16-0621_MARK SAUER CONSTRUCTION, INC_Agenda Report_F236t21t2016
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City of San Juan Capistrano
Agenda Report
Holrorable Mayor and Members of the City Council
,ø"rSiegel, City Manager
Steve May, Public Works and Utilitie s Ouectg$V
Ken Al-lmam, lnterim Director of Finance /l\
Paul Meshkin, P.E., Senior Civil Engin eert
June 21,2016
Consideration of Rejecting the Single Bid and Finding That the Blas
Aguilar Adobe Site lmprovement Project Can Be More
Economically Constructed by Force Account (ClP 07403)
RECOMMENDATION
By motion:
1. Reject all bids received for the Blas Aguilar Adobe Site improvement Project (ClP
07403); and,
2. Find that the Blas Aguilar Adobe Site lmprovement Project Can Be More
Economically Constructed by Force Account (ClP 07403); and,
3. Approve a Resolution to authorize staff to negotiate a contract with Mark Sauer
Construction, lnc. in accordance with California Public Contract Code sections
20167 and 22038.
EXECUTIVE SUMMARY
Staff is recommending that the City Council reject the two bids received for the Blas
Aguilar Adobe Site lmprovement Project (ClP 07403) (the "Project") due to one bid
being non-responsive and the other bid being higher than expected compared to the
available budget. Staff also recommends constructing the Project by negotiated
contract. This can be accomplished by adoption of a City Council resolution by a four-
fifths vote, which finds that the project can be more economically constructed pursuant
City Council Agenda Report
June 21,2016
Paqe 2 of 2
to the force account exception under Public Contract Code sections 20167 and 22038
and Municipal Code section 3-4.309(d), which authorizes the City to perform a public
works project without undergoing strict competitive bidding, instead authorizing work to
be procured using purchase order, negotiated contract or the City's own forces.
DISCUSSION/ANALYSIS:
ln May 2011, the State of California awarded the City a Nature Education Facility (NEF)
Grant in the amount of $498,434 for repairs to the Blas Aguilar Adobe located at 31806
El Camino Real (Location Map included as Attachment 1). The Project consists of
certain site improvements to preserve the adobe and its historical character. The Project
is implemented in two phases. Phase 1, which was completed on September 15,2015,
stabilized the adobe structure and repaired the southern wall, the roof of the adobe, and
the garage walls. Phase 2 will improve the site and enhance the grounds to further
facilitate its use for educational and interpretive purposes.
The Notice lnviting Bids for construction was advertised on February 18, 2016, and a
total of two bids were received and opened by the City Clerk's office on March 10,2016.
The lowest bid was determined to be non-responsive due to mathematical and clerical
errors in the bid calculations. The second low bid in the amount of $253,976 from Mark
Sauer Construction, Inc. was found to be responsive, although it is higher than the
Engineer's Estimate of $t95,000 and is nearly double the available budget for the
project. Staff recommends rejecting the bid and working with the design architect to
reduce the project scope of work to lower the cost and to construct the project by
negotiated contract that would be returned to the City Council for approval.
Pursuant to Public Contract Code sections 20167 and 22038, and in accordance with
Municipal Code section 3-4.309(d), the City may, in its discretion, reject any bids
presented and perform the project by negotiated contract if it determines that the project
can be more economically performed pursuant to the force account exception. The
force account exception authorizes the City, after conducting a competitive bid process,
to reject all bids received and to perform the project via purchasing order, negotiated
contract or using the City's own forces. The force account exception is triggered through
the City Council's adoption of a resolution by a four-fifths vote that rejects all bids
received and finds that the project can be more economically performed by force
account (Resolution included as Attachment 2). The City must also furnish a written
notice to the apparent low bidder informing it of its intention to reject its bid and perform
the work by force account. The notice must be mailed to the apparent low bidder at
least two business days prior to the hearing at which the City Council intends to reject
the low bid. A notice was mailed to the apparent low bidder on June 15,2016.
FISCAL IMPACT:
The project is included within the Adopted Fiscal Year 2015-2016 Capital lmprovement
Program (ClP 07403) and is currently funded with Nature Education Facility (NEF)
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June 21,2016
Paqe 3 of 3
Grant funds and Park ln-Lieu Fees. The available budget for construction of Phase 2 is
approximately $ 1 30,000.
ENVIRONM TAL IMPACT:
The City has complied with all applicable provisions of the California Environmental
Quality Act (CEQA). On May 15, 2012, the City Council adopted a Mitigated Negative
Declaration (MND) and approved a Mitigation Monitoring & Reporting Program (MMRP)
for the proposed project.
PRIOR CITY COUNCIL REVIEW:
On October 21, 2008, the City Council approved a Personal Services Agreement
with lS Architecture to prepare the adobe roof and wall repair plans for the
proposed project.
o On May 18,2010, the City Council directed staff to submit grant applications to
the State of California for funding under the Proposition 84 Nature Education
Facilities (NEF) Grant Program including the Blas Aguilar Adobe.
