HomeMy WebLinkAbout08 - Corporation Yards Painting ProjectTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
October 24, 2017
Agenda Item No. 8
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Fong Tse, Assistant City Engineer,
ftse@newportbeachca.gov
PHONE: 949-644-3321
TITLE: Corporation Yards Painting Project — Award of Contract No. 7153-1
(18F02)
ABSTRACT:
Staff has received acceptable bids for the Corporation Yards Painting Project and is
requesting City Council approval to award the work to TL Veterans Construction, Inc.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (Minor Alteration of Existing Public Facilities with Negligible
Expansion) of the CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, because it has no potential to have a significant effect on the environment;
b) Approve the project drawings and specifications;
c) Declare the bid submitted by Harry H. Joh Construction as non-responsive and reject
the bid submitted by Harry H. Joh Construction;
d) Declare TL Veterans Construction, Inc. as the low responsive bidder;
e) Award Contract No. 7153-1 to TL Veterans Construction, Inc. for the total bid price of
$570,000.00, and authorize the Mayor and City Clerk to execute the contract; and
f) Establish a contingency of $57,000.00 (10 percent) to cover the cost of work not
included in the original contract.
W
Corporation Yards Painting Project — Award of Contract No. 7153-1 (18F02)
October 24, 2017
Page 2
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this project. The following funds
will be expensed:
Account Description Account Number
Facilities Maintenance Master Plan 57101-980000-18F02
Water Enterprise 70101-980000-18F13
Sewer Enterprise 71101-980000-18F13
Total:
Proposed uses of the funds are as follows:
Vendor
TL Veterans Construction, Inc.
TL Veterans Construction, Inc
BACKGROUND:
Purpose
Construction Contract
Construction Contingency
Total:
Amount
$ 577,000.00
$ 25,000.00
$ 25,000.00
$ 627,000.00
Amount
$ 570,000.00
$ 57,000.00
$ 627,000.00
The Facilities Maintenance Master Plan (FMMP) inspected eighty-seven (87) City
buildings in 2013. The systems FMMP evaluation included power, ventilation, plumbing,
electrical, interior/exterior finishes, weather protection, and site work. Staff accordingly
prioritized the various capital maintenance needs and completed a number of projects over
the past three years that emphasized items to keep the facilities in service. They included
replacing backup generators, air conditioning and heating units, roofs, and damaged
flooring; sealing leaky windows; painting, and refreshing and remodeling public restrooms.
DISCUSSION:
This fiscal year's FMMP projects will focus on items that extend service longevity and
improve customer experience. This project in particular addresses the protective coatings
on the City's metal buildings. The majority of these structures are at our corporation yards
(Yards) as large metal garages, canopies, storage sheds, and other special purpose
facilities. All of these metal structures exhibit rust damage throughout, ranging from minor
repairs to complete support beam replacements. If left unabated, the rust damage will
accelerate and eventually render the structures unrepairable, requiring very costly
replacements. The project also includes a minor amount of metal painting at the Civic
Center and Central Library.
8-2
Corporation Yards Painting Project — Award of Contract No. 7153-1 (18F02)
October 24, 2017
Page 3
At 10 a.m. on October 4, 2017, the City Clerk opened and read the following bids for this
project:
*The project documents require the bidder to perform contract work amounting to at least
50% of the total contract price. Harry H. Joh Construction's bid (HHJC) listed 85%
($365,000.00) of its $429,375.00 bid as subcontract painting work. Public Works staff
determined that HHJC's bid is Non-responsive because HHJC did not comply with the
Contract's Subcontracting requirements. Upon receipt of the City's Nonresponsive
Determination, HHJC submitted a written request to withdraw from this project citing
clerical errors were made on its bid.
A voluntary pre-bid job walk was conducted at the Yards to familiarize the contractors with
the project scope of work and more than twenty contractors attended. The bid amount
submitted by TL Veterans Construction, Inc. (TL) is substantially less than the advertised
engineer's $1,000,000.00 estimate. The estimate was based on available pricing and
square footage estimates and the City received bids within the range. The low bidder has
verified that their bid is complete and they are able to perform the work at that price based
on work efficiencies planned. In addition to the standard 1 -year warranty on public works
construction, the contract includes a 2 -year zero deductible 100% parts and labor
extended warranty that provides the City with the ability to call upon the contractor to make
repairs to the work completed under this contract.
