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HomeMy WebLinkAboutItem 6d. Authorization to award 879 Morro Roof Replacemetn, Specification No. 2000075-10 Item 6d Department: Public Works Cost Center: 9501 For Agenda of: 4/7/2026 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Public Works & Utilities Director Prepared By: Allie Genard, Capital Projects Manager I SUBJECT: AUTHORIZATION TO AWARD 879 MORRO ROOF REPLACEMENT, SPECIFICATION NO. 2000075-10 RECOMMENDATION 1. Approve the project plans and special provisions for the 879 Morro Roof Replacement, Specification No. 2000075-10; and 2. Award a construction contract (Attachment A) to Ranger Roofing and Solar in the amount of $189,074.96 for the 879 Morro Roof Replacement, Specification No. 2000075-10; and, 3. Authorize staff to issue a Purchase Order to Brezden Pest Control Inc., following completion of the roofing project, at an amount within the remaining available project budget; and, 4. Authorize a transfer of $24,948.21 from Sewer Fund Completed Projects to support the roofing project and pest control work; and, 5. Authorize the City Engineer to approve Contract Change Orders, provided they remain within the approved project budget or any amended budget subsequently authorized by the City Manager. POLICY CONTEXT On May 17, 2022, Council approved a Purchasing Policy Update to the Financial Management Manual (Resolution No. 11328), requiring Council authorization for Public Works contracts exceeding $200,000. DISCUSSION Background The Utilities Department Administration building roof at 879 Morro Street was last replaced in 2001 as part of a Tenant Improvement (TI) and renovation project. Since then, the roofing system has exceeded its useful life and developed multiple leaks, which have been temporarily addressed through ongoing maintenance. A full roof replacement is now required. Staff have worked with an architectural consultant team to prepare project plans Page 73 of 251 Item 6d and specifications for construction. In addition to the roofing system, staff observed termite damage in the rafters supporting the roof. After the roofing project is complete, staff will coordinate a termite remediation project (Attachment B). The 879 Morro Roof Replacement Project (Project), Specification No. 2000075 -10, was previously bid in the summer of 2025, with bids opened on July 17, 2025. Three bids were received and all were deemed non-responsive; therefore, the project was not awarded. The Project was re-advertised, with bids opened on February 12, 2026. Two bids were received from Ranger Roofing and Solar and Southland Roofing Inc. The bid results are listed below: Contractor Bid Total Engineer’s Estimate $ 225,000.00 1 Ranger Roofing and Solar $ 189,074.96 2 Southland Roofing Inc. $ 194,380.00 Ranger Roofing and Solar (Ranger) provided the lowest responsive bid in the amount of $189,074.96. The contractor’s references, license, and registration with the Department of Industrial Relations have been verified. On February 13, 2026, staff received a bid protest letter from Southland Roofing Inc., the 2nd low bidder (Attachment C). The letter alleges that Ranger is not certified to install Garland roofing products, which are specified in the project’s special provisions , but may be substituted with an approved equal. Staff forwarded the bid protest letter to the low bidder, Ranger, on February 20, 2026. Ranger responded with a letter on February 23, 2026, stating that the project plans and specifications list Versico products as the basis of design (Attachment D). Additionally, Ranger stated that they are certified to install Versico roofing systems, as required in the project’s special provisions. Staff determined that Southland Roofing Inc.’s bid protest was invalid , because it did not satisfy the procedural requirements for submitting a protest as set forth in the bid package. Specifically, the protest did not reference the specific portions of the Contract Documents upon which the protest was based. Additionally, staff determined that the bid protest was without merit, as the special provisions do not require the contractor to use