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Home My WebLink About2011/03/01 Item 7CITY COUNCIL AGENDA STATEMENT ~`~ CITY OF CHULA VISTA 3/1/11, Item_~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE REPORT ESTABLISHING EACH ELEMENT OF CALIFORNIA PUBLIC CONTRACTS CODE SECTION 5103, RELIEVING MJC CONSTRUCTION FROM THEIR BID PURSUANT TO CALIFORNIA PUBLIC CONTRACTS CODE SECTION 5101, ACCEPTING THE REMAINING BIDS, AWARDING THE CONTRACT FOR THE LAUDERBACH COMMUNITY CENTER REPAIR PROJECT (CIP NO. PR312) TO M. KEVIN O'NEILL CONSTRUCTION IN THE AMOUNT OF $140,349 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXPEND ALL AV ILABLE FUNDS IN THE PROJECT SUBMITTED BY: DIRECTOR OF PUB I WORKS REVIEWED BY: CITY MANAGER r ASSISTANT CITY ANAGERIj 1 4/STHS VOTE: YES ^ NO SUMMARY The Lauderbach Community Center located at 333 Oxford Street was constructed by the County of San Diego in 1968 and annexed by the City of Chula Vista in the mid 1980's. The facility has been leased to non-profit groups since its annexation and is currently vacant and in a state of disrepair. On May 4, 2010, the City Council approved the allocation of CDBG funds for the much needed improvements to the Lauderbach Community Center. The City established a Capital Improvement Project to undertake the needed repairs. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 [Existing Facilities] of the State CEQA Guidelines because the project consists of completion of routine maintenance work to an existing community facility. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolution. 7-1 3/1/11, Item Page 2 of 3 BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION City staff is currently pursuing atwo-pronged approach to fully utilize the Lauderbach Community Center located at 333 Oxford Street. The first involves developing a professional relationship with one or more Civic groups to program and operate the facility on a day-to-day basis during the week. The second element involves establishing a weekend, revenue-generating use of the Community Center building and front courtyard. In November 2010, Council approved a new policy that allows and governs these programs and uses. The Lauderbach Community Center building has always been well used by the community; however, completion of routine maintenance was minimal or postponed due to lack of funding. Staff has identified numerous problems that need to be addressed before it can be used again on a regular basis. The structure currently does not have adequate heating and/or air-conditioning. It has multiple plumbing and electrical problems as well some safety concerns. The available CDBG funds provide the City with the financial ability to correct these issues and proceed with programming the facility. Public Works/Engineering staff prepared the contract documents, specifications, and advertised the Lauderbach Community Center project (PR312) on November 26, 2010. On December 15, 2010, the Director of Public Works received three (3) sealed bids for said project. City staff reviewed the bids and determined that all three bids were non-responsive due to numerous clerical errors and the fact that the base bids exceeded the available funds for the construction of the project. On January 25, 2011, Council rejected all three bids as non- responsive and directed staff to re-bid the project. On February 1, 2011 the Director of Public Works received three (3) sealed bids for the Lauderbach Community Center Repair Project. The lowest responsive bidder for the project was based on the contractor who submitted all required documents detailed in the contract documents and who submitted the lowest base bid for the project construction. Bids from the three (3) contractors were received as follows: CONTRACTOR BASE BID MJC Construction -Bonita, CA $ 98,710 M. Kevin O'Neill Construction -Chula Vista, CA $140,349 MW Construction-Escondido, CA $147,258 On Februazy 8, 2011, the City received a letter from the apparent low bidder, MJC Construction Inc., requesting to be relieved of their bid on the basis of clerical error, pursuant to Section 5103 of the State of California Public Contract Code. The letter was received within the statutory time-frame for a request for relief. Staff conducted a review of the evidence provided by MJC Construction Inc., and determined that a clerical error, which made the bid materially different