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"°a`'� City Council Staff Report
Date: February 18, 2009 CONSENT CALENDAR
Subject: AWARD OF CONTRACT FOR THE 2008/2009 SB 821 PROJECTS, CITY
PROJECTS NO. 08-12 & 08-13
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
The City received $180,400 in SB 821 funds from the Riverside County Transportation
Commission for construction of new sidewalks along Farrell Drive and Ramon Road.
Award of this contract will allow staff to proceed with this sidewalk construction project.
RECOMMENDATION:
1) Determine the low bid submitted by Hondo Engineering, Inc., as non-responsive;
and
2) Approve Agreement No. in the amount of $119,715.00 with S.J. Grigolla
Construction Co., Inc., for Bid Schedules A and B, for the 2008/2009 SB 821
Projects, City Projects 08-12 & 08-13;" and
3) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
In April 2008, the Public Works and Engineering Department applied to Riverside
County Transportation Commission (RCTC) for the 2008/2009 cycle of SB 821 funding
for bicycle and pedestrian facilities. The Department proposed funding for two separate
projects: construction of new sidewalk on the west side of Farrell Drive between Amado
Road and Alejo Road; and construction of new sidewalk on the south side of Ramon
Road between Indian Canyon Drive and Grenfall Road. The City requested $180,400 in
SB 821 funding for these projects.
RCTC received 42 applications for SB 821 funding, and after a competitive review,
including presentations by staff, both of the projects proposed by the Department
ITEM NO. 2.L`
City Council Staff Report
February 18, 2009- Page 2
2008/2009 SB 821 Project (CP 08-12 & 08-13)
received the requested funding amounts. Only 15 of the 42 applications received
funding from RCTC for the 2008/2009 cycle of SB 821 funding.
Staff has combined both projects under one bid advertisement to ensure reduction of
overhead and reduced costs. City Project 08-12 includes construction of the new
sidewalk along Farrell Drive, and will complete the last missing link sidewalk along
Farrell Drive. City Project 08-13 includes construction of the new sidewalk along
Ramon Road, and will complete missing link sidewalk segments and access ramps
along Ramon Road.
The plans and specifications were prepared by Department staff, and on, December 3,
2008, the City Council approved the plans and specifications and authorized
construction bidding. On January 1 and 8, 2009, the project was advertised for bids,
and at 3:00 p.m. on February 3, 2009, the Procurement and Contracting Division
received construction bids from the following contractors:
1. Hondo Engineering, Inc.; Lancaster, CA; $116,711.00 non-responsive
2. S.J. Grigolla Construction Co., Inc.; La Verne, CA; $119,715.00
3. Contreras Construction Co.; Indio, CA; $120,206.50
4. D&L Wheeler Enterprises; Yucaipa, CA; $121,607.00
5. JMJ Contractors, Inc.; Hesperia, CA; $130,199.60
6. International Pavement Solutions, Inc.; Mentone, CA; $137,070.00
7. B&T Works, Inc.; Wildomar, CA; $138,440.00
8. Beta Construction, Inc.; Pomona, CA; $148,440.00
9. Archuleta Concrete Construction Co.; Bermuda Dunes, CA; $159,825.60
10.JDC Inc.; Rancho Cucamonga, CA; $161,080.00
11.Tri Star Contracting II, Inc.; Desert Hot Springs, CA; $176,700.00
12.Grigolla & Sons Construction Co., Inc.; Azusa, CA; $181,100.00
13.Granite Construction Co.; Indio, CA; $187,870.00
14.Ortiz Asphalt Paving Co.; Colton, CA; $192,230.81
15.Elite Bobcat Service, Inc.; Corona, CA; $196,000,00
The Engineer's estimate for this project was $180,000.
In reviewing the apparent low bidder's Bid Documents, the Bidder's General Information
sheet was incomplete and did not provide the City with sufficient information with which
to judge the background and experience of Hondo Engineering, Inc. The Bid
Documents clearly indicate that the Bidder's General Information sheet is to be
completed, and states: Failure to complete all items will cause the Bid to be non-
responsive and may cause its rejection. In evaluating this with the City Attorney's office,
it was recommended that the Bid be considered non-responsive and award be made to
the next lowest, responsive bidder. A letter to this effect was provided to the apparent
low bidder, Hondo Engineering, Inc., on February 6, 2009 (see Attachment 1).
City Council Staff Report
February 18, 2009 - Page 3
2008/2009 5B $21 Project (CP 08-12 & 08-13)
In light of the City Council's recent adoption of a new local business preference
ordinance, staff would like to point out the existing local business preference
specification that is used in all public works projects (except federally funded projects
which restrict incorporation of local preference requirements). The "Local Business
Promotion" guideline is listed as Item 19 in the Instructions to Bidders (see Attachment
2). The second low bidder, S.J. Grigolla Construction Co., Inc., did perform good faith
efforts, and has secured a local trucking company from La Quinta to provide trucking
services during construction of this project (see Attachment 3).
