HomeMy WebLinkAbout04/18/1989, 2 - AWARD OF CONTRACT FOR MARSH STREET PUBLIC PARKING STRUCTURE, CITY PLAN NO. M-41D. MEETING DATE:
I �41��IIII,I�III city Of San LUIS OBISPO E April 18 1989
ITEM N MBEfl:
COUNCIL AGENDA REPORT
FROM:
David F. Romero
Public Works Director
SUBJECT:
Award of Contract for Marsh Street Public Parking Structure, City Plan No.
M-41D.
RECOMMENDATION:
Adopt Resolution Awarding the Contract to Madonna Construction Company
(Including Alternates 7 & 8, for a Total Contract of $3,621 ,800.00) .
BACKGROUND:
The Marsh Street Structure is a four-level building with 276 parking spaces.
The ground floor will be occupied by about 15,000 square feet of commercial
space and 4,000 square feet of office space. Pursuant to the negotiated
agreement for the acquisition of the site, Riley's Department Store will occupy
the comercial space for expansion of its store; the office space is designed to
meet the needs of City Parking Management staff.
On January 3, 1989 the City Council approved plans and specifications and
authorized staff to advertise for bids. Bids were opened April 5. 1989, the
results of which are shown on the attached Bid Summary Sheet.
DISCUSSION:
The city has received a telegram and a letter from Nick Pokrajac (Exhibit A),
second bidder, protesting the bid;submitted by Madonna Construction Co. The
basis of the protest is: a) that Madonna did not list each subcontractor
conducting work in excess of 0.5% of the work, b) that Madonna Construction Co.
does not have the two specialty licenses required, and c) that Madonna
Construction Co. is not a responsible bidder.
The bid of apparent low bidder Madonna Construction Co. included only two
subcontractors. State law (Exhibit B) and the city specifications (Exhibit C)
call for the bidder to furnish certain information regarding all subcontractors
who will be performing work in excess of 0.5% of the total base bid. Under
state low, not listing subcontractors means the general contractor will do the
work with his own employees, even if that work is listed as subcontract work by
other bidders on the project.
Special licenses, not believed to be currently held by Madonna, are required
for design and installation of the fire sprinkler system and for the elevator
installation. The implication of the Madonna b:d is that Madonna will hire
this skill and knowledge as employees of the company to conduct the work.
RECEiVEC
AN 1 309
Ci1VCLERK
city of San LUIS OBISPO
COUNCIL AGENDA REPORT
M-41D Award
Meeting of April 18, 1989
Page Two.
In order to determine that Madonna Construction Co. is not a responsible
bidder, the City would have to find this firm did not have the quality, fitness
or capacity to satisfactorily perform the work. The City could also consider
the contractor's financial resources, his surety and insurance experience,
construction experience, completion ability, personnel or workload.
Considering that Madonna Construction Co. is one of the largest and most
successful contracting firms in the state and has satisfactorily completed
numerous city jobs, staff can find no basis that this firm is not a responsible
bidder.
STAFF CONCURRENCE:
Upon request of the Acting City Attorney, former City Attorney Roger Picquet
has reviewed the bid documents, the protest, the state law and findings. He
notes that the obligation to meet the state laws rests with Madonna
Construction Co. and neither the law nor the Contractor's State License Board
requires employees with the required licenses or experience to be hired prior
to the time of bid submission. Also, that any subcontracting after bid
submission would subject Madonna to possible substantial penalties. His
research uncovered no support for the allegation that failure to subcontract
makes Madonna a non-responsible bidder. His conclusions and opinion have
formed the basis of this staff report.
FISCAL IMPACT:
The parking fund balance (including bond proceeds) is adequate for construction
of the Marsh Street Parking Structure. After completion of this project the
fund is expected to have a balance of less than $1 , 000,000 exclusive of
required reserves. This balance would be available for future projects or
meeting unanticipated expenses.
The bonds require an annual debt service of approximately $928,000 to be paid
from the parking fund. Revenues include revenues from meters, parking
structures, fines, in-lieu fees, and a retail lease. Estimated revenue for
1991 (first full year of operation of the Marsh Street Structure) is expected
to exceed $1 , 100,000.
