HomeMy WebLinkAboutAgenda Report - December 20, 1995 (89)AGENDA TITLE: Contract Award and Rejection of Non -Responsive Bids for Lodi Lake Park Office
Project ($77,700)
MEETING DATE: December 20, 1995
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution rejecting the non-
responsive bids and awarding the contract for the above project to
Cypress Modular, Inc. of Walnut Creek in the amount of $77,697 and
appropriate funds in accordance with recommendation below.
BACKGROUND INFORMATION: This project will install a handicap -accessible modular building at the
entrance to Lodi Lake. These modular buildings are also known as
commercial coaches. It will replace the old ranger station which was
demolished because it did not meet current building codes. The
architectural firm of Wenell Mattheis Bowe advised staff on methods which could be used to create an
exterior look on the building that will complement the park setting. The plans and specifications call for a
stucco finish on the building and a trellis on its west side. The stucco finish will be similar to the north
restroom at the Lake.
Bids for this project were received on October 25, 1995. After the bid opening, the City received three
letters regarding the award of the contract for this project. The apparent low bidder, American River
Construction, sent the City a letter requesting that their bid be withdrawn as they had made a mathematical
error in compiling their bid. The third low bidder, Cypress Modular, wrote that, in their opinion, only
contractors licensed as manufacturers/dealers of modular buildings could bid on the project and that the
City must reject the bids from American River Construction, McDonald Glenn Company, Ira Matheny, Inc.,
and Diede Construction as those companies are not licensed commercial coach dealers. The State
Department of Housing and Community Development also sent the City a letter after the bid opening
indicating their opinion that the City could only award the contract for this project to a manufacturer/dealer
of modular buildings. A copy of all three letters is attached.
McDonald Glenn Company was sent a copy of the letter from the State Department of Housing and
Community Development and their response is also attached.
Deputy City Attorney John Luebberke has reviewed the correspondence and determined that the City must
reject the bids from contractors not licensed by the State as commercial coach dealers (memo attached).
Staff is therefor recommending that the City Council reject the bids from American River Construction,
McDonald Glenn Construction, Ira Matheny, Inc., and Diede Construction as being non-responsive and
award the contract to Cypress Modular, Inc.
The current appropriation for this project is $37,000 and the total project estimate is $87,800. Staff is also
recommending that the additional funds needed to complete this project be appropriated from the old
Lodi Lake Account Fund balance.
APPROVED: "" - % -'
H. Dixon Flynn -- City M nager
CAWARD.Doc 1Innes
Contract Award and Rejection of Non -Responsive Bids for Lodi Lake Park Office Project ($77,700)
December 6, 1995
Page 2
Plans and specifications for this project were approved on July 19, 1995. The engineer's estimate is lower
than the bids received because it does not include the tile roof, the stucco finish or some of the exterior
work which will improve the appearance of this building in this park setting. The City received the following
eight bids for this project:
Bidder
Location
Bid
Engineer's Estimate
$
57,000
*American River Construction, Inc.
EI Dorado
$
72,000
*McDonald Glenn Company
Manteca
$
76,433
Cypress Modular, Inc.
Walnut Creek
$
77,697
*Ira Matheny, Inc.
Modesto
$
81,708
Meehleis Modular Bldgs., Inc.
Lodi
$
82,973
*Diede Construction, Inc.
Woodbridge
$
94,482
Designed Facilities Construction, Inc.
Bloomington
$
94,559
Designed Mobile Systems Ind., Inc.
Patterson
$ 108,000
*Contractor not licensed as a commercial coach dealer.
FUNDING: Originally Budgeted:
Budgeted Fund:
Requested Appropriation Fund
Total Project Estimate:
Bid Opening Date:
Prepared by Wesley K. Fujitani, Senior Civil Engineer
JLR/WKF/Im
Attachments
cc: City Attorney
Purchasing Officer
Parks and Recreation Director
1994/95
Capital Outlay Reserve Fund
Lodi Lake Account Fund Balance - $50,800
$87,800
October 2/nf5, 19
Jack L. Ronsko S
Public orks Director
CAWARD.DOC 11/29/95
AMERICAN RIVER CONSTRUCTION, INC.
■ Cal. lic. #573022
October 26, 1995 1 rT'; Pnn ca
Or, t 2'."1995.'
