City of Culver City, California
City Council Agenda Item Report
A3-1
RECOMMENDATION:
Staff recommends the City Council: (1) reject the bid by California Engineering and
Contracting, Inc., due to its bid being non-responsive and (2) award a construction
contract to Steiny and Company, Inc., as the lowest responsive and responsible
bidder, to complete the necessary work for the Higuera Street and Eastham Drive
Traffic Signal and Intersection Upgrade, P-741, federal aid project STPL-5240
(004).
BACKGROUND:
The project scope involves the replacement of the aging traffic signal system at the
intersection of Higuera Street and Eastham Avenue and the installation of a
median island on Eastham Avenue to improve the pedestrian and vehicle traffic
flow through the intersection.
DISCUSSION:
On February 21, 2008, the Deputy City Clerk publicly opened bids. Six
Contractors responded with the following bid amounts:
Meeting Date: 3/24/08 Item Number: A-3
AGENDA ITEM: Reject Bid by California Engineering and Contracting, Inc., and
Award a Construction Contract to Steiny and Company, Inc. for the
Construction of Higuera Street and Eastham Drive Traffic Signal and
Intersection Upgrade, P-741, Federal Aid Project, STPL – 5240 (004)
Contact Persons/Dept.: Hong
Wang/PWD
Phone Number: (310) 253-5604
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (3/20/08); California Engineering &
Contracting Inc., Steiny and Company, Inc., C. T. & F, Inc., Shawnan, Christopher R.
Morales, Inc. , Terno, Inc. by telephone on (3/20/08).
Department Approval:
Charles D. Herbertson (3/20/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/20/08)
Fiscal Impact Review:
Jeff Muir (03/20/08)
City Manager Approval:
Jerry B. Fulwood (03/20/08) City of Culver City, California
City Council Agenda Item Report
A3-2
CONTRACTOR
BID
AMOUNTS
1. California Engineering & Contracting Inc. $165,610.00
2. Steiny and Company, Inc. $203,946.00
3. C. T. & F, Inc. $206,047.32
4. Shawnan $207,207.00
5. Christopher R. Morales, Inc. $209,725.00
6. Terno, Inc. $254,918.00
Staff reviewed the lowest bidder’s (California Engineering & Contracting Inc.) bid
proposal. Staff is recommending rejecting California Engineering and Contracting,
Inc., bid due to it being non-responsive. Staff determined that the company was
issued a Contractor’s license on January 22, 2007. In the bid proposal submitted
by California Engineering and Contracting, Inc., it states that the employees in the
company have three (3) years experience with the firm. This information is
inconsistent with the information obtained from the State Contractor’s license
board. The City’s Charter provisions regarding public works contracts|1010| provide
that the City Council, in its discretion, may reject any and all bids presented. Also,
the bid specifications state that the City Council may reject any bids to serve the
interests of Culver City.
Steiny and Company, Inc. is a reputable and well known traffic signal contractor in
California. Although their bid is higher than California Engineering and
Contracting, Inc. by an amount of $38,336, the bid amount is in line with the
engineer’s estimate of $190,000. Steiny and Company’s bonding information was
reviewed and determined to meet City requirements. Furthermore, unlike the bid
submitted by California Engineering and Contract, Inc., Steiny and Company’s bid
was found to be complete, accurate, and fully responsive.
Federal Funding Information
The City has received federal funding which will be applied to this project.
As the City Council may recall, this project has been advertised for construction
bids four times over the last nine years. Each year, all of the bids were rejected by
the City Council due to insufficient funds available for construction (based upon the
high bids prices received) or other technical reasons The approved federal-aid
|1010| Charter Section 2007 provides that the procedures for awarding public works contracts as set forth in the “old”
Charter will remain in effect until such time as the City Council establishes, by ordinance, different procedures.
Therefore, the current procedures are set forth in “old” Charter Section 1304. City of Culver City, California
City Council Agenda Item Report
A3-3
funds on the project will be forfeited if the work is not invoiced by May 16, 2008.
No further time extensions for this grant are available. Therefore, it is imperative
that the City Council award the contract at its meeting on March 24, 2008 so that
sufficient work can be accomplished and invoiced prior to the May 16, 2008 federal
funding deadline.
Engineering Division staff will perform construction management. To provide
adequate project supervision, a part-time consultant inspector for specific electrical
components of the construction will be selected from the City Council approved list
of civil engineering and project management firms. Construction is expected to
commence in April 2008 and is slated to be completed within 90 calendar days.
FISCAL ANALYSIS:
Sufficient funds are available to award this construction contract in CIP Project 741
– Higuera Street Traffic Signal Upgrade.
Total Adopted Project Budget by Funding Source
Funding Source Amount
Gas Tax $ 50,059
Capital Improvement & Acquisitions Fund $ 90,000
Federal STPL Fund (reimbursable) $ 97,383
Total = $237,442
Expenditures and encumbrances already
committed (as of 3/13/08) reproduction costs
$ 270
Total Available Funding $237,172
Proposed Expenses
Total Construction Contract Cost $203,946
Contingency (10%) $20,394
Subtotal: $224,340
Construction Inspection and Material Testing $ 12,832
Total Proposed Project Cost $237,172
City of Culver City, California
City Council Agenda Item Report
A3-4
ATTACHMENT:
1. Location Map
MOTIONS:
That the City Council:
1) Reject the bid by California Engineering Contracting, Inc. due to its bid being
non-responsive.
2) Award a construction contract to Steiny and Company, Inc. for construction of
Higuera Street and Eastham Drive Traffic Signal and Intersection Upgrade, CIP
Project-741, STPL-5240 (004) in the amount of $203,946, and
3) Authorize the Public Works Director/City Engineer to approve change orders, if
necessary, in an amount not to exceed $20,394 (10%).
4) Authorize the City Attorney to review/prepare the necessary documents and
authorize the City Manager to execute such documents on behalf of the City.