Title
Recommendation to Award a Contract in the Amount of $547,000, and Authorize the City Manager to Approve Contract Changes, if necessary, up to a Ten Percent Contingency in the Amount of $54,700 for a Total Amount of $601,700, to Asbestos Management Group of California, Inc. for the Demolition, Clean-up and Disposal of Sixteen Vacant Residential Structures Located at Orion Street, West Tower Avenue and Stardust Place and Pearl Harbor Road at Alameda Point and Appropriate $601,700 from the Base Reuse Fund Balance. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Award a Contract in the Amount of $547,000, and Authorize the City Manager to Approve Contract Changes, if necessary, up to a Ten Percent Contingency in the Amount of $54,700 for a Total Amount of $601,700, to Asbestos Management Group of California, Inc. for the Demolition, Clean-up and Disposal of Sixteen Vacant Residential Structures Located at Orion St., West Tower Ave. and Stardust Pl. and Pearl Harbor Rd. at Alameda Point and Appropriate $601,700 from the Base Reuse Fund Balance
BACKGROUND
In March 2015, the City Council expressed concern about the remaining unoccupied apartment units located at Alameda Point and directed staff to develop a plan to address safety and blight issues. In Spring 2015, during the budget process, the Council considered using General Fund reserves to fund the removal of the units, but in an effort to have Alameda Point continue to support its operations and maintenance, staff asked Council to delay action until the completion of audited financials from fiscal year 2014-2015 to determine if there would be enough available funds in the Base Reuse Fund Balance. At the same time staff issued a Call for Bids so the project could begin once the funding had been identified.
The first bid solicitation was rejected at the October 6, 2015 Council meeting because the proposals were deemed unresponsive. However at that meeting, the City Council adopted plans and specifications and authorized a call for rebid for the demolition, clean-up and disposal of sixteen vacant residential structures located at Orion St., West Tower Ave., Stardust Pl. and Pearl Harbor Rd. at Alameda Point. On October 7, 2015, under the direction of the City, PM Realty Group (PMRG) sent out a Notice Inviting Bids (NIB) for the demolition, clean-up and disposal of the vacant residential structures. The scope of the project includes safe demolition of buildings containing asbestos, removal and clean-up of asbestos-containing and contaminated materials and related debris, and transportation and disposal of waste materials.
DISCUSSION
To solicit the maximum number of bids and most competitive price, the NIB was provided to 21 separate Builders Exchanges throughout the Bay Area. A notice for the NIB was sent out to all the contractors on the Public Works listing, published in the Alameda Journal, and placed on the City's website. Twenty-three participants attended the mandatory bid walk for the project held on October 19, 2015. Subsequent to the pre-bid meeting, two addenda were issued in response to requests from bidders. Eight consultants submitted bids, which were opened on Tuesday, November 10, 2015 and are outlined below.
|
Bidder |
Location |
Bid |
|
Pantano Demolition |
Vernalis, CA |
$437,224 |
|
Asbestos Management Group |
Oakland, CA |
$546,839 |
|
Professional Asbestos & Lead Services |
Stockton, CA |
$703,139 |
|
Clauss Construction |
Lakeside, CA |
$842,580 |
|
Sterling Environmental Group |
Oakland, CA |
$999,862 |
|
Two Rivers Demolition |
Rancho Cordova, CA |
$1,334,570 |
|
AMPCO Contracting, Inc. |
Anaheim, CA |
$1,336,000 |
|
Sturgeon Services Intl |
Bakersfield, CA |
$2,442,000 |
The initial lowest bidder, Pantano Demolition requested to be relieved from their bid due to incorrect calculation of their disposal cost. Their request was granted per Public Contract Code Section 5103. After careful review of the remaining bids submitted, staff recommends awarding the contract to Asbestos Management Group, the apparent lowest responsible bidder, in the amount of $547,000, and authorizing a ten percent contingency of $54,700 for a total amount of $601,700, for the demolition, clean-up and disposal of sixteen vacant residential structures located at Orion St., West Tower Ave., Stardust Pl. and Pearl Harbor Rd. at Alameda Point. Asbestos Management Group is not guaranteed any of the contingency amount and use of the contingency will be at the City Manager’s sole discretion for work not originally anticipated in the plans and specifications. The NIB also informed the successful bidder that they shall not pay less than the prevailing wage rate of per diem wages as determined by the State and Federal Government. A copy of the contract is attached as Exhibit 1.
FINANCIAL IMPACT
On October 20, 2015, during the discussion of allocating the City General Fund available balance in excess of the 20% reserve requirement, the City Council designated $575,000 toward this project in the event the Base Reuse Fund could not cover the cost. However, the draft Base Reuse Funds financial statements project over $2 million of available unreserved funds, which is sufficient to cover the cost of this project. Staff does not anticipate that the General Fund transfer approved by the City Council will be necessary.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFRENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c) - Existing Facilities.
RECOMMENDATION
Award contract in the amount of $547,000, and authorize a ten percent contingency in the amount of $54,700 for a total amount of $601,700, to Asbestos Management Group of California, Inc. for the demolition, clean-up and disposal of sixteen vacant residential structures located at Orion St., West Tower Ave., Stardust Pl. and Pearl Harbor Rd. at Alameda Point and appropriate $601,700 from the Base Reuse Fund Balance.
Respectfully submitted,
Jennifer Ott, Chief Operating Officer - Alameda Point
By,
Nanette Mocanu, Assistant Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Contract - Asbestos Management Group
2. Demolition Images