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Home My WebLink About06 AWARD CONTRACT FOR EDINGER AVE. WELL PHASE ll(CIP NO. 60165)• Agenda Item 6 �.mm AGENDA REPORT Reviewed City Manager Finance Director MEETING DATE: AUGUST 18, 2015 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE EDINGER AVENUE WELL — PHASE II EQUIPPING PROJECT (CIP NO. 60165) SUMMARY Staff is recommending that the City Council award the construction contract for the Edinger Avenue Well — Phase II Equipping Project (CIP No. 60165) to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation. RECOMMENDATION It is recommended that the City Council deny the bid protest submitted by California Building Evaluation and Construction, Inc. and award the construction contract for the Edinger Avenue Well — Phase II Equipping Project (CIP No. 60165) to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation in the amount of $4,103,650.00 and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. FISCAL IMPACT The project is funded by the 2011 Water Revenue Bonds (Fund 305), in which there is a fund balance of $6,600,000 in net bond proceeds. Sufficient funding is budgeted in the Fiscal Year 2015-2016 Capital Improvement Program to cover construction, materials testing and inspection, construction management and project contingency. CORRELATION TO THE STRATEGIC PLAN The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets. Specifically, the project implements Strategy #3(b), which among other items, is to ensure continuous maintenance and improvement of public facilities. DISCUSSION AND BACKGROUND On May 20, 2015 the City Council approved plans and specifications and authorized the City Clerk to solicit bids. The Edinger Avenue Well Project will enable the City to improve its groundwater production and reliability. The Phase I Drilling Project was completed in 2013 in coordination with the construction of the Residence Inn and the Fairfield Inn by RD Olson Company. The Phase II Construction/Equipping Project includes a structure to contain the well that is approximately 2,000 square feet in size, designed to match and blend with the adjacent architecture and land use. The Engineer's Estimate for construction is $4,282,000. Formal bids were publicly opened on July 7, 2015 and reviewed by Public Works. Six (6) bids were received and are summarized below by order of least dollar amount: Edinger Avenue Well — Phase II Equipping Project August 18, 2015 Page 2 • Pacific Hydrotech Corporation .............................................. $ 4,103,650.00 • California Building Evaluation and Construction, Inc ............. $ 4,573,500.00 • Pascal & Ludwig Constructors ............................................... $ 4,594,515.00 • Shimmick Construction Company, Inc . ................................ $ 4,621,210.00 • Metro Builders & Engineers Group, Ltd ................................ $ 4,873,527.45 • R.C. Foster Corporation....................................................... $ 4,927,375.00 Staff has reviewed the references and verified the State Contractor's License for Pacific Hydrotech Corporation and has determined that they are in good standing and current. The City received a formal bid protest dated July 10, 2015 from California Building Evaluation and Construction, Inc., the apparent second lowest bidder. In the protest, California Building Evaluation and Construction, Iric. requested that the City find the apparent lowest bidder, Pacific Hydrotech Corporation, non-responsive for listing two subcontractors who allegedly did not possess a current California Department of Industrial Relations (DIR) registration number at the time of the bid submittal pursuant to Labor Code Section 1725.5. The two subject subcontractors both possessed valid DIR registration numbers in the previous fiscal year, but failed to renew prior to the deadline of June 30`". Labor Code Section 1725.5, subsection (c), provides that a contractor who inadvertently fails to renew may retroactively do so by paying an additional $300 fee within 90 days of the renewal date. Both of the subject subcontractors have paid the renewal and penalty fees to the DIR and hold retroactive registration relating back to July 1, 2015. It is recommended that the City Council deny the bid protest by California Building Evaluation and Construction, Inc. and award the construction contract to the lowest responsive/responsible bidder, Pacific Hydrotech Corporation, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. IS. Stack, P.E. of Public Works / City Engineer Attachment(s): California Building Evaluation letter dated 7/10/15 City response to bid protest Location Map ATTACHMENT 1 BID PROTEST LETTER C CALIFORNIA g 6UILDIN6 F EVALUATION •C AND CONSTRUCTION, INC. July 10, 2015 Eric Johnson City of Tustin 300 Centennial Way Tustin, CA 92780 6261 BEACH BWD., SUITE 366 SURNA MON, CA "631 TEL, 714-6609-7625 . F1W 714-055-0712 Project Name: Edinger Ave Well -Phase II Equipping Project Project No.: 60165 Bid Date: July 7, 2015 Dear Mr. Johnson: California Building Evaluation & Construction, Inc. (CBE & C) would like to thank you for giving us the opportunity to provide the City of Tustin with a bid for the above- mentioned project. After a quick review of the bid results and checking the apparent low bidder's, Pacific Hydrotech Corporation, bid proposal we strongly believe that Pacific Hydrotech Corporation has made fatal mistakes in submitting their bid package as requested by the contract bid documents which cannot be overlooked by the City of Tustin. CBE&C is writing to you to formally protest the bid presented to the City of Tustin, Department of Public Works, Edinger Avenue Well - Phase II Equipping project by Pacific Hydrotech Corporation on July 7, 2015. Therefore, the missing information required by the contract documents will make Pacific Hydrotech Corporation non-responsive. As such, we offer the following reasons for this formal protest: 1. Pacific Hydrotech Corporation had failed to follow what was required by the bid document as shown on page A-2. They have listed Tamang Electric, Lic#512857 as their electrical subcontractor with 12% of the project total amount and who does not currently have a DIR# as required to have by the law. 2. Pacific Hydrotech Corporation had failed to follow what was required by the bid document as shown on page A-2. They have listed Lobby Traffic, Lic#578412 who has been listed for 1% and does not currently have a DIR#. The attached City bid contract documents as listed on page A-2 read: • No contractor or subcontractor shall be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5. • No contractor or subcontractor shall be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5 • This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Pacific Hydrotech Corp has thereby submitted an incomplete bid as required by the contract bid documents and therefore the submitted bid by Pacific Hydrotech Corp must be declared non- responsive by the City of Tustin and the award made to CBE&C as the lowest responsive bidder. CBE&C is requesting these errors not to be overlooked by the City of Tustin prior to award recommendation to the city council. Other errors will be addressed later on. We would like the City of Tustin to know that CBE&C and its listed subcontractors have invested a countless amount of time, effort, and resources to put the bid together in order to provide a complete bid package further solidifying our ability to perform and complete this project within the required time. We hope this important request does not give you or the City of Tustin any hardship and we appreciate your understanding of this important matter. We look forward to be awarded this project and working with the City of Tustin on this job and all future jobs to come. Should you have any questions or require any additional information, please do not hesitate to contact me at 714-609- 7625 or via email at: calbuilding(a)gmail.com. Yours very/truly`. l j Eddie Qad+er Vice President CC: Mr. Scott Holbrook, Jr. Law offices of Crawford & Bangs, LLP The outside of the sealed envelope of each bid submitted shall be clearly marked: Edinger Avenue Well — Phase II Equipping Project (CIP No. 60165) 4. Contractor's License In accordance with provisions of Section 3300 of the California Public Contract Code, the AGENCY has determined that the Contractor shall possess a valid California Contractor's License Class A. Further, it is a misdemeanor not to have a license at the time of the bid (Business and Professions Code Section 7028.15 (a). In the case of City contracts which involve Federal funds, the Contractor must be properly licensed at the time of award of the contract (Public Contract Code Section 20103.5) Failure to possess such license may render the bid non- responsive and bar the award of the contract to that non-responsive Bidder. The successful Contractor and his subcontractors will be required to possess business licenses from the AGENCY. 5. Prevailing Wages In accordance with the provisions of Section 1770, et sec., of the Labor Code, the Director of the Industrial Relations of the State of California has determined the general prevailing rate of wages applicable to the work to be done. The Contractor and any subcontractor under him, will be required to pay to all persons employed on the project by the Contractor sums not less than the sums set forth in the documents entitled "General Prevailing Wage Determination made by the Director of Industrial Relations pursuant to California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1771, 1773, 1173.1 and 1774." These documents can be reviewed in the office of the City Engineer or may be obtained from the State. Notice Requirements No contractor or subcontractor shall be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant.to Labor Code Section 1725.5. • No contractor or subcontractor shall be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5 This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. 