cc16_064 1

STAFF REPORT

MEETING

DATE: June 7, 2016

TO: City Council

FROM: Russ Thompson, Public Works Director

Michael Hanlon, Engineering Project Coordinator

SUBJECT: DOWNTOWN RECREATION CENTER AND GYMNASTICS CENTER

ROOF REPLACEMENT

CEQA: Categorically Exempt

REQUEST

Consider, 1. Adopting a resolution denying the bid protest from ERC Roofing & Waterproofing,

and, 2. Awarding a construction contract for the Downtown Recreation Center and Gymnastics

Center Roof Replacement, CIP 16-005, to Stronger Building Services as the lowest responsible

bidder, submitting the lowest responsive bid in the amount of $317,200.

RECOMMENDATION

Adopt the resolution and award the construction contract.

DISCUSSION

The Downtown Recreation Center and Gymnastics Center roofs have been leaking for several

years. Leak repairs have been ongoing but have not been able to completely eliminate the leaks.

The source of the leaks has been difficult to determine due in part to ceiling covers in the

Gymnastics Center and the fact that the two buildings are connected together with different

roofing systems. The many roof penetrations from the vents, HVAC equipment, solar panel

framing, skylights, etc., have only added to the difficulty in identifying and sealing the leaks.

The project will include new flashing at all roof penetrations and roofing systems that are

warranted for 20 years, labor and materials.

The project was publicly bid on April 19, 2016. Bids were opened on May 10, 2016. Five (5)

bids were received and Stronger Building Services was determined to be the lowest responsible

bidder.

On May 16, 2016, the City received a bid protest from the second low bidder, ERC Roofing &

Waterproofing. The protest has been reviewed by City staff and the City attorney. The protest

was found to be without merit per attached documentation.

This project is Categorically Exempt per 2014 CEQA Guidelines, sections 15301 and 15302.

922 Machin Avenue Novato, CA 94945

415/ 899-8900 FAX 415/ 899-8213

www.novato.org

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FISCAL IMPACT

The Downtown Recreation Center and Gymnastics Center Roof Replacement is an identified CIP

project, 16-005, and has been budgeted for in the FY 2015/16 budget. The existing project

budget of $340,000 is sufficient to award the low bid. $10,000 has been expended to date during

the project development phase. Accepting the bid protest and awarding the contract to the

resulting low bidder would create a budget shortfall of approximately $50,000. Should Council

accept the bid protest, staff recommends rejecting all bids and rebidding the project.

ALTERNATIVES

1. Adopt the resolution denying the bid protest from ERC Roofing & Waterproofing and

award the construction contract to Stronger Building Services.

2. Accept the bid protest, reject all bids, and direct staff to rebid the project.

ATTACHMENTS

1. Bid abstract

2. Budget Excerpt

3. Location map

4. ERC Bid Protest Letter

5. Stronger Building Services Rebuttal Letter

6. City Protest Denial Letter

7. Resolution

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CITY Of NOVATO

ABSTRACT Of BIDS AND AWARD Of CONTRACT

PROJECT NAME : GymnasticsfTeen Center Roof Replacement PROJECT NO. : 16-005DATE: 10-May-16 BID OPENING : N/A

BIDDERS Engineers Estimate Stronger Building Services ERC Roofing & Waterproofing Joseph Murphy ConstructionItem

No. DESCRIPTION Unit Qty Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount

1 Asphalt Shingle Roof LS 1 $145,000.00 $145,000.00 $164,500.00 $164,500.00 $118,645.75 $1 18,645.75 $132,400.00 $132,400.00

2 Polyvinylchloride Roof LS I $60,000.00 $60,000.00 $37,200.00 $37,200.00 $102,578.75 $102,578.75 $45,100.00 $45,100.00

3 Elastomeric Silicone Roof LS 1 $80,000.00 $80,000.00 $38,000.00 $38,000.00 $86,802.75 $86,802.75 $48,700.00 $48,700.00

4 Solar Panels LS I $10,000.00 $10,000.00 $77,500.00 $77,500.00 $49,281.75 $49,281.75 $135,500.00 $135,500.00

TOTAL BASE BID $295,000.00 $317,200.00- $357,309.00 $361,700.00

BIDDERS Andy’s Roofmg Company Best Contracting ServicesItem

No. DESCRIPTION Unit Qty Unit Price Amount Unit Price Amount Unit Price Amount Unit Price Amount

2

3

4

Asphalt Shingle Roof

Polyvinyichloride Roof

Elastomeric Silicone Roof

Solar Panels

TOTAL BASE BID

LS

LS

LS

LS I

$207,700.00

$29,700.00

$100,600.00

$86,400.00

$207,700.00

$29,700.00

$100,600.00

$86,400.00

$424,400.00

$227,127.00

$103,301.00

$126,468.00

$62,500.00

$227,127.00

$103,301.00

$126,468.00

$62,500.00

$519,396.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

RECOMMENDATION

Award contract to Stronger Building Services as the apparent and

lowest responsible bidder in the amount of $ 317,200 + 10% contingency.

