HomeMy WebLinkAbout2021-10-19; City Council; Resolution 2021-236RESOLUTION NO. 2021-236
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING BIDS RECEIVED, AUTHORIZING AWARD OF A
CONTRACT TO RAL INVESTMENT CORPORATION, A CALIFORNIA
CORPORATION, DBA SILVERSTRAND CONSTRUCTION, INC., FOR THE POLICE
AND FIRE HEADQUARTERS RENOVATION PROJECT, AUTHORIZING
ADDITIONAL APPROPRIATION, AND DENYING A BID PROTEST FOR THE
PROJECT
EXHIBIT 1
WHEREAS, on July 27, 2021, the City Council adopted Resolution No. 2021-178, approving the
plans, specifications and contract documents and authorizing the City Clerk to advertise a request for
bids on the city website for this portion of the Police and Fire Headquarters Renovation Project, Capital
Improvement Program, or CIP, Project No. 4715; and
WHEREAS, on Sept. 8, 2021, staff received eight construction bids for the renovation work; and
WHEREAS, staff determined that RAL Investment Corporation, a California corporation, dba
Silverstrand Construction Inc., or "RAL", submitted the lowest responsive and responsible bid for the
work in an amount not to exceed $12,633,181; and
WHEREAS, on Sept. 15, 2021, the second lowest bidder, Spectrum Construction Group, Inc., or
Spectrum, filed a bid protest which alleged that RAL's bid was non-responsive primarily because RAL:
(1) failed to name the lead personnel such as the superintendent, foreman and lead crew personnel in
their bid; (2) allegedly did not comply with state Department of Industrial Relations, or DIR, listing and
license status requirements for certain subcontractors listed in its bid; and (3) listed $0 for
demobilization/site restoration work in response to Line Item No. 23; and
WHEREAS, staff reviewed the bid protest and weighed those arguments against the substance
of RAL's bid; and
WHEREAS, staff determined that RAL did not receive a competitive or financial advantage over
other bidders by virtue of omitting the following from its bid: (1) the r:iames of lead personnel in its bid;
(2) certain subcontractor's license type, effective dates of license, and incorrect addresses for
subcontractors' businesses; and (3) a subcontractor's bid price, which was cured pursuant to Public
Contract Code section 4104(a)(3)(A); and
WHEREAS, a bid that "substantially conforms to a call for bids may, though it is not strictly
responsive, be accepted if the variance cannot have affected the amount of the bid or given a bidder
an advantage or benefit not allowed other bidders or, in other words, if the variance is
Oct. 19, 2021 Item #1 Page 6 of 21
EXHIBIT 1
inconsequential." Ghi/otti Construction Co. v. City of Richmond, (1996) 45 Cal. App. 4th 897, 904-05;
and
WHEREAS, staff determined RAL's bid of $0 in response to Line Item No. 23 was responsive
because it would not be unconscionable, unjust or unfair under M.F. Kemper Constr. Co. v. City of Los
Angeles, (Cal. 1951) 37 Cal. 2d 696, 702-703 to require RAL to perform demobilization/site restoration
work for this amount since the scope of this work was extremely small when compared to RAL's
$29,859 bid for "Mobilization and Temporary Facilities ... " and the overall amount of RAL's bid, which
totaled $12,633,181; and
WHEREAS, finding RAL's bid responsive is consistent with principles articulated in the case of
Ghilotti Construction Co. v. City of Richmond, (1996) 45 Cal. App. 4th 897, 908-09 where the court
instructed that bids must be "viewed in light of the public interest, rather than the private interest of
a disappointed bidder ... " and also warned of a disservice to the public if "a losing bidder were to be
permitted to comb through the bid proposal or license application of the low bidder after the fact,
[and] cancel the low bid on minor technicalities, with the hope of securing acceptance of his, a higher
. bid ... "; and
WHEREAS, Carlsbad Municipal Code Sections 3.28.080(() and 3.28.080(1)(6) require the City
Council's approval for all formally-bid contracts when the value exceeds $200,000, and this project is
subject to this requirement; and
WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the City
Manager to approve change orders in an amount equal to the contingency set at the time of contract
award, which amounts to $1,310,219; and
WHEREAS, appropriation of additional funds in the amount of $13,000,000 from the General
Capital Construction Fund and Infrastructure Replacement and Maintenance Fund is required to award
the contract; and
WHEREAS, the City Planner has determined that the action to authorize a contract for
renovation work is exempt from the provisions of the California Environmental Quality Act pursuant to
Article 19, Section 15301(d) which applies to the restoration or rehabilitation of deteriorated or
damaged structures, facilities or mechanical equipment to meet current standards of public health and
safety.
Oct. 19, 2021 Item #1 Page 7 of 21
EXHIBIT 1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.
2.
3.
That the above recitations are true and correct.
That the bid protest submitted by the second lowest bidder, Spectrum Construction
Group, Inc., is denied.
That the lowest responsive and responsible bid of $12,633,181 submitted by RAL
Investment Corporation, a California corporation dba Silverstrand Construction Inc., for
the renovation work of the Police and Fire Headquarters Renovation Project is accepted
and the Mayor is hereby authorized to execute a contract for this work (attached as
Attachment A).
4. That the City· Manager is hereby authorized to approve construction change orders up
to the amount of $1,310,219 for the renovation work.
5. That the Deputy City Manager, Administrative Services, is authorized to appropriate
$8,960,000 from the General Capital Construction Fund and $4,040,000 from the
Infrastructure Replacement and Maintenance Fund to the Police and Fire Headquarters
Renovation Project, CIP Project No. 4715.
6. That the award of this contract is contingent upon RAL Investment Corporation, dba
Silverstrand Construction Inc., executing the required contract and submitting the
required bonds and insurance policies as described in the contract, within 20 days of
adoption of this Resolution. The City Manager may grant reasonable extensions of time
to execute the contract and assemble the required bonds and insurance policies.
Oct. 19, 2021 Item #1 Page 8 of 21
EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 19th day of October 2021, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
MATT HALL, Mayor
(SEAL)
Oct. 19, 2021 Item #1 Page 9 of 21
Attachment A
PWS22-1552FAC RAL Investment Corporation dba
Silverstrand Construction
(on file in the Office of the City Clerk)
Oct. 19, 2021 Item #1 Page 10 of 21