CC - Item 5C - Award of Contract Number P70145E M E
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO:
THE HONORABLE MAYOR AND CITY COUNCIL
FROM:
OLIVER CHI, CITY MANAGER
DATE:
JANUARY 22, 2008
SUBJECT: CITY COUNCIL CHAMBERS BUILDING MODIFICATIONS - AWARD OF
CONTRACT NUMBER P70145
SUMMARY
As part of the City's Fiscal Year 2007-08 Capital Improvement Budget, the City Council
approved a project to renovate the City Council Chambers. This project will include
modernization work, upgraded access for disabled persons, and improved audio visual
technical equipment. On January 14, 2008, bids were received and reviewed for the
project.
Staff Recommendation
Staff recommends the following:
1. Approve the plans and specifications for the above listed project
2. Award Contract Number P70145 to CalTec Corporation, for the total bid price
of $521,000, and authorize the City Manager and the City Clerk to execute
the contract.
3. Establish an amount of $52,100 to cover the cost of unforeseen construction
expenses..
DISCUSSION
On November 20, 2007, the City Council directed staff to reject all bids, revise the plans
and specifications for the Council Chambers remodel, and readvertise the project at a
later date. Since that time, staff has worked with Onyx Architects and Del Terra
Construction to clarify issues brought up during the first bid advertisement and solicit
new bids for the project.
APPROVED FOR CITY COUNCIL AGENDA: 6-
• •
City Council Meeting
November 20, 2007
Page 2 of 3
At 2:00 PM on January 14, 2008, the City Clerk opened and read the following total bid
prices for this project:
Bidder Total Bid Price
Low GTA Construction, Inc. $438,000 '
2 CalTec Corporation $521,000
Denotes Irregularity Contained in Bid Proposal Documents
The low bidder, GTA Construction, Inc., possesses a Building Contractors Class B
license as specified in the contract documents. In reviewing their bid, staff learned that
the subcontractor listed for audio-visual work currently has a suspended Class C-10
Electrical Contractor's License. Per bid specifications and Public Contracts Code, this
makes GTA ineligible for award of the contract. In addition, CalTec Corporation, the
second lowest bidder filed a protest with the City alleging the same license issue
(Attachment 1). GTA responded to the protest but was unable to provide satisfactory
evidence of a valid license for the subcontractor (Attachment 2).
The second bidder, CalTec Corporation, possesses a Building Contractors Class B
license as specified in the contract documents. CalTec is a seven year old firm that has
satisfactorily completed building projects for other agencies, including the City of Brea,
San Marino Unified School District, the County of Orange, and the City of Rolling Hills
Estates.
The City Council Chambers building modification project includes the removal and
replacement of furniture and fixtures, refurbishing audience chairs, carpet replacement,
painting, and the installation of a new audio visual system for the space. These
upgrades will give the council chambers a needed facelift and provide residents with a
more user-friendly venue. Plans and specifications for the renovation work were
prepared by Onyx Architects.
The Contractor must compiete all work within 120 consecutive working days.
Liquidated damages are $250 per calendar day.
FINANCIAL REVIEW
The total appropriation needed to award this project is $573,000, which includes a 10%
amount ($52,100) for unforeseen construction expenses. Funding for this project is
provided for in the City's approved FY 2007-08 Capital Improvement Program Budget.
ENVIRONMENTAL REVIEW
The project is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Section '15301 (a) of the CEQA Implementing Guidelines. This
exemption covers building alterations involving partitions, plumbing, electrical, etc.
0
City Council Meeting
November 20, 2007
Page 3 of 3
LEGAL REVIEW
This staff report has been reviewed and approved by the City Attorney.
Pref p red by:
Chris Marcarello
Administrative Services Officer
Manager
Attachments:
(1) Protest Letter from CalTec
(2) Response Letter from GTA
(3) Bid Summary/Comments
•
Caltec Corp.
General Building and Engineering Contractor
January 14, 2008
•
8732 Westminster Blvd, Suite 112,
Westminster, Ca, 92683
PH: 714-717-1638
Fax: 714-894-7028
Mr. Chris Marcarello Via Facsimile, F'mail and US mail
City of Rosemead
8838 B. Valley Blvd, 'total No of Pages: 5
Rosemead, Ca, 91024
626-626-569-2118
626-307-9218 Fax
Ref: City of Rosemead Council chamber Remodel
Subject: Bid Protest
Dear Mr. Marcarello.
In reference to the above bid opening which took place on January 14, 2008 at 2:00
PM, Caltec Corp. requests the apparent lowest bidder ( GTA Cons(ruction) to be
disqualified and withdrawn from bid tabulation due to the following reasons.
I. Article 1.19 of section 00020 Instruction for bidders slates," No bid proposal will
be considered from a bidder who, at the time bid proposal are opened, is not
licensed to perform the work of the contract documents, In accordance with the
contractors state license board law, California business and profession code 7000,
This requirements is not a mere formality and cannot be waived by the City or its
city council."
