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Home My WebLink About2008/06/03 Item 2 CITY COUNCIL AGENDA STATEMENT 6/3/08, Item~ SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "MONTEVALLE PARK FIRE REPAIR PROJECT (CIP NO. MTVPR08)" TO RMV CONSTRUCTION, INC. IN THE AMOUNT OF $68,961.78 AND APPROPRIATING FUNDS WHICH WILL BE REIMBURSED THROUGH THE INSURANCE RECOVERY PROCESS DIRECTOR OF ENGINEERING AND GENERAL SERVICES (j % CITY MANAGER "":;,-r';; r O(l G; ASSISTANT CITY MANAGER S 7" 4/5THS VOTE: YES [g] NO D ITEM TITLE: SUMMARY In July of 2007 vandals set fire to and completely destroyed two City vehicles, two pieces of park maintenance equipment and did an estimated $100,000 worth of damage to the Montevalle Park facility storage building, its contents, security fencing and concrete slab. An informal bid attempted to bring qualified companies, however, only one qualified bid was received. In order to branch out and attract more companies, the formal bidding process was utilized in an attempt to receive better competitive bids and make the contracting community aware of the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista, CA (CIP No. MTVPR08)" project. 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 proposed project was adequately covered in the Salt Creek Ranch Environmental Impact Report (EIR) 89-03 and Supplemental EIR (SEIR) 91-03. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 2-1 ~ 6/3/08, Item~ Page 2 of 3 DISCUSSION In July of 2007 vandals set fire to and completely destroyed two City vehicles, two pieces of park maintenance equipment and did an estimated $100,000 worth of damage to the Park Facility Storage building, it's contents, security fencing and concrete slab. The cost to replace and repair these City assets is covered by insurance. The insurance provider, McLarens Young International, requires the insured (City) to secure replacement and repairs, and provides payment for these expenses. Over the past several months, City staff has replaced the lost equipment and received payments into an insurance settlement fund (MTVPR 08). Included in this fund is the estimated cost for repairs to the park storage facility. In January 2008, eight qualified fire restoration companies were contacted and requested to attend a mandatory job site visit to review the damages and receive the informal bid packages. Four companies of the contacted eight attended the site visit, with only two qualified companies returning completed bid documents by the specified date. The low bidder's documents when opened were found to be incomplete. Able Restoration, the low bidder, was thereby notified of the deficiency and of the bid rejection. The second low bidder, Luth & Turly Inc's bid was complete, within 1 % of the insurance company's estimate and therefore accepted. However, City contracting practices require that a minimum of three companies is necessary for bid comparison and fair practices with all informal bids. In order to branch out and attract more companies from the construction industry, a formal bid process was necessary. Staff re- organized the contract documents and all necessary preparations to have the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (MTVPR08)" project advertised. To ensure qualified Contractors understood the requirements of the contract, a mandatory job walk was conducted one week before the bids were to be received. Questions and detailed discussions on the project's task was the main objective for the site visit. City staff was available to answer any questions during the bid process. On May 6, 2008 the Director of Engineering and General Services' received one bid for this project. Different guidelines have been established with a formal bidding process and the acceptance of one bid is allowable. RMV Construction submitted a bid of $68, 961.78. The bid is below the Engineer's estimate of $75,000 by $6,038.22 or approximately 8%. The Engineer's estimate was prepared by City staff and was based on average unit prices for similar types of work completed recently. City staff will incorporate the unit price bid results received into a database for future project cost estimates. Because RMV Construction, Inc. has not performed on any jobs for the City, staff carefully checked the references that the contractor submitted. The reference check asked RMV Construction, Inc. to provide information for any work similar to this repair project. A minimum of five references was required and the work performed for the five companies had to be similar in tasks performed and dollar amount. Additionally, all work used for reference purposes had to be performed within the last five years. The contractor met all the reference requirements. All references provided were verified and their work has been satisfactory. RMV Construction, Inc. carries clear and current licenses for both a General A (General Engineering License) and a General B (General Building License) Contractor's License. All the requirements have been met by RMV Construction, Inc. and their bid package had no errors. Thus, RMV Construction, Inc. 2-2 6/3/08, Item :) Page 3 of 3 of San Diego was declared responsive and clear to perform the necessary work. Staff is recommending awarding the contract to RMV Construction, Inc. in the amount of $68,961.78 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. FISCAL IMPACT There is an impact to the General Fund of $5,000 for the per insurance claim deductible, however, the remaining portion of the funding will be recovered through the claim process at project completion in Fiscal Year 2008-09. Building repair amounts are paid by insurer at Actual Cash Value. Upon completion of repair, the City will make claim for: . Balance