City of Culver City, California
Agenda Item Report
Meeting Date: 11/14/2011 Item Number: C-6
CITY COUNCIL AGENDA ITEM: (1) Reject Bids submitted by Rafael 26
Construction, Inc. and Araghi Corporation; and (2) Award a Construction Contract
to Hoffman Management and Construction Corporation for the Construction of Fire
Station #1 Exterior Staircase Reconstruction Project, P-931.
Contact Person/Dept.:
Lee Torres/PW
Phone Number:
(310) 253-5623
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (11/11/11); (Telephone)
All Bidders (11/09/11)
Department Approval:
Charles D. Herbertson 11/01/11
City Attorney Approval:
Carol Schwab (by H. Baker) (11/09/11)
Chief Financial Officer Approval:
Jeff Muir (by K. Marsden) (11/10/11)
City Manager Approval:
John M. Nachbar (11/10/11)
RECOMMENDATION:
Staff recommends the City Council:
1) Reject the bids submitted by Rafael 26 Construction Inc., and Araghi Corporation
due to their bids being non-responsive; and,
2) Award a construction contract to Hoffman Management and Construction Inc.
(Hoffman) as the lowest responsive and responsible bidder to complete the
necessary work for the Fire Station #1 Exterior Staircase Reconstruction Project,
P-931.
BACKGROUND/DISCUSSION:
On August 22, 2011, the City Council approved the final plans and specifications to
replace the exterior staircase and authorized the advertising of construction bids.
On September 22, 2011, the City Clerk’s Office publicly opened the bids. Seven (7)
contractors responded with the following bid amounts:
City of Culver City, California
Agenda Item Report
CONTRACTOR BID AMOUNTS
1 Rafael 26 Construction, Inc., Los Angeles, CA $38,520.00
2 Araghi Corp., Los Angeles, CA $48,574.00
3 Hoffman Mgmt. & Const. Corp., Los Angeles, CA $52,857.75
4 Magic Hammer Development, Inc. $68,128.00
5 The Richard Group, Murrieta, CA $73,000.00
6 Fast Track Const. Corp., Culver City, CA $96,800.00
7 Parker Brown Inc., Canoga Park, CA $102,291.00
Bid Review
The original bid proposals from Rafael 26 Construction Inc. (Rafael 26), first low
bidder, and Araghi Corporation (Araghi Corp.), second low bidder, were reviewed
and did not contain relevant construction experience information as required in the
bid documents. The third low bidder, Hoffman, provided all the required construction
experience information, except a tentative construction schedule.
Due to missing information by all three of the lowest bidders, in consultation with the
City Attorney’s Office, staff gave an opportunity to the three (3) low bidders to re-
submit missing information within two days.
The three low bidders resubmitted the missing items within two days. After thorough
review, Rafael 26 and Araghi Corp, still did not meet the minimum construction
experience required by providing at least two (2) “steel staircase” construction
projects and two (2) projects involving water intrusion related repair as required in
the bid documents. Hoffman provided a proposed tentative construction schedule
which was deemed acceptable.
Rafael 26 and Araghi Corp were both notified by telephone and letter that staff will
be recommending to City Council to reject their bid proposals due to not meeting the
minimum construction experience required in the Plans and Specifications.
Staff verified all references provided by Hoffman and received positive feedback
regarding the contractors’ performance and they were highly recommended by other
government agencies.
Work is scheduled to begin in January 2012 and be completed in two months.
FISCAL IMPACT:
The following chart contains fiscal information regarding award of the contract:
City of Culver City, California
Agenda Item Report
Proposed Project Budget
Funding Source Amount
42000931 $80,000.00
Total = $80,000.00
Estimated Project Expenses
Fire Station #1 Exterior Staircase
Reconstruction Project.
$52,857.75
Contingency $ 12,412.25
Total Estimated Project Expenses $65,0000.00
Staff recommends a total of $ 12,412.25 in contingency amount to account for any
water damage repair work, which cannot be fully assessed until the walls are fully
exposed.
MOTIONS:
That the City Council:
1) Reject the bids submitted by Rafael 26 Construction, Inc. and Araghi Corporation
due to its bids being non-responsive;
2) Award a contract to Hoffman Management and Construction Corporation for the
Fire Station #1 Exterior Staircase Reconstruction Project, P-931, in the amount of
$ 52,857.75, based on its base bid; and,
3) Authorize the Public Works Director/City Engineer to approve change orders in
an amount not-to-exceed $ 12,412.25, if necessary; and,
3) Authorize the City Attorney to review/prepare the necessary documents; and,
4) Authorize the City Manager to execute such documents on behalf of the City.