CC - Item IV.CC-I - Bids For Rosemead Residential Rehab ProgramTO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK TRIPEPI, CITY MANAGE~~
DATE: JANUARY 18, 2000
SUBJECT: RECEIPT AND AWARD OF BIDS FOR THE ROSEMEAD
RESIDENTIAL REHABILITATION PROGRAM,
DEFERRED LOAN-2738 DEQUINE AVENUE
On August 5, 1999, staff authorized the owner of 2738 Dequine Avenue to obtain bids for a
project under the Community Development Block Grant (CDBG) Deferred Loan Program.
At a pre-bid meeting, bid packages were given to contractors who applied to be on the
City's list. These bid packages requested line-item bids for work to be completed on the
project and a total for the entire rehabilitation package.
Work to be completed includes correction of the following code violations: replacement of
roof, illegal patio conversions, smoke detector installation, correction of electrical code
violations, water heater installation, installation of washer waste line and plumbing repairs.
Each bidding contractor met with the homeowner during the on-site walk-through of the
property prior to submitting a bid. The contractors each explained their procedures and
techniques to the homeowner during that process. Staff requested potential bidders to do
this in order to ease any concerns the homeowner might have about the project.
COWNCIL izC~fy~w'~
JAN 2 5 2000
ITEM No. if, to +.L
Staf epor
44
The bid due-date was August 19, 1999. Because initial bids received by staff were well
over the deferred loan limits, the scope of work was modified to include only code
violations and bids were modified. Because bids were still substantially over the limit, bids
were not accepted. The project was again modified to include only code violations and
structural deficiencies. After homeowner approval of the modified scope of work, the
project was re-bid and a new contractor meeting was held. Three bids were submitted by
contractors and staff proceeded to check the responsiveness of each bid. A spread sheet
was set up containing the three bids. The spread sheet was reviewed by staff and the
homeowner and then given to the homeowner for further review. Upon the homeowner's
selection of Terrones Construction, a final meeting was held with the owner and Terrones
Construction to ensure the clarity of the scope of work.
In accordance with the City's approved Rehabilitation Guidelines, the property owner has
the ability to select the contractor of choice as long as the bid is within 15% of the average
bid or in-house estimate. The homeowner selected Terrones Construction. Terrones
Construction submitted a bid in the amount of $34,250.00. Because of the extensive nature
of repairs due to code violations, staff recommends that the City Council waive the
$35,000.00 loan limit in order to allow for a 10% contingency. The contingency seeks to
address items that may be brought to light during the course of construction.
The Bid results are as follows:
Nick's Remodeling $30,430.00
Terrones Construction $34,250.00
T.S. Construction $27,300.00
Average Bid $30,660.00
RECOMMENDATION
1. Accept and award contract to Terrones Construction, owner selected bidder for this loan
program in an amount not to exceed $37,600.
2. Authorize staff to initiate contract with owners and contractor.
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