6. Bid Security Each bid shall be accompanied by bid security.in the form of a cashiers check, certified check or bid bond in the amount of 10% of the total bid amount. All cashiers checks or certified checks must be drawn on a responsible bank doing business in the United States and shall be made payable to THE CITY OF TUSTIN. A bonding company admitted and licensed to do business in the State of California must issue bid bonds. Bids not accompanied by the required bid security shall be rejected. Cash and personal or company checks are NOT acceptable. A-2 LIST OF SUBCONTRACTORS In accordance with Government Code Section 4104, the Bidder shall set forth the name and business address of each subcontractor who will perform work or render service to the bidder on said contract in an amount in excess of one-half of one percent (0.5%) of the total bid and the portion of the work to be done by such subcontractor. By submission of this proposal, the Bidder certifies: That he is able to and will perform the balance of all work which is not covered in the above subcontractors listing. 2. That the AGENCY will be furnished copies of all subcontracts entered into and bonds furnished by subcontractor for this project. C-13 Name,�Phone Numbar,and State; DIR `' < <_ gType ofi Porteoo Address oft5ubcorttradorf Ll censa r i Regatiatlon C3•.e .1 and�ClasS� 1� Morw MN>gows Wulvwi,Cpq S5DBL; ta..e...gg T�ctr„w90141 ck^, '5AK-41ut Lo?L W4,AjTfq�w �y3�GVMS I ?t0eerii,M (q Y}$ 4t4 I OV00 t0004 &AeA 1000- y -Wou l7n C an Corsi po; Fulice", 927Sti; 44oJ.wxs• Roof '71m-158`uuN l?o grad Awtt+clw^,Ct) 475L59 lov000 S •4l4 -5;7,JSo k Qavt 1C6dallo, 5373(34 f0voaa215o Ac Vravi Q41 -'43i 9'k 0 a 50 W6144- L44 -f' 245d.lrms Cp, 9-10 lolol 00000 (0 We 9 oot - S tq - 25'} 1 INKS FL,tIV+o, , U\ 9ciK N08 1 I 000uo 5S411 I Mr, �lr{ -f�i; laSUu By submission of this proposal, the Bidder certifies: That he is able to and will perform the balance of all work which is not covered in the above subcontractors listing. 2. That the AGENCY will be furnished copies of all subcontracts entered into and bonds furnished by subcontractor for this project. C-13 LIST OF SUBCONTRACTORS In accordance with Government Code Section 4104, the Bidder shall set forth the name and business address of each subcontractor who will perform work or render service to the bidder on said contract in an amount in excess of one-half of one percent (0.5%) of the total bid and the portion of the work to be done by such subcontractor. 90 Portion of•4Nork4 - Name, Phone Numbet and Addreas of Subcontiactor< State Cleanse Number andClasa `AIR Re IstiaUom 9, ' •Number r' type of ,.I i Work f ; - :�: •r _ 3 CQclrit 5w t+rc`-0v; S� 6A S33 49h I(wou04445 ou(� 5(s2-4au-�i4Uo a� �2 6L la..w ffWrt<. FZ-o, CA 5/295a f(/o�uo 12U back 1cr,� CtWt- H-ShhUU By submission of this proposal, the Bidder certifies: 1. That he is able to and will perform the balance of all work which is not covered in the above subcontractors listing. 2. That the AGENCY will be furnished copies of alt subcontracts entered into and bonds furnished by subcontractor for this project. C-13 ATTACHMENT 2 CITY RESPONSE TO BID PROTEST Department of Public Works Douglas S. Stack, P.E. Director August 10, 2015 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED, U.S. MAIL Eddie Qader California Building Evaluation and Construction, Inc. 6281 Beach Blvd., Suite 306 Buena Park, CA 90621 Re.: Bid Protest for the Edinger Avenue Well — Phase 11 Equipping Project (CIP 60165) Dear Mr. Qader: I am writing in response to your July 10, 2015 notice of bid protest ("Notice") relating to the Edinger Avenue Well - Phase II Equipping Project (CIP No. 60165) ("Project"). In the Notice, you set forth two grounds for the bid protest, both relating to Pacific Hydrotech Corporation's subcontractors: 1) Tamang Electric's failure to have a "DIR #", and 2) Lobby Traffic's failure to have a "DIR #" (Hereafter collectively "Subcontractors"). Presumably, you are alleging that the Subcontractors did not have an active registration with the Department of Industrial Relations at the time Pacific Hydrotech Corporation submitted its bid. The Subcontractors, however, have since renewed their registration with the Department of Industrial Relations. Furthermore, the Subcontractors have paid a penalty fee giving their registration retroactive effect to July 1, 2015. See Labor Code section 1725.5(c). In other words, the Subcontractors are considered to have been registered with the DIR at the time the bid was submitted. Thus, you have no grounds for a bid protest. Thank you for your interest in the Project (CIP No. 60165) Sincerely, StacK, r'.L. Public Works / City Engineer Cc. David Kendig, City Attorney Ken Nishikawa, Deputy Director of Public Works - Engineering Art Valenzuela, Water Services Manager Eric Johnson, Principal Engineer 300 Centennial Way, Tustin, CA 92780 - P: (7141 573-3150 a P: (7 14) 734.8991 a www.tustinca.org ATTACHMENT 3 LOCATION MAP CITY OF TUSTIN PROJECT / LOCATION J j of PROJECT NAME: DRILL AND INSTALL WELLHEAD -SOUTHWEST TUSTIN (CIP NO. 60165)