PARKING STRUCTURE DEVELOPMENT
Palm Street Parking Structure
Revenue Sources Total Costs (Actual)
County Contribution $1 ,250,000 $3,400,000
Bond Proceeds 2, 150,000
Total $3,400,000
411eqpIllpxi§I city of San Luis OBISPO
WOMEN ALNo COUNCIL AGENDA REPORT
M-410 Award
Meeting of April 18, 1989
Page Three.
Marsh Street Parking Structure
Revenue Sources Total Costs (Estimated)
Parking Fund Balance $6,574,000 Construction $3,621 ,800
(Includes over $4 million in bond Land 459,000
proceeds plus parking revenues) Architect fees 262,500
Less Required Reserve ($1 ,024, 000) Contingencies and i
Inspection 250,700
Available for Parking Total $4,594,000
Projects $5,550,000*
*After construction of the Marsh Street Parking Structure an estimated balance
of $956,000.00 will remain in the Parking Fund.
Conditions of obtaining bond proceeds call for the city to expend the funds (a
contract award suffices) by May 1 , 1989, therefore timely action is imperative.
STAFF RECOMMENDATION:
Two add-on alternates were bid in the amount of $100.00 each, for under their
value. Staff recommends that these be awarded with the basic contract.
Several deduct alternates were bid far under their value. Staff recommends
these not be deducted from the contract.
Adopt resolution awarding contract to Madonna Construction Company including
alternates 7 & 8 ($200.00) in the amount of $3,621 ,800.00.
Attachments:
Resolution
Bid Summary
Exhibits A, B, C
APPROVED: I
.?Acting
Ad inistrjiveOfer Date
�4 9
i Atate
Fino ce irector Date I
tpg3/m41d-award
by -3
_ RESOLU,TION NO. (1989 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ACCEPTING BID AND AWARDING A CONTRACT FOR THE CONSTRUCTION
OF THE MARSH STREET PUBLIC PARKING STRUCTURE
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1 . The Council accepts the bid and authorizes the Mayor to sign a
contract on behalf of the City for the following:
PROJECT: Marsh Street Public CITY PLAN NO. : M-41D
Parking Structure
ESTIMATE: $5,820,000.00 BUDGET ACCOUNT: 051-9863-092-572
BIDDER: Madonna Construction Co. BID AMOUNT: $3,621 ,600.00
SECTION 2. The Public Works Department shall prepare the appropriate
documents for signature by the successful bidder and the Mayor.
SECTION 3. The City Finance Director shall transfer $3,822.500.00 to
account no. 051-9863-092-572.
The City Clerk shall furnish a copy of this Resolution to the City Finance
Director and the City Public Works Director.
On motion of seconded by
and on the following roll 'call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of
1989.
MAYOR
ATTEST:
CITY CLERK
Resolution No. ( 489 Series)
Page Two.
APPROVED:
City A ministrative Officer
Acting Cit Attorney
Public Works Dire for
it ce Director
tpg3/m41d-award
by
BID SUMMARY
City of SAI; LUIS GBISPO
Bic upe'::c 82i°: ADr 5, :qiA
TIKC: :•10 Pr 5`: 5i'Ce: rut::: rariariq Structure
ENE:NEER'E ; MADONNA CGNSTRL'CTiGN NICK POKRA AC, INC. pAING ASSOCIATES ,
BID ITEM k DESCRIPTIUN E5TIMATE .SAN LMS GBISPG, CA. TEi,PLETON, CA. ; SAil LUIS OBiSPG, CA.;
,
Kc.
ILTEri U1iiT DUAN.; PRICE A1GUN: PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT I
Construct
I Parkino Structure L.S. 1'; 3235000 3235000 ; 3036600 3036600 ; 3562003 3562003 ; 3626594 362659; ;
i 2 Caastruct Piles L.F. 5650 ; 100 S850GU 100 20000 ! 67 391550 : 63.63 773406 ;
BID TOTALS 3820000 3621600 3953953 4000000 ;
ENGINEER'S ;A.O. DIANi CONST. CO.;R.A. EKELiN a ASSOC. .
