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AGENDA ITEM 4 - CONSIDERATION OF REJECTION OF BIDS FOR HAZ-MAT ABATEMENT AND DEMOLITION OF EXISTING CITY OWNED BUILDING AT 707 LARK ELLEN AVENUE PROJECT (REBID) (PROJECT NO. 21028)AGENDA ITEM NO.4 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 5, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF REJECTION OF BIDS FOR HAZ-MAT ABATEMENT AND DEMOLITION OF EXISTING CITY OWNED BUILDING AT 707 LARK ELLEN AVENUE PROJECT (REBID) (PROJECT NO. 21028) RECOMMENDATION: It is recommended that the City Council reject all bids received on June 16, 2022 for the Haz-Mat Abatement and Demolition of Existing City Owned Building at 707 Lark Ellen Avenue Project (Rebid) (Project No. 21028). BACKGROUND: The City of West Covina purchased the home at 707 Lark Ellen Avenue to expand Cameron Park, in efforts to expand the park. At this time, the City is pursuing demolition of the buildings on the property. The major work components include Haz-Mat abatement and demolition of existing City -owned buildings. The work includes conducting hazardous material abatement (asbestos) prior to demolishing the structures. Other work includes demolishing and disposing of all improvements within the boundaries (including buildings, building slabs, elevated slabs, concrete patio, stairs, floors, foundations, curbs, gutters, perimeter walls, bollards, equipment attached to building or within 3 feet of the building, concrete areas, grass areas, asphalt areas, dirt areas, trees (Palm trees on Lark Ellen Avenue will be protected in place), landscape areas, and any and all existing improvements. The City previously bid this project informally in accordance with the requirements of Section 2-354 of the West Covina Municipal Code. Following the bid opening on May 17, 2022, the City Manager rejected all bids as authorized by Section 2-354(f) of the West Covina Municipal Code. DISCUSSION: On June 2, 2022, staff re -advertised the construction bid package. The following three (3) bids were received by the City at the Bid Opening held on June 16, 2022, at 2:00 p.m. Contractor Name Total Bid Amount AD Improvements, Inc. $213,200.0 Garrison Demolition and Engineering, Inc. $248,000.0 Danny Ryan Precision Contracting, Inc. dba ADEP Precision Contracting $288,000.0 Pursuant to the Public Contract Code and the West Covina Municipal Code, it is within the City Council's discretion to reject any and all bids received and provide direction to staff on future action. Following further review of the City's options after bids were received for the Project, staff determined there was a more economical option for the haz-mat abatement and demolition work. Pursuant to Section 2-353 of the West Covina Municipal Code, public projects in the amount set forth in Public Contract Code section 22032(a) ($60,000) or less may be performed by employees of the City by force account, by negotiated contract or by purchase order without competitive bidding. Staff has procured contractors that can perform the haz-mat abatement and demolition work within such threshold. As of the writing of this report, the structures are being demolished. Therefore, staff is recommending that the City Council reject all bids received for the Project. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Prepared by: Okan Demirici PE, CIP Manager Fiscal Impact FISCAL IMPACT: The project is funded by the Park Acquisition Fund which has a balance of over $2.2 million. Funding for the project was included in the FY2021-22 CIP Budget for $200,000 and will be rolled over to FY2022-23. Project No. Fund Name Account No. Current Total Proposed Budget Project Budget Estimate Amendment 21028 PARK 169.80.7004.7700 200,000 200,000 ACQUISITION FUND Total $200,000 $200,000 CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety Enhance City Image and Effectiveness A Creative and Active Communuty