HomeMy WebLinkAboutStaff Report 4.A 05/07/2012 ,
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• 859,
DATE: May 7, 2012
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE,-Director, Public Works and Utiliti:t d. 1
' Larry Zimmer;-P.E. Capital Projects Manager
SUBJECT: Resolution Approving the Project Budget and Authorizing Award of Contract for
'the Petaluma River Trail Enhancement Project: •
RECOMMENDATION
It:is recommended-that the City CounciLadopt the attached resolution;approving the project
budget and authorizingaward ofcontract for the Petaluma River Trail Enhancement Project to
Ghilotti Construction Company in the amount of$953,657,to be funded primarily by Measure M
with no impact to the General'Fund.
BACKGROUND
The referenced project-will feature an.all-weather paved trail along the Petaluma River as part of
the Lakeville.Industrial segment of the;Petaluma River Trail Access and Enhancement Plan. If
! the base bid is awarded, the trail•will start:nearthe Copeland sanitary sewer pump station, .
located at the end of North Water Street, across the Petaluma River via a pre-fabricated
pedestrian bridge, and continue on.the:east side along the Petaluma;River to Lakeville Street. An
alternative was bidthat'Would start the trail from Washington:Street along North Water Street to
the beginning of.the-proposed"base bid" trail described,above. Staff recommends award of the
base bid only because,the;City has not obtained easements for the trail portion from Washington .
Street along North Water Street to the pump station. The;trail will not connect to the existing
river trail behind the Clover-Stornetta plant near the-Lakeville Street Bridge:because the Army
Corps of Engineers "Payran`Flood.Control Project" has not closed the"gap in the flood wall
adjacent to the'bridge.
Ideally this project would,complete the River Trail from its existing terminus near Lakeville
Street all the way to Washington Street. However, delays in the final,phase of the Payran Flood
Control Project and.inability to acquire a pedestrian access-easement from two property owners
on Water Street North prevent completion at this time Staff recommends proceeding with the
base bid because the PUC(Public Utility Commission),approval for crossing the railroad tracks
at Lakeville will expire this summer and obtaining a new approval-is uncertain. It will take
� significant staff resources, and could require modification of the plans:. The remaining portions
Agenda Review:• '
City Attorney - - Finance Director City,Manager 1
of path can betcompleted in the=future,at-minimal cost once,the-flood wall is completed and
property'rights.are acquired.
Through a design consultant, staff prepared the bid.docurnehts, and issued allotice Inviting Bids
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on March 8, 2012. Seven (7)bids were received on April 4, 2012, as follows:
Base Bid +Bid
Name of Bidder Base Bid Amounts Alternate Amounts
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Ghilotti Construction Co $953,657 $1,064,344
JFC Construction *$974,177 *$1,104,743
Team Ghilotti $991,216 $1,182,384
W. R. Forde $1,025,930 $1,243,720
Ghilotti Bros. Inc. $1,029,053 $1,166,097
Maggoria & Ghilotti $1,059,059 $1,257,455
Michael Paul Company *$1,237,245 *$1,486,465
* Errors in totals were corrected`in accordance with bid documents
The engineer's estimates for construction are $1,200,000 and $1,450,000 for the"base bid" and
the "base bid plus the additive bid"respectively.
Ghilotti Construction Company (GCC) is the apparent low bidder. Staff has verified that GCC
possesses a valid California Contractor's License, Class A, number 644515 that is appropriate
for the type of construction to be performed. GCC has satisfactorily completed similar work for
various public agencies includingthe recently-completed Lynch Creek Trail Project for the City
of Petaluma. The City did receive two protests for the impending bid award.