Garland roofing products or be a certified Garland installer. On March 5, 2026, staff notified Southland Roofing Inc. that their bid protest had been deemed invalid. Staff is recommending that the project be awarded to Ranger Roofing and Solar. A 25% construction contingency is recommended due to the potential for concealed conditions commonly encountered during roofing replacements on older buildings. These include dry rot, deteriorated substrate materials, and structural repairs that may not be visible until the existing roof is removed. Project plans and special provisions are ready for construction, and the agreement with Ranger Roofing and Solar has been drafted (Attachment A). Page 74 of 251 Item 6d Previous Council or Advisory Body Action This project received funding allocations across the 2021-23, 2023-25, and 2025-27 Financial Plans, all of which were adopted by Council. Public Engagement Public input was solicited and considered during the development of each respective Financial Plan. CONCURRENCE This project has received concurrence from the Utilities Branch of the Public Works and Utilities Department, the Community Development Department, and the City Attorney’s Office. ENVIRONMENTAL REVIEW This project is categorically exempt from environmental review pursuant to sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction) of the CEQA Guidelines, as it is a maintenance and rehabilitation project. A Notice of Exemption has been filed through the Community Development Department. FISCAL IMPACT Budgeted: Yes Budget Year: 2025-27 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Project Balance Annual Ongoing Cost (2000075-10) Water Fund – 2000075-10, 10.01 $ 197,164.14 $ $ 197,164.14 $ - Sewer Fund – 2000075-10, 10.01 $ 131,324.14 $ $ 131,324.14 $ - Sewer Fund Completed Projects – 602.9501.71501 $ 1,182,406.95 $ 24,948.21 $ 24,948.21 $ - Total $ 1,510,895.23 $ 24,948.21 $ 353,436.49 $ - Page 75 of 251 Item 6d 879 Morro Roof Replacement, Specification No. 2000075-10 879 Morro - Roof 2000075-10, 10.01 Water Fund (601) 879 Morro - Roof 2000075-10, 10.01 Sewer Fund (602) Sewer Fund Completed Projects – 602.9501.71501 Project Total Construction $94,537.48 $94,537.48 $0 $189,074.96 Construction Contingency (25%) $23,634.37 $23,634.37 $0 $47,268.74 Total for Construction $118,171.85 $118,171.85 $0 $236,343.70 Construction Design Support $3,950.00 $3,950.00 $0 $7,900.00 Printing $500.00 $500.00 $0 $1,000.00 Termite Remediation $33,650.50 $8,702.29 $24,948.21 $67,301.00 Total Project Cost $156,272.35 $131,324.14 $24,948.21 $312,544.70 Total Available $197,164.14 $131,324.14 $24,948.21 $353,436.49 Remainder $40,891.79 $0 $0 $40,891.79 The project was initially identified in the 2021 -23 Financial Plan, where $15,000 was allocated for design services, split between the Water and Sewer Funds. The 2023-25 Financial Plan allocated an additional $100,000 for the construction phase. The 2024-25 Supplemental Budget allocated an additional $130,000 to support the construction phase , split between the Water and Sewer Funds. The 2025-27 Financial Plan allocated an additional $75,000 to accommodate construction cost escalation, split between the Water and Sewer Funds. As of February 13, 2026, there is currently a balance of $328,488.28 in the project account. The total estimated project cost is $312,544.70. Funding for the project will be split evenly between the Water and Sewer Funds, which can be accomplished by transferring $24,948.21 from the Sewer Completed Projects Fund into the project account to contribute toward termite remediation. The project account has sufficient funds among the Water Fund, Sewer Fund, and Sewer Completed Projects Fund to award the lowest responsive bid, complete construction, and hire a pest control company to perform termite remediation with $40,891.79 in remaining budget from the Water Fund . Page 76 of 251 Item 6d ALTERNATIVES Reject all bids and readvertise the project. The estimated project cost is within available project budget. Re-advertising the project would result in cost escalation, which could require the need for additional funding. Additionally, there