On November 15, 2011, the City Council approved a Personal Servíces
Agreement with RJM Design Group to prepare the development plans for the
proposed project.
On February 7,2012, the City Council approved a Personal Services Agreement
with Ed Almanza & Associates for performing the California Environmental
Quality Act (CEQA) review of the Blas Aguilar Adobe project.
On May 15, 2012, the City Council approved a Mitigated Negative Declaration
(MND) for the project and directed staff to assure signage would be provided
along the property frontage. The project plans and specifications include the
design and location of the sign.
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On September 4, 2012, the City Council conditionally approved the preliminary
design plans for the Blas Aguilar Adobe property.
On June 14,2013, the City Council approved the plans and specifications and a
Memorandum of Understanding (MOU) with the Blas Aguilar Adobe Foundation
for the Blas Aguilar Adobe Nature Education Facility (NEF) Grant Project (ClP
No. 07403) and authorized staff to receive bids for construction.
On April 7, 2015, the City Council awarded a Construction Contract for the Blas
Aguilar Adobe Restoration and Repair project to Mark Sauer Construction, lnc.
for Phase 1 construction.
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City Council Agenda Report
June 21,2016
Paqe 4 of 4
On August 4, 2015, the City Council approved Change Order No. 5 in the amount
of $34,322 to reroof the Blas Aguilar Adobe for a total contract amount of
$200,817 with Mark Sauer Construction lnc.
On October 6, 2015, the City Council adopted a Resolution for Notice of
Completion for the Blas Aguilar Adobe Restoration Project.
On November 3, 2015, the City Council rejected the bids and authorized staff to
re-advertise and receive construction bids for the Blas Aguilar Adobe Site
lmprovement Project.
COM M I SS I ON/COM M ITTE E/BOAR D REVI EW AND RECOMMEN DATIONS:
On May 28, 2013, staff provided a status update for the Blas Aguilar Adobe
Repair/Restoration project to the Cultural Heritage Commission. Both the Cultural
Heritage Commission and the Planning Commission have previously reviewed
and recommended City Council approval of the preliminary design plans for the
Blas Aguilar Adobe project.
NOTIFICATION:
Mark Sauer Construction, lnc.
ATTACHMENT(S):
Attachment 1 - Location Map
Attachment 2 - Resolution
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Attachment I
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, REJECTING ALL BIDS RECEIVED FOR
BLAS AGUILAR SITE IMPROVEMENTS PROJECT AND ELECTING,
BY A FOUR-FIFTHS VOTE OF THE COUNCIL, TO PERFORM THE
WORK BY FORCE ACCOUNT.
WHEREAS, the City of San Juan Capistrano ("City") advertised for bids
for the Blas Aguilar Adobe Site lmprovements Project ("Project") on February 18, 2016,
and received two bids;
WHEREAS, the lowest bid was non-responsive and the remaining bid
from Mark Sauer Construction, lnc., is in the amount of $253,976; and
WHEREAS, the Engineer's Estimate for the Project is $195,000, which the
City has reevaluated and determined to be a reasonable estimate of the Project cost;
and
WHEREAS, the City has reviewed the bid from Mark Sauer Construction,
lnc., and determined that the Project can be more economically performed by force
account; and
WHEREAS, in accordance with California Public Contract Code section
22038 and San Juan Capistrano Municipal Code section 3-4.309(d), the City furnished
written notice to the apparent low bidder submitting a responsive bid, Mark Sauer
Construction, lnc., of its intention to reject the bid; and
WHEREAS, the City now desires to reject all bids and have the Project
instead be done by force account, authorizing staff to negotiate a contract with Mark
Sauer Construction, lnc.
NOW, THEREFORE, BE lT RESOLVED, by the City Council of the City of
San Juan Capistrano as follows:
SECTION 1. The forgoing recitals are true and correct.
SECTION 2. Upon reevaluation, the City has determined that the Engineer's
Estimate for the Project is a reasonable estimate of the Project cost.
SECTION 3. After reviewing the bids received on this Project, the City has
determined that the Project can be more economically performed by force account.
Accordingly, the City has furnished written notice to the apparent low bidder submitting
a responsive bid, Mark Sauer Construction, lnc., of its intention to reject the bid.
Attachment 2
SECTION 4. The City hereby rejects all bids received on this Project.
SECTION 5. The City hereby declares that the Project can be performed more
economically by force account and elects, by four-fifths vote, to have the Project done
by force account in accordance with California Public Contract Code section 22038 and
accordingly authorizes staff to negotiate a contract with Mark Sauer Construction, lnc.
PASSED, APPROVED, AND ADOPTED this _ day of ,2016
Pam Patterson, Esq., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK