TITLE
Recommendation to adopt Plans and Specifications No. ITB DV-14-078 REBID for the improvement of 14 commercial storefronts on Long Beach Boulevard at Anaheim Street; award the contract to Corral Construction and Development, Inc., of Commerce, CA, in the amount of $394,400; authorize a 15 percent contingency in the amount of $59,160, for a total contract amount not to exceed $453,560; and authorize City Manager or designee to execute all documents necessary to enter into the contract, including any necessary amendments thereto. (District 1)
DISCUSSION
City Council approval is requested to enter into a contract with Corral Construction and Development, Inc., for the improvement of 14 commercial storefronts on Long Beach Boulevard. The City of Long Beach (City) implements a five-year Consolidated Plan (2012-2017) and an annual Action Plan, as required by the U.S. Department of Housing and Urban Development (HUD), for the expenditure of Community Development Block Grant (CDBG) Funds. The Fiscal Year 2013-2014 (FY 14) Action Plan, approved by the City Council on July 16, 2013, identifies economic development as one of the City's five priorities and Commercial Corridor Revitalization as a primary focus. Accordingly, staff has created the Façade Improvement Program (FIP) to upgrade the physical appearance of businesses located on commercial corridors within CDBG Target Areas.
The Department of Development Services (Department) has identified commercial areas that meet program criteria and selected the southeast corner of Long Beach Boulevard and Anaheim Street. The Department proposes to renovate four fully occupied commercial buildings located directly adjacent to the MTA Blue Line Anaheim Street Station, near the recently completed 200-unit Long Beach Senior Arts Colony. The buildings are owned by three participating property owners who have executed Owner Participation Agreements and Declarations of Conditions, Covenants and Restrictions that provide assurances for maintenance and upkeep of the improvements. Fourteen commercial storefronts and one surface parking lot will benefit from the project.
The bid was advertised in the Press-Telegram on June 19, 2014, and 2,969 potential bidders were notified of the bid opportunity. Of those proposers, 64 downloaded the bid document via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. Two bids were received on July 18, 2014. Of those two bidders, one was a Minority-owned Business Enterprise (MBE), one was a Women-owned Business Enterprises (WBE), one was a certified Small Business Enterprises (SBE), and none were Long Beach businesses (Local). Corral Construction and Development, Inc. (MBE, WBE), was the lowest responsible bidder.
In an effort to align with the City's outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Bids Online database to download bid specifications. Through outreach, 278 Long Beach vendors were notified to submit bids, of which nine downloaded and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Richard Anthony and Budget Management Officer Victoria Bell on July 24, 2014.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB DV14-078R and award a contract concurrently is requested on August 12, 2014, to ensure the project can be completed on schedule.
FISCAL IMPACT
During the FY 14 Action Plan process, the City Council approved the use of CDBG funding for façade improvements. Sufficient funds for this contract are available in the Community Development Grants Fund (SR 150) in the Development Services Department (DV). Based on the HUD formula for job creation, it is expected that this project will create or retain approximately one FTE for every $35,000 in expenditures associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER