TITLE
Recommendation to adopt Specifications No. R-7137 and award contracts to CJ Concrete Construction, Inc., of Santa Fe Springs, CA, Bitech Construction Co., Inc., of Buena Park, CA, and Kalban, Inc., of Santa Clarita, CA, for as-needed concrete repairs and related improvements, in an aggregate amount not to exceed $30,000,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; authorize City Manager, or designee, to execute all documents necessary to enter into contracts, including any necessary amendments; and
Accept Categorical Exemption CE-19-020. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with CJ Concrete Construction, Inc., Bitech Construction Co., Inc., and Kalban, Inc., for concrete repairs and related improvements, such as repair and replacement of sidewalks, driveways, curbs, gutters, curb ramps, alley entrances, bus stop pads, and related improvements.
These are on-call contracts where work is performed based on individual work orders issued by the City and do not include a guaranteed minimum payment or retainer fee. Payment to contractors will be based on the number of the work orders issued by the City and fully completed by the contractors. Multiple vendors are necessary to ensure timely completion of on-call projects. The maximum aggregate dollar amount that can be issued in work orders under these three on-call contracts is $30,000,000. Passage of the City's Measure A has made additional funding available for concrete repairs and related improvements. These contracts will enable the City to utilize all funds available. While the Public Works Department will be responsible for administrative control and monitoring of the contracts, the contracts may be used by other departments on various concrete repair and related improvement projects.
The bid was advertised in the Long Beach Press-Telegram on December 12, 2018, and 4,568 potential bidders specializing in concrete repair were notified of the bid opportunity. Of those bidders, 54 downloaded the bid via the City's electronic bid system. The specifications were made available by the Engineering Records Section of the Office of the City Engineer located on the tenth floor of City Hall, and on the Purchasing Division's website at 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 28 local, minority, and women-owned business groups. Six bids were received on January 9, 2019. Of those six bidders, none were Women-owned Business Enterprises (WBEs) or Disadvantaged Business Enterprises (DBEs), one was a Minority-owned Business Enterprise (MBE), two were certified Small Business Enterprises (SBEs), and one was a Long Beach Business (Local). CJ Concrete Construction, Inc., of Santa Fe Springs, CA (None), Bitech Construction Company, Inc., of Buena Park, CA (SBE), and Kalban, Inc., of Santa Clarita, CA (SBE), were the lowest responsive and responsible bidders.
Local Business Outreach
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 PlanetBids database to download the bid specifications. Through outreach, 400 Long Beach vendors were notified to submit bids, of which three downloaded and one submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
In conformance with the California Environmental Quality Act, Categorical Exemption CE-19- 020 was issued for this project (Attachment A).
This matter was reviewed by Deputy City Attorney Amy R. Webber on February 13, 2019, by Purchasing and Business Services Manager Sandy Tsang-Palmer on February 14, 2019, and by Budget Analysis Officer Julissa Jose-Murray on February 15, 2019.
SUSTAINABILITY
Concrete removed under this contract will be recycled as base rock for street construction and diverted from landfills.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. R-7137 and award contracts concurrently is requested on March 12,2019, to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The aggregate contract authority will not exceed $30,000,000 for the two-year term, estimated based on current and anticipated projects within various City departments, primarily the Public Works Department (PW). Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. Each work order will be funded by the requesting department prior to the work order being issued to the contractor. The number of additional local jobs created by the award of these contracts will not be known until the contractors complete hiring and construction has commenced.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER