HomeMy WebLinkAbout2020-08-18; City Council; ; Rejection of All Bids Received for the Calavera Hills Community Park Gateway Improvements ProjectMeeting Date: August 18, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Kyle Lancaster, Parks & Recreation Director
kyle.lancaster@carlsbadca.gov, 760-434-2941
Subject: Rejection of All Bids Received for the Calavera Hills Community Park
Gateway Improvements Project
Recommended Action
Adopt a resolution rejecting all bids received for the Calavera Hills Community Park Gateway
Improvements Project (Capital Improvement Program Project No. 4601).
Executive Summary
The design and development of the entryway to Calavera Hills Community Park is identified in
the Carlsbad Parks & Recreation Department Master Plan. The proposed amenities for the
entryway include a covered picnic area, ornamental landscapes, a looped walkway with fitness
and exercise equipment and a monument sign.
On Feb. 25, 2020, the City Council approved the contract documents, plans and specifications
for the Calavera Hills Community Park Gateway Improvement Project and authorized the city
clerk to advertise the project for public bids (Resolution No. 2020-038). On May 27, 2020, 14
sealed bids for the project were received. A formal bid protest was received on May 27, 2020,
from Tri-Group Construction and Development. The protest alleged that the apparent low
bidder received an unfair competitive advantage because its bid listed a company other than
the city’s specified shade manufacturer. Additionally, all bids considerably exceeded the
engineers estimate of $853,480 for the project. Staff is therefore recommending the City
Council reject all bids received, consistent with Carlsbad Municipal Code Section 3.28.080(I)(3).
Discussion
When Calavera Hills Community Park was constructed, Fire Station #3 was proposed to be built
on a lot at the southwest corner of Carlsbad Village Drive and Glasgow Drive. That lot remained
vacant throughout the subsequent years. When Fire Station #3 was relocated to the Robertson
Ranch community, the vacant lot became available for the construction of an entryway to
Calavera Hills Community Park.
In 2013, the Parks & Recreation Department conducted a community-needs assessment and
developed a corresponding comprehensive action plan. In 2015, with those documents as a
base, the City Council adopted the Parks & Recreation Department Master Plan. Three of the
top seven facility and amenity priority rankings from the needs assessment were family picnic
areas, botanical or ornamental gardens and playground equipment. One of the items from the
Aug. 18, 2020 Item #3 Page 1 of 18
action plan was the design and development of the Calavera Hills Community Park Gateway
Improvements Project.
Staff worked with a design consultant to create a concept plan for the Gateway Improvements
Project, which included a covered picnic area, ornamental landscapes, a looped walkway with
fitness and exercise equipment and a monument sign. Staff and the design consultant then
developed the Gateway Improvements Project’s contract documents, plans and specifications.
On Feb. 25, 2020, the City Council approved the contract documents, plans and specifications
for the Gateway Improvements Project and authorized the city clerk to advertise the project for
public bids (Resolution No. 2020-038). On Feb. 27, the Gateway Improvements Project was
advertised for bids. As a result of the COVID-19 restrictions, on March 19, a pre-bid
teleconference was held in lieu of an in-person meeting at the project site. On May 27, 14
sealed bids for the construction of the project were received. The bid amounts, including an
additive alternate for park monument signs, are shown in the table below.1
Bidder Bid Amount
R E Schultz Construction, Inc. $1,086,229
Performance Plumbing & Mechanical, Inc. $1,191,090
Tri-Group Construction and Development $1,239,939
C.S. Legacy Construction, Inc.$1,281,033
Western Rim Constructors, Inc. $1,285,158
3-D Enterprises, Inc.$1,326,000
Byrom-Davey, Inc. $1,328,420
Blue Pacific Engineering & Construction $1,334,000
BrightView Landscape Development, Inc. $1,353,843
Wright Construction Engineering Corp $1,369,000
Marina Landscape, Inc. $1,411,055
Dick Miller Inc. $1,415,415
JMJ Construction $1,438,040
Fordyce Construction, Inc. $1,451,666
After the opening of the bids on May 27, a formal bid protest was received from Tri Group
Construction and Development. The bid protest claimed the apparent low bidder received an
unfair competitive advantage because its bid listed a company other than the city’s specified
shade manufacturer, USA Shade. In particular, the bid protest alleged that by listing the un-
specified company, Modern Shade, the apparent low bidder submitted a lower bid than it
would have if it had listed USA Shade.