Wes Fujitani, Senior Civic Engineer
City of Lodi -Public Works Department T` _; :�'x;
PO Box 3006
Lodi, Ca 95241
RE: Lodi Lake Office Project
Dear Mr. Fujitani,
We respectfully ask that American River Construction Inc. be allowed to withdraw our Bid for
the Lodi Lake Office Project. This request is being made due to a substantial mathematical error
during the calculation portion of the bid process. Please see the attached copy of our bid
breakdown for complete clarification.
If you have any questions, please don't hesitate to call us at 916-621-1785. We apologize for any
inconvenience this has caused and thank you in advance for your time and cooperation.
Sincerely,
.~ J
Ron Wood
See/Treas.
P.O. Box 100 • EI Dorado, California 95623 0 (916) 621-1785 • Fax 621-0360
Lodi Lake Office Project
Site Work
1000
Concrete
8690
Modular Building
44000 Gary Doupnik Loomis
Carpentry
2036
Electrical
3000 shanahan elect ss
Plumbing
1000
Tile Roofing
4320 Baker Roofing Stockton
Exterior Stucco
4120 Dry Creek Gait
Ext. Painting
400
X
total
58876
g.c.
5887.6
total
64763.6
oh&p
6476.36
total
71239.96
bond
1054.351
bid
72294.31
alt a
The top two rows (1&2) were omitted from the formula in the cell that calculates
the subtotal. The Site Work and Concrete portions were not represented in the
total price.
Lodi Lake Office Project
FROM : CYPRESSMODULART PHONE NO. : 510 926 � -'3 Nov. 08 1995 04:01PM P2
sP111o
CYPRESS MOOU[AB
P.O. 90X 4689
19AIIfUI [0I1X, CA 94596
519.926 0373
FAX 510.925.0313
11-8-95
City of Lodi Public Works
PO BOX 3006
Lodi, CA 95241-1910
Attn- Wes Fujitani
Re: 367x33' Modular Building
Dear Mr. Fujitani,
Pursuant to our recent conversations, I have listed below the reasons I believe Cypress
Modular, Inc. should be awarded the above referenced project.
The bid documents call for the DOHCD requirements to be met. California Health and
Safety Code section 18002.6(x) determines that a Commercial Coach dealer is "a person
not otherwise expressly excluded by subdivision (b) who (1) for commission, money, or
other thing of value, sells., [or] offers for sale,... [a] commercial coach,... or (2) is engaged
wholly or in part in the business of selling... commercial coaches..."
The first two low bidders for this project are not licensed as commercial coach dealers
with the State of California DOHCD as is required by law. The contract for this project is
for the punchase and installation of a commercial coach. Therefore, the party that
contracts with the City of Lodi for this project is selling a commercial coach. The two
low bidders are in violation of section 18002.6 of the Health and Safety Code and the bid
documents and must be found non-responsive.
Should you have any further questions; please feel free to contact me.
Sin ely,
Alan Worsham
NOV-08-1995 15:59 92. P.02
N0U-01-1995 15:15 HCD CODES 916 7127 4712 P. 01.04
STATE. OF CALIFORNIA - BUSINESt (ANSPORTATION AND HOUSING AGENCY PETE WILSON. Govemor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT �"~��
DIVISION OF CODES AND STANDARDS
Occupatlonal Licensing Program ,)
IROO THIRD STREEY
P.O BOX 31
SACRAMEN70, CA 95812-1101
(916) 323-9903 FAX (916) 327.4712
From TDD Phones: 1.500.735-2929
October 26, 1995
Wes Fujitani
Public Works Department
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
Dear Mr. Fujitani:
Post-itI brand fax transmittal memo 7671 • of w9" 6
Co.
Oip1'
P�fD"' (\`Jr cl 32?- 2F 3 r
Fax 0(2,-V 333-48YZ
This letter is to confirm our conversation this date regarding commercial coach dealer licensing
requirements. The City of Lodi has received a bid from a general contractor, who is not a
licensed commercial coach dealer, to provide a commercial coach as part of the "Lodi Lake Park
Office Project." This general contractor has subcontracted with a licensed commercial coach
dealer to provide the commercial coach. The City of Lodi does not have a direct contract with
the commercial coach dealer who is providing the commercial coach. The question is whether
or not the general contractor is also required to be licensed as a commercial coach dealer?
