HomeMy WebLinkAbout06 - Gateway Park Improvements — Rejection of All Bids for Contract No.8791-1 (23L01)Q SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
October 25, 2022
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Tom Sandefur, P.E. Assistant City Engineer,
tandefur@newportbeachca.gov
PHONE: 949-644-3321
TITLE: Gateway Park Improvements — Rejection of All Bids for Contract
No.8791-1 (231-01)
ABSTRACT:
The City of Newport Beach (City) recently advertised a project for various improvements
to Gateway Park at the intersection of Newport Boulevard and Via Lido. The City received
eight bids for the project. However, the three lowest bidders failed to comply with the
contract documents requirement that the general contractor be responsible for more than
half the work. Staff recommends rejecting all the bids and re -advertising the bids with
certain bid items reclassified as specialty subcontract items. By reclassifying the bid items
as specialty items, more contractors will comply with the bidding requirements.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Reject all bids received for Contract No. 8791-1 and direct staff return all bidders
bonds; and
c) Direct staff to modify the bid documents and re -advertise the Gateway Park
Improvements Project for construction.
DISCUSSION:
Gateway Park comprises of two areas of landscaping on either side of Newport Boulevard
at Via Lido. The park requires some significant renovation to repair/replace damaged
planter walls and the electrical system, freshen up the landscaping, and update the
signage. Based on this scope, staff produced plans, specifications and an estimate for
the project.
At 10 a.m. on October 6, 2022, the City Clerk opened and read the following bids for this
project:
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Gateway Park Improvements — Rejection of All Bids for Contract No. 8791-1 (231_01)
October 25, 2022
Page 2
BIDDER
TOTAL BID AMOUNT
Low
Diamond Construction
$ 477,128.00
2nd
Bitech Construction Co., Inc.
$ 595,959.00
3rd
MMG Engineering, Inc.
$ 657,657.00
4th
California Landscape and Design
$ 658,800.00
5th
MBC Enterprises, Inc.
$ 759,492.40
6th
C.S. Legacy Construction, Inc.
$ 739,000.68
7th
MLC Constructors
$ 921,695.20
8th
Klassic Engineering and Construction, Inc.
$ 1,022,323.30
While the low bid was under the project estimate of $482,448, a review of the bids
determined that the lowest three bidders failed to comply with the project specification
that require the prime contractor to perform more than half the required value of
construction work. This self -performance requirement is part of the Standard
Specifications for Public Works Construction.
This section reads, in part:
2-3.2 Self Performance The Contractor shall perform, with its own organization,
Contract work amounting to at least 50 percent of the Contract Price except that
any designated "Specialty Items" may be performed by subcontract and the
amount of any such "Specialty Items" so performed will be deducted from the
Contract Price before computing the amount required to be performed by the
Contractor with its own organization. "Specialty Items" will be identified by the
Agency in the Bid or in the Special Provisions.
The low bidder was proposing to perform only 37% of the work with its own forces. The
second low bidder 44% and the third low bidder 40%.
Based on the bid analysis and current tight contracting market, certain bid items are more
likely to be subcontracted. These include signage, electrical work, and some landscaping
items. Due to the narrow nature of the work and the type of contractors and suppliers
involved, these items will now be considered specialty.
It is recommended that City staff now reclassify certain bid items as "Specialty Items" for
subcontracting, and re -advertise the project.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Environmental review will occur as appropriate as part of the redesign of the project and
will be presented to the City Council at that time. Staff recommends the City Council find
this action is not subject to the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a project
as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
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Gateway Park Improvements — Rejection of All Bids for Contract No. 8791-1 (231-01)
October 25, 2022
Page 3
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).
ATTACHMENT:
Attachment A — Location Map
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ATTACHMENT A
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- LIMITS OF WORK
GATEWAY PARK ENHANCEMENT
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-8791-2 221-01 10/25/22