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Home My WebLink About06 - CC-6 - Installation of Emergency Generators at - 11/7/2017CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 07, 2017 ITEM NUMBER: CC -6 SUBJECT: INSTALLATION OF EMERGENCY GENERATORS AT POLICE FACILITY, FIRE STATION NO. 4 AND CORPORATION YARD - CITY PROJECT NO. 17-11 DATE: OCTOBER 26, 2017 FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: BALTAZAR MEJIA, CITY ENGINEER, (714) 754-5335 RECOMMENDATION Adopt plans, specifications, and working details for the Installation of Emergency Generators at the Police Facility, Fire Station No. 4 and Corporation Yard — City Project No. 17-11. 2. Approve Budget Adjustment No. 18-013 in the amount of $90,000 towards the project. 3. Award a construction contract to Global Power Group, Inc., 3309 East Miraloma Avenue, Suite 104, Anaheim, California, 92040, in the amount of $255,000.00. 4. Authorize the Mayor and the City Clerk to execute the Public Works Agreement. BACKGROUND The existing generators located at the Police Facility (99 Fair Drive) and Fire Station No. 4 (2300 Placentia Avenue) do not have the electrical capacity to meet the needs of each facility in the event of a power outage and have well exceeded their life expectancy. The Corporation Yard (2300 Placentia Avenue) does not have an electrical back up power supply for fuel pumps or communications in the event of a power outage. The scope of work for this project consists of the installation of City -furnished emergency generators at three City facilities - a 600 Kw emergency generator at the Police Facility, an 80 Kw emergency generator at Fire Station No. 4 and an 80 Kw emergency generator at the Corporation Yard - as well as other incidental work needed to complete the project in accordance with the contract documents. The Location Map is included as Attachment 1. The generators were ordered by the City in May 2017, following the approval by the City Council in April 2017, and will be ready for delivery for the contractor in December 2017. ANALYSIS The City Clerk received and opened two (2) bids for this project on September 28, 2017. Global Power Group, Inc. was the apparent low bidder with a bid proposal of $255,000.00. The Engineer's estimate for the project was $488,187.00; and the average of the two (2) bids received amounted to $446,959.50. Analysis of the bids indicates the apparent low bidder submitted a bid proposal that is 47% lower than the Engineer's estimate. The variance between the low bidder and the Engineer's estimate may be attributed to the competitive conditions prevalent in the construction industry at this time. The Bid Abstract is included as Attachment 2. On October 7, 2017, the City received a bid protest letter from Amtek Construction, the second lowest bidder (Attachment 3). In its protest letter, Amtek Construction indicates that Global Power Group, Inc is unable to perform the work specified in the contract without the solicitation of a subcontractor to perform masonry work and a subcontractor for excavation that includes storm water control. Amtek Construction believes that Global Power Company's bid proposal should be deemed non-responsive and the contract should be awarded to Amtek Construction. Following receipt of the Amtek Construction protest letter, staff requested clarification from Global Power Group, Inc. relating to the listing of the Storm Water Control subcontractor. As can be seen from Global Power Group Inc.'s response letter (Attachment 4), the cost to perform this work is less than one-half of one percent (0.5%) of the total bid and the contractor is not required to list them in the bid proposal. Further, Global Power Group, Inc. is a licensed "A" General Engineering Contractor. According to the Contractors State Licensing Board description of classification and definitions, a licensed "A" contractor can perform the work of a single trade (specialty work) if that specialty work is an integral part of the scope of work for a general engineering contractor; therefore, masonry work can be self -performed by Global Power Group, Inc. Based on the aforementioned information, staff finds that this firm has submitted a responsive bid that is compliant with the bidding requirements and recommends that City Council award the contract for the above mentioned project to Global Power Group, Inc. The license and references of Global Power Group, Inc., were checked and staff has found them to be in good standing. Global Power Group, Inc. has successfully completed similar projects in the City of Anaheim and the City of Coronado. ALTERNATIVES CONSIDERED The alternative to this Council action would be to reject all the bids. If all the bids are rejected, the City would need to readvertise or cancel the project. Staff believes that readvertising the project will not result in lower bids. FISCAL REVIEW Funding for this project in the amount of $165,000 is available from the Capital Improvement Fund appropriated in prior fiscal years. The Budget Adjustment in the amount of $90,000 (Attachment 5) is proposed from the unencumbered Equipment Replacement Fund balance LEGAL REVIEW Global Power Group, Inc. has furnished the necessary bonds and insurance, which were approved as to form by the City Attorney. After the award and subsequent execution of the contract, a "Notice to Proceed" will be issued. I• CONCLUSION The advertisement and bid opening for the Installation of Emergency Generators at the Police Facility, Fire Station No. 4 and Corporation Yard — City Project No. 17-11, has been completed. It is recommended that the City Council adopt the plans, specifications, and working details for said project; approve a budget adjustment in the amount of $90,000; award the contract to the apparent low bidder, Global Power Group, Inc. in