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CC-(1) Rejection of a Bid Submitted By Elecnor Belco Electric Inc. (Belco) for the MOVE Culver City Downtown Corridor Project Labor and Materials for Bus and Bike Lanes and Signal Installation (BID 2124); (2) Authorization to the City Manager to Negotiate a Contract with Belco and Other Contractors on Behalf of the City; (3) Waiver of the Bidding Requirements on Material Procurements; and (4) Authorization to the Purchasing Officer/City Manager to Negotiate and Issue Various Purchase Orders on Materials for the Project, with Total Procurement Amount Not-To-Exceed $400,000.
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Meeting Date: June 14, 2021
Contact Person/Dept: Diana Chang / Transportation Department
Phone Number: (310) 253-6566
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/09/2021)
Department Approval: Rolando Cruz (06/07/2021)
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RECOMMENDATION
Staff recommends the City Council (1) reject a bid submitted By Elecnor Belco Electric Inc. (Belco) for the MOVE Culver City Downtown Corridor Project labor and materials for bus and bike lanes and signal installation (BID 2124); (2) authorize the City Manager to negotiate a contract with Belco and other contractors on behalf of the City; (3) waive the bidding requirements on material procurements; and (4) authorize the Purchasing Officer/City Manager to negotiate and issue various purchase orders on materials for the Project, with total procurement amount not-to-exceed $400,000.
BACKGROUND
On May 18, 2020, City Council directed City Transportation Department to capitalize on reduced traffic as a result of the pandemic by reclaiming space on the street and installing dedicated bus lanes to improve mobility throughout the City. On September 29, 2020, City Council approved the professional services agreement with Sam Schwartz to plan, design, and implement quick-build mobility lane pilot projects. MOVE Culver City includes three corridors: Downtown/E Line/Arts District corridor on Culver and Washington Boulevards (Downtown Corridor), Sepulveda Boulevard, and Jefferson Boulevard. The City’s Transportation Department, in coordination with Department of Public Works, Community Development and other City departments, have been implementing Corridor 1: Downtown Corridor since October 2020. The Sepulveda and Jefferson corridors will be implemented in a future phase of the project.
The Downtown Corridor Project (herein after referred to as “the Project”) will build mobility lanes in the 1.3-mile stretch of Culver Boulevard and Washington Boulevard between Culver Boulevard at Duquesne Avenue and Washington Boulevard at La Cienega Avenue.
On March 22, 2021, the City Council approved the 90% complete Downtown Corridor Project plans and specifications and authorized to publish a notice inviting bids; and, adopted a resolution certifying the Project will be completed by a skilled and trained workforce and granting the following exemptions from the California Environmental Quality Act (CEQA): (1) Class 1 - Existing Facilities Categorical Exemption, pursuant to CEQA Guidelines (14 CCR § 15301); and (2) statutory exemption, pursuant to Public Recourses Code Section 21080.25 (CEQA Resolution).
On May 10, 2021, the City Council approved the final plans and specifications for the MOVE Culver City Downtown Corridor Project PS017 (Project) and the professional services agreement with LNI Custom Manufacturing Inc. to design, fabricate, and install bus/bike platforms.
DISCUSSION
Staff released a notice inviting bids (BID 2124) on April 15, 2021 on PlanetBids to solicit a contractor for the mobility lane implementation, including street striping and installation of delineators, signs and traffic signals. A pre-bid conference was held on April 29, 2021, and questions were received by May 6, 2021. Responses to all questions were posted to PlanetBids by May 13, 2021.
One (1) bid was received by the May 20, 2021 deadline. Bid results are as follows:
Bidder Bid Amount
1. Elecnor Belco Electric Inc. $1,467,458.00
After careful evaluation of the bidder's scope of work and discussion with the bidder, staff determined the costs proposed in the bid is significantly higher than the independent cost estimate and surpasses the City’s budget. Pursuant to Culver City Municipal Code (CCMC) Sections 3.07.075.F.1 and 3.07.090.E, respectively, Staff recommends the City Council reject the bid and authorize the City Manager to negotiate a contract with Belco and other contractors on behalf of the City. Staff will return to the City Council at a noticed public hearing on June 28, 2021 for the award of any negotiated contract (which would need to be awarded by a 4/5ths votes per CCMC Section 3.07.090.E).
The Project currently has a targeted go-live date of August 1. The Project implementation is facing a significant schedule risk as the bid rejection and negotiation process will add a two-week delay to the project implementation. This delay will reduce the available time for the contractor to procure the materials for implementation. The materials, such as paint and delineators, are expected to experience delayed delivery because of the scale of the Project and longer than expected lead time resulting from nationwide supply shortage. In order to meet the targeted go-live date, staff is recommending separating the procurement of the materials from the construction contract and directly procuring the necessary materials through purchase orders. Staff recommends the City Council waive the bidding requirement on the material procurements per CCMC Section 3.07.075 <https://codelibrary.amlegal.com/codes/culvercity/latest/culvercity_ca/0-0-0-74521>.F.3. and authorize the Purchasing Officer/City Manager to negotiate and issue various purchase orders for project materials with a total procurement amount not-to-exceed $400,000.
The construction inspection services for this Project will be performed by a consultant firm selected from the City’s list of on-call engineering companies. Staff will administratively hire RTI Consulting for managing and inspecting the final design/construction of the project.
FISCAL ANALYSIS
The proposed actions on the bid will not result in any fiscal impacts to the City. Staff will return to the City Council on June 28 on the construction contract award and will provide fiscal analysis associated with Project construction at that time.
There is sufficient funding in capital project Account #20380000.732120.PS017 to cover the costs for procuring the materials.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Reject a bid submitted By Elecnor Belco Electric Inc. (Belco) for the MOVE Culver City Downtown Corridor Project labor and materials for bus and bike lanes and signal installation (BID 2124);
2. Authorize the City Manager to negotiate the bid with Belco and other contractors on behalf of the City after which staff will return to City Council at a public hearing to award the negotiated contract per CCMC Section 3.07.090.E;
3. Waive the bidding requirements on material procurements; and
4. Authorize the Purchasing Officer/City Manager to negotiate and issue various purchase orders on materials for the Project, with a total procurement amount not-to-exceed $400,000.