Item Coversheet

Agenda Item - 5.b.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Lisa Kim

From:John Montanchez
Dept.:City Manager 

Dept.: Community Services 
Subject:

Award a contract to California Landscape and Design Inc., for City Project No. S-1311, Magnolia Park improvements. (Cost: $703,780.) (Action Item)

Date:8/22/2023

OBJECTIVE

To request that the City Council award a contract for City Project No. S-1311 to California Landscape and Design Inc. for Magnolia Park improvements. (Cost: $703,780.) (Action Item)
BACKGROUND

The Magnolia Park Improvement Project is part of the capital improvement priorities outlined in the 2019 Parks and Facilities Master Plan. In November 2022, the City Council approved the request to issue a purchase order for Innovative Playground Company, Inc. for the purchase of new playground equipment at Magnolia Park through the Sourcewell competitive bid program, Contract #010521-BUR. Following this authorization approval, staff processed the purchase order for the new playground equipment that will be installed by the selected contractor for this city project bid.  

 

Staff solicited bids for this project pursuant to Municipal Code Section 2.50.100. Seven (7) bids were received and opened by the City Clerk's office on June 19, 2023, at 11:00 a.m. On June 27, 2023, the City Council approved the award of contract for Jon Gilmer Construction. Following this approval, Jon Gilmer Construction failed to meet contract requirements within the deadlines and multiple extensions provided to the company. In particular, Jon Gilmer Construction failed to provide the performance and labor and material bonds required by the Contract Documents and State law.  Due to this failure, the City provided Jon Gilmer Construction with a “Notice of Cancelation of Award of Contract and Termination of Contract” on August 3, 2023.

DISCUSSION

As a result of the cancellation of the contract with the lowest bidder, Jon Gilmer Construction, staff reviewed the remaining six (6) bids that were received for this project. The following is the order of bids, starting with the second lowest bidder:

 

2.   $721,175 California Landscape & Design Inc.

3.   $809,582 Rhome Profile Construction Corporation

4.   $904,628 MBC Enterprises Inc.

5.   $980,570 Environmental Construction Inc.

6.   $999,742 MLC Constructors, Inc.

7.   $1,114,257 PUB Construction Inc.

 

Staff is recommending that the City Council award the contract to the second lowest responsible bidder, California Landscape and Design Inc. The original bid amount from California Landscape and Design Inc. was $721,175. However, in an effort to reduce project cost, staff solicited the California Landscape and Design Inc. to provide the City with its best and final bid. Acting in good faith, California Landscape and Design Inc. was able to lower their bid to $703,780. The licenses and references for this contractor have been reviewed and verified by staff, and all other documentation is in order. Additionally, the City has previously worked with this contractor, as they were the primary contractor on the Atlantis Play Center perimeter fence upgrade. They completed the project in good standing with the City.

  

The major components of the project includes, installation of said playground and rubberized play surfacing, demolition and replacement of picnic shelter, demolition and replacement of perimeter pool fencing, and concrete work for new exercise equipment as well as ADA compliance paths of travel. 

 

The anticipated contract schedule is as follows:

Award Contract – Aug 22, 2023

Begin Pre-Construction- September 19, 2023 (estimated)

Complete Construction- December 15, 2023 (estimated)

FINANCIAL IMPACT

There is no impact to the General Fund. The total contract amount of $703,780 will be funded as follows: $117,754.33 will be funded by the Prop 68 Per Capita grant with the remaining amount of $586,025.67 included in the Community Services Capital Improvement budget and funded by Citywide Park Fee and Park Fee funds.
RECOMMENDATION

It is recommended that the City Council:

 

  • Confirm the cancellation of the contract with Jon Gilmer Construction for failure to provide the required bonds, and award a contract for City Project No. S-1311 to California Landscape and Design Inc. for Magnolia Park improvements in the amount of $703,780; and

 

  •  Authorize the City Manager to execute the agreement with California Landscape and Design Inc. on behalf of the City, and make minor modifications as appropriate.

 

By:  Mark Freeman, Community Services Manager


ATTACHMENTS:
DescriptionUpload DateTypeFile Name
CA Landscapes Contract8/14/2023AgreementCA_Landscapes_CONSTRUCTION_AGREEMENT.pdf
Magnolia Park Layout8/10/2023Backup MaterialL-2_plans_wth_labels.png
Magnolia Park New Shelter8/10/2023Backup MaterialShelter_cover_page.png
Playground Rendering w/Orange in PIP8/10/2023Backup MaterialMagnolia_Park_Playground_3.jpg
Playground Rendering Front View8/10/2023Backup MaterialMagnolia_Park_Playground_4.jpg