is a small windo w during the dry season when Utilities staff can reasonably be relocated during construction (August 10, 2026 – September 11, 2026). Should this window be missed in 2026, construction will not be able to occur until spring of 2027 at the earliest, which wo uld likely result in further cost increases. ATTACHMENTS A - Draft Contract, Specification No. 2000075-10 B - Termite Abatement Estimate - Brezden Pest Control Inc C - Bid Protest Letter - Southland Roofing Inc D - Bid Protest Response Letter - Ranger Roofing and Solar Page 77 of 251 Page 78 of 251 APPENDIX 0 AGREEMENT THIS AGREEMENT, made on ______________________, by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the City) and RANGER ROOFING AND SOLAR (hereinafter called the Contractor). WITNESSETH: That the City and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of 879 MORRO ROOF REPLACEMENT, SPEC NO. 2000075-10 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the City, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the City or its authorized representatives. ARTICLE II, CONTRACT PRICE: The City shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: Item Item Unit of Estimated Item Price Total No. SS(1) Description Measure Quantity (in figures) (in figures) 1 14 Comply w/ applicable OSHA provisions throughout duration of the project. LS 1 ----- $2,200.00 2 99 Disconnect / Unmount MEP conduits, ducts, equipment from roof surface, store on site for reinstallation, and dispose of debris. LS 1 ----- $2,750.00 3 14 Disconnect, unmount, remove, and dispose existing photovoltaic array (48 panels), incl. all components and substructure. LS 1 ----- $10,142.72 4 99 Remove and dispose existing multi-layer bituminous roofing. SQFT 2,000 $4.15 $8,300.00 5* 99 Partially remove, replace, and dispose water-damaged plywood per plan S -1 Allowance. SQFT 200 $14.00 $2,800.00 Page 79 of 251 APPENDIX 1 Item Item Unit of Estimated Item Price Total No. SS(1) Description Measure Quantity (in figures) (in figures) 6* 99 Partially remove, replace, and dispose water-damaged roof 2x8 rafters per plan S-1 Allowance. LF 50 $42.00 $2,100.00 7 99 Remove and dispose existing polycarbonate glazing and gaskets, clean and store aluminum glass stop profiles on site for reinstall. SQFT 180 $7.78 $1,400.40 8 99 Prepare surface for, deliver and install new roofing system incl. all materials SQFT 2,000 $39.49 $78,980.00 9 99 Install new polycarbonate glazing and gaskets in existing skylight structure. SQFT 180 $54.44 $9,799.20 10 99 Deliver and install new scuppers and connect to existing downspouts EA 4 $1,567.06 $6,268.24 11 99 Reinstall/attach/connect MEP conduits, ducts, equipment. LS 1 ----- $3,500.00 12 99 Replace exhaust fan per plan M-1 LS 1 ----- $5,200.00 13 99 Install parapet roof membrane, flashing, and metal coping detail LF 180 $152.78 $27,500.40 14 99 Deliver and install ladder cage EA 1 ----- $7,434.00 15 14 Health and Safety Plan (HSP) LS 1 ----- $2,000.00 16 14 Asbestos Removal by California Certified Asbestos Abater LS 1 ----- $18,700.00 (1) refers to section in the Standard Specifications, with modifications in the Special Provisions, that describe required work. * Bid item exempt from Section 9-1.06B & 9-1.06C of the Standard Specifications. The unit price will not be adjusted regardless of the final bid item quantity. BID TOTAL: $189,074.96 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. If any dispute arises regarding the work or contract price, Contractor must follow the procedures in the contract documents, including the requirements on change order requests and dispute resolution. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and Information for Bidders 2. Standard Specifications and Engineering Standards 3. Special Provisions, any Addenda, Plans and Contract Change Orders 4. Caltrans Standard Specifications and Standard Plans 2024 5. Accepted Bid and Bid Bond Page 80 of 251 APPENDIX 2 6. List of Subcontractors 7. Labor Code Section 1725.5 Statements 8. Bidder Acknowledgements 9. Qualifications 10. Non-Collusion Declaration 11. Agreement and Bonds 12. Insurance Requirements and Forms ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, subcontractors, representatives, or agents, in bidding or performing the work or in failing to comply with any obligation of Contractor under this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s acts or omissions in bidding or performing the work or in failing to comply with any obligation of Contractor under this Agreement. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City. ARTICLE V: It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. Page 81 of 251 APPENDIX 3 ARTICLE VI LABOR CODE COMPLIANCE: This Agreement is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in the contract documents. The project is subject to the prevailing wage requirements applicable to the locality in which the work is to be performed for each craft, classification or type of worker needed to perform the work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes. Copies of these prevailing rates are on file with the City and are available online at http://www.dir.ca.gov/DLSR. City may not enter into the Agreement with a bidder without proof that the bidder and its subcontractors are registered with the DIR to perform public work pursuant to Labor Code section 1725.5, subject to limited legal exceptions. Pursuant to Labor Code § 1861, by signing this Agreement, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work on this contract.” Page 82 of 251 APPENDIX 4 IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation __________________________________ Whitney McDonald, City Manager APPROVED AS TO FORM CONTRACTOR: Ranger Roofing and Solar ________________________________ By:________________________________ J. Christine Dietrick City Attorney Chad A. Kozak Its: CEO (2nd signature required if Corporation): By:________________________________ Levy Benitez Its: Project Manager Page 83 of 251 Page 84 of 251 WORK ORDER AGREEMENT Building No.Street City Zip Date 879 Morro St San Luis Obispo 93401-2710 10/11/24 Brezden Pest Control Inc. 3261 S Higuera St Suite 100,San Luis Obispo,CA 93401-2021 Tel 805-544-9446 Fax 805-544-2807 Registration #:PR30 A LICENSED PEST CONTROL OPERATOR IS AN EXPERT IN HIS/HER FIELD. ANY QUESTIONS RELATIVE TO THIS REPORT SHOULD BE REFERRED TO HIM/HER. Report #:13437 Ordered by:Property Owner and Party of Interest:Completion sent to: Utilities Offices 879 Morro St San Luis Obispo,CA 93401 City of San Luis Obispo 990 Palm St San Luis Obispo,CA 93401 City of San Luis Obispo 990 Palm St San Luis Obispo,CA 93401 COST FOR WORK RECOMMENDED FOR TERMITE REPORT #:13437 SECTION I SECTION II SECTION NOT DETERMINED OR FURTHER INSPECTION RECOMMENDED 2A $67,301.00 Total Section I: $67,301.00 I HEREBY AUTHORIZE BREZDEN PEST CONTROL INC.TO PERFORM THE FOLLOWING ITEMS: TERMS: DOES ANY PERSON LIVING OR WORKING AT THIS ADDRESS HAVE ANY KNOWN CHEMICAL SENSITIVITES OR ALLERGIES? YES /NO HAVE YOU OR ANYONE ELSE LIVING OR WORKING AT THIS ADDRESS EVER MADE ANY PESTICIDE APPLICATIONS TO THE INTERIOR OR EXTERIOR OF THE STRUCTURE? YES /NO AUTHORIZATION CONDITIONS: BY OWNER/AGENT/BUYER Brezden Pest Control Inc. PHONE: 805-781-7371 By: James Byon SIGNATURE: Signature: Lic.#:FR51027 NOTE:WORK WILL NOT COMMENCE UNTIL DELIVERY OF YOUR WOOD DESTROYING PESTS AND ORGANISMS REPORT. FOR DETAILS REGARDING THE ABOVE RECOMMENDATIONS PLEASE REFER TO YOUR INSPECTION REPORT. Page 85 of 251 Page 86 of 251 1 Date: 02/13/2026 From: Southland Roofing, Inc. 9127 S Western Avenue, Los Angeles, CA, 90047 February 13, 2026 To: City of San Luis Obispo Public Works and Utilities Department Attn: Project Manager - 919 Palm Street San Luis Obispo, CA 93401 Re: Bid Protest – Apparent Lowest Bidder, Specification No. 2000075-10 (879 Morro Roof Replacement) Dear Sir or Madam, Pursuant to the Notice to Bidders and the bid protest procedures set forth in the Contract Documents, this letter serves as a formal protest of the apparent lowest bidder for the above- referenced project. This protest is submitted timely within the required protest period and is made by an actual bidder on this project, in accordance with the City’s stated protest requirements. The basis of this protest is that the