HomeMy WebLinkAbout10 PROJECT 200030 05-19-97 NO. 10
5-19-97
·
DATE:
TO:
FROM'
SUBJECT:
William A. Huston, City Manager
Community Services Department
STATUS REPORT
FRONTIER PARK RESIROOM REHABILITATION
(PROJECT NO. 200030)
SUMMARY: The project has been delayed until September 1997 and will be re-bid to
include the remodel of the restroom at Pinetree Park (Project No. 400034).
RECOMMENDATION'
Receive and file.
FISCAL IMPACT:
No fiscal imPact at this time. The project will need to be re-budgeted in 1997-98 FY.
BACKGROUND AND DISCUSSION:
City Council awarded the bid for construction to Irvine Engineering Corporation on
January 20, 1997, subject to approval of the contract requirements by the City Attorney
and execution by the City Manager. The staffreceived revised contract forms from the
City Attorney and forwarded them to Imine Engineering on 1/29/97.' The City did not
receive signed contracts until 3/5/97, and there were problems in the packages received at
that time. Corrections to the contract packages were finally received on 3/11/97, and
immediately forwarded to the City Attorney.
On 3/26/97, the City Attorney notified staff of problems with the insurance certificates
submitted by Irvine Engineering. The contractor was notified in writing immediately.
On 4/7/97, the revised insurance certificates were received. By this time, the delay in
contract execution would have caused a delay in construction, which would have severely
impacted the City's ability to conduct lunch programs at the park during the summer.
The City provides lunch to 300 children per day during the summer, and utilizes the
restrooms, storage and patio area to stage these services, which would be unavailable
during construction. As such, the City notified Irvine Engineering that the project would
need to be delayed until September 1997, and requested Irvine Engineering to submit a
cost for the delay, so that the contract could be executed.
Irvine Engineering was given two written requests for delay costs by the staff, and still
had not properly responded by 5/6/97.
Staff consuited with the City Attorney, and the consensus was to return the bonds to
In, ine Engineering and re-bid the project, because Irvine Engineering had not
demonstrated reasonable diligence in contract execution in accordance with the terms of
the contract, and failed to perform as agreed upon in the attached letters.
In as much as the timing for the rehabilitation of the restroom at Pinetree Park is
scheduled for bid in September 1997, and Uses the same prototypical restroom structure
as Frontier Park, the projects will be combined and bid as a single, larger project, which
would have the benefit of lower unit prices, due to greater volume of work and efficiency
of processing a single contract for both sites.
{9like Henley,
Director, Community Serv'fce~s
Ed Elowe
Project Manager
Cc:
Christine Shingleton, Assistant City Manager
Lois Jeffrey, City Attorney
Ron Nault, Finance Director
Tim Serlet, Director, Public Works/City Engineer
Martin Pastucha, Manager, Field Services
File A.3
C/Frontier Paxk/ede-waWsc:Re-bid Prqiect.mem
CommunitY Services Depadment
May 7, 1997
City of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3326
FAX (714) 832-0825
Irvine Engineering Corporation
17880 Skypark Circle, Suite 270
Irvine, CA 92614
Re:
Frontier Park Restroom Rehabilitation
Project No. 200030
Dear Mr. Hakimi:
The City has not received the documentation requested in our letter dated May 1, 1997,
attached for reference. Your letter of May 6, 1997~ indicating.-that you have not complied
with the agreements for documentation per Our discussion, as documented in our May
1997 letter, is not acceptable and shows a pattern of unreliable behavior.
This lack of diligence to document a final contract price caused by delay of the start of
work has caused great concern with this office regarding your ability to perform the work
as requested.
There are still problems relating to the license number for Fairway Roofing, which you
have not resolved since January 21, 1997.
Revised contract forms were sent to you on January 29, 1997. On March 4, the City had
to warn. Irvine Engineering to comply with contract execution by March 7, or your
proposal would be null and void.
When the City finally received your contract packages on March 5, 1997, you had an
illegal substitution of the masonry subcontractor, and had revised two of the subcontract
amounts compared to the bid documents.
The City notified Irvine Engineering of these discrepancies on March 6, 1997, and
received a letter of explanation from you on March 11, 1997. Upon receipt ofy0ur letter,
the City immediately forwarded your letter and the contract packages to the City
Attorney.
On March 26, the City had to notify Irvine Engineering of problems with your insurance
certificates, and that Credit General Insurance was not acceptable in accordance with the
contract provisions. We had a meeting on March 28, 1997, to review the details.
On April 7, 1997, the City received revised copies of your insurance certificates from
new insurers. By this time, the contract execution process had been delayed over 30 days
due to your lack of diligence for proper contract documentation. The City notified you in
a telephone call on that date of the intent to delay the start of construction until
September, to avoid disruption ofpublic programs for children at this park.
A letter was sent to you on April 15, 1997, confmming the delay and requesting Irvine
Engineering to notify the subcontractors and obtain documentation in accordance with
contract provisions for any cost change due to the delay.
On April 30, 1997, the City received your letter of response and promptly issued a letter
dated May 1, 1997, noting problems with your response.
