HomeMy WebLinkAboutAgenda Report - August 5, 2020 C-04AGENDA ITEM Cla4
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Rejecting All Bids, Approving Specifications, Authorizing Re -
Advertisement for Bids, Authorizing City Manager to Award Contract to Lowest,
Responsive Bidder for Lodi Avenue and Mills Avenue Resurfacing Project
($1,400,000), and Authorizing City Manager to Execute Change Orders ($200,000)
MEETING DATE:
PREPARED BY:
August 5, 2020
Public Works Director
RECOMMENDED ACTION: Adopt resolution rejecting all bids, approving specifications, authorizing
re -advertisement for bids, authorizing City Manager to award Contract
to lowest, responsive bidder for Lodi Avenue and Mills Avenue
Resurfacing Project, in an amount not -to -exceed $1,400,000, and authorizing City Manager to execute
change orders in an amount not to exceed $200,000.
BACKGROUND INFORMATION: Council approved the specifications and authorized advertisement for
bids on February 5, 2020. This project consists of localized pavement
repair, the application of approximately 24,000 square yards of
rubberized asphalt cape seal, and 21,000 square yards of fiberized slurry seal. The project limits will
include Lodi Avenue (from Ham Lane to Hutchins Street) and Mills Avenue (from Lodi Avenue to Kettleman
Lane), as shown on Exhibit A.
The City received the following five bids on July 8, 2020
The bid from DSS Company dba Knife River Construction was deemed unresponsive as it did not include
Receipt of Addendum No. 2. Staff then reviewed the bid documents from the lowest two responsive
bidders. The review included (among other things) an evaluation of the Disadvantaged Business
Enterprise (DBE) participation, based on Title 49 of the Code of Federal Regulation, Appendix A to Part
26 "Guidance Concerning Good Faith Efforts." The DBE Participation Goal for this project was
established to be 12 percent.
The bid review findings were based on an investigation which concluded Central Valley Engineering could
only claim DBE participation of two percent and failed to take all necessary reasonable efforts required to
obtain DBE participation, as required by Title 49 and Caltrans. If awarded to Central Valley Engineering,
a bid protest may result and/or federal funding for this project ($1,656,281) could be jeopardized.
APPROVE
-Sfephen Sc�hwabduer, City Manager
K:\WP\PROJECTS\STREETS\Lodi-Mills Resurfacing\CSA - Reject-Rebid.doc
7/24/2020
Above/(Below)
Bidder
Location
Bid
Engineer's Estimate
Engineers Estimate
$1,547,020.00
Knife River Construction
Stockton
*$1,178,727.00
($368,293.00)
Central Valley Engineering
Roseville
$1,207,111.50
($339,908.50)
Dirt Dynasty, Inc.
Farmington
$1,498,349.00
($48,671.00)
Martin Brothers Construction
Sacramento
$1,504,000.00
($43,020.00)
B&M Builders, Inc.
Rancho Cordova
$1,740,423.00
$193,703.00
"Unresponsive Bid
The bid from DSS Company dba Knife River Construction was deemed unresponsive as it did not include
Receipt of Addendum No. 2. Staff then reviewed the bid documents from the lowest two responsive
bidders. The review included (among other things) an evaluation of the Disadvantaged Business
Enterprise (DBE) participation, based on Title 49 of the Code of Federal Regulation, Appendix A to Part
26 "Guidance Concerning Good Faith Efforts." The DBE Participation Goal for this project was
established to be 12 percent.
The bid review findings were based on an investigation which concluded Central Valley Engineering could
only claim DBE participation of two percent and failed to take all necessary reasonable efforts required to
obtain DBE participation, as required by Title 49 and Caltrans. If awarded to Central Valley Engineering,
a bid protest may result and/or federal funding for this project ($1,656,281) could be jeopardized.
APPROVE
-Sfephen Sc�hwabduer, City Manager
K:\WP\PROJECTS\STREETS\Lodi-Mills Resurfacing\CSA - Reject-Rebid.doc
7/24/2020
Adopt Resolution Rejecting All Bids, Approving Specifications, Authorizing Re -Advertisement for Bids, Authorizing City Manager to Award Contract to Lowest,
Responsive Bidder for Lodi Avenue and Mills Avenue Resurfacing Project ($1,400,000), and Authorizing City Manager to Execute Change Orders ($200,000)
August 5, 2020
Page 2
The second lowest responsive bidder is Dirt Dynasty, Inc,, a DBE contractor, who could claim DBE
participation of 65.5 percent. The bid submitted by Dirt Dynasty, Inc. is approximately $300,000 above
the bids submitted by DSS Company dba Knife River Construction and Central Valley Engineering,
indicating the bid is overpriced. Due to this substantial difference, Staff recommends Council reject all
bids and authorize re -advertisement, as $300,000 could pay for approximately 120,000 square feet of
additional pavement repair.