The following excerpt from Health and Safety Code Section 18002.6(a) defines a commercial
coach dealer as "a person not otherwise expressly excluded by subdivision (b) who. (1) for
commission, money, or other thing of value, sells,. Jorj offers for sale .... [a] commercial coach...,
or (2) is engaged wholly or in part in the business of selling... commercial coaches..." A full text
copy of this section is enclosed for your information,
Inasmuch as the general contractor is the party offering to sell the commercial coach directly to
the City of Lodi, it is the department's opinion that the general contractor in this instance should
also be licensed as a commercial coach dealer.
I hope this information is of help to you. If you have any further questions, please call me at
(916) 327-2831.
Sincerely,
Craig L. Cramer
District Representative
Occupational Licensing
Enclosure
NOV-01-1995 15:09 916 -13-27 4712 951. P.01
NOV-01-1995- 15=15 HCD CODES 916 327 4712 P.02%04
California Health and Safety CC&
18001.4. (Repealed by Ch. 1056, Stats. of 1967, eff. 1/1/68.)
18001.6. Building
"Building" is any permanent structure built for the support, shelter, or enclosure
of persons, animals, chattel, or property of any kind.
(Added by Ch. 975, Stats. of 1981, eff. 111/82.)
18001.8. Commercial coach
"Commercial coach" means a structure transportable in one or more sections,
designed and equipped for human occupancy for industrial, professional, or commercial
purposes, which is required to be moved under permit, and shall include a trailer coach
as defined in Section 635 of the Vehicle Code.
(Added by Ch. 975, Stats. of 1981, eff. 1/1/82.)
18002. Commission
"Commission" is the Commission of Housing and Community Development.
(Added by Ch. 975, Stats. of 1981, eff. 1/1/82-)
18002.2. (Repealed by Ch. 1056, Stats. of 1967, eff. 1/1/68.)
18002.3. Consumer
"Consumer" includes any person or entity which purchases or leases a
manufactured home, mobilehome, commercial coach, recreational vehicle, or truck
camper for consideration, except a dealer or manufacturer.
(Added by Ch. 975, Stats. of 1981, eff. 1/1/82.)
(Amended by Ch. 1076, Stats. of 1983, eff. 1/1/84.)
(Amended by Ch. 1527, Stats. of 1984, eff. 1/1/86.)
18002.4. (Repealed by Ch. 1056, Stats. of 1967, eff. 1/1/68.)
18002.6. Dealer
(a) "Deafer" means a person not otherwise expressly excluded by subdivision
(b), who is engaged in any of the following activities:
11
NOU-01-1995 15:09 916 327 4712 P.02
V- HCD +--ODES
California Health and Safety Code
916 .J27 4 712
03/04
(1) For commission, money, or other thin~ ^f value, sells, exchanges, leases,
buys, offers for sale, or negotiates or attempts ' gotiate a sale or exchange of an
interest in a manufactured home, mobilehome, zommercial coach, or induces or
attempts to induce any person to buy or exchange an interest in a manufactured home,
mobilehome, or commercial coach, and who receives or expects to receive a
commission, money, brokerage fees, profit, mana^ement fees, or any other things of
value from either the seller or purchaser of the manufactured home, mobilehome, or
commercial coach.
(2) is engaged wholly or in part in the business of selling manufactured homes,
mobilehomes, or commercial coaches or buying or taking in trade manufactured
homes, mobilehomes, or commercial coaches for the purpose of reselling, selling, or
offering for sale, or consigning to be sold, or otherwise dealing in manufactured
homes, mobilehomes, or commercial coaches, Y-,--ther or not these manufactured
homes, mobilehomes, or commercial coaches are -- .lned by the dealer.
(b) "Dealer" does not include any of the following:
(1) An insurance company, bank, savings and loan association, finance
company, or public official coming into possession of one or more manufactured
homes, mobilehomes, or commercial coaches in the regular course of business, who
only sells manufactured homes, mobilehomes, or commercial coaches under a
contractual right or obligation, in performance of an official duty, or under the authority
of any court of law. However, a sale subject to this paragraph shall be for the purpose
of preventing the seller from suffering a loss or pursuant to the authority of a court of
competent jurisdiction.
(2) Persons who sell or distribute manufactured homes, mobilehomes, or
commercial coaches, subject to registration or titling pursuant to Chapter 8
(commencing with Section 18075), for a manufacturer to dealers licensed under this
part, or who are employed by manufacturers or distributors to promote the sale of
manufactured homes, mobilehomes, or commercial coaches dealt in by that
manufacturer or distributor. However, if any person also sells manufactured homes,
mobilehomes, or commercial coaches at retail, the person is a dealer and is subject to
this part.
