4.1 Execute Contract. Enter into the Contract with City in accordance with the terms of this Bid Proposal, by signing and submitting to City the Contract prepared by City using the form included with the Contract Documents;
4.2 Submit Required Bonds. Submit to City a payment bond and a performance bond, each for 100% of the Contract Price, using the bond forms provided and in accordance with the requirements of the Contract Documents; and
4.3 Insurance Requirements. Submit to City the insurance certificate(s) and endorsement(s} as required by the Contract Documents.
5. Bid Security. As a guarantee that, if awarded the Contract, Bidder will perform its obligations under Section 4 above, Bidder is enclosing bid security in the amount of ten percent of its maximum bid amount in one of the following forms (check one):
A cashier's check or certified check payable to City and issued by _______ _ [Bank name] in the amount of$ _________ .
_x_ A bid bond, using the Bid Bond form included with the Contract Documents, payable to City and executed by a surety licensed to do business in the State of California. {See
s/
Section
~ 3 of Instructions to Bidders]
Sequoia Construction Specialties
Company Name
PO Box 6061
Address
Eureka CA 95502
City, State, Zip
Brian Pritchard
Contact Name
_D_e_c_em_ b_er_2_0_t_h ___ _, 2~.
Brian Pritchard, President
Name and Title
Becky Pritchard, Secretary
Name and Title
624264 A,B,C-61 Exp 8/31/23
License#, Expiration Date, and Classification
1000005439
DIR Registration#
707-442-3596
Phone
[email protected]
Contact Email
END OF BID PROPOSAL
Police Facility Remodel Project
GIP 9104
2020 Form BID SCHEDULE
Bid Schedule
This Bid Schedule must be completed in ink and included with the sealed Bid Proposal. Pricing must be provided for each Bid Item as indicated. Items marked "(SW)" are Specialty Work that must be performed by a qualified Subcontractor. The lump sum or unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the "Extended Total Amount" column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal form.
AL = Allowance
LF = Linear Foot
BID
ITEM
NO.
CF= Cubic Feet
LS= Lump Sum
ITEM DESCRIPTION
CY= Cubic Yard
SF= Square Feet
EST.
QTY.
Furnish and complete all aspects of the 1
1 project as shown and described in the
contract documents.
TOTAL BASE BID:
EA = Each LB = Pounds
TON= Ton (2000 lbs)
EXTENDED TOT AL UNIT AMOUNT
LS $ G .. Z,S-38,oc;o cNote: The amount entered as the "Total Base Bid" should be identical to the Base Bid amount entered in Section 1 of the Bid Proposal fonn.
BIDDER NAME: Sequoia Construction Specialties
Police Facility Remodel Project
CIP 9104
END OF BID SCHEDULE
2020 Form BID SCHEDULE
Subcontractor List
For each Subcontractor that will perform a portion of the Work in an amount in excess of one-half of 1 % of the Bidder's total Contract Price, 1 the bidder must list a description of the Work, the name of the Subcontractor, its California contractor license number, the location of its place of business, its DIR registration number, and the portion of the Work that the Subcontractor is performing based on a percentage of the Base Bid price. If you do not plan on using Subcontractors, please mark this list as "NIA" and include it with your bid package.
DESCRIPTION SUBCONTRACTOR CALIFORNIA LOCATION OF DIR REG.NO. PERCENT
OF WORK NAME CONTRACTOR BUSINESS OF
LICENSE NO. WORK
Site Work Kernen Const 504091 Arcata CA 1000001810 5%
Shade Structuri ~ Darin Thomsen 736782 Fortuna CA 1000756545 .) % Landscaping J&G Lawn 992972 Fortuna,CA 1000053820 r_z
Insulation Insulation Pros 1041570 Eureka.CA 1000532808 ,. /4 it ·r, Roofing Redwood Empire 885019 Fortuna.CA 1000013127 !%
Windows Redwood Glass 575268 Fortuna.CA 1000013138 I ic, Drywall Primo Drywall 377937 Eureka.CA 1000913103 (.%
Painting Hamanaka Painting 667475 Eureka,CA 1000012103 3½Z '2,:, Flooring North Coast Floor 808031 Eureka.CA 1000001324 4¼x:..
Acoustical C. North Coast Acoustic w 463191 Eureka.CA 1000024811 /¾ Casework Shasta Wood Products 642876 Cottonwood, CA 1000009609 4% Plumbing Maples Plumbing 74665 Eureka.CA 1000003320 3ts;.:~ HVAC Design Air 952521 Eureka,CA 1000004801 7 ½, J:/
Electrical Owsley Electric 1015912 Fortuna.CA 1000044709 JO~ -
END OF SUBCONTRACTOR LIST
1 For street or highway construction this requirement applies to any subcontract of $10,000 or more.
Police Facility Remodel Project
GIP 9104
2020 Form SUBCONTRACTOR LIST
Noncollusion Declaration
TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID
The undersigned declares:
I am the President [title] of Sequoia Construction Specialties [business name], the party making the foregoing bid.
The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.
The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid and will not pay, any person or entity for such purpose.
This declaration is intended to comply with California Public Contract Code § 7106 and Title 23 U.S.C § 112.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on 12/20/22 [date], at Eureka [city], CA [state].
~iEd?-;:
Brian Pritchard, President
Name [print]
END OF NONCOLLUSION DECLARATION
Police Facility Remodel Project
CIP 9104
2020 Form BID BOND
Bid Bond
Sequoia Specialties, Inc.; DBA: Sequoia Construction Specialties ("Bidder") has submitted a bid, dated December 8th , 20 22 ("Bid"), to the City of Fortuna ("City") for work on the Police Facility Remodel Project ("Project"). Under this duly executed bid bond ("Bid Bond"), Bidder as Principal and TravelersCasuallyandSurelyCompanyofAmerica 'its surety ("Surety"), are bound to City as obligee in the penal sum of ten percent of the maximum amount of the Bid (the "Bond Sum"). Bidder and Surety bind themselves and their respective heirs, executors, administrators, successors and assigns, jointly and severally, as follows:
1. General. If Bidder is awarded the Contract for the Project, Bidder will enter into the Contract with City in accordance with the terms of the Bid.
2. Submittals. Within ten days following issuance of the Notice of Potential Award to Bidder, Bidder must submit to City the following:
2.1 Contract. The executed Contract, using the form provided by City in the Project contract documents ("Contract Documents");
2.2 Payment Bond. A payment bond for 100% of the maximum Contract Price, executed by a surety licensed to do business in the State of California using the Payment Bond form included with the Contract Documents;
2.3 Performance Bond. A performance bond for 100% of the maximum Contract Price, executed by a surety licensed to do business in the State of California using the Performance Bond form included with the Contract Documents; and
2.4 Insurance. The insurance certificate(s) and endorsement(s) required by the Contract Documents, and any other documents required by the Instructions to Bidders or Notice of Potential Award.
3. Enforcement. If Bidder fails to execute the Contract and to submit the bonds and insurance certificates as required by the Contract Documents, Surety guarantees that Bidder forfeits the Bond Sum to City. Any notice to Surety may be given in the manner specified in the Contract and delivered or transmitted to Surety as follows:
Attn: Ryan Barsanti
Address: 100 California Street, Suite 300
City/State/Zip: San Francisco, CA. 94111
Phone: 415-732-8721
Fax: _______________________ _
Email: [email protected]
4. Duration and Waiver. If Bidder fulfills its obligations under Section 2, above, then this obligation will be null and void; otherwise it will remain in full force and effect for 60 days following the bid opening or until this Bid Bond is returned to Bidder, whichever occurs first.
Surety waives the provisions of Civil Code§§ 2819 and 2845. [Signatures are on the following page.]
Police Facility Remodel Project
CIP 9104
2020 Form CONTRACT
This Bid Bond is entered into and effective on November 29th 20E.__.
SURETY:
rraveler~ Casualty and Surety Company of America
November 29th, 2022
Date
{Attach Acknowledgment with Notary Seal and Power of Attorney) BIDDER:
Name, Title
Police Facility Remodel Project
CIP 9104
END OF BID BOND
2020 Form CONTRACT
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of _Hr-u_m_b_o_ld..,.t _________ _
On / / /)q £2,d.
I D&t~"
before me, JACQUELINE L. SMITH, Notary Public
Here Insert Name and Title of the Officer
personally appeared __ _,D:..:a:.:.n=ikc::a~L:::.'""'M::..:.o::.:t,,,_t ____________________ _ Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/am subscribed to the within instrument and acknowledged to me that titwshe/~ executed the same in lxls/her/Nlelr authorized capacity(iu.), and that by IXIS/her/lbetr signature(I) on the instrument the person(8), ·or the entity upon behalf of which the person{s) acted, executed the instrument.
JACQUELINE L. SMITH
Notary Public - California · Humboldt County
.• · • Commission II 2369668 •• ,.,.,.., M.y Comm. Expire, Aug 4, 2025 Place Notary Seal Above
I certify under PENAL TY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
---------------OPTIONAL--------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ___________ _ Capacity(ies) Claimed by Signer(s}
Signer's Name: ___________ _
§
; Corporate..Qfficer - Ti!!fils):
I Partner -l..JJ Limited D General
. I Individual B Attorney in Fact Bl Trustee Guardian or Conservator I Other: ______________ _
Signer's Name: ___________ _
§ Corporate Officer - Tit~s):
Partner - D Limited • General
_ Individual BAttorney in Fact
8 Trustee Guardian or Conservator
Other: _____________ _
Signer Is Representing: _________ _ Signer Is Representing: ________ _ ©2014 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 TRAVELER~
Travelers Casualty and Surety Company of America
Travelers Casualty and Surety Company
St. Paul Fire and Marine Insurance Company
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and SI. P~ul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein collecti11e1y called the "Companiesj, and that the Companies do hereby make, consUlute and appoint Danika L. Mott of EUREKA , California , their true and lawful Attomey(sHn-Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. ~~;TNESS WHEREOF, the Companies have caused this instrument to be signed, and their corporate seals to be hereto affixed, this 21st day of April, State of Connecticut
City of Hartford ss.
O_n this the 21st day of April, 2021, before me personally appeared Robert L Raney, who acknowledged himself to be the Senior Vice President of each of the Companies, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of said Companies by himself as a duly authorized officer.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
My Commission expires the 30th day of June, 2026 ~~
~ Anna P. Nowik. Notary Public
This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of each of the Companies, which resolutions are now in full force and effect, reading as follows:
RES~LVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President. any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys-in-Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory In the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it Is FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation Is In writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any bond, recognizance, contract of Indemnity, or writing obligatory in the nature of a bond, recognizance, 0~ conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or ~b) duly executed (under seal, if required) by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and ii is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of lhe Company may be affixed by facsimUe to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-inF act for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimUe signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding lo which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary of each of the Companies, do hereby certlfy that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companie:,, which remains in full force and effect.
Dated this 29th day of November , 2022
To verify the authenticity oF this Power of Attorney, please call us at l-BD0-421-3880.
Ple.,slf! ref'er to dte above-named Attorney{s)-ln-Fact and the details oFthe bond to which this PoweroFAttDmey is attJlched.
EXHIBIT J
Bid Proposal
Police Facility Remodel Project
__ A_d_a_m_ s_C_o_m_ m_e_r_c_ia_l_G_e_n_e_ra_l_C_o_n_t_ra_c_t_in_g_,_l_n_c_. __ ("Bidder") hereby submits this Bid Proposal to City of Fortuna ("City") for the above-referenced project ("Project") in response to the Notice Inviting Bids and in accordance with the Contract Documents referenced in the Notice.
1. Base Bid. Bidder proposes to perform and fully complete the Work for the Project as specified in the Contract Documents, within the time required for full completion of the Work, including all labor, materials, supplies, and equipment and all other direct or indirect costs including, but not limited to, taxes, insurance and all overhead for the following price ("Base Bid"):
$ 2 711 770.00
2. Addenda. Bidder agrees that it has confirmed receipt of or access to, and reviewed, all addenda issued for this Bid. Bidder waives any claims it might have against the City based on its failure to receive, access, or review any addenda for any reason. Bidder specifically acknowledges receipt of the following addenda:
Addendum : Date Received: Addendum: Date Received:
#01 11/16/2022 #05 12/12/2022
#02 11/23/2022 #06 12/21/2022
#03 12/1/2022 #07 12/28/2022
#04 12/9/2022 #08
3. Bidder's Certifications and Warranties. By signing and submitting this Bid Proposal, Bidder certifies and warrants the following:
3.1 Examination of Contract Documents. Bidder has thoroughly examined the Contract Documents and represents that, to the best of Bidder's knowledge, there are no errors, omissions, or discrepancies in the Contract Documents, subject to the limitations of Public Contract Code § 1104.
3.2 Examination of Worksite. Bidder has had the opportunity to examine the Worksite and local conditions at the Project location.
3.3 Bidder Responsibility. Bidder is a responsible bidder, with the necessary ability, capacity, experience, skill, qualifications, workforce, equipment, and resources to perform or cause the Work to be performed in accordance with the Contract Documents and within the Contract Time.
3.4 Responsibility for Bid. Bidder has carefully reviewed this Bid Proposal and is solely responsible for any errors or omissions contained in its completed Bid. All statements and information provided in this Bid Proposal and enclosures are true and correct to the best of Bidder's knowledge.
3.5 Nondiscrimination. In preparing this Bid, the Bidder has not engaged in discrimination against any prospective or present employee or Subcontractor on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status.
4. Award of Contract. By signing and submitting this Bid Proposal, Bidder agrees that if Bidder is awarded the Contract for the Project, within ten days following issuance of the Notice of Potential Award to Bidder, Bidder will do all of the following:
Police Facility Remodel Project
CIP 9104
2020 Form BID SCHEDULE
4.1 Execute Contract. Enter into the Contract with City in accordance with the terms of this Bid Proposal, by signing and submitting to City the Contract prepared by City using the form included with the Contract Documents;
4.2 Submit Required Bonds. Submit to City a payment bond and a performance bond, each for 100% of the Contract Price, using the bond forms provided and in accordance with the requirements of the Contract Documents; and
4.3 Insurance Requirements. Submit to City the insurance certificate(s) and endorsement(s) as required by the Contract Documents.
5. Bid Security. As a guarantee that, if awarded the Contract, Bidder will perform its obligations under Section 4 above, Bidder is enclosing bid security in the amount of ten percent of its maximum bid amount in one of the following forms (check one):
A cashier's check or certified check payable to City and issued by _______ _ [Bank name] in the amount of$ _ _______ _
X A bid bond, using the Bid Bond form included with the Contract Documents, payable to City and executed by a surety licensed to do business in the State of California.
