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16-0621_MARK SAUER CONSTRUCTION, INC_Agenda Report_F236t21t2016 F23 TO: FROM SUBMITTED BY PREPARED BY: DATE: SUBJECT: 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) City Council Agenda Report 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. o a o o o 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. a 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 $200,817 with Mark Sauer Construction lnc. On October 6, 2015, the City Council adopted a Resolution for Notice of Completion for the Blas Aguilar Adobe Restoration Project. On November 3, 2015, the City Council rejected the bids and authorized staff to re-advertise and receive construction bids for the Blas Aguilar Adobe Site lmprovement Project. COM M I SS I ON/COM M ITTE E/BOAR D REVI EW AND RECOMMEN DATIONS: On May 28, 2013, staff provided a status update for the Blas Aguilar Adobe Repair/Restoration project to the Cultural Heritage Commission. Both the Cultural Heritage Commission and the Planning Commission have previously reviewed and recommended City Council approval of the preliminary design plans for the Blas Aguilar Adobe project. NOTIFICATION: Mark Sauer Construction, lnc. ATTACHMENT(S): Attachment 1 - Location Map Attachment 2 - Resolution a o a El r){rl l iJUdû,1 lrttlJlil1¡ðr¡U fl ELf () I tÊi lvlieeisn Easil ica Sqhool ç r. tl 'VinEðqe Ste ak Flouse o EI s House CafÉ fgf;iits '.lerd+:ga 5t Adobede Çapigtrano' Il ' Mission San Juon SapislrËno lt ,l i!J' Slarbucks ,*, San Juan-- Eltrnentary School Sp¡i¡¡g St Profect Locatlon tlrteça l-{ (a Fþ. Df, f,DrÐ EI \\"iüY "\ts- È'")rì r fl , Çg¡ls:¡ Ëïl LL0[r's ltl H 'il, m.Ð f,(_'rllLI'r'*r-ba ,$ I ú Iaco Bell'tl I r¡ Lf-j t¿U) L.J+ t-lr.l -t-f --1 fl '-lüi ¡ Hi¡t Ïo¡tn 0enler Farft Location Map 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