(3) Persons regularly employed as salespersons by dealers licensed under this
part while acting within the scope of that employment.
(4) Persons exclusively engaged in the bona fide business of exporting
manufactured homes, mobilehomes, or commercial coaches, or of soliciting orders for
the safe and delivery of manufactured homes, mobilehomes, or commercial coaches
outside the territorial limits of the United States, if no federal excise tax is legally
payable on any of those transactions or the tax is legally refundable on the
transactions. Persons not exclusively engaged in the bona fide business of exporting
manufactured homes, mobilehomes, or commercial coaches but who are engaged in
the business of soliciting orders for the sale and delivery of manufactured homes,
mobilehomes, or commercial coaches outside the territorial limits of the United States
shall be exempt from licensure as dealers only if their gross sales proceeds from
manufactured homes, mobiiehomes, or commercial coaches produce less than 10
percent of their total gross revenue from all business transacted.
12
NOV-01-1995 15:10 916 327 47121 9^°f,
P. 03
NOV-01-1995 15:16 HCD CODES 916 327 4712 P.04%04
California Health and Safety Code
(5) Persons not engaged in the purchase or sale of manufacture
P d homes,
mobilehomes, or commercial coaches as a business.
(6) Persons disposing of manufactured homes, mobilehomes, or commercial
coaches acquired for their own use or for use in a business of acquiring, leasing, or
selling manufactured homes, mobilehomes, or commercial coaches, if the
manufactured homes, mobilehomes, or commercial coaches have been so acquired and
used in good faith and not acquired or used for the purpose of avoiding the provisions
of this part.
(7) Persons licensed as real estate brokers who buy, sell, list, or negotiate the
purchase, sale, or exchange of manufactured homes or mobilehomes pursuant to
■ Section 10131.6 of the Business and Professions Code.
(Added by Ch. 975, Stats. of 1981, off. 111/82.)
(Amended by Ch. 1076, Stats. of 1983, eff. 1/1184.)
18002.7. (Repealed by Ch. 1056, Stats. of 1967, eff. 1/1/68.)
18002.8. Department
"Department" means the Department of Housing and Community Development.
IN (Added by Ch. 975, Stats. of 1981, eff. 1/1/82.)
a 18003. Distributor
"Distributor" means any person other than a manufacturer who sells or
distributes new manufactured homes, mobilehomes, or commercial coaches to dealers
in this state.
(Added by Ch. 975, Stats. of 1981, eff. 1/1/82.)
IN (Amended by Ch. 1076, Stats. of 1983, eff. 1/1/84.)
18003.3. Dwelling unit
"Dwelling unit" means one or more habitable rooms which are designed to be
occupied by one family with facilities for living, sleeping, cooking, eating, and
sanitation.
(Added by Ch. 975, Stats. of 1981,. eff. 1/1/82.)
18003.5. (Repealed by Ch. 1056, Stats. of 1967, eff. 1/1/68.)
13
TOTAL P.04
NOIR-01-1995 15:10 916 327 4712 97% P.04
RTM'MCDONALD
:v ': t .. r' f'r: r„-a F J r 2a
GLENN Hav 101995'
COMPANY ; 3-``-.�_Z ` -r �, EODI
.
Lac. 0482475 *•'�.� .: e t ✓3 i—
� USUC 1V01K''Z• DEQ ARIMENT
November `3, 1995
Wes Fujitani
Public Works Department
City of Lodi
P.O. Box '2106
Lodi, Ca 1,15241-1010
Subj: Lodi Lake Park Office Project
Wes,
In response to Department of Housing and Community
Development's letter date October 16, 1995, signed by Craig L.
Cramer (copy attached), we offer the following.
Most notably is the fact the referenced letter offers an
opinion and is not a ruling. It is our opinion that the bases of
award for the subject project has nothing to do with licensing of
a "dealer” for commercial coaches. Public works contracting is
regulated by project specifications and the Public Contracting
Code, for the State of California. Licensing requirements per
'the Public Contracting Code are so stated in section 6100 of the
Public Contracting Code. Within the Public Contracting Code
there is no mention of any license requirement by the Department
of Housing and Community Development or any other agency other
than the State Contractor Licencing Board. ' if there is an issue
of licencing requirements by the Housing Department, that issue
is between the Department and licensee.