DISCUSSION
The third apparent low bidder, Team:Ghilotti, Inc. filed a bid protest(see attachment 3) because
the low bidder, GCC, did not list subcontractors for the following items of work:hazardous
hauling/trucking, chain link fence; concrete pumping, and crane services. Team Ghilotti also
protested award to the second low bidder,'JFC Construction,for not listing subcontractors for the
following items of work: striping&;signage, hazardous hauling/trucking, rebar, chain link fence,
and concrete pumping. JFC Construction also protested award.to Ghilotti Construction,
essentially on the same basis. The City's,bid documents provide,that ifthe•general contractor
does not specify a subcontractor fora portion of work to be performed under the contract in
excess.of one-half of one percent or $10,000 whichever is greater, he/she agrees that he/she will
perform that portion•himself/herself. •
The low bidder, GCC, responded (attachment 4)that they listed Bay Area Welding &
Maintenance from Richmond for the fence work, and that hauling/trucking, pump concrete and
crane services work will not be provided by subcontractors covered by State Contractor
Licensing laws, because such service providers are not required to hold a contractor license to
perform these functions:,
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The?second low bidder respohsea(attachment5) contended that he would"self-perform" the
signage„hazardous,hauling/trucking and.,rebar work;in-house'with his own employees and the
• sub-bid for striping, chain link fence, and concrete pumping<.issunder the $10,000 threshold
needed'rto be listed as a subcontractor:
Staff believes that the low bid of, GCC, is responsive based on the•GCC response and the
subcontractor listing form that was used in the City's bid package. It is-true that there are no •
Sate Contractor Licensing Board licensing-requirement specifically for providers of hauling,
concrete pumping, and crane services,For that reason, such work-is commonly performed by
service providers that are not;licensed contractors, but that are nonetheless fully qualified to
perform the work. Of course, contractors are directly responsible to awarding agencies for all
work-performed under the contract,:whether the work is performed by licensed contractors or by
unlicensed service providers. Therefore, staff recommends that the City'Council reject the
protests ofJFC Construction and.Team,Ghilotti and authorize the City Manager to enter into a
contract with the low bidder, Ghilotti Construction Company, for the base_bid. If not awarded at •
this time, the City will not be able to meet the California Public'Utilities.Commission (CPUC)
deadline to begin construction by June• 5 2012 as required by CPUC Order GO-88B, thus
requiring re-application of the CPUC Order and delaying th'e,project.
FINANCIAL IMPACTS
Die following isa breakdown of the current project budget:
Requested
Estimated Budget by
this
Measure M. City Resolution
Reimbursement _ 'Funds
Design $176;000 $176,000
Right-of-Way $30;000. $30;000
,Construction Contract $953;657` $953,657
Construction Management $85;000 $85,000
& Inspection
Geotechnical Testing $14;000 $14,000
Contingency $143;000 $143,000
CW Overhead $45,000. $45,000
TOTAL $1,401,657 $45,000. $1,446;657
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The estimated total project cost, including planning, design, construction, administration,
inspection, testing, and project contingency is $1,446,657. The project is funded by Measure M
cost reimbursement in an anticipated amount of$1,401,657, and $45,000 in.former PCDC funds
for CIP overhead which is not eligible for Measure M reimbursement. This project will be
initially funded with PCDC funding which has been set aside for this purpose and will eventually
be reimbursed with Measure M funds as they become available. The CIP Overhead charge of
$45,000 will not be reimbursed and is expected to be funded by PCDC,fiinds without
reimbursement The full costWas included in the'Reutilized Obligation Payment Schedule
(ROPS),,and was approved by the oversight board ofthe successor,agency on April 25, 2012.
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Measurelvl reimbursements wilhbebased on actual revenue; and on.availability of those funds
for this specific program, Completirig•the project would likely put this project on a..higher
• priontyand•result man earlier-reimbursement. 'The use of former PCDC funds for this
project isrincluded in the recommended Recognized Obligations Payment Schedule that City
'staff will submit to the Oversight.Board approval at its April 25 meeting. A project budget of
$1,741,000 was approved in the 2011/2012 CIP'budget.
ATTACHMENTS
1. Resolution
2. Location Map
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3. Bid protest from Teath Ghilotti
4. Low bidder response to the bid.protest.
5. Second low bidder responseto the bid protest.
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Attachment 1
RESOLUTION APPROVING THE PROJECT BUDGET AND
AUTHORIZING THE AWARD OF CONTRACT FOR THE PETALUMA RIVER.
TRAIL ENHANCEMENT PROJECT TO GHILOTTI CONSTRUCTION COMPANY.
