HomeMy WebLinkAbout06/06/1995, C-4 - COMPLETION OF SANTA ROSA PARK (CITY PROJECT 93-43B) III� � city of San Luis OBlapo MEETING DATE:ITEM NUMBER:99 r
COUNCIL AGENDA REPORT
PROM: MIRE MCCLUSREY, Public Works Directcr'79)�
PREPARED BY: MIRE BERTACCINI, Engineering Assist
SUEkTECT: COMPLETION OP SANTA ROSA PARR
(City Project 93-43B)
CAO Adopt a Resolution Authorising Emergency
RECOMMENDATION: Bid Procedures for Completion of Santa. Rosa Park
(City Project No. 93-43B)
DISCUSSION:
On July 1, 1994, Complete Development Services (CDS) was awarded
City Project No. 93-43B, which included the Santa Rosa Park
renovation project. The City expected the project to be completed
well before the end of the 1994-1995 school year. On May 24, 1995,
the City declared CDS to be in default on City Project 93-43B,
based on CDS' failure to maintain an adequate working force,
failure to pay its subcontractors, and failure to maintain workers
compensation and general liability insurance. Santa Rosa Park is
about 90% complete at this time and a rough estimate of the cost to
complete that park is $35, 000.00.
Although Santa Rosa Park is still under construction, the general
public perceives it to be complete. Children play throughout the
park, and previous efforts to keep the public out of the incomplete
areas have been unsuccessful. CDS' bonding company, Gulf
Insurance, has been notified and has agreed to permit the City to
hire a new contractor to finish Santa Rosa Park, and to account for
that work to determine completion costs.
The problem with having the City hire a new contractor to complete
the project is the significant delay associated with strict
adherence to competitive bidding requirements. Due to the
incomplete nature of Santa Rosa Park, there are concerns about the
safety of the park in its current condition, including lack of
landscaping buffers and lack of grass around the play area. More
significantly, any further delay of this project means the
completion work will occur during the summer months when children
are heavily using the park. These children will be interacting
with the heavy equipment used for the finish grading, rototilling,
and soil preparation. Even though the general contractor will
have liability insurance and will take necessary safety
precautions, the risk of injury to children will still be greatly
increased. These concerns will be much greater once school is out
at the end of June. I
Agenda Report
Page Two
The Public Contract Code provides the City Council with the
authority to suspend the competitive bidding procedures and adopt
emergency bid procedures. Public Contracts Code § 22050 states:
"In case of an emergency, a public agency, pursuant to a
four-fifths vote of the governing body, may repair or
replace a public facility, take any directly related
action required by that emergency and procure the
necessary equipment, services, and supplies for those
purposes, without giving notice for bids to let contracts
. Before a governing body takes any action pursuant
toparagraph (1) , it shall make a finding based on
substantial evidence set forth in the minutes of its
meeting, that the emergency will not permit a delay
resulting from a competitive solicitation for bids, and
that the action is necessary to respond to the
emergency. "
In this case, an abbreviated competitive procedure is being
recommended. A standard bid package will be prepared which will
include completion details. Rather than formally advertising, the
City will contact four contractors who would be interested in
bidding this work. After those contractors review the bid package,
a mandatory walk-through will be conducted after which sealed bids
will be submitted. This process will take about 15 days as opposed
to 30 or more days under the usual process. Although some portion
of the work will be done after the end of the school year, using
this abbreviated process will greatly reduce the amount of time of
conflict and potential injury.
CONCURRENCES:
The City Attorney has reviewed this matter and concurs with the CAO
recommendation.
FISCAL IMPACT:
There should not be any fiscal impact due to the understanding with
Gulf Insurance that any project overruns attributable to the new
contract are to be reimbursed to the City during the accounting at
the completion of the project. At this time, there are enough
remaining contract funds to pay for the new contract.
ALTERNATIVES:
Do not suspend competitive bidding and require the new completion
project be let to public bidding. This would result in at least a
45 day delay in completion of Santa Rosa Park renovation thereby
exposing the City to greater liability and leaving the park
e��
Agenda Report
Page Three
incomplete for most of the peak summermonths.. Fencing would need
to be .installed. to secure the pAfk during the delay period, and the
Cost of the fencing could easily Add several thousand dollars to
the cost to complete.
