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CC - Item 6H - Rejection of Bid Sidewalk Installation Project at Klingeman Street From La Presa Avenue to PaljayROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BILL R. MANIS, CITY MANAGER DATE: NOVEMBER 14, 2017 SUBJECT: REJECTION OF BID FOR SIDEWALK INSTALLATION PROJECT — KLINGERMAN STREET FROM LA PRESA AVENUE TO PALJAY AVENUE (PROJECT NO. 21006) SUMMARY On October 24, 2017, the City Council approved a budget appropriation of $57,000 for sidewalk repairs from the General Fund unassigned fund balance to meet the "Maintenance of Effort" (MOE) requirement as part of the City's match under Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017 (RMRA). It is staff s intent to use these funds towards the "Sidewalk Installation Project — Klingerman Street from La Presa Avenue to Paljay Avenue." This project consists of installation of sidewalk on the north side of the street, including parkway trees and others, and is intended to fill the missing sidewalk at this location as requested by residents and to be in compliance with ADA. Staff has completed the bidding process and is requesting that the City Council reject the bid and authorized staff to rebid. The City only received one bid, from M. W. Loyd, Inc, in the amount of $83,860. Unfortunately, this bid amount is approximately 40% more than the City Engineer's estimate of $50,000. Staff contacted other potential bidders to find out why additional bids were not submitted. Respondents indicated that they were busy with other projects and due to the large amount of work currently available, they are able to be selective in the bidding of projects. DISCUSSION The City of Rosemead currently receives an annual allocation of $1,226,200 in gas tax revenues. Due to the passage of the RMRA funds under SB 1, this amount is expected to increase by $318,500, for a total of $1,544,700 for FY 2017-18. A larger increase in gas tax revenues is expected for FY 2018-19, due to the phasing in of new taxes. In order to receive the RMRA funds, the City must meet the MOE requirement to ensure that these new funds do not supplant existing levels of general revenue spending on streets and roads. The City's MOE for FY 2017- 18 is $57,000, which would be used towards the "Sidewalk Installation Project — Klingerman Street from La Presa Avenue to Paljay Avenue". ITEM NUMBER: & ff City Council Meeting November 14, 2017 Page 2 of 3 A Notice Inviting Bids was published in local newspapers and trade publications on October 12, 2017, and October 19, 2017. Sealed bids were received in the Office of the City Clerk until 10:30 a.m. on Wednesday, October 25, 2017, At 11:00 a.m. on October 25, 2017, the City Clerk publicly opened and read one (1) sealed bids with the following result: RANK CONTRACTOR LOCATION BID AMOUNT 1 M. W. Loyd, Inc. Charsworth, CA $ 83,860.00 Unfortunately, this bid amount is approximate 40% above the City Engineer's estimate of $50,000. After investigating the low turnout of bids, staff has concluded that the reason for the wide disparity between the bid amount and the City Engineer's estimate may be due to the fact that this is considered a small project, combined with the fact that there is currently a large amount of work available to contractors, which allows them to be selective in their projects. As a result, staff has considered different options to make the project more attractive to potential bidders. Based on this evaluation, staff would request that the project be re -bid with an increase outreach effort to potential bidders as well as the elimination of Bid Items 6, 7, and 8, which indicates the removal and installation of parkway trees. STAFF RECOMMENDATION It is recommended that the City Council reject the bid submitted by M. W. Loyd, Inc., in the amount of $83,860.00, for the Sidewalk Installation Project (Project No. 21006) and authorize staff to re -bid the project as proposed. FISCAL IMPACT A funding amount of $57,000, from the General Fund unassigned fund balance, was approved by the City Council on October 24, 2017, to meet the City's MOE requirements under SB 1. ENVIRONMENTAL REVIEW The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (a) of the CEQA Implementing Guidelines. STRATEGIC PLAN IMPACT — None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. City Council Meeting November 14, 2017 Page 3 of 3 Prepared By: Submitted By: Rffrael M. Fajardo, P.E., City Engineer Michelle G. Ramirez, Dir