HomeMy WebLinkAbout2014-07-08 Item 21
City of Chula Vista
Staff Report
File#:, Item#: 21.
14-0336
CONSIDERATIONOFWAIVINGIRREGULARITIESINTHEBIDRECEIVEDFORTHE
"PAVEMENTMINORREHABILITATIONFY13/14(RUBBERIZEDPAVEMENTGRANTPROGRAM-
CHIP SEAL)" PROJECT PER CITY CHARTER SECTION 1009
RESOLUTIONNO.2014-139OFTHECITYCOUNCILOFTHECITYOFCHULAVISTA
ACCEPTINGBIDS,DECLARINGTHEAPPARENTLOWBIDDER,FRANK&SONPAVING,
INC.TOBENON-RESPONSIVE,WAIVINGAMINORDEFECTINTHELOWEST
RESPONSIVEBIDRECEIVED,AWARDINGTHECONTRACTFORTHE"PAVEMENT
MINORREHABILITATIONFY13/14(RUBBERIZEDPAVEMENTGRANTPROGRAM-CHIP
SEAL)(STL397)"PROJECTTOCOPPCONTRACTINGINCORPORATEDINTHEAMOUNT
OF$1,812,572.00,REDUCINGTHESTL383BUDGETBY$434,098ANDAPPROPRIATING
THEEQUIVALENTAMOUNTTOSTL397,WAIVINGCITYCOUNCILPOLICY574-01AND
AUTHORIZINGTHEEXPENDITUREOFALLAVAILABLECONTINGENCYFUNDSNOTTO
EXCEED $271,885.80 (4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council conduct the public hearing and adopt the resolution.
SUMMARY
OnMay7,2014,theDirectorofPublicWorksreceivedsealedbidsforthe“PavementMinor
RehabilitationFY13/14(RubberizedPavementGrantProgram-ChipSeal)(STL397)”project.The
projectconsistsoftheremovalandreplacementoffailedasphaltconcretepavement(dig-outs),and
theapplicationofrubberizedchipsealonvariousstreetsintheCity.Scopeofworkonthisproject
alsoincludesthereplacementofdamagedtrafficsignalloopdetectors,trafficcontrol,stripingand
markings, and other miscellaneous items of work necessary to complete the project.
ENVIRONMENTAL REVIEW
TheDevelopmentServicesDirectorhasreviewedtheproposedprojectforcompliancewiththe
CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheprojectqualifiesforaClass
1(c)categoricalexemptionpursuanttoSection15301,ExistingFacilities,oftheStateCEQA
Guidelinesbecausetheproposedprojectconsistsofminorrehabilitation/repairworktoexistingpublic
streetsinvolvingnegligibleornoexpansionofanexistinguse.Thus,nofurtherenvironmentalreview
is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
ThePublicWorksDepartmentutilizesaPavementManagementSystem(PMS)andpavement
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preservationprogramtodeveloptheprioritylistofstreetstorehabilitateandpreservethroughoutthe
city.Thispreservationprogramisdesignedtoextendtheroadwaylifeandserviceabilitythroughthe
removalandreplacementofdeterioratedsectionsofpavement(dig-outs)andtheapplicationof
varioustypesofsurfacetreatments.Theapplicationoftheasphaltrubberchipsealsurface
treatmentonthestreetsegmentsshowninAttachment1willcompletetheoverallmaintenance
strategy on these street segments.
InSeptember2013,theCityreceivedagrantfromthe2013/14RubberizedPavementGrantProgram
forthisproject.TheapprovedgrantadministeredbytheCaliforniaDepartmentofResources,
RecyclingandRecovery(CalRecycle)hasareimbursableamountof$1.00persquareyardof
rubberizedsealuptoamaximumof$250,000.CalRecycleencouragesthere-useofrecyclable
usedtirestosavevaluablelandfillspace.Onlycrumbrubberderivedfrom100%California-
generated waste tires can be used in the asphalt rubber mix.
Inadditiontoapplyingtheasphaltrubberchipseal,thescopeofworkalsoincludestheremovaland
repairofasphaltpavement,weedremovalandtreatmentwithherbicide,crackfilling,pavement
stripingandmarkings,replacementofdamagedtrafficsignalloopdetectors,trafficcontrol,protection
andrestorationofexistingimprovementsandothermiscellaneousworknecessarytosuccessfully
complete the project.