apparent lowest bidder is not certified or approved to install Garland roofing products, which are specified for this project, and failed to submit any substitution request or “or-equal” request prior to the bid date, as required by the Contract Documents. As a result, the bidder’s proposal does not comply with the specified material and manufacturer requirements and is therefore non-responsive. The Contract Documents require strict compliance with the specified roofing system and manufacturer requirements. Any proposed deviation or substitution must be formally requested and approved prior to bid submission. Allowing a bidder who is neither certified nor approved by the specified manufacturer, and who did not submit a timely substitution request, would be inconsistent with the bidding requirements and would undermine the integrity of the competitive bidding process. Page 87 of 251 2 Accordingly, the undersigned respectfully requests that the City determine the apparent lowest bidder to be non-responsive, reject that bid, and proceed with award to the lowest responsive and responsible bidder who fully complies with the Contract Documents, including manufacturer certification and substitution requirements. Supporting documentation regarding Garland manufacturer’s certification requirements and the absence of a pre-bid substitution request is available upon request and can be provided to the City for review. Thank you for your attention to this matter. Please confirm receipt of this protest and advise of the City’s determination in accordance with the protest procedures outlined in the Contract Documents. Sincerely, Pier Pjerin Prenga | Principal Page 88 of 251 February 23, 2026 Allie Genard Capital Projects Manager City of San Luis Obispo, Public Works 919 Palm Street San Luis Obispo, CA 93401 RE: Bid Protest Response – 879 Morro Roof Replacement (Spec. No. 2000075-10) Ms. Genard, Please see responses to the bid protest claims on the 879 Morro roof replacement project in San Luis Obispo CA. PROTEST CLAIM 1 – Ranger roofing is not an approved applicator with the specified manufacture published by the project architect. RESPONSE - Specification section 071354 calls out in the section 1.6 -C that the bidder be certified with Versico Roofing systems. Attached below is a copy of that section and a copy of Ranger Roofings Versico Roofing Systems certified applicator letter. 1 Los Angeles - Inland Empire - SoCal (619) 748-9663 chad@rangerroofingandsolar.com License #1107898 C-39, C-46 Page 89 of 251 PROTEST CLAIM 2 – Versico was not a specified product in the project specification. RESPONSE - Specification section 071354 in Appendix B section 2.1 – A specifically calls out Versico Roofing Systems Versiflex 80 mil PVC as the basis of design for this project. This is the product and manufacture Ranger Roofing utilized in its project bid. There are contradicting products listed below that are not manufactured by Versico; however, the published project drawings only show the use of the appropriate versico products as can be seen in the highlighted project drawings below. Ranger Roofing is confident that the submitted bid meets the project criteria published by the city and their architect and is fully compliant with the bid process. 2 Los Angeles - Inland Empire - SoCal (619) 748-9663 chad@rangerroofingandsolar.com License #1107898 C-39, C-46 Page 90 of 251 3 Los Angeles - Inland Empire - SoCal (619) 748-9663 chad@rangerroofingandsolar.com License #1107898 C-39, C-46 Page 91 of 251 4 Los Angeles - Inland Empire - SoCal (619) 748-9663 chad@rangerroofingandsolar.com License #1107898 C-39, C-46 Page 92 of 251 Ranger Roofing and Solar bid this project in strict accordance with the project documents provided by the City. We believe the protest is without merit as our submission fulfills all technical and experience requirements set forth in the Special Provisions. Thank you for the opportunity to clarify our position. Sincerely, Chad A. Kozak CEO, Ranger Roofing and Solar 5 Los Angeles - Inland Empire - SoCal (619) 748-9663 chad@rangerroofingandsolar.com License #1107898 C-39, C-46 Page 93 of 251 Page 94 of 251