for of Public Works Attachment A: Plans and Specifications (Available in the City Clerk's Office) Attachment B: Bid Proposal of M. W. Loyd, Inc. EATWI IMMI Plans and Specifications (Available in the City Clerk's Office) Attachment B Bid Proposal of M.W. Loyd, Inc. BIDDER: lM LA-� 1 6 Y o -4 c SECTION 1 - BID SCHEDULE CBF -1 BIDDER: VA,Icam', L6Yt2) Zkc BID SCHEDULE SCHEDULE OF PRICES FOR SIDEWALK INSTALLATION PROJECT — KLINGERMAN STREET FROM LA PRESA AVENUE TO PALJAY AVENUE PROJECT No. 21006 BASE BID SCHEDULE TOTAL BASE BID PRICE (SCHEDULE BID PRICE):$ P -S'71 written form tqo 64 CBF -2 UNIT OF EST. UNIT ITEM NO. ITEM DESCRIPTION MEASURE QTY, PRICE COST 1 Clearing & Grubbing per plans and specifications. LS 1 2 Disposal of Waste Materials. LS 1 �lJ�, CX --7 y'p�,? C-4�7 3 Remove, dispose and Construct SF 1,250 y° Ofd `od nc !�� 4 -Inch thick PCC sidewalk per � SPPWC Std. Plan 113-2. 4 Remove, dispose and Construct SF 340 �y PCC driveway approach per SPPWC Std. Plan 110-2. 5 Remove Existing, Dispose and LF 100 Construct 8 -Inches Curb and 24- /'P 67 0p inches Gutter per SPPWC Std. Plan 120-2. 6 Remove and dispose complete existing parkway tree, EA 3 Exp 7j eoO oo approximate 24 Inches Die. 7 Remove and dispose complete EA 1 existing parkway tree, approximate 6 inches Dia. 8 install 36 inches box parkway EA 7 Z®U`�% t� pCL tree — Jacaranda Tree Including 49 90 days maintenance. TOTAL BASE BID PRICE (SCHEDULE BID PRICE):$ P -S'71 written form tqo 64 CBF -2 BIDDER: 0A c t -U, (4"Y1`7 IJWC Note: The City of Rosemead reserves the right to reduce or increase the quantities of any items In the schedule of bid items above, within the limits define in Section 3-2.2.1 of the Standard Specifications, to stay within the budgeted amount of this project. If the Bid Documents specify alternate bid items, the following Alternate Bid amounts shall be added to or deducted from the Total Bid Price entered above. The owner can choose to Include one or more of the alternates in the Total Bid Price of the Project. If any of the Alternate Bids are utilized by the Owner, the resulting amount shall be considered the Total Bid Price for the Project. The undersigned agrees that these Contract Bid Forms constitute a firm offer to the Owner which cannot be withdrawn for the number of Working Days indicated in the Notice Inviting Bids from and afterthe bid opening date, or until a Contract forthe Work Is fully executed bythe Owner and a third party, whichever is earlier. The undersigned also agrees that if there is a discrepancy between the written amount of the Bid Price and the numerical amount of the Bid Price, the written amount shall govem. Attached hereto is a certified check, a cashier's check or a bid bond in the amount of Dollars ($ said amount being not less than ten percent (10%) of the Total Bid Price. The undersigned agrees that said amount shall be retained by the Owner if, upon award, we fail or refuse to execute the Contract and furnish the required bonds, certificates and endorsements of insurance and other certifications within the time provided. If awarded a Contract, the undersigned agrees to execute the formal Contract, which will be prepared by the Owner for execution, within five (5) Calendar Days following the Letter of Award for the Contract, and will deliver to the Owner within that same period the necessary original Certificates of Insurance, Endorsements of Insurance, Performance Bond, Payment Bond and all other documentation and certification required by the Contract. The undersigned offers and agrees that if this bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 of Part 2 of Division 7 of the Business and Professional Code), arising from purchases of goods, materials or services by the Bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to he Contractor. Bidder understands and agrees that, when requested by Owner, he shall provide: (1) evidence satisfactory to the Owner of Bidder's California contractors license(s) in good standing; (2) evidence that the person signing this Bid is authorized to bind Bidder to this Bid and to a contract resulting therefrom; and (3) any other information and documentation, financial or otherwise, needed by Owner to award a Contract to the lowest responsible and responsive bidder. Bidder acknowledges that data submitted with its Contract Bid Forms which it requires to be incorporated Into a Contract arising out of this Submittal has been so identified by Bidder. Bidder further