HomeMy WebLinkAboutN- 5 Staff Report PO Picknic Shelter & BBQ from Sadie Construction
CONSENT CALENDAR
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: RANDY NORIEGA, DIRECTOR OF PARK PLANNING AND DEVELOPMENT
VIA: RICK COLE, CITY MANAGER
DATE: APRIL 7, 2003
SUBJECT: REQUEST FOR A PURCHASE ORDER TO PURCHASE A PICNIC SHELTER AND BBQ FROM
SADIE CONSTRUCTION IN THE AMOUNT OF $20,546.93. REQUEST TO ENTER INTO A
CONTRACT AGREEMENT WITH MALIBU PACIFIC, INC. TO INSTALL A PICNIC SHELTER, BBQ
AND THE PURCHASE OF PICNIC TABLES, CONCRETE PADS AND INSTALLATION LABOR IN
THE AMOUNT OF $23,700.00 AT VETERAN’S FREEDOM PARK. TOTAL PROJECT COST IS
$44,246.93.
RECOMMENDATION:
It is recommended that City Council approve the request for a purchase order to purchase a picnic shelter
and BBQ from Sadie Construction in the amount of $20,546.93. Request to enter into a Contract
Agreement with Malibu Pacific, Inc. to install said picnic shelter and BBQ and the purchase of picnic
tables, concrete pads and cost of installation labor in the amount of $23,700.00 at Veteran’s Freedom
Park. Total project cost is $44,246.93.
BACKGROUND:
In an effort to expedite the installation of the new picnic shelter and amenities at Veteran’s Freedom
Park, staff inquired with the Purchasing Department if it was allowable to use a contractor who within
the last year successfully completed the exact same work and would duplicate the work at the same
price. Purchasing staff stated that this was a past practice and that the project could proceed. Wanting
to expedite the purchase of the largest component of the project, the picnic shelter prior to a known
price increase on February 1, 2003, staff issued a notice to proceed to the “pre-qualified” contractor.
The contractor placed the order for the picnic shelter and BBQ unit on the basis of the notice to proceed.
Staff completed the project agreement and had the City Attorney review. The City Attorney concluded
that this “past practice” was not in compliance with the City of Azusa’s purchasing policies and that a
decision to proceed or cancel and re-bid the project was up to the staff responsible for the project. Staff
decided to cancel the project and re-bid the project in strict accordance with the City’s purchasing policy.
The re-bid project was bid with the City holding options with the contractors supplying all equipment,
supplies and labor and excluding the picnic shelter and BBQ unit. Realizing that the contractor who
ordered the picnic shelter and BBQ unit may not be the low bidder, this separation of the project was a
prudent approach.
In fact, the low bidder was Malibu Pacific, not the original pre-qualified contractor. This left us with a
contractor holding two pieces of equipment needed to complete the project. In an effort to do the
ethical right thing and not hold the “pre-qualified” contractor with equipment, it is recommended to split
the contract by purchasing the picnic shelter and BBQ from Sadie Construction and have Malibu Pacific
install the shelter, BBQ as well as supply the picnic tables, prepare the site, complete the concrete, and
finish the project.
Three (3) contractors attended the mandatory pre-bid walk through and two bidders, Sadie Construction
and Malibu Pacific submitted bids.
FISCAL IMPACT:
This project is approved in the City of Azusa’s 2002-2003 Capital Improvement Budget funded through
the Mountain Cove CFD account. Project costs are $20,546.93 to Sadie Construction and $23,700.00 to
Malibu Pacific Inc. for a total project cost of $44,246.93. The project-approved budget is $45,000.
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