This Bid Proposal is hereby submitted on _____ .c_Ja=n'-'-u=a=ry~5~--• 2023. sf ____________ ___ _
sf ______ _ ________ _
[See Section 3 of Instructions to Bidders]
Adams Commercial General Contracting, Inc.
Company Name
217 E Street
Address
Eureka, CA 95501
City, State, Zip
Will Adams
Contact Name
Will Adams, President
Name and Title
Will Adams, Secretary
Name and Title
875823 2/29/2024 B
License #, Expiration Date, and Classification
1000000607
DIR Registration #
(707) 443-6000
Phone
[email protected]
Contact Email
END OF BID PROPOSAL
Police Facility Remodel Project
CIP 9104
2020 Form BID SCHEDULE
Bid Schedule
This Bid Schedule must be completed in ink and included with the sealed Bid Proposal. Pricing must be provided for each Bid Item as indicated. Items marked "(SW)" are Specialty Work that must be performed by a qualified Subcontractor. The lump sum or unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the "Extended Total Amount" column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal form.
AL = Allowance
LF = Linear Foot
BID
ITEM
NO.
CF = Cubic Feet
LS= Lump Sum
ITEM DESCRIPTION
CY= Cubic Yard
SF = Square Feet
EST.
QTY.
Furnish and complete all aspects of the 1
1 project as shown and described in the
contract documents.
TOTAL BASE BID: $ 2 711 770.00
EA = Each LB = Pounds
TON = Ton (2000 lbs)
EXTENDED TOT AL UNIT AMOUNT
LS $
Note: The amount entered as the ''Total Base Bid" should be identical to the Base Bid amount entered in Section 1 of the Bid Proposal form.
BIDDER NAME: Adams Commercial General Contracting, Inc.
Police Facility Remodel Project
CIP 9104
END OF BID SCHEDULE
2020 Form BID SCHEDULE
Subcontractor List
For each Subcontractor that will perform a portion of the Work in an amount in excess of one-half of 1 % of the Bidder's total Contract Price, 1 the bidder must list a description of the Work, the name of the Subcontractor, its California contractor license number, the location of its place of business, its DIR registration number, and the portion of the Work that the Subcontractor is performing based on a percentage of the Base Bid price. If you do not plan on using Subcontractors, please mark this list as "NIA" and include it with your bid package.
DESCRIPTION SUBCONTRACTOR CALIFORNIA LOCATION OF DIR REG. NO. PERCENT
OF WORK NAME CONTRACTOR BUSINESS OF
LICENSE NO. WORK
Electrical Firebolt Electrical 837554 Red Bluff, CA 1000969819 9% Plumbing Wayne Maples 747665 Eureka, CA 1000003320 4% Plumbing and Heating HVAC BESC, OBA Californi, Heating, 845771 Eureka, CA 1000660861 14% Masonry SJR Masonry 417248 McKinleyville, CA 1000002931 4% Roofing Redwood Empire 885019 Fortuna, CA 1000013127 1% Flooring North Coast Floor & Tile 808031 Eureka, CA 1000001324 3% Drywall Primo Drywall & Cons ruction Co., 377937 Eureka, CA 1000913103 3% Access Control Low Voltage Security, Inc. 900930 Windsor, CA 1000036826 2% Asphalt Paving Alves, Inc 739085 Arcata, CA 1000002588 3% Fencing Humboldt Fence Co. 808339 Eureka, CA 1000003061 4% Casework Shasta Wood Products 642876 Cottonwood, CA 1000009609 4% Acoustical Ceiling Northcoast Acoustics 463191 Eureka, CA 1000024811 1% Landscaping All Area Landscaping 1056765 Weaverville, CA PW-LR-1000662806 1% Data Stewart Telecommuni " ations, 941610 Eureka, CA 1000008328 2% Fire Alarm Advanced Security S> !Stems, 527700 Eureka, CA 1000008498 1% Steel Fabrication North Coast Fabricato s 883082 Arcata, CA 1000029831 2%
END OF SUBCONTRACTOR LIST
1 For street or highway construction this requirement applies to any subcontract of $10,000 or more.
Police Facility Remodel Project
CIP 9104
2020 Form SUBCONTRACTOR LIST
Noncollusion Declaration
TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID
The undersigned declares:
I am the President [title] of Adams Commercial General Contracting, Inc. [business name], the party making the foregoing bid.
The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham.
The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid and will not pay, any person or entity for such purpose.
This declaration is intended to comply with California Public Contract Code § 7106 and Title 23 u.s.c § 112.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on 11512023 [date], at Eureka [city], CA [state].
s/ _________________ _
Will Adams
Name [print]
END OF NONCOLLUSION DECLARATION
Police Facility Remodel Project
GIP 9104
2020 Form BID BOND
January 11, 2023
Merritt Perry
City of Fortuna
621 11
th St
Fortuna, CA 95540
RE: Police Facility Remodel Project Bid Protest
This letter is written in response to the Bid Protest sent by Sweeney Mason LLP for their client Adams Commercial General Contracting, Inc. We believe their protest is without merit due to the fact that we sent in a subcontractor substitution request letter to the City of Fortuna stating that an inadvertent clerical error had occurred listing J&G Lawn and Garden in our subcontractor list. This letter was sent to the City and J&G Lawn and Garden within the 2 working days of the bid opening allowed under the Public Contracting Code 4107.5 (attached). Affidavits will be forthcoming within the prescribed 8 working days from the time of bid opening per the PCC 4107.5 requirement.
Respectfully,
Brian Pritchard
President
[email protected]
State of California
PUBLIC CONTRACT CODE
Section 4107.5
4107.5. The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a subcontractor shall within two working days after the time of the prime bid opening by the awarding authority give written notice to the awarding authority and copies of that notice to both the subcontractor he or she claims to have listed in error and the intended subcontractor who had bid to the prime contractor prior to bid opening.
Any listed subcontractor who has been notified by the prime contractor in accordance with this section as to an inadvertent clerical error shall be allowed six working days from the time of the prime bid opening within which to submit to the awarding authority and to the prime contractor written objection to the prime contractor’s claim of inadvertent clerical error. Failure of the listed subcontractor to file the written notice within the six working days shall be primary evidence of his or her agreement that an inadvertent clerical error was made.
The awarding authority shall, after a public hearing as provided in Section 4107 and in the absence of compelling reasons to the contrary, consent to the substitution of the intended subcontractor:
(a) If (1) the prime contractor, (2) the subcontractor listed in error, and (3) the intended subcontractor each submit an affidavit to the awarding authority along with such additional evidence as the parties may wish to submit that an inadvertent clerical error was in fact made, provided that the affidavits from each of the three parties are filed within eight working days from the time of the prime bid opening, or (b) If the affidavits are filed by both the prime contractor and the intended subcontractor within the specified time but the subcontractor whom the prime contractor claims to have listed in error does not submit within six working days, to the awarding authority and to the prime contractor, written objection to the prime contractor’s claim of inadvertent clerical error as provided in this section.
If the affidavits are filed by both the prime contractor and the intended subcontractor but the listed subcontractor has, within six working days from the time of the prime bid opening, submitted to the awarding authority and to the prime contractor written objection to the prime contractor’s claim of inadvertent clerical error, the awarding authority shall investigate the claims of the parties and shall hold a public hearing as provided in Section 4107 to determine the validity of those claims. Any determination made shall be based on the facts contained in the declarations submitted under penalty of perjury by all three parties and supported by testimony under oath and subject to cross-examination. The awarding authority may, on its own motion or that of any other party, admit testimony of other contractors, any bid registries or depositories,
STATE OF CALIFORNIA
AUTHENTICATED
ELECTRONIC LEGAL MATERIAL
or any other party in possession of facts which may have a bearing on the decision of the awarding authority.
(Added by Stats. 1986, Ch. 195, Sec. 42.1.)
January 9, 2023
Merritt Perry
City of Fortuna
621 11
th St
Fortuna, CA 95540
RE: Police Facility Remodel Project Bid
This letter is written to notify you that we had errors in our Subcontractor List.
1. We inadvertently listed Redwood Glass as a subcontractor when they were used as a supplier only to prepare our bid. Please remove them from the list.
2. We inadvertently listed J&G Lawn and Garden for Landscaping with an expired DIR # and propose to replace them with All Area Landscaping, CA Lic #1056765, DIR #1000662806 Respectfully,
Brian Pritchard
President
[email protected]
CC: J&G Lawn and Garden
Via Email to [email protected]
January 13, 2023
M. Jonathan Robb, Jr.
Sweeney Mason, LLP
983 University Ave., Suite 104C
Los Gatos, CA 95032
Re: City of Fortuna Police Facility Remodel Project (CIP No. 9104) Bid Protest
Dear Mr. Robb:
I write on behalf of my client, the City of Fortuna (“City”), in response to the bid protest letter dated January 9, 2023, that you submitted to the City on behalf of your client, Adams Commercial General Contracting, Inc. (“Adams”), with regard to bidding for the abovereferenced project (“Project”). You assert that the City must reject the low bid submitted by Sequoia Construction Specialties (“Sequoia”) because Sequoia’s Subcontractor List form listed a subcontractor for landscaping, J&G Lawn (“J&G”), with an expired Department of Industrial Relations (“DIR”) registration number.
A. BACKGROUND
Bids for the Project were opened by the City on January 5, 2023. Sequoia was the apparent low bidder. The City determined that the DIR registration numbers had expired for two of the firms listed on Sequoia’s Subcontractor List form: J&G and Redwood Glass. There were no other concerns about Sequoia’s low bid, which was otherwise determined to be responsive.
Within two working days following the bid opening, by letter dated January 9, 2023, Sequoia notified the City in writing that both of these entries on the Subcontractor List form were due to inadvertent error. Sequoia explained that Redwood Glass was being used as a supplier, and not as subcontractor. Accordingly, Sequoia was not required to include Redwood Glass on its M. Jonathan Robb, Jr.
January 13, 2023
Subcontractor List form pursuant to Public Contract Code section 4104, and as a supplier, Redwood Glass was not required to be registered with the DIR pursuant to Labor Code section 1725.5. With respect to J&G Glass, the subject of Adam’s bid protest, Sequoia explained that this was an inadvertent error and that Sequoia proposed to replace J&G with All Area Landscaping (“All Area”), which is currently registered with the DIR.
B. ANALYSIS
1. Pursuant to Labor Code section 1771.1, inadvertent listing of an unregistered subcontractor is not grounds for protest or for considering a bid nonresponsive if the unregistered subcontractor is replaced by a registered subcontractor.
An inadvertent error in listing a subcontractor who is not registered with the DIR is governed by Labor Code section 1771.1, which provides that this “shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive” provided the inadvertent error is corrected by any one of the three manners specified therein, as set forth in this excerpt (emphasis added):
“(c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.” Sequoia has timely notified the City in writing that its listing of J&G was inadvertent and that it will replace J&G with All Area, which is registered with the DIR. Sequoia has initiated this M. Jonathan Robb, Jr.
January 13, 2023
substitution consistent with the requirements of Public Contract Code sections 4107(a)(5) and 4107.5, by providing written notice of the error within two working days after the bid opening as required by Public Contract Code section 4107.5. Sequoia has further indicated in writing its intent to timely submit affidavits regarding the error as further specified in Public Contract Code section 4107.5.
2. Cure by substitution is available under Labor Code section 1771.1 regardless of the duration of the lapse in the listed subcontractor’s DIR registration, and regardless of whether the listed subcontractor renews its DIR registration within 24 hours.
You have alleged that Sequoia’s listing of J&G was “clearly not inadvertent given that the registration expired more than a year and a half ago.” Apart from the fact that this is mere conjecture as to inadvertence, there is no such time limit in Labor Code section 1771.1. The terms of Labor Code section 1771.1 apply without regard as to when or why the listed subcontractor was not registered at the time of bid.
You have also alleged that the subcontractor listing error cannot be cured because J&G did not renew its DIR registration with 24 hours. However, that is only one of the three available options for curing an inadvertent listing such as this under Labor Code section 1771.1(c), quoted above. Here, Sequoia has taken steps to cure the error in the manner specified under Labor Code section 1771.1(c)(3), and has done so consistent with the requirements of Public Contract Code sections 4107(a)(5) and 4107.5.
3. In the unlikely event that the City does not consent to the substitution, these circumstances do not legally obligate the City to award the contract to a higher bidder.
Assuming J&G does not object to the substitution—and the City is unaware of any reason why it would given that it does not dispute that its DIR registration had lapsed—and “in the absence of compelling reasons to the contrary,” Public Contract Code section 4107.5 mandates that the City, as the awarding authority, “shall…consent to the substitution of the intended subcontractor.” The City is unaware of any “compelling reasons to the contrary” and finds none in the bid protest.
Once the City has consented to the substitution, pursuant to the express terms of Labor Code section 1771.1, there will be no grounds for protest or for rejecting the bid as nonresponsive. If, for any reason, the City concludes that it cannot consent to the substitution, that conclusion would not inexorably lead to an award to Adams. The City would still have the right to reject all bids and re-bid the Project.
M. Jonathan Robb, Jr.
January 13, 2023
Finally, it bears noting that this unsupported protest must be considered in light of wellestablished public policy favoring award to the low bidder. California courts have consistently held that allegations of nonresponsiveness must be evaluated from a practical, rather than speculative or hypertechnical perspective, and based on the public interest:
“They must also be viewed in light of the public interest, rather than the private interest of a disappointed bidder. It certainly would amount to a disservice to the public if a losing bidder were to be permitted to comb through the bid proposal...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. Such construction would be adverse to the best interests of the public and contrary to public policy.” (Bay Cities Paving & Grading, Inc. v. City of San Leandro (2014) 223 Cal.App.4th 1181, 1189; internal quotation marks omitted.) C. CONCLUSION
The City appreciates Adams interest in the Project and welcomes its participation in future public works bids. However, for the reasons stated above, Adam’s bid protest lacks merit. The City has no obligation—and indeed no legal grounds—to reject Sequoia’s low bid while Sequoia seeks to correct the listing error as expressly authorized by Labor Code section 1771.1, and the request for substitution is proceeding as required by law.
Sincerely,
LAW OFFICE OF CLARE M. GIBSON
Clare M. Gibson
c: (via email)
Client
Sequoia Construction Specialties
1 Brendan E. Byrd
From: Clare Gibson <[email protected]>
Sent: Thursday, January 19, 2023 3:16 PM
To: Jonathan Robb
Cc: Merritt Perry; Brendan E. Byrd; William Kaufman; Angel Reyes Subject: Re: City of Fortuna | Police Facility Remodel Project | City Response to Bid Protest Attachments: Affidavits Of Correction Fortuna Police Remodel.pdf Hi Jon,
I appreciate your advocacy on behalf of your client. However, I do not agree that the law compels the result you seek, i.e., award to a higher bidder—effectively paying a premium of $173,770 of public taxpayers' money for the same work. This proposed outcome is contrary to a well‐established body of law compelling award to the lowest responsive bidder, and contrary to the public policy upon which these laws are based. As frequently cited in the robust body of California law governing public bidding, "Competitive bidding laws are passed for the benefit and protection of the taxpaying public, not for the benefit and enrichment of bidders." (MCM Construction, Inc. v. San Francisco (1998) 66 Cal.App.4th 359, 373.) Subdivision (c) of Labor Code section 1771.1 does not include the qualifiers you wish to read into it. And it does not give primacy to any of the three options it authorizes for cure when an unregistered subcontractor is listed by inadvertent error (emphasis added):
"(c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5."
(3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
Nothing in this provision provides that option (c)(2) is the only available cure. Subdivision (c)(3) is equally available. As clearly stated in the statute, "any" of the three circumstances in (c)(1)‐(3) are available to cure.
The purpose of this statute is to ensure that contractors and subcontractors bidding on public works projects are registered with the DIR and, with respect to subcontractors, to either get them registered ASAP or replace them with a registered subcontractor via statutory substitution. Section 1771.1 is not intended to weaponize bid protests to force public agencies to pay a premium for public works contracts due to routine human error.
Indeed, the whole purpose and substance of subdivision (c) is to avoid exactly this scenario.
Further, there is no qualifier as to the magnitude of "inadvertent errors" lead to listing an unregistered. You are entitled to your opinion that Sequoia had ample time to check on J&G's registration, but that doesn't change the law. There simply are no such qualifiers, apart from the error being "inadvertent" which is open‐ 2 ended as to the nature or reasonableness of the error. (It is also redundant‐‐since an "error" is by definition inadvertent.)
Moreover, as a practical matter, even if there were such a qualifier, Sequoia did not have over a year to check on the DIR registration. Errors such as this are routine because subcontractor price quotes are customarily transmitted to prime bidders during the final minutes before the bid deadline. This strategy avoids the evils of bid‐shopping and bid‐peddling, consistent with the objectives of the Subletting and Subcontracting Faire Practices Act, as stated in Public Contract Code section 4101. The bid runner typically has to rush to choose the best price for each category, then to fill in the subcontractor list form and the resulting final bid price during these final minutes before bids are due. Sure, in a perfect world, perhaps prime bidders such as Sequoia and Adams would check the DIR registration number for every possible subcontractor that might submit a price quote during the final minutes before the bid deadline. But that's not what the law requires.
And that's not the world we live in.
California has a robust body of bidding law that addresses this practical reality. See, e.g., Great West Contractors, Inc. v. Irvine Unified School District (2010) 187 Cal.App.4th 1425, 1428 [setting forth an extensive bibliography in footnote 1]‐‐a case that is also instructive in this context for excoriating a public agency's improper attempts to justify awarding to a higher bidder as "favoritism most foul." (Id. at 1429.) The law is similarly clear in Public Contract Code sections 4107(a)(5) and 4107.5, which collectively govern substitution based on error, including, per Labor Code section 1771.1, erroneous listing of an unregistered subcontractor. (There's room for debate as to whether the provisions of PCC section 4107.5 apply here since Labor Code section 1771.1 only references PCC section 4107, but in an abundance of caution, we are electing to follow PCC section 4107.5 as well.)
Section 4107.5 effectively mandates consent to substitution following a public hearing when the contractor, the listed subcontractor, and the replacement subcontractor submit affidavits that a clerical error was made.
Affidavits have been submitted from all three parties in this regard. See attached. Accordingly, this matter will be brought before the City Council to act on the request for substitution.
The overarching thrust of the law governing public works contracts is to ensure award to the lowest responsible bidder in support of express Legislative objectives and findings set forth in Public Contract Code section 100, including "protecting the public with the misuse of public funds" and providing "fair opportunity" in the bidding process. It would be manifestly unfair—not to mention unlawful—to misconstrue and misapply Labor Code section 1771.1 to reject a responsive low bidder in favor of a higher bidder.
Finally, it is again important to bear in mind that the City has no legal obligation to award the contract at all, let alone to award it to your client. It has broad discretion to reject all bids. See, e.g., Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc. (2017) 2 Cal.5th 505, 516. Your client has no reasonable expectation, as a matter of law, to the award of this contract regardless of the action the City Council takes in response to the pending substitution request.
Best,
Clare
Please note that I will be out on vacation from 1/25/23 through 2/17/23.
Clare M. Gibson
3 Law Office of Clare M. Gibson
www.claregibsonlaw.com
[email protected]
510.858.0910
CONFIDENTIALITY NOTICE: The information in this email and any attachments hereto belong to the Law Office of Clare M. Gibson. It may be privileged and confidential and therefore protected from disclosure. If you believe that you have received this message in error, kindly notify the sender and delete the message and any attachments from your system. If you are not an intended recipient, dissemination or reproduction of this email or its attachments is strictly prohibited.
From: Jonathan Robb <[email protected]>
Sent: Wednesday, January 18, 2023 9:51 AM
To: Clare Gibson <[email protected]>
Cc: Merritt Perry <[email protected]>; Brendan E. Byrd <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; William Kaufman <[email protected]>; Angel Reyes <[email protected]>
Subject: RE: City of Fortuna | Police Facility Remodel Project | City Response to Bid Protest
Dear Ms. Gibson,
Thank you for your email. Upon the City’s receipt of the declarations from Sequoia, please forward them to me. As you know, inadvertent clerical error is a specific standard requiring in part that Sequoia actually intended to list All Area. We disagree with your comment that the bid protest was based upon conjecture; Sequoia had a year and a half to perform a due diligence review of J&G’s DIR registration. It seems they failed to do so. We intend to review the declarations ourselves via voluntary disclosure or a public records request, as we cannot understand from these facts how Sequoia missed this fundamental and basic requirement.
Even if Sequoia presents adequate declarations under code, the 24‐hour rule applicable to DIR registrations is the more specific statute because of its express call‐out of DIR registrations.
Thank you for your attention. Please do not hesitate to contact me with any questions.
Best Regards,
Jon Robb
‐‐
M. Jonathan Robb, Jr., Esq.
Senior Counsel
Sweeney Mason LLP
983 University Ave., Ste. 104C
Los Gatos, CA 95032
Telephone: (408) 356‐3000
Fax: (408) 354‐8839
[email protected]
From: Clare Gibson <[email protected]>
Sent: Friday, January 13, 2023 9:48 AM
4 To: Jonathan Robb <[email protected]>
Cc: Merritt Perry <[email protected]>; Brendan E. Byrd <[email protected]> Subject: City of Fortuna | Police Facility Remodel Project | City Response to Bid Protest
Dear Mr. Robb,
Please see attached on behalf of my client, the City of Fortuna. Kindly confirm receipt via reply email so that I'll know that I have correctly keyed in your email address.
Best,
Clare
Please note that I will be out on vacation from 1/25/23 through 2/17/23.
Clare M. Gibson
Law Office of Clare M. Gibson
www.claregibsonlaw.com
[email protected]
510.858.0910
CONFIDENTIALITY NOTICE: The information in this email and any attachments hereto belong to the Law Office of Clare M. Gibson. It may be privileged and confidential and therefore protected from disclosure. If you believe that you have received this message in error, kindly notify the sender and delete the message and any attachments from your system. If you are not an intended recipient, dissemination or reproduction of this email or its attachments is strictly prohibited.
Business Item 5c
STAFF REPORT
City Council Business Item
DATE: February 6, 2023
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Public Works Director/City Engineer THROUGH: Merritt Perry, City Manager
SUBJECT: Authorization to Award Construction Contract for the Police Facility Remodel Project to Sequoia Construction
STAFF RECOMMENDATION:
Authorize the City Manager to award the Police Facility Remodel Project (CIP 9104) to Sequoia Construction Specialties and establish a maximum contract amount of $2,920,000, and authorize Supplemental Budget Request for $2,000,000.
EXECUTIVE SUMMARY:
The Police Facility Remodel Project bid package was released and publically advertised on October 31st, 2022. The bid period ended on January 5, 2023, at which time the City received three bids.
The bid totals are shown in the table below:
Bid Schedule
Bidder
Sequoia Construction
Specialties
Adams Commercial
General Contracting Beacom Construction
Total Base Bid $2,538,000 $2,711,770 $3,005,021
The apparent low bid was submitted by Sequoia Construction Specialties, with a total bid price of $2,538,000. Staff have reviewed the bid and found that it is reasonable and within the engineers’ estimate developed for the project. Staff are recommending that the council award the contract amount and include a contingency of approximately 15% to cover unforeseen changes that may arise during project. This would result in a contingency of approximately $382,000, and a recommended maximum contract amount of $2,920,000. Construction contingencies generally range from 10-20%, and in this case staff feel that a higher contingency is warranted given the uncertainties that can arise in building remodel projects when the true existing conditions are not known until interior demolition.
After the bid opening City staff confirmed an error regarding the DIR registration for one of Sequoia Construction’s subcontractors. The City also received a bid protest from the number-two bidder, Business Item 5c
Adams Commercial General Contracting, regarding the same issue. These items were discussed in detail in the previous staff report for the project, and if that business item is approved by the Council then Sequoia’s bid can be confirmed as responsive, and staff recommendsthat the Council authorize the award of the contract to Sequoia Construction. If the contract is awarded, construction is anticipated to begin as soon as late February, and the current construction contract deadline is the end of 2023. The draft Notice of Potential Award is included as Attachment A.
In addition to the construction contract, staff are working with other specialty contractors that will be needed to complete portions of work on the project that are outside of the City’s proposed contract with Sequoia. These contractors include Whitchurch Engineering for design and construction support, Silke Communications for the Police dispatch radios, Pacific Gas and Electric (PGE) for the upgrade to the power service for the building, and Nylex for computer server upgrades and network support. Estimated costs for these efforts are included in the Financial Impact section below. These contracts and costs will be brought to the Council for authorization as separate standalone items as needed (and as cost estimates are developed), or as part of the 2023/24 Capital Improvement Program and Budget and estimates are shown below.
FINANCIAL IMPACT:
The anticipated budget for the project is shown in the table below. Only the amount of the construction contract with Sequoia Construction is known at this time. More accurate estimates are being developed for the other support services and will be brought to the council at a later date.
Contractor Project Cost Funding Source
Sequoia Construction $2,920,000 ARPA/General Fund/Potential Grant Funding PGE $50,000-$100,000 ARPA/General Fund/Potential Grant Funding Nylex $85,000 ARPA/General Fund/Potential Grant Funding Silke Communications $150,000 Police Asset Seizure
Whitchurch Engineering $70,000 ARPA/General Fund/Potential Grant Funding Total Estimated Cost 3,325,000
The City Council included $2,000,000 in American Rescue Plan Act (ARPA) funds to be used on the Police Facility project in FY 2021-22. Staff is proposing a Supplemental Budget Request (SBR) to roll over those funds into the FY 2022-23 budget. This is anticipated to cover the costs for Sequoia Construction, PGE, Nylex, and Whitchurch Engineering for the project in FY 2022-23.
The remaining costs ($1,325,000) will be included in the budget for FY 2023-24. It is expected that the City’s remaining ARPA funds of $350,000 will also be budgeted for use on the project.
Staff are also working on identifying other funding sources that may be used for the project in the next fiscal year including Humboldt County Measure Z, City of Fortuna Measure E and Asset Seizure. Asset Seizure funding that had been allocated in the police department for radio upgrades in previous budgets, but the project was postponed to wait until the new police facility was in development. If other funding sources are not found, the remaining balance would come from General Fund Reserves. Therefore, if Asset Seizure Funds in the amount of $150K, and ARPA funds in the amount of $350K are applied to the project, the remaining amount that would need to come from the General Fund Reserves is $825,000.
Business Item 5c
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to Authorize the City Manager to award the Police Facility Remodel Project (CIP 9104) to Sequoia Construction Specialties and establish a maximum contract amount of $2,920,000, and authorize Supplemental Budget Request for $2,000,000.
Voice vote.
ATTACHMENTS:
Attachment A – Draft Notice of Potential Award
Attachment B – Supplemental Budget Request
Business Item 5c
Attachment A
Sent via _______________
February 7, 2023
Brian Prichard
Sequoia Construction Specialties
PO Box 6061
Eureka, CA 95502
[email protected]
Re: NOTICE OF POTENTIAL AWARD
Police Facility Remodel Project
Dear Mr. Zabel:
I am pleased to inform you of the intent to recommend that the City Council or its authorized designee award the Contract for the above-referenced Project (“Project”) to Sequoia Construction Specialties (“Contractor”) for the Contract Price of $2,538,000, based on Contractor’s Bid Proposal submitted on January 5, 2023.
A copy of the Contract accompanies this Notice. Contractor must execute 2 copies of the enclosed Contract and return the wet-inked copies to my attention, accompanied by the required Payment Bond, Performance Bond, and insurance certificates and endorsements, no later than ten days from the date of this Notice of Potential Award, above.
Failure to execute and return the enclosed Contract and required bonds and insurance documentation within the specified time could result in forfeiture of Contractor’s bid security. This Notice of Potential Award does not bind the City to award the Contract. The City, acting through its City Council or authorized designee, reserves the right to reject any or all bids, and the right to decline to award the Contract, notwithstanding any staff recommendation.
Please acknowledge receipt of this Notice of Potential Award by signing the attached Acknowledgement of Notice of Potential Award, as indicated, and transmitting the Acknowledgement to my office via email at [email protected];. Do not hesitate to contact me if you have any questions in this regard.