acknowledges that the Owner may, at its discretion, incorporate any of the remaining data submitted herewith into a contract arising out of this Bid. CBF -3 BIDDER: tAl i Lx'- GC)Y/D 1 '" c The undersigned acknowledges receipt, understanding and full consideration of the following addenda to the Contract Documents. Addenda Nos. The Bidder understands and agrees that the Total Bid Price is inclusive of all labor, materials, and equipment or supplies necessary to complete the Work as described in the Bid Documents. If this bid is accepted, the undersigned Bidder agrees to enter into and execute the Contract with the necessary bonds and accept the Total Bid Price as compensation in full for all Work under the contract. CBF -4 By: i t zL) v V lr1�/i1i 1 �(� Signature Type or Print Name Crt�✓ Title Bidder's/Contractor's State of Incorporation: Partners or Joint Venturers: Bidder's License Number(s): 7 1 ( O S Department Industrial Relations Registered No. _ NOTES: BIDDER: JM, (,L.) , L 2 Y P �PL)C, Business Street Address City, State and Zip Code Telephone Number 'Vp DOd J By its signature on this Bid, the Bidder certifies under penalty of perjury the accuracy of the representations made on the Contract Bid Forms. If Bidder is a corporation, enter State of Incorporation in addition to Business Address If Bidder is a partnership or joint venture, give full names of all partners or joint venturers. As further discussed in the Instructions to Bidders, Bidder will be required to provide evidence that the person signing on behalf of the corporation, partnership orjoint venture has the authority to do SO. CBF -5 CERTIFICATE OF SECRETARY OF M.W. LOYD, INC. I, WILLIAM L MURDOCY, certify as follows: i. That I am the duly appointed and acting secretary of M,W. LOYD, INC., a California corporation. 2. That on _tb - Z 3 - / 7 the Board of Directors of M.W. LOYD, INC., duly adopted the following resolution: RESOLVED, that WILLIAM L. MURDOCK is hereby authorized, as an act of and on behalf of this corporation, to Submit a contract proposal to in accordance with its request for bid # L YC0 0 dated /0-05--07 3. That this resolution has not been amended or rescinded, Dated:. /a- w�✓- -- Zd� -=���� �.� v G� 2"'�'" ''�i• William L. Murdock BIDDER: V--�t 19--) SECTION 2 BID DATA FORMS CBF -6 Bond No. 3958 BIDDER' M.W. Loyd, Inc. Bidder shall submit its Bid data in accordance with the format shown on each of the following Bid Data Forms. Bidders shall prepare and use as many sheets as are necessary to adequately provide the information required. Bidder shah ensure that every page of its Bid Data Forms are property identified With the Bidder's name and page number. 2A BID BOND KNOW ALL MEN BY THESE PRESENTS: THAT. M.W. Loyd, Inc, as Principal. and Developers Surety and Indemnity Comnany as Surety, are held firmly bound unto the CITY OF ROSEMEAD (hereinafter called the OWNER) in the sum of TEN PERCENT OF THE AMOUNT OF THE BID ******************** ($ lOZ*****************being not less than tan percent (10%) of the Total Bid Price; for the payment of which sum will and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and seyeraily, firmly by these presents. WHEREAS, said Principal has submitted a bid to the OWNER to perform all Work required for the SIDEWALK INSTALLATION PROJECT KLINGERMAN STREET FROM LA PRESA AVENUE TO PALJAY AVENUE asset forth in the Notice Inviting Bids and accompanying Bid Documents, dated October 25, 2017 NOW, THEREFORE, if said Principal is awarded a Contract for the Work by the OWNER and, within the time and in the manner required by the above- referenced Bid Documents, enters Into the written form of Contract bound with said Bid Documents, furnishes the required bonds (one to guarantee falthfui performance and the other to guarantee payment for labor and materials) furnishes the required insurance certificates and endorsements. and furnishes any othercetLTieations as maybe required by the Contract, then this obligation shall b& null and void; othenrrise it shag remain in fug force and effect. In the event suit is brought upon this bond by the OWNER and judgment is recovered. said Surety shall pay all costs Incurred by the OWNER in such suit, Including reasonable attomeys' fees to be fixed by the court. SIGNED AND SEALED, this 24th day of October 2017 Developers Surety and M.W. Loyd, Inc. (SEAL) Indemnity Company Principal Surety William Pv rrdock-Press ent Les M. Mantle -Attorney in Fact -CBF -7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of urs On 16 � -7 before me, Mary Martignoni - Notary Public Date Here Insert Name and Title of the Officer personally appeared Les M. Mantle Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the personTK whose name(K is/Ve subscribed to the within instrument and acknowledged to me that he/tW*ey executed the same in his/hpa&.) llr authorized capacityW, and that by his/>er tidr signature94 on the instrument the person(X or the entity upon behalf of which the person)o acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official „ seal. MARY MART IGNONt� Comm) i 10au > � �. N t ,: �� Signature�A� ¢ <� $'yam Mycommnsion tnµ,es i xP1d Signatur Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Number of Pages: Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: Les M. Mantle ri Corporate Officer — Title(s): Partner — ❑ Limited ❑ General ❑ Individual X Attorney in Fact CJ Trustee Cj Guardian or Conservator 71 Other: Signer Is Representing: Developers Surety b Indemnity Company Signer's Name: ❑ Corporate Officer — Title(s): Ll Partner — CI Limited ❑ General I 1 Individual ❑ Attorney in Fact ❑ Trustee El Guardian or Conservator F_ Othsc Signer Is Representing: 02014 National Notary Association • www.NationalNotary.org • 1 -800 -US NOTARY (1-800.876-6827) Item #5907 POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY INDEMNITY COMPANY OF CALIFORNIA PO Box 19725, IRVINE, CA 92623 (949) 2633300 KNOW ALL BY THESE PRESENTS mat except as expressly limited, DEVELOPERS SURETYAND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, do each hereby make, constitute and appoint ***Les M. Mantle"' as their true and lawful Attomey(s) in -Fact, W make, execute, deliver and acknowledge, for and on behalf of said corporations, as surebes, bonds, undenak§ys and contracts of suretyship giving and granting unto said Alfomey(syln-Fact full power and authority to do and to perform every ad necessary, requisite or proper W be done In connection therewith as each of said corporabors could do, but reserving to each of said corporations full power of substitution and revocation, and ail of me acts of said Momey(s)-in-fact, pursuant to these presents, are hereby relffied and confirmed. This Power of Attorney is gamed and Is signed by facsimile undw and by authority of the following resolutions adopted by the respective Boards of Directors of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, effective as of January 1st, 2005. RESOLVED, that a combination of any hvo of the Charman of the Board, the President Executive Vice -President Senior Vice -President or any Vice President of the corporations be, and that each of them hereby is, authorized to execute this Power of Attorney, qualifying the attomey(s) named in the Power of Attorney to execute, on behalf of the corporate%, bonds, undertakings and contacts of suretyship; and that the Secretary or any Assistant Secretary of either of the corporations be, and each of mem hereby is, authonzed to attest the execution of any such Power of Attorney, RESOLVED, FURTHER, that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures shag be valid and binding upon the corporations when so affixed and in the future with respect to any bond, undertaking or contract of suretyship to which it is alfached. IN WITNESS WHEREOF, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA have severally caused these presents to be signed by their respective attested by their respective Secretary or Assistant Secretary ads em day of February, 2017. eoofficers mond By:.,+SSV ANoryo''',.. DanielYoung, Senior Vice -President( ¢J?�opppTli,�•C`yx,�, ON.PANYpo 1936 :; ��44ppPOq�♦oCT By:�4rraPA'+'•atd;• Mark Landon, rrppw� Vice -President 4ap•^{•".,rti+,• u, n. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the tlowment to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Calbomia County of Orange On February 6.2D17 before me, Lucille Raymond Notary Public Dew Hen Fvt Nme,k Tweelwe eanv personalty appeared Daniel Young and Mark Lansdon N~)dsgnlH who proved to me on the basis of satisfactory evidence to be the persons) whose names) Were subscribed to the within instrument and acknowledged to me that hefshelthry executed the same In hufherlthek authorized capady(es), and mat by hlsmerMek signalure(s) on the instrument the person(s), or the eni y upon behalf of LUCILLE RAYMOND which the persm(s) acted, executed the Instrument _ Colttmlaalon f 2001945 Notary Pub1k " California