TL possesses a California State Painting and Decorating C-32 Contractor License as
required by the project specifications. The reference checks conducted by staff indicate
TL has satisfactorily completed similar painting projects for school districts and other local,
state, and federal agencies.
TL, per Contract, is allowed 150 consecutive working days to complete the work.
Liquidated damages in the amount of $1,000.00 per calendar day will be assessed in case
of tardy completion.
8-3
BIDDER
TOTAL BID AMOUNT
Harry H. jE)h CORStFU
$ 429,375.00*
Low
TL Veterans Construction, Inc.
$ 570,000.00
3
Tony Painting
$ 713,500.00
4
AJ Fistes Corporation
$ 718,375.00
5
Pacific Contractors Group, Inc.
$ 910,550.00
6
Polychrome Construction, Inc.
$ 930,000.00
7
Signature Painting, Inc.
$ 952,000.00
8
Piana Construction & Painting Inc.
$1,049,725.00
9
Fix Painting Company
$1,101,640.00
*The project documents require the bidder to perform contract work amounting to at least
50% of the total contract price. Harry H. Joh Construction's bid (HHJC) listed 85%
($365,000.00) of its $429,375.00 bid as subcontract painting work. Public Works staff
determined that HHJC's bid is Non-responsive because HHJC did not comply with the
Contract's Subcontracting requirements. Upon receipt of the City's Nonresponsive
Determination, HHJC submitted a written request to withdraw from this project citing
clerical errors were made on its bid.
A voluntary pre-bid job walk was conducted at the Yards to familiarize the contractors with
the project scope of work and more than twenty contractors attended. The bid amount
submitted by TL Veterans Construction, Inc. (TL) is substantially less than the advertised
engineer's $1,000,000.00 estimate. The estimate was based on available pricing and
square footage estimates and the City received bids within the range. The low bidder has
verified that their bid is complete and they are able to perform the work at that price based
on work efficiencies planned. In addition to the standard 1 -year warranty on public works
construction, the contract includes a 2 -year zero deductible 100% parts and labor
extended warranty that provides the City with the ability to call upon the contractor to make
repairs to the work completed under this contract.
TL possesses a California State Painting and Decorating C-32 Contractor License as
required by the project specifications. The reference checks conducted by staff indicate
TL has satisfactorily completed similar painting projects for school districts and other local,
state, and federal agencies.
TL, per Contract, is allowed 150 consecutive working days to complete the work.
Liquidated damages in the amount of $1,000.00 per calendar day will be assessed in case
of tardy completion.
8-3
Corporation Yards Painting Project — Award of Contract No. 7153-1 (18F02)
October 24, 2017
Page 4
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this Project exempt from the California
Environmental Quality Act ("CEQA") pursuant to Section 15301 (minor alteration of
existing public facilities with negligible expansion) of the CEQA Guidelines, California
Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant
effect on the environment.
NOTICING:
This agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the Item).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Non-responsive Determination Letter Sent to Harry H Joh Construction
Attachment C — Bid Withdrawal Letter Received from Harry H Joh Construction
Attachment A
PROJECT
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CORPORATION YARD LOCATION MAP
CORPORATION YARDS PAINTING PROJECT CITY OF NEWPORT BEACH
LOCATION MAPS PUBLIC WORKS DEPARTMENT
C-7153-1 10/24/17
IN
October 6, 2017
Harry H. Joh Construction
Attn: Jason Yi
7303 Somerset Blvd.
Paramount, CA 90723
Attachment B
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3311 1 949 644-3308 FAX
newportbeachca.gov/publicworks
Via Certified Mail (Return Receipt Requested)
Via E -Mail (jayi(&hiconst.com)
Subject: Determination of Non -Responsiveness of Contractor's Bid
Corporation Yards Painting Project (C-7153-1)
Dear Mr. Yi,
The City of Newport Beach ("City") received the bid response of Harry H. Joh Construction
("Contractor") dated 10/4/2017 in response to the City's bid package (Attachment 1) and
Special Provisions (Attachment 2) for the Corporation Yards Painting Project (C-7153-1)
("Project").