the amount of $255,000; and authorize the Mayor and the City Clerk to execute the Public Works Agreement. RAJA SETHURAMAN Public Services Director ELIZABETH ANDREW BALTAZAR MEJIA City Engineer Interim Assistant Finance Director ATTACHMENTS: 1. Location Map 2. Bid Abstract 3. Protest Letter from Amtek Construction DISTRIBUTION 4. Response to Protest from Global Power 5. Budget Adjustment No. 18-013 for $90,000 City Manager Assistant City Manager City Attorney City Clerk Staff File 3 �1 ATTACHMENT 1 {--- . PROPOSED LOCATION OF GENERATOR , ESTANCIA HIGH SCHOOL MUNICIPAL GOLF COURSE PROPOSED LOCATION OF GENERATORS '�7 ---F- --- FIRE STATION 94 CORPORATE YARD 4 ATTACHMENT 2 CITY OF COSTA MESA DEPARTMENT OF PUBLIC SERVICES INSTALLATION OF EMERGENCY GENERATORS AT POLICE FACILITY, FIRE STATION NO.4 AND CORPORATION YARD CITY PROJECT NO. 17-11 BID OPENING DATE: SEPTEMBER 28, 2017 BID OPENING RESULTS Bidder City Total Bid Pro "ects A+B+C $255,000.00 1. GLOBAL POWER GROUP, INC.. ANAHEIM WHITTIER 2. AMTEK CONSTRUCTION $638,919.00 Average $446,959.50 Engineer's Estimate: $488,187.00 5 12409 SLAUSON AVE. STE "I", WHITTIER, CA 90606 (562)696-7111 FAX:(562)696-7022 J�ATZACHMENT 3 City of Costa Mesa March 13, 2017 77 Fair Drive, Costa Mesa, CA 92628 Attn: Thom Coughran (thom.coughran@costamesaca.gov RE: Bid Results from Costa Mesa Project No. 17-11 Installation of Emergency Generators Subject: Protest for Lack of Subcontractor Listing Mr. Coughran, At the bid opening on September 28th at 2:00pm, Global Power Group, Inc. was the technical low bidder with the lowest dollar amount when Items A, B, and C were combined. However, Global Power did not list a single subcontractor on their subcontractor list, but most importantly they did not list a masonry contractor. This means that Global Power will be required to complete the entire project by only utilizing its own forces. Global Power Group, Inc. is a licensed A, B, and C-10 contractor, but none of these licenses cover the C-29 (masonry). As noted from the California State License Board, the licenses A and B do not include masonry as a trade. Therefore, Global Power Group cannot complete this project with its own forces and therefore should be disqualified. Furthermore, Global Power Group did not list a Storm Water Control subcontractor, or at the very least a subcontractor for excavation that includes the Storm Water Control. Special Provisions pages 22 and 23 state that the contractor shall include an SWPPP or at the very least a Water Pollution Control Plan (WPCP). Global Power Group did not list a single subcontractor and is not qualified to create an SWPPP or a WPCP. Global Power did not even list a subcontractor that included the SWPPP creation in their bid to them, as AMTEK Construction did. Due to these two facts presented above, Global Power Group Inc. cannot complete the project for the City of Costa Mesa without employing some sort of subcontractor, but they did not list any subcontractor. Therefore, Global Power Group should be disqualified as the technical low bidder and AMTEK Construction should be awarded the project. We await your response in this matter. 0& - - rooe Alan Sayce AMTEK Construction Vice President www.amtekconstruction.com email: info@amtekconstruction.com GENERAL ENGINEERING CONTRACTORS LECENSE 490382 2 Global Powe r GROUP, INC. "Our Business Is Powering Your Business" City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92628 Global Power Group, Inc. 12060 Woodside Ave Lakeside, CA 92040 11 �� lY .LIE}I}lil }L}11LI''i'lltk Il ` Tel No. (619) 579-1221 Fax No. (619) 579-1166 ATTACHMENT 4 License No. 870741 License Classifications: A, B, C-10 Attn: Thom Coughran (ihom.cgughranppstamesaca.gov) Subject: Response to Protest for Lack of Subcontractor Listing Mr. Coughran, According to the Contractors State Licensing Board, "CSLB" description of classification and definitions. As an "A" we can perform any work on a publics work project. The second document is from the CSLB web site asking the same question, you can see their answer to the question is yes. We self -perform most of our work to insure quality of the project to the highest standards you would expect for an emergency power system. This project is $255k, our storm water person is $ 950.00 which is less than .4% of the project cost. So we don't have to list them. Thank you, Splvatol(e Martorana 7 BUDGET ADJUSTMENT AUTHORIZATION Unit CITY Department Public Services Division Equipment Maintenance Serial Number 18-013 Type of Transaction Program Reason for Request: ❑ Revenue Estimate ® Expenditure Appropriation CITY ❑ Estimate Increase ❑ Intra -Departmental Transfer To increase appropriation by $90,000 for the purchase and ❑ Estimate Decrease ❑ Inter -Departmental Transfer installation of an emergency generator and transfer switch at ❑ Project -To -Project Transfer the Corporation Yard, as approved by City Council at the ® Source ® Appropriation Increase November 7, 2017 meeting. [:1 From Existing Budget Appropriations 19500 50920 E3 From Donations, Fees, or Grants Appropriation Decrease $90,000 Z From Unappropriated Fund Balance Unit Account Name Fund Organization Program Project/Grant Increase Decrease CITY 340295 Undesignated Fund Balance 601 90000 50240 - - $90,000 CITY 590800 Other Equipment 601 19500 50920 - $90,000 - Department Authorization: Department Director Date Recommendation: Z Approval Reasons for Disapproval: Director of Finance ❑ Disapproval Date City Manager Action: Z Approved ❑ Disapproved City Manager ❑ Not Required Date Budget Verification: The above information has been reviewed, is complete and accurate, and the appropriations and/or unappropriated funds are sufficient to support the request. Z Yes ❑ No Budget Analyst Date City Council Action: Z Approved ❑ Disapproved ❑ Not Required Date D D n 2 K rn Z cn