In summary, the City believes that your lack of diligence and attention to the proper
documentation required by the contract provisions caused the delay in contract execution,
which forced the City to delay the project start of construction.
Further, when given the opportunity to document the cost of delay, you have not
responded in a timely manner.
For these reasons, the City has lost faith in your ability to do the work properly and in a
timely manner. In our opinion, Irvine Engineering has not complied with Paragraph 8 of
the Instructions to Bidders.
This letter will serve as notice that the City is returning your contract packages, along
with your original bonds, and that the City will re-bid this project.
Sincerely,
EdWard Elowe
Project Manager
CC:
William Huston, City Manager
Christine Shingleton, Assistant City Manager
Mike Henley, Director of Community Services
Lois Jeffrey, City Attorney
File D. 1
C/Frontier Pank/ede/atty/sc:IEC Contract Release.lla'
Community Services Department
May I, 1997
Irvine Engineering Corporation
17880 Skypark Circle, Suite #270
I_rvine, CA 92614
City of Tustin
300 Centennial Way
TuStin, CA 92780
(714) 573-3326
FAX (714) 832-0825
Re:
Frontier Park Restroom Rehabilitation
Project No. 200030
Dear Mr. Hal'/mi:
The City received your letter dated April 30, 1997. ItemNo. 1 of your letter is not
acceptable. Item No. 2 is not adequate to determine the revised contract Price. Item No.
3, which we discussed today, must be submitted to the City in writing byMay 5, 1997.
Item No. 4 can't be accomplished Until the final contract price for delay is resolved, and
the contract is executed.
General .Conditions, Section 8 addresses payment for changes in the work. If you have
cost increases due to the project delay, you must provide documentation from your
subcontractors to substantiate any cost increases. See Section 8, paragraph B of the
General Conditions.
The City notified you of the intent to delay the project on April 4, 7, and in a letter dated
April 15, 1997. We requested that you notify your subcontractors of this delay. Please
provide documentation that this was accomplished.
Per our conversation today, the City is to receive your revised contract price before the
contract can be executed. The City can only authorize cost increases that can be properly
documented for each subcontractor, or for your overhead.
Sincerely,
Ed Elowe
Project Manager
CC:
Mike Henley
File D. 1
P. OI
Irvine Engineering Corporation
FAX TRANSMITTAL
Date:
April 30, 1997
To:
Mr. Edward Elowe
Co. Name:
City of Tustin
' 'Fax No..
(714) 832-0825
From:
Mr. Mehdi HaHmi, President
Fax No.:
(714) 752-2556
Number of Pages, including this sheet:
SUBJECT:
For your immediate attention
Response Requested:
Yes V1 No
2Itc information contained In thix telecopier transmittal contabtr legally privlle, ge~l and confider~tial lnforman3n
belonging to the sender. 7he information is intetu~e.d only for the use of the IndividUal or entity tmm~ above,
Oeyou are not the Intended recipient, you are here. by notO~ed that arty disclosure, copying, di. ctrlbut~on, or the
taking of any action in 'reliance on the contents'of this transmittal ir rtrict~y prohibited. Id you have received this
tran.rrnittal in error, please trmnediately notO~y u~ by telephone to crrrange for re. turn of the original documents
to our. office.
17880 Skypark Circle Suite 270 · Irvine, California 92614 ' Telephone (714) 752-1772
~PR-30-97 UED ]6'43
P. 02
Irvine Engineering Corporation
?,t30 Skypark Circle.
Suite ~270
:~t, Cal~ornta 92614
~75222556 ~
April 30, 1997
City of Tusth
300 Centennial Way
Tustin, CA 92680
condition~:
Via Facsimile (714) 832-0825
Mr, Edward Elowe, Project Manager
SUBJECT: CONTRACT DELAY AA~ CHANGE IN THE LABOR
AND M_4TERL4L PRICE
Dear Mr. Elowc:
This letter is to inform you that lrvine Engineering Corporation will grant
the City request and start the construction by September 1, 1997, under the
following conditions:
We have been informed by our subcontractors ti.at due to delay on
this project and the start date it is too early to anticipate the amount
of the increase for the labor and material.
.
The subcontractor's estimate fro' the labor and material increase is
9% to 14 %.
3,
The City will be informed in writing by Irvine Engineexing
Corporation with actual amount of increase.
The other alte. mafive is, as I indicated in our telephone conversation,
that we can order the major material so they can be delivered to the
City's storage.' The material must be Paid upon deliv .ery.
Please notify my office with your decision at your earliest convenience.
Your cooperation in this matter is greatly appreciated.
Sincerely,
/vfehdi Haldmi
President
MH;kh
cc: File
.
All alterations, extensions of time, extra and add~onal work, and other changes authorized by these
specifications or any part of the contract may be made wfthout securing the consent of the =~Jrety
sureties on the conb'act bonds.
The Construction Contract shall be signed by the successful Bidder, and delivered to the City Clerk
· together with the contract bonds and insurance cert~Scates within ten (10) days of the date spedfled
in the Notice of Award issued by the City of Tustin, not including Sundays and legal holidays.