from what MJC Construction Inc. 7-2 3/1/11, Item Page 3 of 3 had intended, had been made. In light of the clerical error and the receipt of the request within the statutory timeframe, staff recommends consenting to the requested relief of MJC Construction, Inc.'s bid and awarding a contract to the second lowest bidder, M. Kevin O'Neill Construction. The low bid submitted by M. Kevin O'Neill Construction Inc. is below the Engineer's estimate of $150,000 by $9,681, or approximately 6%. The Contractor's License No. 377869 is current and active. Staff reviewed the low bid and determined the bid package is complete, with no errors or omissions. Therefore, staff recommends awazding a contract in the amount of $140,349 to M. Kevin O'Neill Construction. 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. CURRENT YEAR FISCAL IMPACT Due to the budget constraints of the project, staff has value engineered the scope of the project as necessary to remain within budget without impact to the overall project. Contract Sub-Total $140,349 Expenses 1,651 Staff Time $ 8,000 City Contingency $ 30,000 Total Project Cost $ 180,000 ON GOING FISCAL IMPACT After completion of the project, there will be routine maintenance required and utility costs for a total annual estimated cost of $40,000. These costs are anticipated to be partially offset up to 50% from rental fee revenue of the facility. The improvements to be completed by this project will enable the program implementation as described earlier. ATTACHMENTS 1. Report Establishing Each Element of California Public Contracts Code Section 5103. Prepared by: Gordon Day, Building Project Manager, Public Works Department J: IEngineerlAGENDAICAS2011103-0/-1 ! IAWARD LAUDERBACHrev. doc 7-3 ATTACHMENT d ~~ffj ~. MEMO ~InoF CHUtA VISTA Department of Public Works File: PR312 DATE: February 23, 2011 TO: Project File FROM: Gordon Day, Bui roject Manager SUBJECT: Report Establishing Each Element of California Public Contracts Code Section 5103 Relieving MJC Construction from their Bid Pursuant to California Public Contracts Code Section 5101 On February 1, 2011 the Director of Public Works received sealed bids for the Lauderbach Community Center Repair Project (PR312). The bids were received as follows: CONTRACTOR BASE BID MJC Consn~uction-Bonita, CA $ 98,710 M. Kevin O'Neill Construction -Chula Vista, CA $140,349 MW Construction-Escondido, CA $147,258 On February 4, 2011, the City received a verbal request from the appazent low bidder, MJC Construction requesting to be relieved of their bid on the basis of clerical error, pursuant to Section 5103 of the State of California Public Contract Code (PCC). On February 8, 2011, the City received the letter from the appazent low bidder, MJC Construction, Inc. (copy attached). BACKGROUND 1. On February 4, 2011, the City received a verbal request from the apparent low bidder, MJC Construction requesting to be relieved of their bid on the basis of clerical en~or, pursuant to Section 5103 of the State of Califomia Public Contract Code (PCC). 2. On February 8, 2011, the City received the written request from MJC Construction to withdraw their bid on the basis of an estimating error in line item No.10. 3. In response to MJC's request, City staff reviewed the spreadsheets for all three bidders to verify that an error had been made. The review clarified that a mistake was due to the line item input of the cost of labor and not the total cost including labor and materials. Bid Item No.10, "Install new folding Partition Wall", did not include the cost for the folding partition door, based on the two other bids received. FINDINGS On the basis of information provided by MJC to the City, City staff determined: 1. The bidder submitted their request for bid withdrawal to the City within five working days of the bid opening as required in PCC Section 5103. 2. The bidder apparently made a mistake. 3. The bidder's mistake apparently made the bid materially different than intended. 