The lowest responsive bidder is S.J. Grigolla Construction Co., Inc. The company is a
California corporation, and its officers are: Steve J. Grigolla, President; and Stella
Grigolla, Vice-President/Secretary.
FISCAL IMPACT:
Sufficient funds are available in 261-4491-50267 (SB821 Sidewalk FY 08-09) and 134-
4498-50267 (SB821 Sidewalk FY 08-09). No local funds are required for this project.
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David J. Barakian Thomas J. Wifson
Director of Public Works/City Engineer Assistant City Manager
David H. Ready, ager
ATTACHMENTS:
1. Notification Letter to Hondo Engineering, Inc.
2. Local Business Promotion Specification
3. S.J. Grigolla Construction Co., Inc. List of Subcontractors
4. Agreement
ATTACHMENT
NOTIFICATION LETTER TO HONDO ENGINEERING, INC.
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FORN
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February 6, 2009 Via US Mail and E•Mail
Mr. Bret Carlson, President
Hondo Engineering, Inc.
42443 27th Street West
Lancaster, CA 93536
Re: 2008/2009 SB821 Project, City Project No. 0 8-1 2108-1 3
Dear Mr- Carlson:
This letter is with reference to the Bid you submitted for the above mentioned project. Your Bid
was considered the apparent low bid upon completing the Bid Tabulation. As you know, 1
discussed your Bid with you yesterday in a telephone call and advised you of the fact that your Bid
only lists two references, each of which I was unable to verify due to invalid telephone numbers.
The Bidder's General Information sheet to be submitted with the Bid requires at least three
references to be listed. I requested that you provide additional references with which to verify the
background and experience of your construction company. You submitted to me today additional
information regarding your construction company, and included additional personal references,
however, the information does not provide specific project information with which to judge the
experience of Hondo Engineering, Inc.
Upon further review of your Bid, and after discussing the matter with the City Attorney's Office, it
is our determination that your Bid will be considered non-responsive for your failure to submit a full
and complete Bidder's General Information sheet, A recommendation will be made to the City
Council to make such finding and to award to the second low bidder- This determination is based
on the following facts:
1) Paragraph N-3 "Award of Contract" of the Notice Inviting Bids states (in part): The City
reserves the right after opening bids to reject any or all bids---as it may best serve the interest
of the City-
2) The Bidder's General Information sheet included with the Bid Documents (Bid Form Page 11)
indicates the following: The Bidder shall furnish the following information. Failure to complete
all items will cause the Bid to be non-responsive and may cause its rejection.
Although the City Council has the authority to waive any informality in a Bid, based on the fact that
15 bids were received by the City for this project, it is incumbent upon us to ensure that a fair and
impartial basis is used to determine the lowest, responsive Bid for this project- Allowing you to
submit additional information after the Bid Opening date provides you with an unfair advantage over
any of the other Bidders.
q
Posr Office Box 2743 0 Palm Springs, California 92263-2743 '
Mr, Bret Carlson
February 6, 2009
Page 2
Based on these factors, it is necessary for the City to consider your Bid non-responsive. It is our
intent to schedule the City Council's consideration of this item for the February 18, 2009, Council
meeting- If you have any questions, I can be reached at(760) 323-8253, extension 8744, or by
e-mail at Marcus-Fullerfo oalmsorinos-ca-oov- Any questions regarding the City's decision to
consideryour Bid non-responsive should be directed to James Donich at the City Attorney's office,
(714)415-1015.
Sincerely,
Marcus L- Fuller, P.E., P.L.S.
Assistant Director of Public Works/
Assistant City Engineer
cc; James Donich, City Attorney's Office
Craig Gladders
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ATTACHMENT
LOCAL BUSINESS PROMOTION SPECIFICATION
award the Contract to the third lowest responsive, responsible Bidder. On the failure or
refusal of such second or third lowest Bidder to execute the Agreement, each such
bidder's Bid Securities shall be likewise forfeited to the City.
18. WORKER'S COMPENSATION REQUIREMENT - The Bidder should be aware
that in accordance with laws of the State of California, the Bidder will, if awarded the
Contract, be required to secure the payment of compensation to its employees and
execute the Worker's Compensation Certification.
19. LOCAL BUSINESS PROMOTION —
(a) In determining the lowest responsible Bidder, the following provisions of
Section 7.09.030 of the City of Palm Springs Municipal Code shall be applied to a Bid
submitted by a local business enterprise or contractor:
For any contract for services, including construction services, a reciprocal
preference shall be given as against a non-local business enterprise contractor
from any state, county or city that gives or requires a preference to contractors
from that entity in award of its service contracts. The amount of the reciprocal
preference shall be equal to the amount of the preference applied by the entity in
which the non-local business enterprise contractor is based as against the Bid of a
City of Palm Springs contractor.