Page PR -1 of the Project's bid package (entitled "Proposal") said that "[t]he undersigned
declares that he has carefully examined the location of the work, has read the Instructions
to the Bidders, has examined the Plans and Special Provisions, and hereby proposes to
furnish all materials ... and shall perform all work required to complete Contract No. 7153-
1 in accordance with the Plans and Special Provisions ...." In submitting its bid response,
Contractor has agreed to these conditions.
The Special Provisions for the Project state that all work necessary for the completion of
the Project's contract shall be done in accordance with, among other things, the 2009
Edition of the Standard Specifications for Public Works Construction (commonly known
as the "Greenbook"). Section 2-3.2 of the Greenbook states:
The Contractor shall perform, with its own organization, Contract work
accounting to at least 50 percent of the Contract Price except that any
designated "Specialty Items" may be performed by subcontract and the
amount of any such "Specialty Items" so performed will be deducted from
the Contract Price before computing the amount required to be performed
by the Contractor with its own organization. "Specialty Items" will be
identified by the Agency in the Bid or in the Special Provisions. Where an
entire item is subcontracted, the value of work subcontracted will be based
on the Contract Unit Price. When a portion of an item is subcontracted, the
value of work subcontracted will be based on the estimated percentage of
the Contract Unit Price. This will be determined from information submitted
by the Contractor, and subject to approval by the Engineer.
Contractor's bid, on its face, states that the subcontractor Calco Construction Inc. will
perform surface preparation and painting of various surfaces for the Project and that such
work constitutes eighty five percent (85%) of the Project work as determined by the overall
bid amount. The City's bid package and Special Provisions do not contain any Specialty
Items.
As a result, the City's bid package requires that Contractor perform at least fifty percent
(50%) of the contract work by contract price within its own organization and Contractor's
bid response, as evident from the face of the bid response without outside investigation
or information, does not literally comply with, and deviates from, that requirement of the
bid package because it states that a subcontractor will perform eighty five percent (85%)
of the contract work as determined by contract price. For this reason, the City has
determined that Contractor's bid for the Project is nonresponsive.
As you are aware, section 7 on page 4 of the bid package (under the section titled
"Instruction to Bidders") the City reserves the right to reject any bid and to waive any
minor, immaterial irregularity or informality in such bids. If a bid defect is material, the
City must reject the bid. (See, e.g. MCM Construction, Inc. v. City and County of San
Francisco (1998) 66 Cal.AppAth 359, 373-77.) The City has not determined that the
defect in Contractor's bid is immaterial and is being waived by the City because the bid
defect could have affected the amount of the bid or given Contractor an advantage or
benefit not allowed to other bidders. (See Konica Business Machs. U. S.A., Inc. v.
Regents of Univ. of Cal. (1988) 206 Cal. App. 3d 449, 456-57.)
If you have any questions or comments, please contact me at 949-644-3321 or
ftseO-newaortbeachca. aov.
Sincerely,
se
nt City Engineer
Mark Vukojevic, Deputy Public Works Director/City Engineer
Attachments: 1) Proposal Form
2) Special Provisions
3) Designation of Subcontractors
8-7
Attachment C
fiHarry H. Joh
-J � Construction
10/9/2017
Via E -Mail (FTSE@newportbeachca.gov)
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Tel: (949) 644-3311
Fax: (949) 644-3308
ATTENTION: Fong Tse
RE: Bid Withdrawal due to Clerical Error for:
City of Newport, Corporation Yards Painting Project (C-7153-1)
Dear Mr. Tse,
Per the City of Newport Beach's letter dated October 6th, 2017, in regards to the determination of
Non -Responsiveness of Contractor's bid for Corporation Yards Painting Project (C-7153-1), Harry
H. Joh Construction will formally request to withdraw our bid proposals on grounds of a clerical
error discovered on the proposal bid package.
If there are any questions, please don't hesitate to call me at 562-659-2789. Thank you for your
time on this matter.
Sincerely,
Jason Yi
Harry H. Joh nstruction, Inc.
Harry H. Joh Construction, Inc.
8205 Somerset Blvd.
Paramount, CA. 90723
T: 562.333.8950 F: 562.630.3848
Digitally signed by Jason Yi
DN: cn=Jason Yi, o=Harry J.
Joh Construction,
email=Jayi@hjconst.st.com,
c=US
Date: 2017.10.09 11:16:27
-07'00'