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Home My WebLink About2008/03/18 Item 7 CITY COUNCIL AGENDA STATEMENT 3/18/08, Iteml ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING PALSONS ELECTRICAL SERVICES' BID, ACCEPTING THE SECOND LOWEST BID AND AWARDING CONTRACT TO STARS ELECTRIC FOR THE "EUCALYPTUS PARK SECURITY LIGHTING (CIP NO. PR-288) PROJECT SUBMITTED BY: DIRECTOR OF ENGINEERING AND GENERAL SERVICES~t CITY MANAGER tfJ/J1tJt ASSISTANT CITY ~~:R <7~ 4/STHS VOTE: YES D NO ~ REVIEWED BY: SUMMARY On December 11,2007, Council awarded the contract for "Eucalyptus Park Security Lighting (CIP No. PR-288) Project to Palsons Electrical Services, Inc. The contractor was unable to obtain performance bonds for this project, therefore, will be rejected due to non-compliance. Under these circumstances, to proceed, the City can award the contract to the second low bidder, Stars Electric. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 (d) & (e) Categorical Exemption pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On July 25, 2007 at 2:00 p.m., the Director of General Services received five (5) sealed bids for "Eucalyptus Park Security Lighting (PR-288)" project. The project will provide security lighting throughout the park. 7-1 3/18/08, Item-2- Page 2 of 3 Proiect Bid Results Staff received and opened bids on July 25,2007 at 2:00 p.m. The lowest responsive bidder was the contractor who fulfilled the requirements detailed in the contract documents and who submitted the lowest base bid for the project construction. Bids from the five (5) contractors were received as follows: CONTRACTOR BASE BID Palsons Electrical Services, Inc - El Cajon, CA $49,940.00 Stars Electric -San Diego, CA $59,400.00 HMS Construction - San Marcos, CA $60,000.00 Lekos Electric - El Cajon, CA $66,500.00 3-D Entel1'rises - San Diego $76,850.00 After reviewing the bid documents, staff discovered a discrepancy with the grand total bid amount. The amount submitted was $49,940.00, however the grand total amount was written as $49,490.00. This base bid is $9,460.00 less than the second lowest bidder. In consultation with the City Attorney's office, staff determined that the irregularity was clerical in nature and that the City could proceed with the award to Palsons Electrical Services. On December 11, 2007, by Resolution 2007-294, Council awarded the contract to Palsons Electrical Services. However, the contractor was unable to obtain performance bonds to cover the amount of $ 49,940.00. The second lowest base bid from Stars Electric, in the amount of $59,400.00 fully complied with all bid requirements and is above the Engineer's estimate of $50,000.00 by $9,400.00 or approximately + 19%. Building and Park Construction staff has verified the references provided by Stars Electric and has found their work to be satisfactory. The Contractor's License Number for Stars Electric is clear and current. Therefore, staff recommends rejecting Parsons Electrical Services bid due to non- compliance and awarding the contract to second lowest bidder Stars Electric, in the amount of $59,400.00. Disclosure Statement Attachment 1 is a copy of the contractor's Disclosure Statement. Wage Statement Contractors bidding this project were required to pay prevailing wages to persons employed by them for the work under this project. Disadvantaged businesses were encouraged to bid by sending the Notice to Contractors to various trade publications. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. 7-2 3/18/08, Item 2- Page 3 of 3 FISCAL IMPACT A breakdown of project costs and funding is as follows: FUNDS REQUIRED FOR PROJECT A. B. C. Contract Amount Contingencies (8% of contact amount) Staff Time Cost (approx 8% of total): $59,400.00 $5,000.00 $5,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $69,400.00 FUNDS AVAILABLE FOR CONSTRUCTION A. Community Development Block Grant (CDBG) TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $69,400.00 $69,400.00 Upon completion of the project, the improvements will require only routine City maintenance. ATTACHMENTS I - Contractor's Disclosure Statement Prepared by: Gordon Day, Construction Project Manager, General Services Department / Dick Thompson, , Constnlction Project Manager, General Services Department M:\General Services\GS Administration\Council Agenda\PR288 Eucalyptus Park Lighting\PR2884 Rev 030508rev.doc 7-3 ArT :'. CHMENT / CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City ofCbula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. fvA 2. If any person' identified pursuant to (1) above is a corporation or partnership, list the names of all individuals \vith a $2000 investment in the business (corporation/partnership) entity. 3. lfanyperson' identified pursuant to (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. 5. Has any person' associated with this contract had any financial dealings with an official" of the City of Cbula Vista as it relates to this contract within the past 12 months? Yes_ NoY 7-4 If Yes, briefly describe the nature of the financial interest the official"* may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No X Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an official ** of the City of Chula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No )( If Yes, which official"" and what was the nature of item provided? Date: (17. '1--1+ 01 , , ~ 1./,/ II I"~ _ ,"""".J1~'1i:'F-- ~7~.:..l /", - Signature of Contractorl Applicant 0\'''/))< Y...... ]:..;/).7} a .{ 11th) (//11' Print or type name of ContractorlApplicant * Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the Gty, employee, or staff members. 7-5 RESOLUTION NO. 2008- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING PALSONS ELECTRICAL SERVICES' BID, ACCEPTING THE SECOND LOWEST BID AND AWARDING CONTRACT TO STARS ELECTRIC FOR THE ~EUCAL YPTUS PARK SECURITY LIGHTING (CIP NO. PR-288) PROJECT WHEREAS, on July, 25, 2007 at 2:00 p.m., the Director of Engineering and General Services received five (5) sealed bids for ~Eucalyptus Park Security Lighting (PR-288)" project. The project will provide security lighting throughout the park; and WHEREAS, bids from the five (5) contractors were received as follows: CONTRACTOR Palsons Electrical Services, Inc - El Cajon, CA Stars Electric -San Diego, CA HMS Construction - San Marcos, CA Lekos Electric - El Cajon, CA 3-D Enterprises - San Diego BASE BID $49,940.00 $59,400.00 $60,000.00 $66,500.00 $76,850.00 WHEREAS, after reviewing the bid docwnents, staff discovered a discrepancy with the grand total bid amount submitted by Pal sons Electrical Services, Inc.; and WHEREAS, it was determined that the irregularity was clerical in nature and that the City could proceed with the award to Palsons Electrical Services; and WHEREAS, on December 11, 2007, by Resolution 2007-294, Council awarded the contract for ~Eucalyptus Park Security Lighting (CIP No. PR-288) Project to Palsons Electrical Services, Inc.; and WHEREAS, contractor was unable to obtain performance bonds to cover the amount of $49,940.00 and their bid is rejected due to non-compliance; and WHEREAS, the second low bidder Stars Electric has met all the contract requirements, and staff has verified the references provided by the contractor and their work has been satisfactory. 7-6 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby reject Pal sons Electrical Services' bid, accept the second lowest bid and award the contract to Stars Electric for the "Eucalyptus Park Security Lighting (CIP No. PR-288) Project. Presented by Approved as to form by Jack Griffin Director of Engineering and General Services ~'\}.)( Q{\\\~ ~'O ~ Ann Moore City Attorney 7-7