AR 050807 Construction Agreement/Olivas Valdez, Inc.

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Tejon Avenue — Laurel Street to cul-de-sac. The Lytle Creek Channel Improvement Project will provide improvement along Hillcrest Avenue (east of Mt. Vernon Avenue) on both sides of the channel. The scope of work includes installation of missing curb, gutter, sidewalk, drive approach and handicap ramp. The project will be completed within seventy five days from the date which the contractor is issued the Notice to Proceed; as noted in the attached agreement a liquidated damages amount of five hundred dollars ($500.00) a day will be collected for each day thereafter if the project experiences delays. DISCUSSION/ANALYSIS: Staff has formally bid the construction phase of these two projects compliant to the bidding procedures established by the Section 3.08.090 of the purchasing ordinance for public project. The bidding information for these projects was advertised beginning on March 16, 2007 and the bid opening was conducted on April 19, 2007. Staff received formal proposals from three (3) firms, with their corresponding base bid amount as follows: 1. Olivas Valdez, Inc. $ 334,120.50 2. Grand Pacific Contractors, Inc. $ 375,368.00 3. Portsmouth Construction, Inc. $ 386,281.50 Upon review, City staff found that Olivas Valdez, Inc. is the lowest responsive and responsible bidder. Staff recommends awarding a construction agreement for this project to Olivas Valdez, Inc. in the amount $334,120.50. ENVIRONMENTAL IMPACT: Laurel Street/Paul J. Rogers Elementary Street Improvement Project and Hillcrest Avenue Street Improvement Project is exempt under CEQA 15301 (c) - Repair of existing streets. CONFLICT OF INTEREST: Exact Business Name: Olivas Valdez, Inc. President or equal: Robert Valdes Contact or representative: Robert Valdes FINANCIAL IMPACT: As depicted in the bid schedule submitted by Olivas Valdez, Inc. (Exhibit B), the required funds needed to complete the Laurel Street/Dr. Paul J. Rogers Elementary School Project total $216,438; these funds are available in account 450-0706-6986-3890. The Hillcrest Project improvements require funds totaling $117,682.50, which are available in account 450-0628-6987-3890.