Sincerely,
Merritt Perry
City Manager
Enclosure
Acknowledgement of Notice of Potential Award
On behalf of <________________________________________> (“Contractor”), I acknowledge receipt of the Notice of Potential Award for the Police Facility Remodel Project:
s/_________________________________
Name: _____________________________
Title: ______________________________
Date: ______________________________
Requesting Department: Packet #
JV #
Fund Name/s Amended: Prepared By
Checked By
Fund #/s Amended: Post Date
New Budget Appropriation Intra‐Department Budget Transfer Additional Budget Appropriation Other Budget Transfer
REVENUES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
EXPENDITURES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
PURPOSE
Department Head: Date:
Finance Director: Date:
City Manager: Date:
CITY OF FORTUNA
SUPPLEMENTAL BUDGET REQUEST
Business Item 5d
STAFF REPORT
City Council Business Item
DATE: February 6, 2023
TO: Honorable Mayor and Council Members
FROM: Brendan Byrd, Director of Public Works/City Engineer THROUGH: Merritt Perry, City Manager
SUBJECT: Authorization to Award a Construction Contract for the Corporation Yard Emergency Generator Project (CIP 9114) to Hooven and Reese Inc., Establish a Maximum Contract Amount of $90,000, and the Approval of a Supplemental Budget Request.
STAFF RECOMMENDATION:
Authorize the City Manager to award the Corporation Yard Emergency Generator Project (CIP 9114) to Hooven and Reese Inc., establish a maximum contract amount of $90,000, and approve a Supplemental Budget Request.
EXECUTIVE SUMMARY:
The City’s Public Works operations are essential services for the community, and as such, most of the City’s facilities are equipped with emergency backup power generators. However, one major exception is the City’s corporation yard at 190 Dinsmore Drive (Corp Yard), which houses the City’s Streets and Utilities Divisions, and the mechanic shop. During power outages staff cannot work on City vehicles, charge tools, or reasonably work indoors in areas with low or limited natural lighting. When outages persist for longer periods of time, such as was recently experienced with the earthquakes, this can result in a significant amount of lost productivity.
Recognizing the need to have emergency backup power at the Corp Yard, staff included enterprise funds to procure and install a generator in the Fiscal Year 2021-22 budget. However, prior to moving forward with that project in that budget year, staff identified a community infrastructure grant program through the United States Department of Agriculture (USDA) that could be used to offset a significant portion of the project cost (55%). Staff applied for the grant in early 2022, and were notified of grant award later in the same year, after the adoption of the 2022-23 budget.
With the USDA funding secured, the Corporation Yard Emergency Generator Project bid package was released and publically advertised on November 28, 2022. Work in the bid package includes a new natural gas generator, a structural concrete pad, and an automatic transfer switch so that the generator will come on automatically when an outage is experienced, The bid period ended on January 5, 2023, at which time the City received two bids. The bid totals are shown in the table below:
Business Item 5d
Bid Schedule
Bidder
Hooven and Reese Inc. James Day Construction
Total Base Bid $80,000 $119,256
The apparent low bid was submitted by Hooven and Reese Inc. with a total bid price of $80,000, which is within the cost estimate developed by staff during the project planning phase. City staff have confirmed that the bid received from Hooven and Reese Inc. was fully responsive and that they and their sub-contractors have active licenses and registrations. Staff recommend awarding the contract to Hooven and Reese Inc.
If the project is awarded, staff anticipate being under contract in March, at which time the contractor would immediately order the generator due to long ordering lead times. Mobilization and construction is anticipated to begin sometime later this year, and will likely depend on the exact lead time for the generator. The draft Notice of Potential Award is included as Attachment A.
FINANCIAL IMPACT:
This project is funded in part through the USDA, which provides funding to develop essential community facilities in rural areas through a grant program. The grant requires a 45% local match, and staff propose to use water and sewer reserve funding for the match requirement. See the table below for a breakdown of project funding.
Funding Source
USDA Rural
Development Grant
Funding
City Matching and
Contingency Funds,
Water and
Collections Capital
Reserve
Total Funding
City Fund Number 500 500 & 550 -
Funding Amount $44,000 $46,000 $90,000
As shown above, staff is proposing to allocate $90,000 in total for the project. This would include the $44,000 in USDA grant funding, $36,000 of combined water and sewer capital reserve funding acting as the City’s 45% grant match, and an additional $10,000 of City funding that would serve as the construction contingency for the project. The contingency would cover any unforeseen costs that arise during the project.
Due to the City pursuing grant funding for this project in early 2022, and the award being uncertain, staff did not include any funding for this project in the 2022-23 budget. As such, in addition to staff seeking approval from the Council to award the contract, staff is seeking Council’s approval of a supplemental budget request to fund the project costs as noted above. The supplemental budget request has been included below in Attachment B.
Business Item 5d
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to Authorize the City Manager to award the Corporation Yard Emergency Generator Project (CIP 9114) to Hooven and Reese Inc., establish a maximum contract amount of $90,000, and approve a supplemental budget request.
ATTACHMENTS:
Draft Notice of Potential Award
Supplemental Budget Request
Business Item 5d
Attachment
February 7, 2023 Sent via E-mail
Hooven and Reese Inc.
3445 Central Ave.
Mckinleyville, CA 95519
Re: NOTICE OF POTENTIAL AWARD
Corp Yard Emergency Generator Project
Dear Nick Reese:
I am pleased to inform you of the intent to recommend that the City Council or its authorized designee award the Contract for the above-referenced Project (“Project”) to Hooven and Reese Inc. (“Contractor”) for the Contract Price of $80,000.00 based on Contractor’s Bid Proposal submitted on January 5th, 2023.
A copy of the Contract accompanies this Notice. Contractor must execute 2 copies of the enclosed Contract and return the wet-inked copies to my attention, accompanied by the required Payment Bond, Performance Bond, and insurance certificates and endorsements, no later than ten days from the date of this Notice of Potential Award, above.
Failure to execute and return the enclosed Contract and required bonds and insurance documentation within the specified time could result in forfeiture of Contractor’s bid security. This Notice of Potential Award does not bind the City to award the Contract. The City, acting through its City Council or authorized designee, reserves the right to reject any or all bids, and the right to decline to award the Contract, notwithstanding any staff recommendation.
Please acknowledge receipt of this Notice of Potential Award by signing the attached Acknowledgement of Notice of Potential Award, as indicated, and transmitting the Acknowledgement to my office via email at [email protected]. Do not hesitate to contact me if you have any questions in this regard.
Sincerely,
Buffy Gray
Deputy City Clerk
Enclosure
Business Item 5d
Acknowledgement of Notice of Potential Award
On behalf of <________________________________________> (“Contractor”), I acknowledge receipt of the Notice of Potential Award for the Corp Yard Emergency Generator Project:
s/_________________________________
Name: _____________________________
Title: ______________________________
Date: ______________________________
Requesting Department: Packet #
JV #
Fund Name/s Amended: Prepared By
Checked By
Fund #/s Amended: Post Date
New Budget Appropriation Intra‐Department Budget Transfer Additional Budget Appropriation Other Budget Transfer
REVENUES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
EXPENDITURES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
PURPOSE
Department Head: Date:
Finance Director: Date:
City Manager: Date:
CITY OF FORTUNA
SUPPLEMENTAL BUDGET REQUEST
Business Item 5e
STAFF REPORT
City Council Business Item
DATE: February 6, 2023
TO: Honorable Mayor and Council Members
FROM: Casey J. Day, Chief of Police
THROUGH: Merritt Perry, City Manager
SUBJECT: Supplemental Budget Request for the Sole-Source Purchase of Four (4) Chevrolet Tahoe Police Vehicles Utilizing the USDA Community Facilities Grant
STAFF RECOMMENDATION:
1. Authorize the sole-source procurement of four (4) Chevrolet Tahoe patrol vehicles from Future Chevrolet Fleet Center in Sacramento, California for a total cost of $240,916.68 and;
2. Approve a supplemental budget request in the amount of $340,916.68 to complete the purchase of outfitting of the new police vehicles.