OnMay7,2014,theDirectorofPublicWorksreceivedsix(6)bidsforthe“PavementMinor
RehabilitationFY13/14(RubberizedPavementGrantProgram-ChipSeal)(STL397)”project.The
following bids were received:
CONTRACTORSUBMITTAL RESULTBID TOTAL
SUBMITTED
1Frank & Son Paving, Inc. -Did not meet the required 40%$1,652,576.50
Chula Vista, CAof work to be performed by the
prime contractor. $0.40 math
error. Actual bid total is$1
,652,576.90.
2COPP Contracting, Inc. -All requirements met but with$1,829,544.50
Buena Park, CAmathematical error. Corrected
bid total is $16,972.50 lower
than submitted. Actual bid total
is$1,812,572.00.
3TC Construction Co., Inc. -All requirements met$1,968,650.50
Santee, CA
4Pavement Coatings Co. -All requirements met$1,992,658.30
Jurupa Valley, CA
5American Pavement System,All requirements met$2,038,546.50
Inc. - Modesto, CA
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6VSS International - WestAll requirements met$2,224,120.00
Sacramento, CA
StaffreviewedthelowbidsubmittedbyFrank&SonPavingIncorporatedanddeterminedtheirbid
packagedidnotmeettherequired40%primecontractorparticipation.UnderSection9,
Subcontracting,oftheProjectSpecificationentitled“ProposalRequirementsandConditions”;the
primecontractorshallperformatleast40%ofthecontractworkwiththeirownorganization.Frank&
Son Paving Incorporated’s participation is only 34.49% and therefore does not meet the requirement.
The2006StandardSpecificationsforPublicWorksConstructions,“GreenBook”,section2-3.2;
“AdditionalResponsibility’”statestheprimecontractorshallperformatleast50%ofthecontractwork
withitsownorganization.Staffimplementedaloweredrequirementof40%forthispavement
rehabilitationprojecttoattractadditionalbidders.Staffalso,withtheadvicefromtheCityAttorney’s
Office,revisedtheListofSub-contractorsForm(Attachment2)toclearlydisclosethepercentagesof
eachitemofworktobeperformedbyallsub-contractors.Allofthesecriteriaarebidrequirements
and as such cannot be revised after bid submittal.
OnMay19and20,2014,staffcontactedandinformedFrank&SonPaving(Attachment3and4)
that,basedupontheirbidsubmittal,theydidnotmeetthe40%primecontractorworkparticipation
requirementandhaduntil5:00p.m.onMay23,2014torespondappropriately.OnMay20,2014,an
emailresponsewasreceivedfromFrank&SonPaving(Attachment5)showingaparticipationofjust
overthe40%requirement.Closeexaminationofthenewbreakdowndataandthework
requirementsrevealedthatchangeshadbeenmadetotheoriginalinformation(Attachment6).Staff
metwithFrank&SonPavingtodiscusstheMay20,2014submittal,whichcontainedsome
inconsistencies,andwerepresentedwithasecondanddifferentpercentagebreakdownbetween
Frank&SonPavingandtheirsubcontractorsdatedJune4,2014(Attachment7).Staffconferred
withtheCityAttorney’sOfficeandconcludedthattheseadditionalsubmittalswere,infact,changes
tothebid-notcorrections-andassuch,inordertopreservetheintegrityofthesealedbidprocess,
shouldnotbeconsidered;instead,Frank&Son’soriginalbidsubmissionneededtobeusedto
evaluate bid responsiveness.
Onthisbasis,itwasdeterminedthatFrank&SonPaving’sbidwasnon-responsivebecauseitfailed
to meet the minimum 40% work participation requirement in the contract bid specifications.
StaffreviewedthesecondlowbidsubmittedbyCoppContractingInc.(“Copp”)anddeterminedthat,
withtheexceptionofamathematicalerrorof$16,972.50favoringtheCityitsbidpackagemetallthe
submittalrequirements.StaffcontactedCopprepresentativesandinformedthemofthe
mathematicaldiscrepancy.Coppagreedtohonorthecorrectedbidpriceof$1,812,572.00,whichis
$16,972.50lessthantheirsubmittedbidpriceof$1,829,544.50(Attachment8).Thecorrectedbid
submittedbyCoppContractingIncorporatedisbelowtheEngineer’sestimateof$2,023,740by
$211,168(orapproximately10.43%).Copphasperformedconstructionprojectsofsimilarscopefor
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theCityinthepastandstaffhasdeterminedtheirworktobesatisfactory.TheContractor’sLicense
No.384209,aswellasalllistedsub-contractors’licenses,arecurrentandactive.Accordingly,
becauseCoppisthelowestresponsiveandresponsiblebidder,withabidbidbelowtheEngineer’s
estimateforthework,Staffrecommendsawardingthe“PavementMinorRehabilitationFY13/14
(RubberizedPavementGrantProgram-ChipSeal)(STL397)”contractintheamountof
$1,812,572.00toCopp.Althoughnotabidawardconsideration,itisalsoworthnotingthattwoofthe
subcontractorsproposedtobeusedbyCopparelocalChulaVistafirms(ATPandPayco
Specialties).
InordertoawardthecontracttoCopp,becauseCopp’sbidhadadefect,theCityCouncilwould
needtowaivethedefectatapublichearing.ThisisarequirementoftheCityCharter.TheCity
CharterSection1009states“TheCityCouncilmaywaiveanydefectsinanybidtotheextentitfinds
atapublichearingheldforthatpurposethatitisnecessarytodosoforthebenefitofthepublic.”
Consistentwithgoodpurchasingpractices,andapplicablecaselaw,Staff’slong-standingpattern
andpracticeinthisareahasbeenonlytorecommendthistypeofwaiverwhenabiddefectisminor,
andofatypethatdoesnotgivethesubjectbidderanunfairadvantageoverotherbidders.Copp’s
defect qualifies in this regard.
AnadditionalStaffrecommendationisfortheCityCounciltowaivethestafflevelcontractchange
order/contingencylimitscontainedinCityCouncilPolicyNo.574-01.Byitsterms,thispolicyallows
theDirectorofPublicWorkstoauthorizeamaximumcumulativechangeorder(s)amountof$73,000
plus5%oftheoriginalcontractover$1,000,000withoutCityCouncilapproval.Basedonthe
contractamount,themaximumaggregatecontractincreasethatmaybeapprovedbytheDirectorof
PublicWorksunderPolicyNo.574-01is$113,628.60.Theproposedresolutionwouldincreasethe
DirectorofPublicWorks’cumulativechangeorderauthoritytoapprovechangeorders,asnecessary,
uptothe15%contingencyamountof$271,885.80,whichisanincreaseof$158,257.20overPolicy
No. 574-01.
Increasingthecontingencyfundswillallowstafftocontinuetheprojectwithoutdelayshould
unforeseencircumstancesresultinginincreasedprojectcostsariseduringthecourseofconstruction,
aswellasmakeadjustmentstobiditemquantities.Unforeseenconditionsincludesuchitemsas
utilityconflicts,hazardousmaterials,unexpectedundergroundconflicts,etc.Anyremainingunused
contingency funds will be returned to the project fund balance.
Disclosure Statement
Attachment 9 is a copy of the Contractor’s Disclosure Statement.
Wage Statement
ThesourceoffundingforthisprojectisCalRecycleGrantfundsandGasTax.Contractorsbiddingthisprojectarenot
requiredtopayprevailingwagestopersonsemployedbythemfortheworkunderthisproject.Disadvantaged
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businesses were encouraged to bid in the Notice Contractors for various trade publications.
DECISION-MAKER CONFLICT
StaffhasreviewedthepropertyholdingsoftheCityCouncilandhasfoundnopropertyholdingswithin500feetofthe
boundariesofthepropertieswhicharethesubjectofthisaction.Staffisnotindependentlyaware,norhasstaffbeen
informedbyanyCityCouncilmember,ofanyotherfactthatmayconstituteabasisforadecisionmakerconflictof
interest in this matter.