Failure of the responsible Bidder to execute the constnJction Conb'act and file acceptable insurance
certificates and bonds as provided herein wil~in ten (10) days of award of the contract, not including
Saturdays, Sundays and legal holidays, shall be just cause for the forfeiture of the proposal guarantee.
The successful Bidder may file with the City of Tustin a written notice, signed by the Bidder or Es
aLr~orized representative, specifying nat the bidder will refuse to execute the cont]-ac~ if presented to
the Bidder. The tiling of such notice shall have the same force and effect as the failure of ~ Bidder
to execute the contract and furnish acceptable certificates of insurance and bonds wfthin the time
hereinbefore prescribed. -.
SPECIAL NOTICE: Bidders are required to inform themselves fully of the conditions relating to
construction and labor under which the work will be performed, and the contractor must employ, so
far as possible, such mel~ods and means in the carrying out of this work as will not cause any
interruption or interference with any other contractor.
10. BIDDERS INTERES~D IN MORE THAN ONE BID: No person, ~'n or corporation shall be atlowed
to make or file or be interested in more than one b~d, as prime contractor for the same work.
11. BIDS TO BE LEFT ON DEPOSIT: No Bidder may withdraw its bid for a period of l~rty (30) calendar
days after the time set for opening thereof. However, the City of Tus'dn will return all proposal
guarantees w~in fifteen (15) days, not including Saturdays, Sundays and legal holidays, after the
award of the contract or rejection of the bids, as the case may be, to respective Bidders whose bids
are not accepted.
·
12. NON-COLLUSION AFFIDAVIT: E~dders must submit a NON-COllUSION afSdavit in the form attached
to the proposal along ~ and at the same time as submission of the bid.
13. SUBSTITUTIONS: Where ~he specifications or dmwfags spedfy any material, product, thing, or serv{ce
by one or more brand names, whether or not 'or equal' is added, and a bidder desires to propose the
use of another item as being equal, the bidder shall request approval therefor as set forth in the
Contract Specifications and Details for Frontier Park. Restroom Rehabilitation.
14. ASSIGNMENT OF CONTRACT: No assignment by the Contractor of any contract to be entered into
hereunder or of any part thereof, or of funds to be received thereunder by the Contractor, will be
recognized by the City'unless such assignment has had the prior written approval of the City and the
surety has been given due notice of such assignment in writing.
15. OTHER REQUIREMENTS: Before entering into a contract, the bidder to whom the contract has been
awarded shall furnish satisfactory evidence that the b~der has secured, for the period of the contract,
full Workers' Compensation insurance and public liability and property damage insurance as set forth
in Section 7 of the General Conditions from any responsible insurance company admitted in ltm State
of California and rated 'A' or better and Class VII or better, by the latest edition of Besf~; Key Rating
Guide, and such insurance shall be maintained in full force and effect at bidder's own expense during
the life of this contract.
FRONTIER P^RK RESTROOM. S - CITY OF ~N
INKT'RUCTIONS TO BIDDERS - 4
HhY- 6-97 TUE 11:41
P. O1
Irvine Engineering Corporation
FAX TRANSMITTAL
Date: May 6, 1997
To:
Mr. Edward Elowe
Co. Name:
Fax No.:
City of Tustin
(714) 832-0825
Mr. Mehdi Hakimi, President
Fax No.-
(7 I4) 752-2556
Number of Pages, including this sheet: ~2
SUBJECT:
For your immediate attention
Response Requested: ~! Yes i-I 'No
~ . j . - ,d - i ......· -
The information mntaint, d ir~ this telecopier transminal contains legally privileged and col~dentlal Information
belonging to the setuter. The information is intended only. for the ust of tht Individual or entity named above,
If you are nat the lnten~_.d reelpltnt, you are hereby notO~od that any disclosure, copying, distribution, or the
taking of any action in reliance on the contents of thlx transmittal it strlctly prohlblted. Id you have received this
transmittal in error, pre. axe imm~iale!y notify ux by t¢lqohone to arrange for r~urn of the origi~ml documents
to otlr o.~c¢,
17880 Si~aark Circle Suhe 270 · Ir'vine, California 92614 · Telephone (714) 75221771
Irvine Engineering Corporation
May 6, 1997
Mr. Edward Elowe, Project Manager
City of Tustin
300 Centennial Way
Tusfin, CA 92680
conditions:
Via Facsimile (714) 832-0825
SUILiECT: CONTRACT DELAY AND CHANGE IN THE LABOR
AND MATERIAL PRICE
Dear Mr. Elowe:
Per your request, I contacted our subcontractors regarding the above
referenced project to clarify if them are any chang~ added to their original
price and specify the amount in wring to us.
To this date I have not reedved all their response. As soon as I have ail
the numbers I will forward them to your office for your review.
Also, I have received calls from our subcontractors and our bonding
company indicating that they have been contacted by your office. Please
be advised that our office is available to answer any questions or eonc. ewns
regarding this project that you or your office may have.
Your cooperation in this matter is greatly appreciated.
Sincerely,
Mehdi Hakimi
President
MH/kh
cc: File
BO ~cyt~arl: Circtt ,
Suite #270
'ne, CalOrorn~a 92624
~75~1771 Phone
2752~56 g~