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HomeMy WebLinkAbout2006-5 - Balboa Island Bayfront RepairsRESOLUTION NO. 2006- 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REJECTING HIGHLAND CONSTRUCTION, INC.'S BID FOR CONTRACT NO. 3796 BECAUSE HIGHLAND IS A NON - RESPONSIBLE BIDDER AND AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN AGREEMENT WITH FLEMING ENVIRONMENTAL, INC., FOR CONTRACT NO. 3796 WHEREAS, on November 23, 2005, the City Clerk opened and read the bids for the Balboa Island Bayfront Repairs, Contract No. 3796 ( "Contract "); WHEREAS, the low bid was submitted by Highland Construction, Inc. ( "Highland "); WHEREAS, Charter Section 1110 provides that contracts on public works that exceed Thirty Thousand Dollars ($30,000.00) must be awarded to the lowest responsible bidder; WHEREAS, Public Contract Code Section 1103 defines a "responsible bidder' as "a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract;" WHEREAS, in assessing whether Highland's bid for the Contract should be rejected on the basis that Highland is a non - responsible bidder, the City obtained the following documents, without limitation, which have been provided for review to the City Council and are deemed to be incorporated into the Administrative Record relating hereto: 1. Letter of John C. McMillan to Highland dated March 21, 2005; 2. Letter of Mike Ahmadi to John McMillan dated March 29, 1995; 3. Reporters Transcript of Proceedings dated June 5, 2005; -1- 4. Binders 1 through 3, Bates Stamp Numbers CT HC 00001 — CT HC 01342 submitted by the California Department of Transportation at the Office of Administrative Hearings ( "OAH ") proceeding on June 5, 2005; 5. Binders 4 through 6 submitted by Highland at the OAH Hearing on June 5, 2005; 6. Letter of Bradley A. Raisin to Judge William O. Hoover, Closing Brief of Highland; Declaration of Mike Ahmadi; Declaration of Kristi Stelle; Declaration of Earl Fukomoto and Declaration of Craig A. Sorensen, and supporting documents all submitted to the OAH on or about June 13, 2005; 7. OAH Decision of Judge William O. Hoover dated July 29,1995; 8. Letter of John C. McMillan to Highland dated August 19, 2005; 9. Determination of Bidders Responsibility and Findings for Award of Contracts No. 07- 1661A -4, 07- 4J2704 and 11- 266404 of Mark Leja dated August 19, 2005; 10. Petition for Writ of Mandate dated August 31, 2005; 11. Bid submittal of Highland dated November 23, 2005; 12. Letter of Bill Patapoff to David Ahmadi dated December 5, 2005; 13. Letter of Kristi Stelle to Aaron C. Harp dated December 13, 2005; and 14. Employee Policy Manual "Zero Tolerance" policy. -2- WHEREAS, all of the information provided by Highland and Caltrans including, without limitation, the bid, transactional documents, correspondence, briefs, declarations and other information provided to the City and retained in the files of the City, its attorneys and /or consultants, is hereby incorporated by reference into the Administrative Record and is available upon request; and WHEREAS, the City has determined that Highland's bid for the Contract should be rejected because Highland is a non - responsible bidder and the Contract should be awarded to Fleming Environmental, Inc. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: Highland's bid for the Contract is hereby rejected because Highland is a non - responsible bidder, as defined by Public Contract Code section 1103, for the following reasons: A. On August 19, 2005, Caltrans determined that Highland is a non- responsible bidder and rejected its bids for three separate contracts. B. On July 29, 2005, the Honorable William O. Hoover of the OAH determined that Caltrans' preliminary determination that Highland was a non - responsible bidder should be upheld. C. The only prior references submitted by Highland as part of Highland's bid submittal for the Contract related to projects performed for Caltrans who has determined that Highland is a non - responsible bidder. -3- D. The City has a "Zero Tolerance" anti - violence policy when it comes to violence in the workplace and Highland has shown a history of allowing its officers and /or employees who have routinely verbally abused and intimidated Caltrans' employees. E. Highland's conduct has resulted in increased administrative burdens to owners of projects that have hired Highland. F. Highland has a history of refusing to acknowledge the authority of the owner's representatives and employees on projects which Highland has worked. G. Highland does not comply with established procedures for resolving claims and disagreements. H. The Project entails replacement of sidewalk and drains along Balboa Island walkway located in a residential neighborhood with access along narrow streets and alleys. The Project will have to be accomplished in close quarters between the residential property and a beach front bulkhead and will require the contractor to perform the work in cooperation with residents and visitors to the area. Highland's only references are for work with Caltrans and Highland has not performed work in areas with similar space and location limitations. I. Highland has not submitted evidence that it has become a responsible bidder since it was found to be a non - responsible bidder by Caltrans and /or Judge Hoover. Section 2: This Resolution shall not prohibit Highland from bidding on future projects. -4- Section 3: The Contract shall be awarded to the second low bidder, Fleming Environmental, Inc. and the Mayor and City Clerk are hereby authorized to execute the Contract. Section 4: This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the Resolution. ADOPTED this 24th day of Janua ry_2006 Don Webb, Mayor ATTEST: LaVonne Harkless, City Clerk ff.Y STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is six [one vacant seat]; that the foregoing resolution, being Resolution No. 2006 -5 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 24th day of January 2006, and that the same was so passed and adopted by the following vote, to wit: Ayes: Selich, Rosansky, Ridgeway, Daigle, Nichols, Mayor Webb Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 25th day of January 2006. (Seal) City Clerk Newport Beach, California