2. The low bidder listed D&S Multimedia's Inc. as an Audio Visual subcontractor,
The mentioned subcontractor `s license status per California Contractors state
license board is suspended due to failure to resolve an outstanding from the
Franchise Tax Board, Department of Industrial Relations, Employment
Development Department( please see attached )
3. D& S Multimedia Ina llas not Low Voltage C-7 license to perform the Audio
Visual portion of the work which is the major part of the scope of work.
4. Caltec Corp, received a proposal from D&S Multimedia's Inc. prior to the bid
which was lowest Audio Visual bidder and due to his suspended license, did not
list this contractor and listed GMF Sound Inc. as Audio Visual subcontractor with
%40 higher price.
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5. The low bidder listed New Edward Lic#232780 for seat refurbishment, this
license number does not exist.
Please feel free to contact me at 714-717-1638 for any question.
Best Regards,
✓fL.~..¢~. L7~<.aaco
Henry Abghari
Caltec corp.
Project Manager
Cc: Mr. Jose Gonzales, Del Terra Fax: 626-839-9307
File
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HIS Fu'rlralicr.
IirdrFe tiatntuM.
• Filing a Conalruoficn
Complaint
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License Number: 706033 ExtraetDate: 01114120a
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r)uslnesa DOS Id ULTIMEUTA' INC
Sfaius
Informa9oh: 973 FAIRWAY ORP'
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WALNUT, CA 91789
Bond Insurance
Business Phone Number: (X9) 503-1172
Company
£ntlty: Corporation -
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I9aue Date: 05/05/1995
Con'PL'n men
Cnclpogy
Expire: Date: O513112002
Licrtnse Status: Joenne Is Coder euspenatnn for the fc!(.Wing masons:
How to Pahicipaw
1. Llcenao!a nuopmded For failure to reaolvo an ant tdrding find)
liability aim th0 Franchise Tux Board. ri9partnl?nt of Industrial
RefaliCgS, Eirrplo)ri 0tr4lopmenl Department, or
Contraclum SiEle Deanna Board.
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CIO ELECTRICAL
Bonding: CONTRACTOR'S RDND
Thin lloenae f led Contmotota Bord cumber 69739744 in ih0 amounlof
$12,500 with the bonding company
WESTERN SURETY COMPP NY.
Effective Date: 01/0112,107
Cuntro=or'a Bonding History
BOND OF QUALIFYING INDI T)CIAI.
1. Thh F.EJponsitue Managing Officer IRMO) PATRICK WILLI.A61
CARRIB AN oaWlad that ha/aha rune 10 phmam of more M 614
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Bitentive Oats: 0510511945
Workers' This 9rensals exemptfrom having workers compensation insumnn:
C4.mpaneaeioe: P.ey rmni that they have no emplcyeaeatihk llma.
£flectlve Date: 12hhhoga
E:cpiro beep: None
Workers' COmpsn;..lion History
Perannnel listed en this license (current or dlseasxinlod) am listed on Mhaf licensab.
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G T_ A CONSTRUCTION, INC. _
LICENSE NO. 855825
VIA: FAX (626) 839-9307 AND E-MAIL JGONZALES@DELTERRA.COM
JANUARY 15, 2008
MR. JOSE GONZALES
CONSTRUCT IGN MANAGER
DELTERRA
13181 CROSSROADS PKWY. NO. STE. 200
CITY OF INDUSTRY, CA 91746
RE: CITY • OUNCIL CHAMBERS REMODEL
CITY OF ROSEMEAD
WE UNDERSTAND THAT OUR BID IS BEING PROTESTED BECAUSE OUR LISTED
SUBCONTRACTOR (D&S MULTIMEDA, #706033) LICENSE NUMBER. IS CURRENTLY
SUSPENDED. WE HAVE DISCUSSED THIS MATTER WITH D & S MULTIMEDA. D & S IS
CURRENTLY WORKING ON THIS ISSUE AND PROMISED THAT IT WILL BE RESOLVED BY
THE END OF THIS MONTH. WE HOPE THAT THE CITY WILL ALLOW US THE
OPPORTUNITY TO GET THIS MATTER RESOLVED.
WE APOLOGIZE FOR THIS OVERSIGHT. HOWEVER, D & S IS A LEGITMATE VENDOR AND
IS BY FAR THE MOST COMPETIVE OUT OF ALL BIDS.
THANK YOU FOR THE OPPORTUNITY TO BID THIS JOB. WE LOOK FORWARD TO YOUR
FAVORABLE REVIEW AND WORKING WITH THE DEL TERRA AND THE CITY OF
ROSEMEA.D ON THIS PROJECT.
VERY TRULY YOURS,
GTA CONSTRUCTION INC,
Q u ye*v T'r
QUYEN I RINH
PRINCIPAL.
CC: PAT, D & S MULTIMEDIA, FAX; 909-595-7829
BID FILE
I'll 714-255-1985371 OAK PLACE, UNIT A, BRGA, CA PX 714-255-8142
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