(b) For all contract Bids proposing sub-contractors:
(1) The prime contractor shall use good faith efforts to sub-contract the supply of
materials and equipment to local business enterprises, and to sub-contract
services to businesses whose work force resides within the Coachella Valley
("local sub-contractor").
(2) The prime contractor shall submit evidence of such good faith efforts at the
time of submission of Bids. Good faith efforts may be evidenced by placing
advertisements inviting proposals in local newspapers, sending requests for
proposals to local sub-contractors, or by demonstrating that no local sub-
contractors are qualified to perform the work or supply the materials or equipment.
(3) Any notice inviting Bids which may require the use of sub-contractors shall
include notification of this subdivision.
(4) The City may reject as non-responsive the Bid of any contractor proposing to
use sub-contractors that fails to comply with the requirements of this subdivision.
- END OF INSTRUCTIONS TO BIDDERS -
2008/2009 SB 821 PROJECT p
CITY PROJECT NO.08-12&08-13 INSTRUCTIONS TO
11/19108 BIDDERS-PAGE 5
ATTACHMENT
S.J. GRIGOLLA CONSTRUCTION CO., INC. LIST OF SUBCONTRACTORS
r.Y INFORMATION REQUIRED OF BIDDER
LIST OF SUBCONTRACTORS
As required under Section 4100, et seq., of the Public Contract Code, the Bidder shall list below the name and
business address of each subcontractor who will perform Work under this Bid in excess of one-half of one percent of
the Contractor's Total Bid Price, or$10,000.00, whichever is greater, and shall also list the portion of the Work which
will be done by such subcontractor. After the opening of Bids, no changes or substitutions will be allowed except as
j otherwise provided by law. The listing of more than one subcontractor for each item of Work to be performed with the
j words "and/or" will not be permitted. Failure to comply with this requirement will render the Bid as non-responsive
k and may cause its rejection.
Contractor's Percent
1 License of Total
Work to be Performed Number Contract Subcontractor's Name&Address
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2008/2009 SB 821 PROJECT
CITY PROJECT NO.08.12&08-13
11/19/08
LIST OF SUBCONTRACTORS
BID FORMS-PAGE 7
ATTACHMENT
AGREEMENT
AGREEMENT
THIS AGREEMENT made this _ day of 200 , by and
between the City of Palm Springs, a charter city, organized and existing in the County of
Riverside, under and by virtue of the laws of the State of California, hereinafter
designated as the City, and S. J. Grigolla Construction Co. Inc. hereinafter designated as
the Contractor.
The City and the Contractor, in consideration of the mutual covenants hereinafter set
forth, agree as follows:
ARTICLE I -- THE WORK
The Contractor shall complete the Work as specified or indicated under the Bid
Schedule(s) of the City's Contract Documents entitled:
2008/2009 S13 821 PROJECTS
CITY PROJECT NO. 08-12 & 08-13
The Work is generally described as follows:
Construction of new Portland cement concrete sidewalk, driveway approaches and access
ramps; removal of existing asphalt concrete driveway approaches and miscellaneous
improvements; adjustment of water meter boxes and valves to grade; and all appurtenant
work on the west side of Farrell Drive from Amado Road to Alejo Road; and on the south
side of Ramon Road from Indian Canyon Drive to Grenfall Road-
ARTICLE 2 -- COMMENCEMENT AND COMPLETION
The Work to be performed under this Contract shall commence on the date specified in
the Notice to Proceed by the City, and the Work shall be fully completed within the time
specified in the Notice to Proceed.
The City and the Contractor recognize that time is of the essence of this Agreement, and
that the City will suffer financial loss if the Work is not completed within the time specified
in Article 2, herein, plus any extensions thereof allowed in accordance with applicable
provisions of the Standard Specifications, as modified herein. They also recognize the
delays, expense, and difficulties involved in proving in a legal proceeding the actual loss
suffered by the City if the Work is not completed on time. Accordingly, instead of
requiring any such proof, the City and the Contractor agree that as liquidated damages or
delay (but not as a penalty), the Contractor shall pay the City the sum of $790 for each
calendar day that expires after the time specified in Article 2, herein- In executing the
Agreement, the Contractor acknowledges it has reviewed the provisions of the Standard
Specifications, as modified herein, related to liquidated damages, and has made itself
aware of the actual loss incurred by the City due to the inability to complete the Work
within the time specified in the Notice to Proceed.