Submifted By :

Designated Agent

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Project No.: 16-005 Base Code: 456

Funded

Sub Prior to

Project Expenditure Objects 15/16 15/16 16/17 17/18 18/19 19/20 Total

Proj Develop 410 0 20,000 20,000

Construction 430 0 310,000 310,000

Construction Mgt 440 0 10,000 10,000

TOTAL 0 340,000 0 0 0 0 340,000

Sub Prior to

Funding Source Objects 15/16 15/16 16/17 17/18 18/19 19/20 Total

Facilities LTM (323) 410 0 20,000 20,000

Facilities LTM (323) 430 0 179,000 179,000

Facilities LTM (323) 440 0 10,000 10,000

Comm Facilities (330) 430 0 131,000 131,000

TOTAL 0 340,000 0 0 0 0 340,000

CARRYOVER 0

Downtown Recreation Center and Gymnastics Center Roof Replacement

Project Objective: This project will replace roofs of the Downtown Recreation Center and the Gymnastics

Center per the Facilities Condition Report, and as verified by City staff. Removal and replacement of the

Gymnastics Center roof will require temporary removal, storage and reinstallation of solar panels.

Project Description and Background: The roofs are at the end of their useful life, and have requiredsubstantial on going maintenance over recent years to address leaks.

Basis for Cost Estimate: The cost estimate is per the Facilities Condition Report and includes accommodation

of the solar panels.

Basis for Schedule: Project development is scheduled for 2015. Construction will be coordinated with

programmed building use, but is anticipated to occur when weather permits in spring/ summer 2016.

Revenue Considerations: Facilities Long Term Maintenance together with Community Facilities is the

proposed funding source.

PROPOSED B-8 5/3/2016

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State License #A, C-39 781499585: 1760522

ROOFING & WATERPROOFING

Your Friend in the Roofing Industry Since 1989

May 13, 2016Proposal No.: 98446

City of NovatoPublic Works Engineering922 Manchin AvenueNovato, CA 94945

Attention: Michael Hanlon

Re: BID PROTEST - DOWNTOWN RECREATION CENTER AND GYMNASTICS CENTER ROOFREPLACEMENT

Project: 16-005, Bid Due before 5/10/16 2:00pm

Dear Michael,

Please be advised that this letter serves as written Notice of Bid Protest related to theCity of Novato’s project 16-005.

After reviewing the Bid Results as received electronically and titled 16-005 3 Low Bids onMay 10, 2016, the winning proposal submitted by Stronger Building Services isincomplete and should be disqualified:

1. Winning bidder failed to list the place of business address for subcontractor (G.RElectric] as required in Section 00 43 36. Please note that Joseph Murphy Constructiondid provide address for their subcontractors when completing form.

2. Contractor failed to list the subcontractor’s DIR# as required to complete Section 0043 36. The subcontractor is newly registered with the DIR on 5/10/16, (Bid Due Date),and HAS NOT ENGAGED in pubic work on record with the DIR in the past 12 months.In this condition, the DIR# must be provided in writing pursuant to Labor Codeand public Contract Code.

216 Avenida Fabricante, Suite 111 • San Clemente, CA 92672 • Office 949.492.8985 • Fax 949.492.4124 • www.ercrooflng.comERC Roofing & Waterproofing is a Division of Commercial Waterproofing Systems, Inc.

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“ t State License #A, C-39 781499

d t SBE: 1760522

ROOFING & WATERPROOFING

Your Friend in the Roofing Indus’y Since 1989

Please review the following information for each of two (2) reasons for basis of thisprotest:

1. Failure to List Subcontractor’s Address (Place of Business):

A. See Section 00 43 36 with written instructions in bold type at top of page:

“The bidder shall list the name, address and California Contractor’s license number ofeachsubcontractor to whom the bidder proposes to subcontract portions ofthe work, as requiredby the Project Specifications in “Required Listing of Proposed Subcontractors” and“Performance ofSubcontractors” in Section 0021 13.

B. See Section 00 21 13 - 1.6:

1.6 Required Listing of Proposed SubcontractorsSection 2-1.33C “Subcontractor List” of the Standard Specifications is deleted in itsentirety and replaced with:

Each proposal shall have listed therein the name, location of the place of business, and theCalifornia contractor license of each subcontractor to whom the bidder proposes tosubcontract portions of the work in an amount in excess ofone-halfpercent of the total bidor $10,000, whichever is greater, in accordance with the Subletting and Subcontracting FairPractices Act, commencing with Section 4100 of the Public Contract Code. The bidder’sattention is invited to other provisions of the Act related to the imposition ofpenalties for afailure to observe itsprovisions by using unauthorized subcontractors or by making unauthorized substitutions.

