be furnished by the City and by the Contractor respectively, and bidders had included the purchase of kitchen equipment already in the City’s possession in their bid amounts. This accounts for a surplus of approximately $160,000 in each bidder’s proposal.

After consultation with the City Attorney with respect to the need for the plans and specifications to be re-clarified, staff is recommending that the City Council reject all bids, return all bid bonds and re-advertise the project. If approved, staff will re-bid the project with an anticipated bid opening of October 21, and a tentative award on November 5. Construction should commence in mid-November.

SUMMARY/FISCAL IMPACT

If City Council approves rejecting all bids and re-advertising the project, all funds are anticipated to be covered by 2018/19 and 2019/20 CDBG funds. There is no General Fund impact.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Deputy Director of Public Works/City Engineer; and
Jenn Colacion, Management Analyst
Concurrence: Tony Olmos, P.E., Public Works Director; and
Chris Emeterio, Assistant City Manager