EXECUTIVE SUMMARY:
On April 4, 2022, the Fortuna City Council approved the purchase of four (4) new Ford Police Vehicles (fully outfitted) in the amount $256,086.26, with $140,800.00 coming from a USDA Community Facilities Grant and a city match of $115,286.82 from the Asset Seizure Fund.
The current patrol vehicle procurement environment has been, and continues to be significantly challenging and new Ford Police Vehicles have been unavailable to the City and other jurisdictions across the Country due to supply chain shortages. The dealerships that have been awarded State Contracts have been unable to allow ordering of the vehicles, or provide an estimated time of delivery. The associated obstacles are likely to continue for the foreseeable and distant future and is not conducive to the competitive procurement process.
The Fortuna Municipal Code (FMC) §§ 2.50.080 allows the City to obtain goods by negotiated contract, and without a competitive procurement process, when the Council determines that a competitive procurement process is not likely to serve the best interests of the City or to result in the lowest price, or when competitive procurement is impractical. Because the vehicles cannot be obtained that were competitively bid, staff believes that it is in the City’s best interest to negotiate with other dealers that can provide the vehicles in a timely manner. If the City waits, for competitively bid Ford Explorer/Interceptors to become available, they would be a newer model year and likely have higher cost than originally anticipated.
Therefore, staff have sought to identify other sources for new police vehicles that can be obtained within a shorter time. Staff have identified a dealer that can provide four needed vehicles for the City immediately. The vehicles identified are Chevrolet Tahoe patrol vehicles and the dealer is Future Chevrolet Fleet Center in Sacramento, California. The cost for the purchase of the four Business Item 5e
vehicles would be $240,916.68, and approximately $100K to fully equip the new vehicles. This exceeds the original budget of $256,086.26 by approximately $88,830.42.
Although the four (4) Chevrolet Tahoe Police Vehicles will cost slightly more than the most recent DGS State contract, The cost will be less than other local jurisdictions have paid for the same vehicles. Staff did check with the winner of the most recent DGS contract awardee (Winner Chevrolet) who does not have Chevrolet Tahoe’s in stock and cannot order them at present time.
FISCAL IMPACT:
The original budget for the vehicle purchase and outfitting of the four Ford Explorers was $256,086.26 in FY 2021-2022. The purchase and outfitting of the new Chevy Tahoe’s will cost $340,916.68 in FY 2022-2023 .Staff is proposing that council approve a supplemental budget request in the amount of $340,916.68 with $200,116.68 to come from the Asset Seizure Fund (180- 8000-2000) The remaining $140,800 will be funded from the USDA Community Facilities Grant.
Currently the Asset Seizure fund has a balance of $244,000 and we are expecting approximately $90k-$100k within the next three months. Currently there are $40,000 in Asset Seizure set aside for to complete the outfitting of the two previous vehicles purchased leaving $4,000 remaining if approved until a future distribution is made.
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions
2. Open Public Comment
3. Close Public Comment
3. Motion to Find that it is in the public’s interest to negotiate for the purchase of new police vehicles and not require competitive bidding; Authorize the sole-source purchase of four (4) Chevrolet Tahoe patrol vehicles from Future Chevrolet Fleet Center in Sacramento, California for a total cost of $240,916.68 and; Approve a supplemental budget request in the amount of $340,916.68 to complete the purchase of outfitting of the new police vehicles. Voice vote.
ATTACHMENTS:
Supplemental Budget Request
Vehicle Purchase Quote
Sole Source Justification
Requesting Department: Packet #
JV #
Fund Name/s Amended: Prepared By
Checked By
Fund #/s Amended: Post Date
New Budget Appropriation Intra‐Department Budget Transfer Additional Budget Appropriation Other Budget Transfer
REVENUES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
EXPENDITURES
Account Description Account Number Current Budget Proposed Amendments
Amended
Budgets
TOTAL
PURPOSE
Department Head: Date:
Finance Director: Date:
City Manager: Date:
CITY OF FORTUNA
SUPPLEMENTAL BUDGET REQUEST
COMPARATIVE COST AND SOLE SOURCE JUSTIFICATION
Department: _____________________________________________ Description and Purpose of Item to be Purchased:
_____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ COMPARATIVE COST: Complete this section when procuring single Materials, Supplies and Equipment items costing between $2500 and $10,000. Attach completed form to Requisition/Purchase Order.
Vendor 1: Name of Company:
Vendor 2: Name of Company:
Vendor 3: Name of Company:
Notes:
Prepared by: Casey J. Day, Chief of Police Date: 01/24/2023 SOLE SOURCE JUSTIFICATION: Complete this section to explain why only a single source is available for procurement of supplies, materials, equipment, vehicles, or services.
Name of Company:_Future Chevrolet Fleet Center_________________________________________________ Cost:_$240,916.68
Notes: N/A
Detailed description of justification for sole source:
_____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________ Prepared by:__________________________________ Date:___________________ Department Head Approval:_Casey J. Day________________________ Date:___________________ Purchase of four (4) Chevrolet Tahoe Police Vehicles from Future Chevrolet Fleet Center. This is a one-time fleet expansion project recognizing matching grant funds from the 2022, USDA Community Facilities Grant.
Fortuna Police Department
The current shortage of police vehicle’s created by supply chain shortages and over ordering has effectively established a procurement moratorium throughout the United States. This moratorium has halted the City’s attempt to utilize matching funds from the 2022 USDA Community Facilities Grant to expand the current police department fleet by four (4) vehicles. Staff checked with the current DGS State contract bid winner who has no Tahoes or Ford’s in stock and ordering at the current time is not possible. Currently, Future Chevrolet Fleet Center is the only know dealer with four (4) Chevrolet Tahoe police Vehicles in stock and ready for delivery.
Casey J. Day
City Manager’s Report
STAFF REPORT
City Manager's Report
DATE: February 6, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Merritt Perry, City Manager
1. Upcoming Council Meeting Dates
*Special Meeting/Workshop
Tuesday, February 21, 2023
6:00 p.m.
Regular City Council Meeting
Council Chambers at City Hall
Monday, March 6, 2023
6:00 p.m.
Regular City Council Meeting
Council Chambers at City Hall
2. Upcoming Planning Commission Meeting Dates
Tuesday, February 14, 2023
6:00 p.m.
Regular Planning Commission Meeting
Council Chambers at City Hall
Tuesday, February 28, 2023
6:00 p.m.
Regular Planning Commission Meeting
Council Chambers at City Hall
3. Upcoming Measure E Meeting Dates
Tuesday, March 21, 2023
5:30 p.m.
Regular Measure E Meeting
Council Chambers at City Hall
4. Upcoming Rohner Community Recreation and Park District (RCRPD) Meeting Dates Wednesday, March 1, 2023
2:30 p.m.
Regular RCRPD Meeting
Council Chambers at City Hall