LINK TO STRATEGIC GOALS
TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,HealthyCommunity,Strong
andSecureNeighborhoodsandaConnectedCommunity.Thegoalofthe“PavementMinorRehabilitationFY13/14
(RubberizedPavementGrantProgram-ChipSeal)(STL397)”projectistosupporttheStrongandSecureNeighborhood
strategyidentifiedintheCity’sStrategicPlan.ThemaintenanceandrehabilitationofpublicinfrastructureisakeyCity
function in providing a safe and efficient roadway system for residents, businesses and visitors alike.
CURRENT YEAR FISCAL IMPACT
The following is a summary of anticipated project costs:
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount$1,812,572.00
B. Contingencies (Approx. 15%)$ 271,885.80
C. Staff Time, Materials Testing, etc. (Approx. 15%)$ 271,885.80
CONSTRUCTION TOTAL
$2,356,343.60
FUNDING SOURCES (ROUNDED)
A. CalRecycle Grant$250,000
B. STL397 (Gas Tax Funds)$1,672,245
C. STL383 (Gas Tax Funds)$ 434,098
TOTAL
$2,356,343
TheCitywillbereimbursedapproximately$250,000fromtheCalRecyclegrantafterconstructionofthisproject.Thereis
noadditionalimpacttotheGasTaxfundassufficientfunding,atotalof$434,098,isbeingtransferredfromSTL383
(Prop42PavementRehabilitationFY2011-12)toSTL397(PavementMinorRehabilitationFY13/14)tocoverconstruction
andstaffcostsassociatedwithSTL397withintheGasTaxFund.ThereisnodirectimpacttotheGeneralFundforthis
project.
ONGOING FISCAL IMPACT
Uponcompletionoftheproject,theimprovementswillrequireonlyroutineCitystreetmaintenance.Sincethe
improvementsareanticipatedtoincreasethelifeofthestreetsincluded,thereshouldbeapositivelongtermfiscal
impact.
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Staff Contact: Elizabeth Chopp
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RESOLUTION NO. 2014-_______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS, DECLARING THE
APPARENT LOW BIDDER, FRANK & SON PAVING,INC.
TO BE NON-RESPONSIVE, WAIVING A MINOR DEFECT
IN THE LOWEST RESPONSIVE BID RECEIVED,
AWARDING THE CONTRACT FOR THE "PAVEMENT
MINOR REHABILITATION FY13/14 (RUBBERIZED
PAVEMENT GRANT PROGRAM CHIP SEAL) (STL397)"
PROJECT TO COPP CONTRACTING INCORPORATED IN
THE AMOUNT OF $1,812,572.00, REDUCING THE STL383
BUDGET BY $434,098 AND APPROPRIATING THE
EQUIVALENT AMOUNT TO STL397, WAIVING CITY
COUNCIL POLICY 574-01 AND AUTHORIZING THE
EXPENDITURE OF ALL AVAILABLE CONTINGENCY
FUNDS NOT TO EXCEED $271,885.80 (4/5 VOTE
REQUIRED)
WHEREAS, City staff prepared specifications for the
Rehabilitation FY13/14 (Rubberized Pavement Grant Program Chip Seal) (
and advertised the project on April 18, 2014; and
WHEREAS, on May 7, 2014, the Director of Public Works Engineering received
six (6) sealed bids for the project as follows:
BID TOTAL
CONTRACTOR SUBMITTAL RESULTS
SUBMITTED
Did not meet the required 40%
Frank & Son Paving, Inc. of work to be performed by
1 $1,652,576.50
Chula Vista, CA contractor. $0.40 math error.
Actual bid total is $1,652,576.90
All requirements met but with
mathematical error. Corrected
COPP Contracting, Inc.
2 bid total is $16,972.50 lower $1,829,544.50
Buena Park, CA
than submitted. Actual bid total
is $1,812,572.00.
TC Construction Co., Inc.
3 All requirements met $1,968,650.50
Santee, CA
Pavement Coatings Co.
4 All requirements met $1,992,658.30
Jurupa Valley, CA
Resolution No. _________
Page 2
BID TOTAL
CONTRACTOR SUBMITTAL RESULTS
SUBMITTED
American Pavement
5 All requirements met $2,038,546.50
System, Inc. Modesto, CA
VSS International West
6 All requirements met $2,224,120.00
Sacramento, CA
WHEREAS, Staff implemented a lowered requirement of 40% prime contractor
participation using its own organization to perform the contract work for this pavement
rehabilitation project to attract additional bidders.