4. The bidder's mistake was apparently made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans and specifications. CONCLUSION After reviewing information provided by MJC Construction substantiating the clerical error, and because the request was submitted within the timeframe required by law, staff recommends consenting to the requested relief of MJC Construction, Inc.'s bid, without prejudice, and awarding a contract the second lowest bidder. Attachment: MJC Construction letter 7-4 CONSTRUCTION February 8, 2011 City of Chula Vista Attri: Gordon Day 1800 Maxwell Road Chula Vista, CA 91911 Dear Gordon Day, MJC Construction will be retracting from "Lauderbach Community Center Repairs Bid" (CIP#Y PR312) due to error on the estimating on the partition wall. Sincerely, `~-Javier Jimenez Sr. ~~~~ President MJC Construction 3015 Sylvia Street, Bonita; CA 91902.(619) 472-5619 I M1C Construction RESOLUTION 201 I RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE REPORT ESTABLISHING EACH ELEMENT OF CALIFORNIA PUBLIC CONTRACTS CODE SECTION 5103, RELIEVING MJC CONSTRUCTION FROM THEIR BID PURSUANT TO CALIFORNIA PUBLIC CONTRACTS CODE SECTION 5101, ACCEPTING THE REMAINING BIDS, AWARDING THE CONTRACT FOR THE LAUDERBACH COMMUNITY CENTER REPAIR PROJECT (CIP NO. PR312) TO M. KEVIN O'NEILL CONSTRUCTION IN THE AMOUNT OF $140,349 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXPEND ALL AVAILABLE FUNDS IN THE PROJECT WHEREAS, the Lauderbach Community Center located at 333 Oxford Street was constructed by the County of San Diego in 1968 and annexed by the City of Chula Vista in the mid 1980's; and WHEREAS, the facility has been leased to non-profit groups since its annexation and is currently vacant and in a state of disrepair; and WHEREAS, on May 4, 2010, the City Council approved the allocation of CDBG funds for the much needed improvements to the Lauderbach Community Center; and WHEREAS, the City established a Capital Improvement Project to undertake the needed repairs; and WHEREAS, Public Works/Engineering staff prepared the contract documents and specifications and advertised the Lauderbach Community Center project (PR312) on November 26, 2010; and WHEREAS, on December 15, 2010, the Director of Public Works received three (3) sealed bids for said project; and WHEREAS, City staff reviewed the bids and determined that all three bids were non- responsive due to numerous clerical errors and the fact that the base bids exceeded the available funds for the construction of the project; and WHEREAS, on January 25, 2011, Council rejected all three bids as non-responsive and directed staff to re-bid the project; and WHEREAS, on February 1, 2011, the Director of Public Works received the following three (3) sealed bids for the Lauderbach Community Center Repair Project: 7-6 Resolution No. Page 2 CONTRACTOR BASE BID MJC Construction -Bonita, CA $ 98,710 M. Kevin O'Neill Construction -Chula Vista, CA $140,349 MW Construction-Escondido, CA $147,258 and; WHEREAS, on February 8, 2011, the City received a letter from the apparent low bidder, MJC Construction Inc., requesting to be relieved of their bid on the basis of clerical error, pursuant to Section 5103 of the State of California Public Contract Code; and WHEREAS, staff conducted a review of the evidence provided by MJC Construction Inc., and determined that a clerical error, which made the bid materially different from what MJC Construction Inc. had intended, had been made; and WHEREAS, the letter from MJC Construction Inc. was received within the statutory time-frame for a request for relief; and WHEREAS, in light of the clerical error and the receipt of the request within the statutory timeframe, staff recommends consenting to the requested relief of MJC Construction, Inc.'s bid and awarding a contract to the second lowest bidder, M. Kevin O'Neill Construction; and WHEREAS, the low bid submitted by M. Kevin O'Neill Construction Inc. is below the Engineer's estimate of $150,000 by $9,681, or approximately 6%; and WHEREAS, the Contractor's License No. 377869 is current and active; and WHEREAS, staff reviewed the low bid and determined the bid package is complete, with no errors or omissions. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the report establishing each element of California Public Contracts Code Section 5103, relieving MJC Construction from their bid pursuant to California Public Contracts Code Section 5101, accept the remaining bids, award the contract for the Lauderbach Community Center Repair Project (CIP No. PR312) to M. Kevin O'Neill Construction in the amount of $140,349 and authorize the Director of Public Works to expend all avail~le funds inn the project. ~~ ~ / Presented by Appro~le~ as to Yq~n by Richard A. Hopkins Director of Public Works R. Goog Attorney 7-7