1 An additive alternate is an amount that must be added to the quoted price if a specified change in the scope of
work is approved by the owner of the project. In this case the change would be to add the cost of boulder
monument signs.
Aug. 18, 2020 Item #3 Page 2 of 18
Consistent with California Public Contract Code Section 3400 (b), the bid documents allowed
bidders to list shade suppliers the city determined were an “approved equal” of USA Shade. The
bid documents allowed bidders a process by which a non-specified supplier could be
“considered as an approved equal … within 30 days of the Notice to Proceed per General
Provisions Section 4-1.6 – Trade Names or Equals.”
In consultation with the City Attorney’s Office and following a detailed review of the bids
received for this project, staff concluded it would be in the city’s best interest to revise the bid
documents for this project so that an alternate shade supplier is approved before the contract
is awarded. This change would prevent the bidders from being in the unfair position of
predicting what will satisfy the city’s needs.
All of the bids received also considerably exceeded the engineer’s estimate of $853,480 for the
Gateway Improvements Project. For these reasons, staff is thus recommending the City Council
reject all bids received, consistent with Carlsbad Municipal Code Section 3.28.080(I)(3).
Fiscal Analysis
The engineer’s estimated construction cost is $853,480, plus $35,000 for the additive alternate
for monument signs. Total funding for the Gateway Improvements Project, in an amount of
$1,057,350 from the General Capital Construction Fund, was approved in the fiscal year 2020-
21 Capital Improvement Program budget. Staff anticipates returning to the City Council with a
request for appropriation of additional funds when a construction contract is to be awarded.
CALAVERA HILLS COMMUNITY PARK GATEWAY IMPROVEMENTS PROJECT NO. 4601
Public art (estimated, plus 1% of the additive alternate) $8,885
Construction cost (estimated, plus the additive alternate) $888,480
Construction contingency (estimated) $88,850
Construction management and inspection cost (estimated) $60,000
TOTAL PROJECT COSTS (ESTIMATED) $1,046,215
TOTAL AVAILABLE PROJECT FUNDING $955,640
ADDITIONAL APPROPRIATION NEEDED (ESTIMATED) $(90,575)
Next Steps
Staff will review the bidding provisions and forms for the project, make any revisions that may
provide further clarity and reduce the potential for bidder errors, and re-advertise the project
for bids. The bid solicitation period will be at least 30 days. Staff will then evaluate the
responsive bids received, and return to the City Council with a recommendation to award a
construction contract.
CALAVERA HILLS COMMUNITY PARK GATEWAY IMPROVEMENTS PROJECT NO. 4601
Project appropriation $1,057,350
Project expenditures/encumbrances $101,710
TOTAL AVAILABLE PROJECT FUNDING $955,640
Aug. 18, 2020 Item #3 Page 3 of 18
Environmental Evaluation (CEQA)
The recommended action to reject the bids has been determined to be exempt from
environmental review under California Environmental Quality Act Guidelines Section 15270 (a),
which states that CEQA does not apply to projects that a public agency rejects or disapproves.