A sheetfor listing the subcontractors, as required herein, is included in Section 004336.”

2. Failure to List Subcontractor DIR#

1.7 Department of Industrial Relations Compliance The contractor shall be registeredwith the Department of Industrial Relations (DIR) pursuant to 1725.5 of the Labor Codeto be qualified to bid on, be listed in a bid proposal, subject to the requirements ofSection 4104 of the Public Contract Code.

216 Avenida Fabricante, Suite 111, San Clemente, CA 92672 • Office 949.492.8985 • Fax 949.492.4124 • www.ercroofing.comERC Roofing & Waterproofing is a Division of Commercial Waterproofing Systems, Inc.

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ROOFING & WATERPROOFING

Your Friend in the Roofing Industry Since 1989

State License #A, C-39 781499588: 1760522

After reviewing these 2 valid reasons for protest, consider that SECTION 00 21 10 -

STATE STANDARD SPECIFICATIONS AND PLANS, starts out by stating, “The workembraced herein shall be done in accordance with the State Standard Specifications” andthe second paragraph clarifies:

“In case of conflict between the Standard Specifications and these Project Specifications,these Project Specifications shall take precedence over, and shall be used in lieu of suchconflicting portions.”

Even, SECTION 00 51 10 - AWARD AND EXECUTION OF CONTRACT, provides specificdirection,” The award of the contract, if it be awarded, will be to the lowest responsiblebidder whose proposal complies with all the requirements prescribed’

Thank you for your time and consideration.

Respectfully submitted,

Garrett R. ClarkPresident

To: Michael Hanlon, Email and Hard Copy sent Fedfx- Tracking # 8717 45261419

Cc: Emails to Stronger Building Services, Joseph Murphy Constructiona, C

Attachments: 16-005 3 Low Bids, Bid Form 00 43 36, Public Works Contractor SearchResults

216 Avenida Fabricante, Suite 111, San Clemente, CA 92672 • Office 949.492.8985 • Fax 949.492.4124 • www.ercroofing.comERC Roofing & Waterproofing is a Division of Commercial Waterproofing Systems, Inc.

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580 Harlan St. San Leandro, Ca 94577Tel: 510-487-8363 Fax: 510-487-8246

City ofNovatoPublic Works Engineering922 Manchin Ave.Novato, Ca 94945Michael Hanlon

Re: Bid Protest - Downtown Recreation Center and Gymnastics Center RoofReplacement Project 16-005

Dear Michael,

This letter is in response to the Bid Protest received on May 13, 2016 from ERC.

1. When it comes to the place of business listed for our Subcontractor G.R. Electric weagree that we did not list the address but we did however list their license number as wellas what portion of work they will be completing. We believe that the address can be seenas informality since this would not change costs or anything more significant for thisContract.

2. Attached you will find G.R. Electric’s DIR registration.

1.7 Department of Industrial Relations ComplianceThe contractor shall be registered with the Department of Industrial Relations (DIR) pursuant to 1725.5 ofthe Labor Code to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section4104 of the Public Contract Code, or engage in the performance of this public work contract. For thepurposes of this section, “contractor” includes a subcontractor as defmed by Section 1722.1

Pursuant to the provisions in Section 177.1 of the Labor Code a contractor or subcontractor shall not bequalified to engage in the performance of any contract for public work, unless currently registered andqualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for anunregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and ProfessionsCode or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered toperform public work pursuant to Section 1725.5 at the time the contract is awarded.

Sincerely,

Claudia ChavezPresident

License # 955618

Email: StrongerBuilding@yahoo.com

May 16, 2016

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511612016 California Department of Industrial Relations - Contact DIR

/:

This is a listing of current and active PWC registrations pursuant to Division 2, Part 7, Chapter 1 (commencing with section 1720 of the California Labot Code.)

Enter at leastg search criteria to display active registered public works contractor(s) matching your selections.

Registration Year: Current Fiscal Year 2015I16]

PWC Registration Number: 037936

example: ABC COMPANY- j Contractor License Lookup

[example: 123456

[ Select County

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Registration County City Registration ExpirationNumber Date Date

1000037936 SANTA CLARA SAN JOSE 05/10/2016 06/30/2016

v2.201 60101

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May 23, 2016

922 Machin AvenueNovato, CA 94945415/899-8900FAX 415/899-8213www.novato.org

MayorPat Ekiund

Mayor Pro TernDenise Athas

CouncilmembersPam DrewJosh FrydayEric Lucan

Interim City ManagerCathy Capriola

Garrett R. Clark, PresidentERC Roofing & Waterproofing216 Avenida fabricante, Suite 111San Clemente, Ca 92672

Re: Downtown Recreation Center and Gymnastics Center RoofReplacement - Bid Protest

Dear Mr. Clark,

The City of Novato has reviewed the bid protest of ERC received on May 13,2016. As is explained further below, City staff finds that said bid protest iswithout merit and therefore will recommend City Council deny said protest at theJune 7, 2016 City Council meeting.

ERC Protest Items:

1. Failure to list the sub-contractors place of business address:

The City reserves the right to waive any informality in the bid per the Notice toContractors (see below). The City deems this omission as an insubstantialinformality and waives the omission.

The City reserves the right to reject any and all bids, to waive anyinformality in a bid, and to make award as the interests of the City mayrequire. This notice is given by order of the City Council of the City ofNovato, California.

2. failure to list Subcontractor DIR#

The Contractor is not required to list the DIR # on the bid per the Notice toContractors (see below). The contractor mtist be registered with the DIR prior tothe award of contract. The City has confirmed that GE Electric is registered withthe DIR (confirmation attached with Stronger Btiilding Services rebuttal letter).

The contractor shall be registered with the Department of IndustrialRelations (DIR) pursuant to 1725.5 of the Labor Code to be qualified tobid on, be listed in a bid proposal, subject to the requirements ofSection4104 of the Public Contract Code, or engage in the performance of anypublic work contract that is subject to the requirements of this chapter.For the purposes of this section, “contractor” includes a subcontractor asdefined by Section 1722.1.

Pursuant to the provisions in Section 1771.1 of the Labor Code acontractor or subcontractor shall not be qualIed to engage in theperformance of any contract for public work, unless currently registeredand qualed to perform public workpursuant to Section 1725.5. It is not

THE CITY OF

NOVATOCALIFORN IA

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a violation of this section for an unregistered contractor to submit a bid that isauthorized by Section 7029.1 of the Business and Professions Code or by Section 10164or 20103.5 of the Public Contract Code, provided the contractor is registered to performpublic workpursuant to Section 1725.5 at the time the contract is awarded.

Should you have further questions or concerns please contact me at 415-899-8963.

cc: ERCStrongerJoseph Murphy ConstructionVeronica Nebb, Assistant City Attorney

Enclosures: ERC Bid Protest LetterStronger Building Services Rebuttal Letter

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res4971 1

CITY COUNCIL OF THE CITY OF NOVATO

RESOLUTION NO. ____

RESOLUTION ACCEPTING BIDS FOR THE

DOWNTOWN RECREATION CENTER AND

GYMNASTICS CENTER ROOF REPLACEMENT

PROJECT (CIP 16-005); REJECTING THE BID

PROTEST RECEIVED FROM ERC ROOFING &

WATERPROOFING AND AWARDING THE

CONSTRUCTION CONTRACT TO STRONGER

BUILDING SERVICES.

WHEREAS, the City of Novato did call for public bids on the Downtown Recreation

Center & Gymnastics Center Roof Replacement Project (CIP 16-005); and

WHEREAS, bids submitted to the City on or before 2:00 pm on May 10, 2016 have been

considered by City staff; and

WHEREAS, staff has reviewed the bids and has determined that the bid of the apparent

low bidder, Stronger Building Services meets all of the bid requirements; and

WHEREAS, staff has reviewed the bid protest submitted by the second low bidder, ERC

Roofing & Waterproofing, which lists two reason for their bid protest, 1. Failure of Stronger

Building Services to list the address of their subcontractor, GR Electric, and 2. Failure of

Stronger Building Services to list the DIR number of their subcontractor, GR Electric; and

WHEREAS, staff has determined that 1. Failure to list the address of the subcontractor is

a minor informality and thus waived, and 2. Listing of the DIR number on the bid is not required;

and

WHEREAS, staff has determined the bid protest to be without merit and therefore denies

said protest; and

WHEREAS, staff recommends that the contract for said project be awarded to the lowest

responsible bidder, Stronger Building Services, submitting the lowest responsive bid in the

amount of $317,200.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Novato

does hereby reject the bid protest of ERC Roofing & Waterproofing and awards the contract for

the construction of the Downtown Recreation Center & Gymnastics Center Roof Replacement

Project (CIP 16-005), to the lowest responsible bidder submitting the lowest responsive bid,

Stronger Building Services, in the amount of $317,200.

* * * * * *

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res4971 2

I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City

Council of the City of Novato, Marin County, California, at a meeting thereof, held on the 7th

day of June, 2016, by the following vote, to wit:

AYES: Councilmembers

NOES: Councilmembers

ABSTAIN: Councilmembers

ABSENT: Councilmembers

Sheri Hartz, City Clerk

Approved as to form:

City Attorney of the City of Novato

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