WHEREAS; City staff has prepared construction bid documents and advertised for
construction of this Project; and
WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code,
California Public Contract Code Section 20162 and other applicable law, City staff solicited bids
for the Project;and
WHEREAS, the Project was bid on April 4, 2012, and seven(7) bids were received and
opened in accordance with applicable law; and
WHEREAS, the lowest bid for the Project was from Ghilotti Construction Company
("GCC")for $953,657 for the base bid; and
WHEREAS, staff has determined that GCC's bid satisfies the bidding requirements for
the Project; and
WHEREAS; staff has verified that GCC possesses a valid California Contractor's
License, Class A, number 644515 that qualifies GCC to perform the Project; and
WHEREAS, protests concerning award of the Project contract to GCC were received
from JFC Construction and Team Ghilotti asserting that the GCC bid failed to list subcontractors
as required; and
WHEREAS, staff have concluded:that the objections of JFC Construction and Team
Ghilotti relate to service providers not subject to subcontractor listing law requirements; and
WHEREAS, the Project has environmental clearance (the Mitigated Negative
Declaration) pursuant to California Environmental Quality Act ("CEQA"), by Resolution no. 96-
138N:C.S. adopted on May:20, 1996.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City hereby:
1. Approves the Project Budget in the amount of$1,446,657 including a contingency of
$143,000.
2. In accordance with the City of Petaluma Charter and Municipal Code, California Public
Contract Code Section 20162 and other applicable law, rejects the bid protests received
from JFC Construction and Team Ghilotti, Inc:; and waives any and all non-conformance
in the bid of GCC`for the Petaluma River Trail Enhancement Project, finds the bid of
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$953657 to be thelowest;responsive bid and further find's tfiat'GCC is the lowest
responsiblebidder.
3. Awards the contract for the>.Petaluma River Trail'Enhancement Project to Ghilotti
Construction Company, in the amount of$953,657, the"amount of the lowest responsive.
bid, conditioned on Ghilotti Construction,Company timely`executing the project contract
and submitting,all required;documents, including but not limited to, executed bonds,
certificates of insurance, and endorsements, in accordance with the project bid
documents.
4. Directs staff to issue,a notice of award to GhilotthConstruction Company. •
5. Authorizes and directs the City Manager to execute the,project contract°on behalf of the
City of Petaluma upon timely submission by Ghilotti'Construction Company of the
signed project contract and all other required documents, including but not limited to,
executed bonds, certificates:of insurance, and endorsements, in accordance with the •
project bid documents.
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Attachment 3
?,t L�11 AYR 1Z L
• *1! !! PUBLIC WORKS
- .
" ENGINEERING
April 9,2012
Fleming Nguyen, P.E.
City of Petaluma •
Department of Public Works&Utilities
11 English;Street
Petaluma, CA 94952
Reference: The Petaluma River`Trail Enhancement project Washington Street to
Lakeville Street •
Subject: Protest of Bid•Submitted by Ghilotti Construction'Company & JFC
Construction
Dear Mr.Nguyen,
In accordance with the City of Petaluma's Instructions To Bidders, Section 16: Bid Protest,
Team Ghilotti submits this formal protest of the apparent low:bidder'Ghilotti Construction and
apparent second low bidder.JFC Construction per the following specifics:
instructions to Bidders:
"The Bid must set forth the'name and location of the place of business of each subcontractor who
will perform work or labor or render services to the prime:contractor in or about the construction
of the WORK, or a subcontractor'licensed by the State of.California who under subcontract to
the prime contractor, specially fabricates and installs'a portion of the WORK according to
detailed Drawings contained in the plans and specifications, in an amount in excess of one-half
of I percent of the prime contractor's total bid or in'the caseof bids or offers for the
construction of streets and highways, including bridges, in excess of one-half of 1 percent of the
prime contractor's total biddor ten thousand dollars ($10,000), whichever is greater."
Team Ghilotti'contends that both Ghilotti.Construction and JFC Construction do not meet the
requirements as listed above-as they did not.list the necessary subcontractor to perform the work
stated in the specification and-plans for the above named-project.
As per the Bid Forms, Ghilotti Construction and.JFC should have listed any subcontractor
performing work in excess of$10,000. Below is a schedule indicating the various items of work
2531 Petaluma`Blvd South • Petaluma, CA_94952'• FAX: 707-763-8711
www.TeamGhilotti.com.
STATE CONTRACTORS LICENSE#895384 CLASS: A
• 8 •
and,the minimum cost associated-.with them where,Ghilotti Construction and/or JFC failed to list.
subcontractors.