Public Notification
Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. Resolution
2. Bid Protest, Tri-Group Construction and Development Inc., dated May 27, 2020
Aug. 18, 2020 Item #3 Page 4 of 18
EXHIBIT 1
RESOLUTION NO. 2020-172
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, REJECTING ALL BIDS RECEIVED FOR THE CALAVERA HILLS
COMMUNITY PARK GATEWAY IMPROVEMENTS PROJECT (CAPITAL
IMPROVEMENTS PROGRAM PROJECT NO. 4601)
WHEREAS, on Feb. 25, 2020, the City Council adopted Resolution 2020-038 approving the
contract documents, plans, provisions and specifications for the Calavera Hills Community Park
Gateway Improvements Project (Capital Improvement Program Project No. 4601), and authorizing the
city clerk to advertise the project for public bids; and
WHEREAS, on May 27, 2020, 14 bids for the project were received; and
WHEREAS, on May 27, 2020, Tr-Group Construction and Development, Inc. submitted a bid
protest claiming a potential unfair advantage due to the city's process for determining "as equal"
substitutions; and
WHEREAS, the bid protest alleged that by listing the un-specified shade structure manufacturer,
Modern Shade, the apparent low bidder submitted a lower bid than if it had listed the specified shade
structure manufacturer; and
WHEREAS, all bids received considerably exceeded the engineer's estimate for the project; and
WHEREAS, it is necessary, desirable and in the public interest for the city to follow the provisions
in Carlsbad Municipal Code Section 3.28.080 (1)(3), whereby the City Council, at its discretion, may
reject all bids received; and
WHEREAS, staff intends to review the bidding provisions and forms for the project, make any
revisions that may provide further clarity and reduce the potential for bidder errors, and re-advertise
the project for bids; and
Aug. 18, 2020 Item #3 Page 5 of 18
WHEREAS, the city planner has determined that rejecting all bids is exempt from environmental
review per CEQA Guidelines Section 15270 (a); which states that CEQA does not apply to projects which
a public agency rejects or disapproves.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That all bids received on May 27, 2020 for the Calavera Hills Community Park Gateway
Improvements Project are rejected in accordance with CMC section 3.28.080 (1)(3).
3. That City Council does hereby authorize the city clerk to return to the bidders all bid
bonds received.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad, California, on the 18th day of August, 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, MAYOR
BARBARA ENGLESON, cr CLERK
(SEAL)
Aug. 18, 2020 Item #3 Page 6 of 18
TRI-GROUP
Construction and Development, Inc.
Lie. No. 792159
This then raises the question if possibly, the 2 low apparent bidders had information
about the selection of Modern Shade as being without any risk of being rejected,
and that is why they decided to go with the much cheaper option, giving them a
huge advantage, as we all know now. If Tri-Group had decided to also go with
Modern Shade, Tri-Group would have been the Jow apparent bidders at
$1,065,937.70.
Approval of equals of large items, such as four (4) shade structures that carry much
weight as it regards cost, should be submitted during the bidding stage, similar to
another park project bidding this week for the County of San Diego, Ildica Park. In
the case of Ildica Park, the County allowed substitutions, if they are done before the
bid opening, through addenda.
Its only fair that the City of Carlsbad (city) rejects all bids and re-bids Calavera
Hills Park project (Bid No. PWS20-1034PKS), by allowing the two Shade options and
possibly 2 exercise equipment options. Providing options in such products, would
also eliminate price gouging, which may have occurred in the case of the subject bid,
because USA Shade's price at $334,567 is believed to be excessive.
Please contact our office at 858-689-0058 for any questions regarding this matter.
Sine~
Hani Assi
Vice President, RMO &
Secretary of Corporation
9580 Black Mountain Rd, Suite L • San Diego, CA 92126 • Office (858) 689-0058 • Fax (858) 689-1594 Aug. 18, 2020 Item #3 Page 8 of 18
TRI-GROUP
Construction and Development, Inc.
Lie. No. 792159
USA SHADE COST PROPOSAL:
$334,567
9580 Black Mountain Rd, Suite L • San Diego, CA 92126 • Office (858) 689-0058 • Fax (858) 689-1594
Aug. 18, 2020 Item #3 Page 9 of 18
I
USASHADE
& Fabric Structures~
Calavera Hills Community Park
5/26/2020
We acknowledge receipt of Addendum 1, 2, 3 4, Sand 6
Proposal Prepared For:
General Contractor
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AZ: 289388 CA: 989458 LA: 61718 NV:78724
NM: 383826 TN: 68712 DIR: 1000003533
www.usa-shade.com I 800-966-5005
Aug. 18, 2020 Item #3 Page 10 of 18