SR-500-006 (2)
EPWM:CP:AA:DB:F:\SP1937\CC1937.doc Santa Monica, California
Council Meeting: October 28, 2003
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Construction Contract for Upgrade to the Compressed Natural
Gas Facility at the City Yards
Introduction
This report recommends that the City Council award a contract to Weaver Electric, Inc.
in the amount of $132,000 for construction of the upgrade to the City Yards
Compressed Natural Gas (CNG) Facility and approve $13,200 in contingency funds for
this contract.
Background
As the result of on-going maintenance concerns with the CNG compressors at the City
Yards CNG Facility, the City Council, in August 2002 appropriated funds and
authorized the purchase of equipment to upgrade the Facility. This equipment includes
new compressors, additional storage tanks and updated fuel dispensers and card
readers. The facility upgrade is needed to ensure reliable and cost efficient plant
operation. Installation of equipment purchased by the City last year is the subject of this
report.
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Discussion
Due to the complexity and relatively new technology associated with CNG facilities, the
City included additional qualification language in the bid documents. Specifically, the
successful bidder was required to demonstrate that they had completed at least five
CNG plants or upgrades within the last 6 years with a compressor capacity and total
dollar value of construction that met or exceeded the current installation at the City
Yards.
A Notice Inviting Bids for the construction contract was published on July 24 and July
25, 2003 in The Los Angeles Times, ?California Section? and the F. W. Dodge
newsletter. Bid packages were requested by nine contractors and the City Clerk's
office received two sealed bids, which were publicly opened on September 11, 2003 by
the Deputy City Clerk.
The bid results were as follows:
1. Weaver Electric, Inc. $132,000
2. Gas Equipment Systems, Inc. $437,000
City Engineer's Estimate $250,000
Staff contacted Weaver Electric, Inc., the apparent low monetary bidder and inquired
as whether a mistake was made in its bid and if not, why the bid was substantially lower
than the second bidder and the City Engineer?s estimate. Weaver double checked their
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bid figures and confirmed that all elements of the project were included at the
appropriate monetary level. Weaver also stated that they were very familiar with all
conditions affecting its bid due to their many years of experience; and due to the fact
that they were a major subcontractor on the original installation for the City in 1997.
Staff also contacted the other contractors who had purchased bid packages to
determine why they did not submit a bid on the project. Reasons varied from the firm
being too busy or their inability to meet the qualifications requested by the City.
Weaver Electric Inc. submitted a project list that included seventeen CNG plant
upgrades in California since 1998. Specifically, they supplied the City with the names of
previous similar projects meeting the qualifications language within the bid documents.
These projects included CNG Stations for Golden Empire Transit, L.A. County MTA
Divisions 3, 5, and 7, and the City of Placentia.
City staff contacted the Agencies representing these projects and all respondents
reported that the contractor's work quality was excellent and that work was completed
in a timely and cost efficient manner. Staff also contacted the Center for Contract
Compliance and found Weaver Electric Company in good standing and capable of
handling labor compliance issues. The California Contractor?s State License Board
verified that the Contractor's license is active and in good standing.
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Budget/Financial Impact
FUNDS REQUIRED:
Construction Contract $132,000
Contingency $ 13,200
Total Required $145,200
Funds in the amount of $145,200 are available in CIP account C54046104.589000
"CNG Station upgrade?.
Recommendation
Staff recommends that the City Council:
1. Award a contract to Weaver Electric, Inc, the best bidder, in the amount of $132,000
for the construction of upgrades to the CNG Facility at the City Yards and approve
$13,200 in contingency funds for this contract; and
2. Authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Anthony Antich, P.E., City Engineer and Architecture Manager
Renee Cowhig, Maintenance Manager
Dave Britton, P.E., Principal Civil Engineer
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