HomeMy WebLinkAboutResolution 2007-013 N.C.S. 01/22/2007
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Resolution No. 2007-013 N.C.S.
of the City of Petaluma, California
RESOLUTION MAKING SPECIFIED FINDINGS, REJECTING ALL BIDS,
APPROVING REVISED BUDGET AND DIRECTING AND AUTHORIZING THE CITY
MANAGER OF THE CITY OF PETALUMA TO NEGOTIATE AND EXECUTE A
CONTRACT FOR RECONSTRUCTION AND REPLACEMENT OF THE EXISTING
FUEL DELIVERY SYSTEM AT THE PETALUMA MUNICIPAL AIRPORT, IN AN
AMOUNT NOT TO EXCEED $900,000.00.
Project # 3299-54151-C100106
WHEREAS, City staff has worked diligently with RHL Design Group, Inc. to prepare
construction bid documents and advertise for construction of this Project; and,
WHEREAS, in accordance with the requirements of 49 CFR part 26, Regulations of the
U.S. Department of Transportation, California Public Contract Code Section 20688.2, the City
Charter of the City of Petaluma and other applicable law, City staff solicited bids for the Project;
and,
WHEREAS, the project was bid on November 8, 2006, and one (1) bid was received and
opened in accordance with applicable law; and,
WHEREAS, the lowest bid for the Project was from Paradiso Mechanical, Inc. for
$1,532,530.00; and,
WHEREAS, the sole bid received was more than $600,000 in excess of the Engineer's
estimate for the work; and,
WHEREAS, federal, State and local funds budgeted and available for the project are not
sufficient to pay for the work as bid by the sole bidder; and,
WHEREAS, the existing airport fuel system is currently in violation of State water
quality and air quality regulations because of deficiencies in the monitoring system, vapor
recovery systems and piping; and,
Resolution No. 200?-013 N.C.S. Page 1
WHEREAS, the City intends to meet regulatory requirements and deadlines by replacing
the existing system with a reconstructed system of the same capacity and for the same use as the
existing system, which will comply with all applicable regulations; and,
WHEREAS., the relevant regulatory authorities had previously granted the City through
October, 2006, to resolve the compliance issues by way of repair and reconstruction of the
system; and,
WHEREAS, on December 20, 2006, the City Fire Marshal issued an Order to Comply
requiring the City to bring the airport fuel system into compliance on or before July 1, 2007, or
have the system shut down; and,
WHEREAS, noncompliance with applicable regulations could expose the City to fines
and penalties; and,
WHEREAS, a functioning system which delivers fuel to airport users in the same
manner and capacity as the existing system is essential for continued operation of the Petaluma
Municipal Airport and protection of City revenue received from airport users and airport leases;
and,
WHEREAS, City staff has surveyed parties who received bid packets on the original
request for proposals and, on the basis of information obtained, believes that a second bidding
process will not result in responses substantially different from the single response received to
the original request for proposals; and,
WHEREAS, the regulatory deadline for installation of a replacement system of July 1,
2007, could not realistically be met if a second competitive bidding process were conducted; and,
WHEREAS, based on preliminary inquiries, City staff has determined that significant
cost savings and compliance with the July 1, 2007, regulatory deadline can be achieved by
negotiating with a prime contractor, who would perform non-specialty work directly and
subcontract only for the specialized work related to fuel tank removal and installation of
replacement tanks, vapor recovery systems and specialty piping; and,
Resolution No. 2007-O13 N.C.S. Page 2
WHEREAS, because further competitive bidding of the airport fuel tank replacement
project would result in the public incurring additional expense, including, but not limited to
additional. costs, failure to realize cost savings, potential exposure to fines and penalties and/or
loss of airport revenue, all as described above, further competitive bidding of the work would not.
produce an advantage for the public; and,
WHEREAS, awell-recognized exception in common law to the competitive bidding
requirement for public entities "exists where the nature of the contract is such that competitive
proposals would be unavailing or would not produce an advantage, and the advertisement for
competitive bid would thus be undesirable, impractical or impossible." (See Graydon v.
Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631, 636,; and,
WHEREAS, the Graydon exception is applied "with sole reference to the public
interest..." and in light of the purposes underlying the competitive bidding requirement, which
are "...to prevent favoritism, improvidence, extravagance, fraud and corruption; to prevent waste
of public funds; and to obtain the best economic result for the public." Graydon at 636; and,
WHEREAS, the reconstruction and replacement of the airport fuel tank delivery system
is categorically exempt from the requirements of the California Environmental Quality Act
("CEQA") pursuant to Public Resources Code section 21084 and 14 California Code of
Regulations sections 15301(d) and (f), 15302, 15303 and/or 15311, as constituting the
replacement, rehabilitation, reconstruction and/or repair of existing facilities with substantially
the same purpose and capacity to meet current standards of health and safety and/or the
construction of small and/or accessory structures related to existing facilities; and,
WHEREAS, U.S. Department of Transportation, Federal Aviation Administration Order
5100.38C, effective June 28, 2005, applies to this project because it is partly federally funded
and provides at Subsections 904.d.(1).(b) and (c) that "a noncompetitive proposal is permitted
under the following circumstances... (b) Public exigency or emergency when the urgency for
the requirement will not permit a delay incident to competitive solicitation; (c) After solicitation
of a number of sources, competition is determined inadequate....".
Resolution No. 2007-013 N.C.S. Page 3
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Petaluma as follows:
1. The above recitals are hereby declared to be true and correct- and findings of the City
Council of the City of Petaluma.
2. The bid submitted by Paradiso Petroleum received on November 8, 2006 is hereby
rejected.
3. The revised budget for reconstruction and repair of the fuel tanks and fuel delivery
system at the Petaluma Municipal Airport: in the amount of $1,098,000.00 is hereby
approved.
4. The City 1Vlanager or his delegate is authorized to enter into negotiations and execute
a contract for reconstruction, replacement and repair of the Petaluma Mulucipal
Airport fuel tank delivery system in an amount not to exceed $900,000.00 without
further compliance with competitive bidding requirements, pursuant to the established
- common-law doctrine set forth in Graydon v. Pasadena Redevelopment Agency
(19801 104 Ca1.App. 3d 631 and pursuant to U.S. Department of Transportation,
. Federal Aviation Administration larder 5800.38C.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the App ve as to
Council of the City of Petaluma at a Regular meeting. on the 22"` day of January-, fo
2007, by the following vote:
City ttorney
AYES: Barrett, Harris, Vice Ivlayor Nau, O'Brien, Babbitt, Mayor Torliatt
NOES: None
<;
ABSENT: None O
ABSTAIN: None
ATTEST: _ _ _
City Clerk Mayor
Resclutlon No. 2007-01 "s N.Q.S. Page 4