BID ITE" & DESCRIPTION` ESTIMATE SANTA MARIA, CA. SALIHAS, CA. ;
UNIT ; UNIT ; UNIT i UNIT ;
No. ITEM UNIT DUAN.; PRICE AMOUNT ; PRICE AMOUNT PRICE AMOUNT 1 PRICE AMOUNT
Construct 1 ;
1 Parkino Structure L.S. 1 ; 3235000 3235000 ; 4378500 4378500 ; 4552610 4582610 ; 0 ;
2 Construct Piles L.P. 5850 ; 100 585000 ; 79 462150 1 54.36 318006 ; 0
BID TOTALS ; 3620000 ; 4940650 ; 4900616 ; 0 ;
,
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2 8054342219 QRN MI-11-1-ETON CA 04-05 <1'7I:1
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Denotes action by Lead Person
Po.F.Pond by,
�nuncio
ir✓C,A 0
ity Atly
CITY OF S-Al I I I I C;F.;I ;-PC-1
990 SlQ rk-orig.
SAN LUIS OE�' C. j 7h, fl<W6.0e-06
THIS IS A CON17IRNAFION COP-1 OF A TEL.EGRAM ADDRESSED TO
THIS IS NOTICE TO YOU THAT I WOULD Lll:'%E TO PROTEST
CONSTIRLICTIOWS BID ON THF f-41ARS-31-4 SnTREE-f PART-ANIG 01D
NOT LIST' ALL S(lBC;0rITRACTOf.--,'S.
NICK E P011RAJAC, INCORPORATE-0 (Mf) )
PO BOX 529
TEMPL.ETON (79
19: 11 EST
MGMCOMP
RECEIVED
AM 71"19
SAN LUIS C•
TO REPLY RY MAILGRAM MESSAGE. SEE REVERSE SOF FOR WESTERN UNION'S TOLI f(iFE PflONr 1411h.411r.RS IIVVJ/
NICK E. POKRA,JAC, INC.
General Building & Engineering Contractor
. Z. Femmes ern t diad P�:rcVn
Respond by:
April 6 , 19 8 9r6<6S
unci
0
Atty.
City of San Luis Obiso_ o rk-orig.
990 Palm Street RoMC40
San Luis Obispo, CA 93401
r(3
—.ATTENTION: City Clerk —
RE: Marsh Street Parkinv_ Structure
City Plan No. M-41D
Gentlemen:
This letter is confirmation of our telegram sent to you
yesterday, April 5 , 1989 , informing you that we wish to
formally protest the bid submitted by Madonna Construction
on the above referenced project.
Pursuant to the Public Contract Code of. the State of Calif-
ornia, Contractors are reauired to list the name of each
subcontractor for the various classifications of work who
will perform work of labor or render service to the contract
or al_-ou = u1i: :il�.j�Ci. , C' a value in. excess or 011e-}mal.`
of one percent '(0 . 58) of the bid. If a subcontractor is not
listed for a classification of work, the Bidder is statincr
that he is fully qualified to perform said work and that he
will perform the work.
This project involves a number of classifications that are
highly specialized and technical. . Madonna Construction did
not list subcontractors .for these particular areas of work ,
and we seriously doubt that they have the qualifications to
perform the work themselves.
The facts clearly indicate that Madonna Construction is not
the lowest responsible bidder, and should not be awarded the
contract for this project, j
Sincerely,
NICK .E. POKRAJAC INC.
Nick E. Pokrajac,
President
RECEIVED
State License No. 496795 -P.O. Box 539•Templeton,CA 93465-805/434-12919
NP/pd A - 2 AR? ( "^ 9
oTYC(ERK /��
NICK E. POKRA,JAC, INC.
General Building & Engineering Contractor
;=6 x�ot�S a666n GyLe.1d Parson
April 6 , 1989 Resrc1•'1 bV: 4+
r)Cc nncil
�a.�rttnig.
City of San Luis Obispo Qe.nf1-6
990 Palm Street u1• Pvercry
San Luis Obispo, CA 93401 [.]
ATTENTION: City Clerk
RE: Marsh Street Parking Structure
City Plan No. M-41D
Gentlemen:
I would like request copies of all bid documents submitted
by all bidders on the above referenced project. Please call
my office when the copies are ready and I will pick them up.
Thank you,
NICK E. POKRAJAC INC.