WHEREAS, the apparent low bidder, Frank & Son Paving Incorporated,
submitted a bid with only a 34.49% Contractor participation from their organization
instead of the required 40% minimum as outlined in Section 9, Subcontracting, of the
Project Specification ; and
WHEREAS, Frank & Son Paving Incorporated provided additional material that
redistributed work on the bid items between their firm and the subcontractors. It was
determined that these additional submittals were changes to the bid, not corrections,
and as such, in order to preserve the integrity of the sealed bid process, should not be
considered; instead the original bid submission needed to be used to evaluate bid
responsiveness; and
WHEREAS, on this basis, staff determined that the Frank & Son Paving
Incorporated apparent low bid -because it failed to meet the
minimum 40% work participation requirement clearly spelled out in the bid
specifications; and
WHEREAS, staff reviewed the second low bid submitted by Copp Contracting
and, with the exception of a mathematical error of $16,972.50 in favor of
the City, determined that the Copp bid met all bid specifications and was responsive;
and
WHEREAS, Copp has agreed to honor the corrected bid price; and
WHEREAS, staff further determined that Copp is a responsible bidder with the
licenses and capacity necessary to perform the work, verified references and
satisfactory work performance on previous City projects; and
WHEREAS, the bid submitted by Copp
$2,023,740 by $211,168 (or estimate); and
WHEREAS, in consideration of the above, staff is recommending the award of
the contract to Copp; and
Resolution No. _________
Page 3
contract to Copp, pursuant to City Charter Section 1009, the City Council must hold a
public hearing and find that the waiver is necessary for the benefit of the public; and
WHEREAS, staff recommends that the City Council make this finding with
respect to C because the defect is minor and inconsequential, and did not give
Copp an advantage over other bidders; and
WHEREAS, a City Council waiver of the defect on this basis would be consistent
with good purchasing practices, applicable case law, and s
this area; and
WHEREAS, the total
Pavement Grant Program Chip Seal) (project is anticipated to cost
$2,356,343.60 including $543,771.60 for contingencies, staff time, material testing and
other cost; and
WHEREAS, the following transfer is recommended in order to provide sufficient
funds for construction costs associated with this project;
Transfer $434,098 from STL383 to STL397(Gas Tax Funds); and
WHEREAS, under Council Policy No. 574-01, the Director of Public Works may
approve a contract increase up to $113,628.60, based upon the base contract amount.
It is recommended that the Director of Public Works be authorized to approve change
orders, as necessary, up to the maximum 15% contingency amount of $271,885.80,
which is an increase of $158,257.20 over Policy No. 574-01 in order to continue the
project without delay.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby accept bids for the
(Rubberized Pavement Grant Program Chip Seal) (project, and declare the
apparent low bidder, Frank & Son Paving, Inc. to be non-responsive for failing to meet
the 40% prime contractor work participation requirement clearly spelled out in the bid
specifications
BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista,
having considered the recitals set forth above, and the evidence presented in the
documents and testimony at the public hearing, finds that the error in the bid from Copp
Contracting Incorporated is minor, inconsequential, and in favor of the City and that it is
necessary for the public interest to waive the error and accept the bid.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista
does hereby transfer and appropriate $434,098 from STL383 (Prop 42 Pavement
Rehabilitation FY2011-12) to STL397 (Pavement Minor Rehabilitation FY13/14) to cover
Resolution No. _________
Page 4
the construction and staff costs associated with STL397 (Pavement Minor Rehabilitation
FY13/14) within the Gas Tax Fund.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista
does hereby award the contract for the FY13/14
(Rubberized Pavement Grant Program Chip Seal) (project to Copp
Contracting Incorporated in the amount of $1,812,572.00, waive City Council Policy
574-01 and authorize the Director of Public Works to spend all available contingency
funds in an amount not to exceed $271,885.80.
Presented by: Approved as to form by:
___________________________ ___________________________
Richard A. Hopkins Glen R. Googins
Director of Public Works City Attorney