I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is = Oranpa CoWAyhue and correct. M Comm. E tet Od 13.2019+ WITNESS rnY hand and official sea. Place Notary Sea Above Signature �i "— LuCilt'"Wil, Notary Public CERTIFICATE The undersigned. as Secretary orksistam Secretary of DEVELOPERS SURETY AND INDEMNITY COMPANY or INDEMNITY COMPANY OF CALIFORNIA, does hereby car* that the foregoing Power of Attorney remains In full force and has not been revoked and, fudhermore, that the provision of the resolutions of the respective Boards of Directors of said corporations set forth in the Power of Attorney are in force as of the date of this Certificate. This Certificate Is executed in the City of trine, California, this 24th dayof October, 2017, 'SV MD4 0, 4pMP YOp 't yJQ`nc.••;eseokf:�, � `a 40PPOq�r�er1 By`�' z? or " � - 1936 [ is !g i W 1467 L Cassie J. mslom,Assistarhl Se Lary y?n�.'y; ATS4002(02117) '••.o * h. BIDDER: IM, (-A-). 4,5))1tD 2.113 LIST OF PROPOSED SUBCONTRACTORS In compliance with the "Subletting and Subcontracting Fair Practices Act," Sections 4100 through 4114 of the California Public Contract Code, and any amendments thereto, each Bidder shall provide the information requested below for each subcontractor who will perform work, labor or render service to Bidder in or about the construction of the Work in an amount in excess of one-half of one percent (greater than 0.5 %) of the Bidder's Total Bid Price, or, In the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the Contractor's total bid or ten thousand dollars ($10,000), whichever is greater, and shall further set forth the portion of the Work which will be done by each subcontractor. Bidder shall list only one subcontractor for any one portion of the Work. Pursuant to Public Contract Code Section 4104, the Owner has determined that it will allow Bidders twenty-four (24) additional hours afterthe deadline for submission of bids to submit the information requested by the Owner about each subcontractor, other than the name and location of each subcontractor, If the Bidder fails to specify a subcontractor for any portion of the Work to be performed under the Contract, it shall be deemed to have agreed to perform such portion itself, and shall not be permitted to subcontract that portion of the Work except under the conditions hereinafter set forth below. Subletting or subcontracting of any portion of the Work in excess of one half of one percent (greaterthen 0.5%) of the Total Bid Price or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the Contractor's total bid or ten thousand dollars ($10,000), whichever is greater, for which no subcontractor was designated in the original bid shall only be permitted In cases of public emergency or necessity, and then only after Owner approval. CBF -8 BIDDER: M I f RJ 4=0440 2t 23 L1ST OF PROPOSED SUBCONTRACTORS (continued) j^Oupikate NeM 2 Pages H needed mr Ilsdng am-l-bwnbact—"I Name and Location Description of Work of Subcontractor to be Subcontracted Name:y *- G-- 1'u 2 Se v t r Tv,� �uuPC�c� Address: r� i Z 5 Jl%��rJi 4 ✓�� �!vonT �'d4 License No.: y Department of Industrial Relation Registration No.��� Name and Location Description of Work of Subcontraccttor� to be Subcontracted Name:�i3y,n�GPtk/�t��G/ Address: (�i Z l WJ int Vim/ • ©L`lOj Cwt License No.: Department of Industrial Relation Registration No. Name and Location of Subcontractor Name: Address: License No.: Department of Industrial Relation Registration Name and Location of Subcontractor Name: Address: License No.: Department of Industrial Relation Registration CBF -9 Description of Work to be Subcontracted Description of Work to be Subcontracted BIDDER: of K� GAY 02cc- 2.0 REFERENCES The following are the names, addresses and telephone numbers for three public agencies for which BIDDER has performed similar work within the past two (2) years: 1. Name and Address of Owner Name and telephone number of person familiar with project Contract amount Type of Work Date Completed 2. Name and Address of Owner Name and telephone number of person familiar with project Contract amount Type of Work Date Completed 3. Name and Address of Owner Name and telephone number of person familiar with project Contract amount Type of Work Date Completed 4. Name and Address of Owner Name and telephone number of person familiar with project Contract amount Type of Work Date Completed CBF -10 PCL XL Error Subsystem: KERNEL Error: IllegalTag File Name: kernel.c Line Number: 1921