Nick E_ Pokrajac,
President
NP/pd
State License No.496795•P.O. Box 539•Templeton,G4 93465.805/434-2219 RECEIVED
A-3 APR 799
«> tK
smNtuosor0�110.c,o2—
Details for Bids
4104 Any officer, department, board or commission taking bids for the
construction of any public.work or improvement shall provide in the specifications
prepared for the work or improvement or in the general conditions under which
bids will be received for the doing of the work incident to the public work or
improvement that any person making a bid or offer to perform the work,shall,in
his or her bid or offer,set forth:
(a) The name and the location of the place of business of each subcontractor
who will perform work or labor or render service to the prime contractor in or
about the construction of the work or improvement,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 or improvement according to ,detailed
drawings contained in the plans and specifications, in an amount in excess of
one-half of 1 percent of the prime contractor's total bid.
(b) The portion of the work which will be done by each subcontractor under
this act.The prime contractor shall list only one subcontractor for each.portion as
is defined by the prime contractor in his or her bid.
t
Listing of Contractor Who Intends to Sublet
4105. Circumvention by a general contractor who bids as a prime contractor V
of the requirement under Section 4104 for him or her to list his or her
subcontractors,by the device of listing another contractor who will in turn sublet
portions constituting the ma'ority of the work covered by the prime contract,shall
be considered a violation oFthis chapter and shall subject that prime contractor �t
to the penalties set forth in Sections 4110 and 4111.
Failure to Specify Subcontractor G�
4106. If a prime contractor fails to specify a subcontractor or if a prime -+
contractor specifies more than one subcontractor for the same portion of work to '
be performed under the contract in excess of one-half of 1 percent of the prime
contractor's total bid,the prime contractor agrees that he or she is fully qualified
to perform that portion himself or herself, and that the prime contractor shall l �^
perform that portion himself or herself. 1
EXHIBIT B.
02 -i v
l
' SECTION 1 . PROPOSAL REQUIREMENTS AND AWARD OF CONTRACT i
i
A. General Information. Sealed bids will be received at the office of
the City Clerk of the City of San Luis Obispo, State of California, in the
City' Hall, 990 Palm Street, San Luis Obispo at the time and on the date as
specified in the NOTICE TO BIDDERS.
B. Estimate of Quantities. The quantities given in the proposal and
contract forms are approximate only, being given as a basis for the
comparison of bids, and the City of San Luis Obispo does not, expressly or
by implication, agree . that the actual amount of work will correspond '
therewith, but reserves the right to increase or decrease the amount of
any class or portion of the work or to omit portions of the work, as may
be deemed necessary or advisable by the Engineer.
C. Examination of Plans Specifications Special Provisions and. Site of
Work. The bidder is required to examine carefully the site of the work,
proposal. plans, special provisions, specifications, and contract forms
for the work contemplated; and it will be assumed that the bidder has
investigated. and is satisfied as to the conditions to be encountered, as
to the character, quality and quantities of work to be performed and
materials to be furnished, and as to the requirements of the
specifications. the special provisions, and the Contract. It is mutually
agreed that the submission of a proposal shall be considered prima facie
evidence that the bidder has made such examination.
D. Proposal Form. All proposals must be made upon blank forms to be
obtained from the City Clerk's office in the City of San Luis Obispo. All
proposals must give the prices proposed, in figures, and must be signed by i
the bidder, with his address. If the proposal is made by an individual,
his name a:.d post office address must be shown. If made by a firm or a
partnership, the name and post office address. of. each member of the firm
or partnership must be shown. If made by a corporation, the proposal must I'
show the name of the state under the laws of which the corporation was II
chartered, the names, titles, and business addresses of the president,
secretary, and treasurer.
E. List of Subcontractors. Pursuant to the Government Code, Division 5,
Chapter 2, Sections 4104 and 4113 (and any amendments thereto), the bidder
is required to furnish and set forth with his bid the following
information:
(a) The name, license number, and location of the place of business li
of each subcontractor who will be performing work in excess of 0.5% of
the total base bid.
(b) Specific description of that port:on of the work that will be
done by each subcontractor. The contractor shall list only one II
subcontractor for each such portion as is defined by the contractor in it
' his bid. J
1-1
Rev. 8/88