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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