Approval is requested for the award of a contract to A. P. Construction, Inc., of San Jose for the construction of the Sunnyvale Municipal Tennis Center Project for the Department of Public Works Project Administration.

The Sunnyvale Municipal Tennis Center Project consists of constructing new tennis courts, snack bar, parking and lighting at the existing facility located at 800 Russet Drive.

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on January 5, 2000; and the bid package was distributed to Bay Area Builders Exchanges. In addition, direct notice was given to twenty local contractors who are included on the Purchasing Division bidders list for this type of work.

Sealed bids were timely received and publicly opened on January 26, 2000. Six responsive bids were received.

During the evaluation of bids, it was discovered that the lowest bidder, A. P. Construction, Inc., indicated in its bid that 24.28% of the work would be performed by its own organization instead of the 25% required by bid specifications.

Staff recommends that Council waive this discrepancy as a minor or inconsequential defect, based upon a 1996 decision of the California Court of Appeal, First District, Division 3 (Ghilotti Construction Company v. City of Richmond). In that case, the Court affirmed a City of Richmond award of contract for a road construction project to the low bidder, even though the low bid deviated by a margin of 5.5 percent from contract specifications that limited subcontracting to 50 percent of the total bid. The Court held that "the City had correctly concluded that the low bid’s deviation from contract specifications was inconsequential".

Staff, therefore, recommends the acceptance of the bid from A. P. Construction, Inc., the lowest responsive and responsible bidder.

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects.

Funds for this project are available in Account Number 819570.

It is recommended that Council award a contract in an amount not to exceed $793,942 (bid amount of $721,766 plus contingency of $72,176) to A. P. Construction, Inc., of San Jose for the construction of the Sunnyvale Municipal Tennis Center Project No. PR-97-08.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director of Finance

Reviewed by:

Marvin Rose
Director of Public Works

Approved by:

Robert S. LaSala
City Manager