We reference Article 5 Section 10180 of the Public
Contracting Code, in which it is noted that competitive bidding
is for the benefit and protection of the public, and not for the
bidders or special interest. It is our opinion that the Public
will be served by awarding the project to THE MCDONALD GLENN
Company. Expense of re -bid and/or the cumbersome tasks by the
City to advertise, re -advertise, awarding two contracts and
administration of both is not in the best interest of the Public.
We can assure that _transfer of title for the commercial
coaches will be made directly from our
subcontr-actor/manufacture/dealer to the City of Lodz. There will
be provisions within our subcontract agreement between
subcontractor/manufacture/dealer that will permit such transfer
without violating any known law or regulation.
5 cel,_eIy,
-lenn McDonaldPresident
GM:gm
C : LOD I OFF= . 22221 Oleander Avenue (209) 823-2772
The MCDONALD GLENN COMPANY Manteca, California 95337 Fax (209) 823-1389
MEMORANDUM FROM THE
O F F I C E O F T H E C I T Y
A T T O R N E Y
DATE:
November 21, 1995
TO:
Wes Fujitani, Senior Civil Engineer
FROM:
John M. Luebberke, Deputy City Attorney
RE:
Lodi Lake Park Office Project Bids
This memo is intended to respond to the concerns expressed in your memo of November 14,
1995 regarding the necessity of licensing of contractors on this project pursuant Health & Safety
Code § 18000 et seq.
As per Health & Safety Code § 18000 et seq., contractors on this project must be licensed as
commercial coach dealers by the state. This requirement is triggered by the fact that a
commercial coach, as defined at Health & Safety Code § 18001.8, will be purchased through the
contractor. This licensing requirement is a state mandate and may not be waived by the city.
Based on the above, all bids submitted by contractors not licensed by the state as commercial
coach dealers pursuant to Health & Safety Code § 18000 et seq., are non-responsive and must be
removed from consideration in the awarding of this contract.
Respectfully submitted,
A/, ohn M. L erke
Deputy City Attorney
J:1CA\C I TYICORRESIM-BIDS. DOC
qk
RESOLUTION NO. 95-153
A RESOLUTION OF THE LODI CITY COUNCIL
REJECTING NON-RESPONSIVE BID AND AWARDING CONTRACT
FOR LODI LAKE PARK OFFICE PROJECT
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 October 25, 1995 at 11:00 a.m. for the bid for
Lodi Lake Park Office Project, described in the specifications therefor approved by the City Council in
July 19, 1995; and
WHEREAS, said bids have been compared, checked, and tabulated and a report thereof filed with
the City Manager as follows:
Bidder
Location
Bid Amount
Engineer's Estimate
$ 57,000.00
American River Construction, Inc.
El Dorado
$ 72,000.00*
McDonald Glenn Company
Manteca
$ 76,433.00*
Cypress Modular Inc.
Walnut Creek
$ 77,697.00
Ira Matheny, Inc.
Modesto
$ 81,708.00*
Meehleis Modular Bldgs., Inc.
Lodi
$ 82,973.00
Diede Construction, Inc.
Woodbridge
$ 94,482.00*
Designed Facilities Construction,Inc.
Bloomington
$ 94,559.00
Designed Mobile Systems Ind.,Inc.
Patterson
$108,000.00
* Non-responsive bid - Contractors not licensed by the State as commercial coach dealers.
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the non-responsive bids
from American River Construction, McDonald Glenn Construction, Ira Matheny, Inc., and Diede
Construction be rejected and the award of the contract for Lodi Lake Park Office Project be and the same is
hereby awarded to Cypress Modular, Inc., of Walnut Creek, the lowest responsible bidder, in the amount of
$ 77,697.00.
BE IT FURTHER RESOLVED that an additional amount of $50,800.00 be appropriated from the
old Lodi Lake Account Fund balance for this project.
Dated: December 20, 1995
I hereby certify that Resolution No. 95-153 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held December 20, 1995 by the following vote:
AYES: Council Members - Mann, Pennino, Sieglock and Warner (Mavor)
NOES: Council Members - Davenport
ABSENT: Council Members - None
ABSTAIN: Council Members - None
JACQUELINE L. TAYLOR
Deputy 0ty Clerk
95-153