The specifications are on file in the Public Works Department. The planned re -bid opening date is
September 2, 2020. The estimate remains at $1,547,020.
Staff recommends rejecting all bids, approving specifications, authorizing re -advertisement for bids,
authorizing City Manager to award Contract to lowest, responsive bidder for Lodi Avenue and Mills Avenue
Resurfacing Project, in an amount not -to -exceed $1,400,000, and authorizing City Manager to execute
change orders in an amount not to exceed $200,000.
FISCAL IMPACT: By investing in the recommended maintenance project, significant capital
dollars will be saved by extending the useful life of the pavement and
foregoing more costly pavement reconstruction
FUNDING AVAILABLE: Fiscal Year 2020/21 Budget:
Federal Grants (30799000.77020): $1,645,600
Gas Tax (30299000.7702000): 224,400
TOTAL: $1,870,000
Susan Bjork for:
Andrew Keys
Deputy City Manager/Internal Services Director
C-)
Charles E. Swimley, .Sr.
Public Works Director
Prepared by Jimi Bllligmeier, Associate Civil Engineer
CES/JB/tc
Attachment
cc: Deputy Public Works Director/City Engineer
Public Works Management Analyst
K:\WP\PROJECTS\STREETS\Lodi-Mills Resurfacing\CSA- Reject-Rebid.doc 7/24/2020
EXHIBIT A
LODI AVENUE AND MILLS AVENUE RESURFACING PROJECT
PROJECT LOCATION MAP
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RESOLUTION NO. 2020-171
A RESOLUTION OF THE LODI CITY COUNCIL
REJECTING ALL BIDS; APPROVING SPECIFICATIONS;
AUTHORIZING RE -ADVERTISEMENT FOR BIDS; AUTHORIZING
THE CITY MANAGER TO AWARD CONTRACT TO LOWEST
RESPONSIVE BIDDER FOR LODI AVENUE AND MILLS AVENUE
RESURFACING PROJECT; AND AUTHORIZING THE
CITY MANAGER TO EXECUTE CHANGE ORDERS
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on July 8, 2020, at 11:00 a.m.
for Lodi Avenue and Mills Avenue Resurfacing Project, described in the plans and specifications
therefore approved by the City Council on February 5, 2020; and
WHEREAS, said bids have been checked and tabulated and a report filed with the City
Manager as follows:
Bidder
Knife River Construction
Central Valley Engineering
Dirt Dynasty, Inc.
Martin Brothers Construction
B&M Builders, Inc.
"Unresponsive Bid
Location
Stockton
Roseville
Farmington
Sacramento
Rancho Cordova
Bid
$1,178,727.00*
$1,207,111.50
$1,498,349.00
$1,504,000.00
$1,740,423.00
Above/(Below)
Engineer's Estimate
($368,293.00)
($339,908.50)
($48,671.00)
($43,020.00)
$193,703.00
WHEREAS, the bid from DSS Company dba Knife River Construction was deemed
unresponsive as it did not include Receipt of Addendum No. 2; and
WHEREAS, staff then reviewed the bid documents from the lowest two responsive
bidders, including (among other things) an evaluation of the Disadvantaged Business Enterprise
(DBE) participation, based on Title 49 of the Code of Federal Regulation, Appendix A to Part 26
"Guidance Concerning Good Faith Efforts;" and
WHEREAS, the bid review findings were based on an investigation which concluded
Central Valley Engineering could only claim DBE participation of two percent and failed to take
all necessary reasonable efforts required to obtain DBE participation, as required by Title 49
and Caltrans; and
WHEREAS, if awarded to Central Valley Engineering, a bid protest may result and/or
federal funding for this project ($1,656,281) could be jeopardized; and
WHEREAS, staff recommends rejecting all bids, approving specifications, authorizing
re -advertisement for bids, authorizing the City Manager to award the contract to lowest
responsive bidder for the Lodi Avenue and Mills Avenue Resurfacing Project, in an amount not
to exceed $1,400,000, and authorizing the City Manager to execute change orders in an amount
not to exceed $200,000.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby reject all
bids the for Lodi Avenue and Mills Avenue Resurfacing Project; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
City Manager to award the contract to the lowest responsive bidder for the Lodi Avenue and
Mills Avenue Resurfacing Project, in an amount not to exceed $1,400,000; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
City Manager to execute change orders in an amount not to exceed $200,000; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation
or term, and to make clerical corrections as necessary.
