HomeMy WebLinkAbout07 - CC-9 - Release of Cash Deposit for Bid Bond - 7/19/2011CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 19, 2011
ITEM NUMBER:
SUBJECT: RELEASE OF CASH DEPOSIT FOR TEN (10) PERCENT BID BOND IN CONNECTION
WITH FAIRVIEW PARK WETLANDS AND RIPARIAN HABITAT PROJECT - CITY
PROJECT NO. 11-06
DATE: JULY 7, 2011
FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION
PRESENTATION BY: PETER NAGHAVI, DIRECTOR, DEPARTMENT OF PUBLIC SERVICES
FOR FURTHER INFORMATION CONTACT: ERNESTO MUNOZ, CITY ENGINEER, (714) 754-5335
RECOMMENDED ACTION:
Release the cash deposit in the amount of $280,000.00 for the required ten (10) percent
bid bond submitted by MG Construction and Development, Inc., 8900 Eton Avenue, Unit
C, Canoga Park, California, 91304, in connection with the Fairview Park Wetlands and
Riparian Habitat Project.
BACKGROUND:
On April 29, 2011, staff advertised City Project No. 11-06 for the Fairview Park Wetlands
and Riparian Habitat. The project specifications include a contractual requirement that
all bids be submitted with a bid bond in the form of cash, money order, cashier's check,
or by a surety bond in an amount equal to at least ten (10) percent of the bid. Said
bond is forfeited in case the bidder depositing the bond fails to execute the contract
within ten (10) days after written notice.
ANALYSIS:
On June 6, 2011, the City Clerk received and opened twelve (12) bids for the construction
of this project. Jeff Tracy, Inc. DBA Land Forms Landscape Construction was the
apparent low bidder. On June 21, 2011 a construction contract in the amount of
$2,902,978.00 was awarded to Land Forms Landscape Construction.
MG Construction and Development, Inc. was the third lowest bidder and in lieu of a bid
bond submitted a cashier's check in the amount of $280,000.00. Since the construction
contract with the lowest responsible bidder has been signed, staff recommends that the
cash bid bond submitted by MG Construction and Development, Inc. be released. The
refund request form is included as "Attachment 1."
ALTERNATIVES CONSIDERED:
There is no alternative relative to this item.
1
FISCAL REVIEW:
There is no fiscal impact to the City relative to this item.
LEGAL REVIEW:
There is no legal review required relative to this item.
CONCLUSION:
All of the obligations of the bid bond have been met by the low apparent bidder.
Therefore, staff recommends that the cash bid bond in the amount of $280,000.00 be
released to MG Construction and Development, Inc.
ERNESTO MUNOZ
City Engineer
LARRY HURST
Interim Finance Director
PETER NAGHAVI, DIRECTOR
Department of Public Services
ATTACHMENT: "1" Refund Request Form
DISTRIBUTION: Chief Executive Officer
City Attorney
City Clerk
Staff
File
E
ATTACHMENT 1
CITY OF COSTA MESA _fit=s_°Lxy-
REFUND REQUEST FORM
From: ❑
Finance
Vendor #:
❑
Building Safety
Permit #:
❑
Planning
Amount: $ 280 000.00
❑
Public Services
$280,000
❑
Community Services
Date: June 7. 2011
®
Other City Clerk
Department Signature
Account
Fund
Or anization
Program
Project/Grant
Amount
215140
101
$280,000
Name and address of applicant: MG Construction and Development Inc.
8900 Eton Avenue Unit C
Canoga Park, CA 91304
Phone: (818)773-7351
Applicant's Signature Date
REASON FOR REFUND:
Bid Bond Refund -Fairview Park Wetlands and Riparian Habitat, CITY PROJECT NO. 11-06
=11-1116111A
Finance:
City Manager:
2401-22 MW ONLINE