HomeMy WebLinkAbout05 - 2019-2020 Playground Refurbishment Project — Award of Contract No. 7737-1 (20P01)TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
April 14, 2020
Agenda Item No. 5
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Tom Sandefur, Assistant City Engineer,
tsandefur@newportbeachca.gov
PHONE: 949-644-3321
TITLE: 2019-2020 Playground Refurbishment Project — Award of Contract
No. 7737-1 (20P01)
ABSTRACT:
The current Capital Improvement Program includes funding to repair and/or replace play
equipment and rubber surfacing at several City parks. Staff has now received bids for
the 2019-2020 Playground Improvements Project and is requesting City Council approval
to award the work to R.E. Schultz Construction, Inc. (R.E. Schultz) of Orange, CA.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301—Class 1 (rehabilitation of deteriorated facilities) of the
CEQA Guidelines, because this project results in no expansion of an existing use;
b) Approve the project plans and specifications;
c) Declare the bid submitted by JMJ Construction of Winchester as non-responsive;
d) Award Contract No. 7737-1 to R.E. Schultz for the base bid price of $256,921.50, and
Additive Bid Item No. 1 for $14,700.00 for a total bid price of $271,621.50, and
authorize the Mayor and City Clerk to execute the contract; and
e) Establish a contingency amount of $27,378.50 (approximately 10 percent) to cover
the cost of unforeseen work not included in the original contract.
FUNDING REQUIREMENTS:
Sufficient funding is available in the current Capital Improvement Program budget for the
award of this contract. The proposed project will be funded from the Building Excise Tax
(BET) fund (Account No. 14101-980000-20P01). The BET fund is used to account for
property development taxes imposed on construction and occupancy of all residential,
commercial, industrial units, and mobile home parks for which a building or construction
permit is issued. BET funds shall only be used for acquiring, improving, expanding and
equipping City fire stations, City libraries and City Parks as provided by chapter 3.12 the
Newport Beach municipal code.
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2019-2020 Playground Refurbishment Project — Award of Contract No. 7737-1 (20P01)
April 14, 2020
Page 2
Proposed fund uses are as follows:
Vendor
R.E. Schultz
R.E. Schultz
Various
DISCUSSION:
Purpose
Construction Contract
Construction Contingency
Printing & Incidentals
Total:
Amount
$ 271,621.50
$ 27,378.50
$ 1,000.00
$ 300,000.00
As part of the FY 2019-2020 Playground Refurbishment Program, staff identified Newport
Shores Park, Mariners Park and Bob Henry Park playgrounds as needing maintenance
due to the age of the equipment and rubber surfacing in order to maintain desired safety
levels and ADA compliance. Newport Shores Park and Mariners Park playgrounds will
receive new equipment components, while utilizing the original play structure. However,
Bob Henry Park playground will receive completely new play equipment with shade
structure and new rubber surfacing. The existing rubber surface area will be increased
to accommodate a greater accessibility area. All three playgrounds have components
that are accessible from the ground level and elevated components that will be accessible
via a transfer platform. Staff developed contract documents accordingly and put the
needed playground improvements project out for public bids.
Since this project is of a specialty nature, staff extended the normal bidding period in order
to provide more time to local contractors interested in bidding on this project.
Furthermore, our online electronic bidding platform, PlanetBids automatically notified 92
companies based on the project category. A total of 25 companies obtained the bid
contract documents during the advertising period.
At 10 a.m. on March 11, 2020, the City Clerk opened and read the following bids for this
project:
*Non-responsive
A review of the bid package submitted by JMJ Construction (JMJ), the apparent low
bidder, revealed that their certification was incomplete; therefore, staff has determined
that their bid is non-responsive. On March 17, 2020, a letter was sent to JMJ informing
them of staff's determination and that the City would not be awarding the contract to JMJ.
Due to the low bidder turnout, staff contacted the other prime contractors who
downloaded the contract documents to find out the reason why they did not submit a bid.
The reasons included their inability to provide the specified materials and to meet the
certification requirements. In order to control the quality of their product installations,
Landscape Structures, Inc. (LSI) has developed a certification process that vets
companies to make sure they are properly insured, have properly trained installers and
significant years of experience with installing LSI products.
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BIDDER
BASE BID
TOTAL ADDITIVE
BID ITEMS
TOTAL BID
AMOUNT
Low
JMJ Construction*
$ 256,260.34
$ 5,250.00
$ 261,510.34
2nd
R.E. Schultz
$ 256,921.50
$ 14,700.00
$ 271,621.50
*Non-responsive
A review of the bid package submitted by JMJ Construction (JMJ), the apparent low
bidder, revealed that their certification was incomplete; therefore, staff has determined
that their bid is non-responsive. On March 17, 2020, a letter was sent to JMJ informing
them of staff's determination and that the City would not be awarding the contract to JMJ.
Due to the low bidder turnout, staff contacted the other prime contractors who
downloaded the contract documents to find out the reason why they did not submit a bid.