2
2008/2009 SB 821 PROJECT AGREEMENT FORM
CITY PROJECT NO 08-12&08-13 AGREEMENT AND BONDS-PAGE 1
11119/08
ARTICLE 3 -- CONTRACT PRICE $119,715,00 Bid Schedules A & B
The City shall pay the Contractor for the completion of the Work, in accordance with the
Contract Documents, in current funds the Contract Price(s) named in the Contractor's Bid
and Bid Schedule(s).
ARTICLE 4 --THE CONTRACT DOCUMENTS
The Contract Documents consist of the Notice Inviting Bids, Instructions t0 Bidders, the
prevailing rate of per diem wages as determined by the Director of the California
Department of Industrial Relations, the accepted Bid and Bid Schedule(s), List of
Subcontractors, Non-collusion Affidavit, Bidder's General Information, Bid Security Or Bid
Bond, this Agreement, Worker's Compensation Certificate, Performance Bond, Payment
Bond, Standard Specifications, Special Provisions, the Drawings, Addenda numbers 0 to
0 , inclusive, and all Change Orders and Work Change Directives which may be delivered
or issued after the Effective Date Of the Agreement and are not attached hereto.
ARTICLE 5 -- PAYMENT PROCEDURES
The Contractor shall submit Applications for Payment in accordance with the Standard
Specifications as amended by the Special Provisions. Applications for Payment will be
processed by the Engineer or the City as provided in the Contract Documents.
ARTICLE 6 -- NOTICES
Whenever any provision of the Contract Documents requires the giving of a written
Notice, it shall be deemed t0 have been validly given if delivered in person to the
individual or to a member of the firm or to an officer of the corporation for whom it is
intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the
last business address known to the giver of the Notice.
ARTICLE 7 -- MISCELLANEOUS
Terms used in this Agreement which are defined in the Standard Specifications and the
Special Provisions will have the meanings indicated in said Standard Specifications and
the Special Provisions. No assignment by a party hereto of any rights under or interests
in the Contract Documents will be binding on another party hereto without the written
consent of the party sought to be bound-, and specifically, but without limitation, monies
that may become due and monies that are due may not be assigned without such
consent (except to the extent that the effect of this restriction may be limited by law), and
unless specifically stated to the contrary in any written consent to an assignment, no
assignment will release or discharge the assignor from any duty or responsibility under
the Contract Documents.
The City and the Contractor each binds itself, its partners, successors, assigns, and legal
representatives, to the other party hereto, its partners, successors, assigns, and legal
representatives, in respect of all covenants, agreements, and obligations contained in the
Contract Documents. i
2008/2009 5B 821 PROJECT AGREEMENT FORM
CITY PROJECT NO.08.12&08-13 AGREEMENT AND BONDS-PAGE 2
11/19108
IN WITNESS WHEREOF, the City and the Contractor have caused this Agreement to be
executed the day and year first above written.
ATTEST: APPROVED BY THE CITY COUNCIL:
CITY OF PALM SPRINGS,
CALIFORNIA
Date
By
City Clerk Agreement No.
APPROVED AS TO FORM:
By
City Attorney
Date
CONTENTS APPROVED:
By
City Engineer
Date
By
City Manager
Date
2008/2009 5B 821 PROJECT AGREEMENT FORM
CITY PROJECT NO.08-12&08-13 AGREEMENT AND BONDS-PAGE 3
11/19/08
Corporations require two notarized signatures: One signature must be from Chairman of Board, President, or any
Vice President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant
Treasurer, or Chief Financial Officer.
CONTRACTOR: Name. S.J. Grigolla Construction Co., Inc Check one _Individual_Partnership X Corporation
Address: 2639 Sierra Way
La Verne, CA 91750
By: By:
Signature (notarized) Signature (notarized)
Name: Name.
Title: Title:
(This Agreement must be signed in the above This Agreement must be signed in the above
space by one of the following: Chairman of the space by one of the following: Secretary, Chief
Board, President or any Vice President) Financial Officer or any Assistant Treasurer)
State of ❑ State of ❑
County of u$$ County of ❑ss
On On
before me, before me,
personally appeared personally appeared
who proved to me on the basis of satisfactory who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), the same in his/her/their authorized capacity(ies),
and that by his/her/their signatures(s) on the and that by his/her/their signatures($) on the
instrument the person(s), or the entity upon behalf instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the of which the person(s) acted, executed the
instrument. instrument.
I certify under PENALTY OF PERJURY under the I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing laws of the State of California that the foregoing
paragraph is true and correct. paragraph Is true and correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature. Notary Signature:
Notary Seal: Notary Seal:
2008/2009 SB 821 PROJECT AGREEMENT FORM
CITY PROJECT NO 08-12&08-13 AGREEMENT AND BONDS-PAGE 4
11/19/08