Attachments:
Draft Resolution
rlc
Letter of Default to EDS
RESOLUTION NO. (1995 series)
AUTHORIZATION OF EMERGENCY BID PROCEDURES
FOR COMPLETION OF BANTA ROSA PARK
(CITY PROJECT NO. 93-43B)
WHEREAS, Complete Development Services has been declared to be
in default on the Santa Rosa Park Renovation Project (City Project
No. 93-43B) ; and
WHEREAS, the incomplete status of Santa Rosa Park exposes the
City to liability and will present an unsafe condition during
construction completion; and
WHEREAS, the end of the 1994-95 school year in mid-June means
that significantly more children will be playing at Santa Rosa Park
and will be exposed to the unsafe construction completion
conditions; and
WHEREAS, complying with the competitive bidding process will
result in a significant delay of completion of the Santa Rosa Park
project and corresponding delay in finishing the project prior to
the end of the school year and preventing an unsafe condition at
Santa Rosa Park;
NOW, THEREFORE, BE IT RESOLVED, The City Council of the City
of San Luis Obispo does hereby find that an emergency condition
exists at Santa Rosa Park necessitating the elimination of the
formal competitive bid solicitation process. The City
Administrative Officer is hereby authorized to accept the lowest
competitive bid, to be selected after an informal project walk-
through and bid submission process.
Upon motion of , seconded by
and on the following roll call vote:
Ayes:
Noes:
Absent:
the foregoing resolution was adopted this day of ,
1995.
Mayor Allen Settle
Resolution No. (1995 Series)
Page Two
ATTEST:
Diane Gladwell, City Clerk
APPROVED:
John Dunn
City Administrative Officer
9670 nan
J/affrey G. JroFgensen
City Attorney
- l f
II ILII IIIA at of sAn luis omspo
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
May 24, 1995
Joseph Silvaggio, Project Manager
Terry Simons, Project Manager
Complete Development Services, Inc.
609 Palm Street
San Luis Obispo, CA 93401
Subject: City Project 93-43B
Dear Mr. Silvaggio and Mr. Simons:
The City of San Luis Obispo (hereafter City) hereby notifies
you that Complete Development Services (hereafter CDS) is in
default on City Project 93-43B. The defaults that need to be
remedied are as follows:
1. CDS has failed to maintain an adequate working force. CDS
has not had any employees on site since April 24 , 1994 . CDS has
not been directing any subcontractor work on site since April 28,
1995.
2. CDS has failed to comply with Public Contract Code section
10262. Based on the receipt of numerous stop notices from
subcontractors on this project, City has reason to believe that CDS
has not paid its subcontractors within ten days of CDS' receipt of
progress payments. (See attached list of outstanding stop notices) .
3 . CDS has failed to maintain Workers Compensation Insurance
and Liability Insurance as required by section 7-1. 12 of the City
Standard Specifications, which is expressly incorporated by
reference into the contract between City and CDS for City Project
93-43B. CDS' workers compensation insurance policy expired on
April 25, 1995. Further, CDS' liability insurance policy expired
on May 14, 1995.
Pursuant to Public Contract Code section 10253 , the City is
hereby notifying CDS that if these defaults are not remedied within
five days calendar days, CDS will be declared to be in default on
V� The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities.
Telecommunications Device for the Deaf(805)781-7410.
Joseph Silvaggio
Terry Simons
May 24, 1995
Page Two
City Project 93-43B and CDS11 control over the work will be
terminated.
incerely,
i
John Dunn
City Administrative Officer
JD/cc
cc: Andrew Olsson, Robinson & Wood
Gulf Insurance Company
Evans Barbieri
Mike McCluskey
Mike Bertaccini
t
Stop Notices (93-43B)
Filing Entity Amount Notes
San Luis Ready Mix $101875.89
Kidder Trucking $1,329.79 One stop notice filed for both contracts,
amount was split evenly. Kidder will be
submitting new stop notices which define '
actual amount to be applied to each contract
Farm Supply Company $3,524.22
$3 076.37 One stop notice f led between botheontracts,
Hanover Specialties atnount noted is proportional split baud on
line quantites listed in each coniract
Gordon Sand Company $1,108.34
Michael Brey Construction $4,000.00
Ran Equipment Faxed copy only,original forthcoming.
Y57,692.74
Town & Country Fence Not fled yet,s6,800.00
Total L $23,914.61
Stop Notices (93-43C)
Filing Entity Amount Notes
San Luis Ready Mix $24,075.30
Kidder Truckincy $1,329.79 One stop notice fiiledfor both contracts;
amount was split evenly. Kidder will be
submitting new stop notices which define
actual amount to be applied to each contract
Farm Supply Company $7,316.80
Hanover Specialties $7,178.18 One stop notice filed between both contracts,
amount noted is proportional split based on
tine quantites listed in each contract
Coast Rock $604.68
Michael Brey Construction $4,000.00
RyanEquipment Faxed copy only,original forthcoming.
Y57,692.74
Total $442504.75