Sub Listed Sub Listed
Minimum. By Ghilotti by JFC
Cost Construction Construction •
$
Striping& Signage 10,600100 . . No '
$.,
I-Iaz 1-lauling/Trucking 61,288.00 j No No
$ 4
I
Rebar 27,499.40` I No
Chain Link Fence '12,740:00 No No
Pump Concrete 21.455.00' No No
$
Crane Serves 12,000.00 No
, We therefore request the City of Petaluma find the low bid and the second low bid non-
responsive and award the contract to Team Ghilotti inc.
Please contact us with any questions.
Respectfully,
L Team Ghilottii .
i e,
en G4 Ian
Preside t
(707) '3=8700
4
Ghi ‘tti Construction Company
J ' Construction
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Attachment 4
w_ ;CONSTRUCTION
since;' C'0 M P'A'N Y 1914
April 12, 2012
Fleming Nguyen, P.E.
City of Petaluma
Department of Public Works&Utilities
11 English Street
Petaluma, CA 94952
Reference: The Petaluma River Trail Enhancement-Project
Washington Street to Lakeville Street
Subject: Protest of.Ghilotti Construction Company, Inc.'s bid by Team Ghilotti
Dear Mr. Nguyen,
In response to:the letter dated_April 9, 2012 by Team Ghilotti; GCC is responding to the
accusation that we did not properly list all required subcontractors per the project
specifications. Specifically, Team Ghilotti names the following scopes as not having been
accounted for by listed subcontractors:-'I laz Hauling/Tracking, Chain Link Fence,Pump
Concrete and Crane Services.
Ghilotti Construction listed'a Chain'Link Fence sub on.our List of Subcontractors. We
named Bay Area Welding & Maintenance out of Richmond. CA for the Fence and Metal
Railings. The other scopes Of work, specifically I laz Hauling/Trucking, Pump Concrete
and Crane Services,.are"not,subcontractors (These companies do not'have Contractors
State License Numbers), and therefore were not listed in,the List of Subcontractors.
Ghilotti Construction is the lowest responsible bidder on the Petaluma River Trail
Enhancement Project.
. Sinc rely,
o
tI
Thomas Smith
Estimating Manager
— Engineering Contractor —
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246 GHILOTTI AVENUE•SANTA.ROSA,;CA•95467•707—.585-1221 •FAX:707-585-0129
STATE CONTRACTORS LICENSE#644515 1.0
Attachment 5
r
' JFC CONSTRUCTION, INC-.
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April 12.2012
Fleming Nguyen;P;E.,.
Sr.Civil Engineer •
City of Petaluma Public Works&Utilities Department
• 11 English St.,Petaluma,CA 94952
Reference: The Petaluma Riveitrail Enhancement project
Subject: Team Ghilotti Bid:protest respnce
Dear Mr.Nguyen:
We are in receipt of Team Ghiiottirs bid protest of our bid for the above referenced project Below are the reasons
why we did not list subcontractorsfor the items of work they claim we should have listed:
1) Stripping&Signage: JFC bid to perform the signage scope of the project in-house with our own employees.
The sub-bid we used for stripping was.below$10,000.
2) Haz Hauling/Trucking:.JFC bid to perform this scope of work in-house with JFC employed certified truckers
&trucks. No sub needed •
3) Rebar: 1FG bid to perform this scope of work in-house with 1FG employed workers. No sub.Needed. •
4)
5) Chain Link Fence: The subcontractor bid we used for this scope of work was under$10,000,no need to list
sub.
• 6) Pump.Concrete: JFC bid to only use a concrete pump for the drilled.piers. This amount was under$10,000,
no need to list sub.
We do not feel a protest of our bid is valid per.the above explanation. However,we would like to formally protest
Ghllotti Constructions bid because they failed(per the instruction to bidders)to list a crane company(craning&
rigging)to set the bridge: This is a critical component oftbe'pro)ect and I highly doubt Gilotti Construction has"in-
house capacity"to complete this scope of work.
We therefore request the City of.Petaluma find:the low bidders(Ghilotti Construction);bid non-responsive and award
to JFC Construction Inc.
Sincerely, •
Steve.Goldsworthy
JFC Construction, Inc.
Project Manager
(925)260-0914
4901 Pacheco Blvd. • Martinez, CA 94553-4324 • Phone: (925)228 70924 • Fax: (925)228-0477 • CA LIC# 592562
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