Dated: August 5, 2020
I hereby certify that Resolution No. 2020-171 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held August 5, 2020 by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Nakanishi, and Mayor Kuehne
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIF CUSMIR
City Clerk
2020-171
AGENDA ITEM C-4
General Engineering Contractor
CA Lic. No. 773404 • NV Lic. No. 0068786
July 31, 2020
City of Lodi - Council Members
Doug Kuehne, Mayor
Alan Nakanishi, Mayor Pro Tempore
Mark Chandler, Council Member
JoAnne Mounce, Council Member
Re: Lodi Avenue and Mills Avenue Resurfacing Project
Dear Council Members,
This letter is in response to a verbal notification from city staff that they would be
recommending to the City Council to reject our lowest responsive bid for the project named
above. This is not a protest, but rather a rebuttal to staff's recommendation to reject all bids
and to re -bid the exact scope of work.
Specifically, your agenda item C-04 under background information it is stated, "Central
Valley Engineering... failed to take all necessary reasonable efforts required to obtain DBE
participation, as required by Title 49 and Caltrans." Taken as a whole and specifically
enumerated in Title 49 of the Code of Federal Regulations; this process is very subjective
with the words used throughout the code like, "sufficient, reasonably, judgment call".
Obviously, these regulations leave a lot of room for interpretation and subjectiveness. A
quote from a city staff member was, "the whole thing is very subjective". This is the
environment in which we are attempting to make a "Good Faith Effort".
On June 29h, we advertised in search of DBE firms in the Compliance News Monthly Trade
Journal and the Compliance News Daily Focus Journal which advertises in both the Internet
and Hard -Copy publications. Additionally, we specifically targeted 30 individual DBE firms
that we believed would have an interest in bidding as a subcontractor on this project both
from a specialty and location perspective. As suggested in Title 49, we offered to assist with
bonds, insurance, credit, obtaining equipment, supplies, materials, and plans & specs. We
broke out contract work into economically feasible units and offered a total of 92.1% of the
total bid amount for DBE consideration. We faxed them details of the project and requests for
quotes. Prior to the bid date, we made follow-up phone calls to each of these firms requesting
bids.
216 Kenroy Lane • Roseville, CA 95678 • Tel. 916-791-1609 - Fax. 916-791-6424
We were told by staff that they thought we did enough to satisfy the Title 49 and Caltrans
requirements, but that we just did not give the solicited firms enough time. We were told that
had we given them a least a week to respond that would have been sufficient. Title 49
suggests that the appropriate timeframe to solicit bids is "as soon as is practicable". In fact,
we made our solicitation 10 days prior to bid date. The bid date was moved back one week
during this time, which did help with our compliance, but the fact remains, they had 10 days.
Not to be forgotten, this timeframe included the 3 -day Independence Day holiday.
When sending/receiving bids for public works projects of this size and scope, industry
standard is to send quotes the day of the bid. Sending them earlier, only causes bids to be "on
the street" and undercut by other firms. Bidders like to keep their numbers "close to the vest"
until just prior to bid. So, the fact that we contacted the 30 firms specifically targeted for this
project the day before the bid, would be considered totally sufficient by any construction firm
involved in this type of project.
Obviously, all of our organizations have been impacted by the challenges that COVID-19 has
thrown at us. In fact, city staff admitted that they were behind in preparing the "staff report"
regarding this bid analysis due to being required to work with a "skeleton crew". We would
appreciate being afforded the same amount of latitude if by chance you decide that there were
some deficiencies in our attempts to meet the subjective federal and state guidelines.
Lastly, postponing this bid could very well push this project into mid -2021 as we have been
told by the slurry and chip seal subcontractors that their schedule is full for the year. We
assume that this is not in the City's best interest to postpone this work for nearly a year. We
request that the City accepts our bid as the responsive low bid and award this project.
Sincerely,
'00,�
James Castle, CPA
Chief Financial Officer