The reasons included their inability to provide the specified materials and to meet the
certification requirements. In order to control the quality of their product installations,
Landscape Structures, Inc. (LSI) has developed a certification process that vets
companies to make sure they are properly insured, have properly trained installers and
significant years of experience with installing LSI products.
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2019-2020 Playground Refurbishment Project — Award of Contract No. 7737-1 (20P01)
April 14, 2020
Page 3
The base bid amount submitted by R.E. Schultz, $256,260.34 is approximately
4.8 percent less than the Engineer's Estimate of $270,000.00. R.E. Schultz possess a
valid and current California State General Engineering "A" Contractor's License with a
"C -61/D-34" (prefabricated equipment), a subcontractor who holds a "C -61/D-12"
(synthetic products/rubber surfacing) license, a Certified Playground Safety Inspector
certification and is a Landscape Structure Certified Installer, as required by the contract
documents. A check of the Contractor's references indicates satisfactory completion of
similar projects for the City of Newport Beach and other public agencies.
The work necessary for the completion of this contract consists of removing and disposing
of existing improvements, including current rubber surface wear course and playground
equipment; furnishing and installing flexible play surface systems, play equipment at
Newport Shores Park, Mariners Park and Bob Henry Parks; and other incidental items to
complete the work in place as required by the contract documents.
Although only two bids were submitted, staff recommends awarding the contract to the
second lowest bidder, R.E. Schultz based on staff's experience on previous playground
projects and reference recommendations. Additionally, R.E. Schultz also holds a City of
Newport Beach on-call maintenance/repair services agreement for playground equipment
and installation services.
Pursuant to the contract documents, the contractor will have 30 consecutive working days
to complete the work.
The plans and specifications will be available for viewing at the City Council meeting on
April 14, 2020.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to 15301—Class 1 (rehabilitation of
deteriorated facilities) of the CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, because it has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Letter to Low Bidder Dated March 17, 2020
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CITY OF COSTA
MESA
J PROJECT LOCATIONS
1. NEWPORT SHORES PARK
2. MARINERS PARK
3. BOB HENRY PARK
JOHN WAYNE
AIRPORT
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VICINITY MAP
NOT TO SCALE
2019-20 PLAYGROUND
IMPROVEMENT PROJECT
LOCATION MAP
Attachment A
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CITY OF
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UNIVERSITY
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CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-7737-1 1 04/14/20
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ATTACHMENT B
Via Certified Mail (Return Receipt Requested)
Via E -Mail jmiconstruction(c�me.com
JMJ Construction
Attn: Jordan Moisa, President
40209 Medford Road
Temecula, CA 92591
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3311 1 949 644-3308 FAX
newportbeachca.gov/publicworks
Subject: Determination of Non -Responsiveness of Contractor's Bid
2019-2020 Playground Improvements (C-7737-1)
Dear Mr. Moisa,
March 17, 2020
The City of Newport Beach ("City") received the bid submittal of JMJ Construction
("Contractor") on March 11, 2020 in response to the City's bid package (Attachment 1)
and Special Provisions (Attachment 2) for the 2019-2020 Playground Improvements (C-
7737-1) ("Project").
The City's Special Provisions (under Section 2-1 entitled "Award and Execution of
Contract") requires the successful Contractor and their Subcontractor(s) to possess the
proper California State licensing, at a minimum, General Engineering "A" Contractor's
with a "D-34" (prefabricated equipment) license. "D-12" (synthetic products/rubber
surfacing) license is required for installer of rubber surfacing. Additionally, the bid
package requires that relevant members of the successful Contractor's project team
maintain possession of the following certifications:
a) CPSI certified (Certified Playground Safety Inspector)
b) LSI certified (Landscape Structures Incorporated)
In submitting its bid response, Contractor's bid response fails to fulfill the City's
certification requirement for the following reasons:
1. Contractor failed to provide a current Landscape Structures Certified
Installer certificate.
2. City's certification verification with Landscape Structures' Installation
Services Manager confirmed that JMJ Construction is not a current certified
installer.
For this reason, the City has determined that Contractor's bid for the Project is
nonresponsive.
As you are aware, section 7 on page 4 of the bid package (under the section titled
"Instruction to Bidders") the City reserves the right to reject any bid and to waive any
minor, immaterial irregularity or informality in such bids. If a bid defect is material, the
City must reject the bid. (See, e.g. MCM Construction, Inc. v. City and County of San
Francisco (1998) 66 Cal.AppAth 359, 373-77.) The City has not determined that the
defects in Contractor's bid are immaterial. Similarly, the City has not determined to waive
the defects in Contractor's bid. The bid defects could have affected the amount of the bid
or given Contractor an advantage or benefit not allowed to other bidders. (See Konica
Business Machs. U.S.A., Inc. v. Regents of Univ. of Cal. (1988) 206 Cal. App. 3d 449,
456-57.)
If you have any questions or comments, please contact me at 949-644-3014 or
kchoanewgortbeachca.aov.
Sincerely,
Kathryne Cho
Civil Engineer
Cc: Jim Houlihan, Deputy Public Works Director/City Engineer
Tom Sandefur, Assistant City Engineer
Attachments: 1) Bid Package
2) Special Provisions
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