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APPROVE RESOLUTION TO AUTHORIZE THE CESAR CHAVEZ LIBRARY PUBLIC RESTROOM RENOVATION AND ADA COMPLIANCE (PROJECT NO. PW1408)
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the Notice of Exemption No. CE024-16 under the California Environmental Quality Act (CEQA) for the Cesar Chavez Library Public Restroom Renovation and Americans with Disabilities Act (ADA) Compliance (Project No. PW1408).
2. Reject the low bid from T. Amaral’s Done Right Construction (T. Amaral’s) of Livermore, CA, for the Cesar Chavez Library Public Restroom Renovation and ADA Compliance (Project No. PW1408).
3. Approve the plans and specifications for the Cesar Chavez Library Public Restroom Renovation and ADA Compliance (Project No. PW1408).
4. Award a Construction Contract in the amount of $250,000 to Art’s Construction Company, Inc. of Fresno, CA, for the Cesar Chavez Library Public Restroom Renovation and ADA Compliance (Project No. PW1408).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Cesar Chavez Library Public Restroom Renovation and ADA Compliance project will renovate four public restrooms in Stockton’s main library. The renovation will bring these restrooms into compliance with current ADA regulations. Council previously programmed this in the Capital Improvement Program for Fiscal Years 2013-17.
On December 22, 2016, the City of Stockton (City) received six bids for the project. The low bid received was from T. Amaral’s in the amount of $216,143. It is non-responsive because it subcontracts more than 70 percent of the work, which is prohibited by the bid specifications. The second low bid from Art’s Construction Company, Inc., is in the amount of $250,000 and is responsive in all respects.
Staff recommends adopting a resolution approving the plans and specifications for the project, rejecting the low bid, and awarding a Construction Contract to Art’s Construction Company, Inc., in the amount of $250,000. Staff also recommends that the resolution authorize the filing of Notice of Exemption No. CE024-16 under CEQA. Construction is anticipated to be completed by the end of December 2017.
DISCUSSION
Background
The Cesar Chavez Library, located at 605 North El Dorado Street (Attachment A - Vicinity Map), was originally built in 1961. The restrooms (Attachment B - Site Plan Map) have not been renovated since the library was built. The layout of the restrooms does not meet current ADA regulations. Additionally, the restroom floors, walls, and equipment became more difficult and time-consuming to clean and maintain with age.
The Cesar Chavez Library Public Restroom Renovation and ADA Compliance (Project No. PW1408) is a General Fund project programmed in the FY 2013-2017 Capital Improvement Plan (CIP). This project will completely renovate four public restrooms of the library and bring them into compliance with current ADA regulations. Two public restrooms are located on the upper floor, while the other two restrooms are located on the lower floor of the library. The project was designed by LDA Partners, a local architectural firm. The design was completed in November 2016.
Present Situation
On November 23, 2016, the Cesar Chavez Library Public Restroom Renovation and ADA Compliance project was advertised for bids. On December 22, 2016, six bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
T. Amaral’s (Livermore, CA) |
$216,143.00 |
$216,143.00 |
|
Art’s Construction Company, Inc. (Fresno, CA) |
$250,000.00 |
$250,000.00 |
|
Desert West Contracting (Stockton, CA) |
$276,860.99 |
$263,017.94 |
|
GCT, Inc. (Tracy, CA) |
$277,860.00 |
$272,302.80 |
|
BZ Construction (Ceres, CA) |
$313,634.00 |
$313,634.00 |
|
Bobo Construction, Inc. (Elk Grove, CA) |
$496,000.00 |
$496,000.00 |
|
Engineer’s Estimate |
$287,076.00 |
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Desert West Contracting is located within the City and is entitled to a five percent bid preference. GCT, Inc. is located in San Joaquin County and is entitled to a two percent bid preference. However, there is no change in the bid order after applying the Local Business Preference. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
T. Amaral’s, the apparent low bidder, submitted a bid that was non-responsive because the contractor proposed to do less than 30 percent of the work directly. The City’s Instructions to Bidders for this project and the required form that must be submitted with bids requires that the prime contractor performs contract work amounting to not less than thirty percent (30%) of the total contract price. The List of Subcontractors form submitted with T. Amaral’s bid on December 22, 2016, contains a list that resulted in subcontractors doing 82.8% of the work on the project. This results in 17.2% of the work remaining for T. Amaral’s as prime contractor and does not comply with the City’s Instructions to Bidders. In addition, the Notice Inviting Bids, as well as the Instructions for Bidders for the advertised project, provides that each bid shall be on an official City bid form. If information is not on the form, it may be cause for considering a bid nonresponsive. Due to the excessive sub-contracting proposed by T. Amaral’s which is contrary to the requirements of the Instructions to Bidders, as well as submission of subcontractor information on non-City bid forms after bids were open, the City Attorney’s Office deemed this was a substantial change to T. Amaral’s bid submitted on December 22, 2016, and is non-responsive as a result.
When notified that their bid was deemed as non-responsive, T. Amaral’s submitted a Letter of Protest. This letter apparently supplied amended subcontractor information that is not contained on City bid forms, as an attempt to comply with the 30 percent requirement after the deadline for submission of bids closed. The City Attorney’s Office determined that this still resulted in a substantial revision and that allowing such a revision after the bidding was closed would give T. Amaral’s an unfair advantage over the other bidders who provided the correct subcontractor amounts.
A Letter of Protest was also submitted by Art’s Construction Company, Inc. objecting to the award of the contract to T. Amaral’s. Because T. Amaral’s bid was deemed non-responsive, no award was made to T. Amaral’s. A confirming letter explaining why the City determined T. Amaral’s bid to be nonresponsive was provided to T. Amaral’s representatives. (Attachment C - Letter to T. Amaral.) Consequently, the protest letter submitted by Art’s Construction Company, Inc. is not currently germane.
In comparison, the bid from Art’s Construction Company, Inc., the second lowest bidder, is responsive. Art’s Construction Company, Inc. submitted actual and correct subcontractors’ amounts on the City’s required bid forms and has the proper license to perform the work. Staff recommends approving the plans and specifications for the project and awarding the Construction Contract to Art’s Construction Company, Inc. of Fresno, CA, in the amount of $250,000. Construction is anticipated to be completed by the end of December 2017.
The project is in conformance with the City’s General Plan, pursuant to California Government Code Section 65402, and is categorically exempt from the requirements of CEQA as specified under Article 19, Section 15301, Class 1, of the CEQA Guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. CE024-16 under CEQA.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. The CWTA was not applied to this project because the engineer’s estimate was under $1 million.
FINANCIAL SUMMARY
The Cesar Chavez Library Public Restroom Renovation and ADA Compliance project (PW1408; 301-3020-640) is funded from the General Fund. This project has an unobligated balance of $347,000, which is sufficient to award a Construction Contract to Art’s Construction Company, Inc. in the amount of $250,000. The remaining funding will be used for contingency, change orders, staff cost, and construction management. No additional appropriations are necessary to complete this project.
There is no additional impact to the City’s General Fund beyond the funds allocated in the current operating budget, or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map
Attachment B - Site Plan Map
Attachment C - Letter from City of Stockton to T. Amaral