City of Culver City, California
Agenda Item Report
Meeting Date: 7/28/2014 Item Number: C-7
CITY COUNCIL AGENDA ITEM: 1) Waiver of Irregularity/Informality on Ramona,
Inc. Bid; and 2) Award of a Construction Contract to Ramona, Inc. in an Amount
Not-to-Exceed $54,660 ($48,860 Base Bid and $5,800 in Change Order Authority)
for the Construction of Jefferson Boulevard Sewer Main Extension Project. PZ-
230
Contact Person/Dept.: Lee Torres/PW Phone Number: 310-253-5623
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (07/23/2014); (E-Mail)
All Bidders (07/21/14); Mr. McDermott (07/23/14)
Department Approval:
Charles D. Herbertson (07/18/14)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/22/14)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/22/14)
City Manager Approval:
John M. Nachbar (07/23/14)
RECOMMENDATION:
Staff recommends that the City Council 1) waive an irregularity/informality on the
Ramona, Inc. bid; and 2) award a construction contract to Ramona Inc. as the lowest
responsive and responsible bidder, in an amount not-to-exceed $54,660 ($48,860
base bid and $5,800 in change order authority) to complete the necessary work for
the Jefferson Boulevard Sewer Main Extension Project, PZ-230.
BACKGROUND/DISCUSSION:
Mr. McDermott, property owner of 9450 Jefferson Boulevard, requested to be
connected to the City’s sanitary sewer system. His property is currently utilizing a
private septic system. In order to connect to the sewer system, a new sewer main
must be constructed. It is the City’s policy to provide each property owner a public
sewer main and lateral to service their property. Also, it is in the interest of health
and water quality to eliminate private septic systems.
The proposed sewer improvement project will consist of constructing about 80 feet
of new standard 8-inch diameter sewer main, one 36-inch diameter sewer manhole,
and 20-feet of new 6-inch diameter sewer lateral pipe.
Pursuant to Culver City Municipal Code Section 3.07.090.B and the City’s
Purchasing Policy, because the estimated cost of construction is less than $75,000
and included in the current fiscal year adopted budget, prior approval by the City
Council of the plans and specifications and authorization of the publication of a
notice inviting bids, were not required. City of Culver City, California
Agenda Item Report
Staff published a notice inviting bids in several bid-noticing newspapers and posted
the notice on the City website. On June 12, 2014, the City Clerk’s Office publicly
opened the bids. Ten (10) contractors responded with the following bid amounts:
CONTRACTOR BID AMOUNTS
1 Ramona, Inc. $48,860.00
2 GRFCO $57,000.00
3 Mike Prlich & Sons,Inc. $68,306.00
4 Williams Pipeline $70,040.00
5 Excel Paving Company $79,597.00
6 BALI Construction, Inc. $83,345.00
7 Kordich Construction,Inc. $86,500.00
8 Vaslij, Inc. $88,850.00
9 SND Construction, Inc. $89,490.00
10 John T. Malloy, Inc. $89,950.00
Staff reviewed the bid proposal of the lowest bidder, Ramona, Inc. (Ramona) and
found one irregularity/informality on its bid proposal. Ramona did not acknowledge
the receipt of Addendum #2 dated June 5, 2014. Ramona was contacted via
telephone and e-mail regarding the missing Addendum #2. Ramona has accepted
and signed the Addendum #2 and agreed to maintain their original bid amount and
fulfill the sewer improvement work per the plans and specifications.
After further discussion and review of the bid document with the City Attorney’s
Office, it was determined that the initial omission of acknowledgement of receipt of
Addendum #2 may be considered an irregularity and/or informality and may be
waived by the City Council, pursuant to CCMC Section 3.07.075(E)(2).
Ramona has completed similar projects with other municipal agencies in the local
region, including the cities of Manhattan Beach and Los Angeles. Staff contacted
their references and was told that Ramona did satisfactorily complete the work, but
they did have disputes on contract change orders. Nevertheless, staff is
recommending the construction contract be awarded to Ramona, as the contractor
has been constructing pipelines and completing projects since 1979, disputes on
change orders are not uncommon, and despite such change order disputes, staff
believes Ramona to be the lowest responsive and responsible bidder.
Public Notification
Approximately two weeks prior to commencement of construction activity, adjacent
businesses will be provided with written information on the project scope and contact
information. The Construction Notice will be posted on the City website.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
Proposed Project Budget
Sewer Local & Emergency Repair, PZ230 $65,000.00
Estimated Project Expenses
Construction Contract $48,860.00
12% contingency $5,800.00
Subtotal $54,660.00
Construction Inspection $7,800.00
Geotechnical Construction Services (Observation
& Testing)
$2,500.00
Total Estimated Project Expenses $64,960.00
ATTACHMENT:
1. Location Map
MOTIONS:
That the City Council:
1) Waive the irregularity/informality in the Ramona, Inc. bid per the staff report;
2) Award a contract to Ramona, Inc. as the lowest responsive and responsible
bidder, for the Jefferson Boulevard Sewer Main Extension Project, PZ-930, in an
amount not-to-exceed $$54,660 ($48,860 base bid and $5,800 in change order
authority); and,
3) Authorize the Public Works Director/City Engineer to approve change orders in
an amount not-to-exceed $5,800, if necessary; and,
4) Authorize the City Attorney to review/prepare the necessary documents; and,
5) Authorize the City Manager to execute such documents on behalf of the City.