of Replacement Cost (Actual cost of repair incurred less amounts paid) . Administrative Overhead incurred in construction oversight FUNDS REOUlRED FOR PROJECT A. Contract Amount $68,961.78 B. Contingencies (10% of contact amount) $6,896.00 C. Staff Time Cost (approx % age of total): Construction Inspection (9%) $8,275.00 Design/Construction Management (11%) $10,345.00 TOT AL FUNDS REQUIRED FOR CONSTRUCTION $94,477.78 FUNDS A V AILABLE FOR CONSTRUCTION A. Insurance funds available to date. $69,3743.88 B. General Fund appropriation (Insurance Recovery Process) $25,102.90 TOT AL FUNDS AVAILABLE FOR CONSTRUCTION $94,477.78 Upon completion of the project, the improvements will require only routine City maintenance. ATTACHMENTS I. Contractor's Disclosure Statement Prepared by: Gordon Day. Building Project Manager, Engineering & General Services M:\General Services\GS AdministrationlCouncil Agenda\MTVPR08 Montevalle Park Fire Damage1MTVPR08 Montevalle Fire Repair AGENDA STATEMENT Final3.doc 2-3 ATTACHMENT _ I City of Chola 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 fmancial interests, payments, or campaign contributions for a City of Cb.ula Vista election must be filed. The following information must be disclosed: 1. List lb.e names of all persons having a fmancial interest in the property that is the subject of the application ortbe contract, e.g., owner, applicant, contractor. subcontractor, material supplier. N/A 2. If any person' identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. AliA ' 3. If any person' identified pursuant to (J) 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. AI/A , . 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, N/A 5. Has any person' associated with this contract had any financial dealings with an official" of the City ofChuJa Vista as it relates to this contract within the past 12 months? Yes_ NoL 13 2-4 If Yes, briefly describe the nature of the financial interest the ollicial" 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 L Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalenl value) 10 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.) YesL No_ If Yes, which official** and what was the cature of item provided? Date: OJ/OS /')I;08 nrJLLJ tU I Signature of Contractor IApp lie ant (( m;( Jta.e I_Iks:/ -:rr;: Prinl or type name of Contractorl Applicant . Person is defined as: any individual, firm, co-partnership, joinl venture, association, social cluh, 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, bUI is nol limited 10: Mayor, Council member, Planning Commissioner, Member of a.board, commission. or committee of the City, employee. or staff members. 14 \. 2-5 RESOLUTION NO. 2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE "MONTEV ALLE PARK FIRE REPAIR PROJECT (CIP NO. MTVPR08)" TO RMV CONSTRUCTION, INC. IN THE AMOUNT OF $68,961.78 AND APPROPRIATING FUNDS WHICH WILL BE REIMBURSED THROUGH THE INSURANCE RECOVERY PROCESS WHEREAS, in July 2007, at Montevalle Community Park, vandals set fire to and completely destroyed two City vehicles and two pieces of park maintenance equipment. These losses resulted in over $100,000 in property damage to the park storage facility building, its contents, security fencing and concrete slab; and WHEREAS, the cost to replace and repair these City assets is covered by insurance; and WHEREAS, the insurance provider, McLarens Young International, requires the insured (City) to secure replacement and repairs, and provides payment for these expenses; and WHEREAS, in January 2008, eight qualified fire restoration companies were contacted and requested to attend a mandatory job site visit to review the damages and receive informal bid packages; and WHEREAS, four companies attended the site visit, with only two qualified companies submitting bid documents by the specified date; and WHEREAS, the apparent low bidder, Able Restoration, was declared non-responsive when the submitted documents were found to be incomplete; and WHEREAS, the lowest responsive bidder, Luth & Turly Inc.'s bid was complete, within I percent of the insurance company's estimate; and WHEREAS, contracting regulations requires that a mlillmum of three companies IS necessary for bid comparison and fair practices with all informal bids; and WHEREAS, in order to branch out and attract more companies from the construction industry, a formal bid process was necessary; and WHEREAS, staff prepared documents for the contract and advertised the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (CIP No. MTVPR08)" project on April 18, 2008; and WHEREAS, on May 6, 2008, the Director of Engineering and General Services received one (1) bid for the "Montevalle Park Fire Repair, 840 Duncan Ranch Road, in the City of Chula Vista (CIP No. MTVPR08)"; and H:\ENGINEER\RESQS\Resos2008\Q6-03-08\MTVPR08 MOlltevalle Fire Repair ResoREv.~c_ 6 Resolution No. 2008- Page 2 WHEREAS, because different guidelines have been established with a formal bidding process for any project, the acceptance of one bid is allowable; and WHEREAS, the lowest responsive bidder, RMV Construction, Inc's bid of $68,961.78 was complete, within the insurance company's estimate, and therefore accepted. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista accept bids and award a contract for the "Montevalle Park Fire Repair Project (CIP No. MTVPR08)" to RMV Construction, Inc. in the amount of$68,961.78. BE IT FURTHER RESOLVED that the City Council appropriate funds which will be reimbursed through the insurance recovery process. Presented by Approved as to form by Jack Griffin Director of Engineering and General Services ~~~~~ ~~ Ann Moore City Attorney H:\ENGINEERIRESOS\Resos2008\06-03-08\MTVPR08 Monlevalle Fire Repair ResoREV.dj;f L.-7