PUBLIC WORKS DEPARTMENT BID PROTEST
City Of Salinas
Bidder's attention is directed to the, "CITY OF SALINAS SPECIAL PROVISIONS SECTION 2 PROPOSAL REQUIREMENTS AND CONDITIONS", Subsection 2-1.04.
Today's Date: May 28, 2025
Project Title:Salinas 2025 Pavement Improvements, Project 9981 Bid Opening Date: May 23, 2025 Contractor: Granite Construction Company
Contact Name: John G. Boles, Chief Estimator _ Phone: (707) 467-4138 Address: 580 West Beach Street
City:_ Watsonville State: CA Zip: 95076
Chapter 12-39. - Bid protests of the City Code provides: Any Contractor who has submitted a Bid but is not the apparent lowest responsible Bidder on a City Contract may file a protest. The Bid protest shall be filed with the City Clerk within three working days of the Bid opening. The City Council shall hear the Bid protest prior to adopting a resolution authorizing the Bid award and execution of the Contract. In cases where the Contract is not executed by the City pursuant to City Council resolution, the Bid protest shall be heard by the City Council prior to the time the City issues a Notice to Proceed or the appropriate City official executes the contract on behalf of the City. The protesting party may protest the Bid award for the City's or successful Bidder's failure to comply with the requirements of this article, the Bid documents, or any other applicable provision of this Code. The City Council shall sustain a Bid protest only if it finds evidence that award of the Bid would violate the Code or other applicable law. The decision of the Council shall be final.
The Contado it above rides to ted an olo i process
circumstances and the issues under protest. (Additional sheets) can be attached as needed.) Please be as specific as possible:
Please see attached pages, Paragraph 1
The following is a statement that clearly describes the remedy being recommended by the above Contractor. (Additional sheets can be attached as needed.)
Please be as specific as possible:
Please see attached pages, Paragraph 2
I certify undor penalty of perjury that the information contained in this form is true and correct, to the best of my khowledge. (Please include this statement on all pages with an authorized signature.) Brian D. Hussar
Signature In blue ink Name (Please Print)
Construction Manager May 28, 2025
Tille or Postion (Please Print) Date
Number of Pages (including those attached) 3 pages total 64 GRANITE
1. Circumstances and Issues under Protest:
McKim Corporation identified itself as a Local Business Enterprise on their Proposal form (page 19), which was submitted with its bid documents, thereby qualifying for the 5% Local Business Preference. However, City of Salinas records indicate that McKim Corporation does not have a Local Business Declaration on file, as required to qualify as a Local Business Enterprise by Section 12-12.020(d) (6) of Article III-A - Local Purchasing Preference. The Proposal form where a bidder claims Local Business preference clearly states that "All Local Contractors must have a Declaration of Local Business Enterprise form filed with the City of Salinas Finance Department."
In addition, the Declaration of Local Business Enterprise form states that all criteria listed in Salinas Municipal Code section 12-28.020 subsection (d) must be met to qualify as a Local Business, as shown below:
Any person claiming to be a local business enterprise as defined in Article III-A of Chapter 12 of the Salinas Municipal Code shall so certify in writing under penalty of perjury that they meetall the criteria listed in Salinas Municipal Code section 12-28.020, subsection (d). A local business enterprise shall be requined to submit such declaration on an annual basis and shall immediately notify the City's Purchasing Officer if there is any change in circumstances which would disqually it from application of the preference. The City shall not be responsible or required to verify the accuracy of any such certifications and shall have sole discretion to determine if a person meets the definition of "local business enterprise." Below are said requirements for Local Purchasing Preference, per Section 12-12.020(d)(6) of Article lil-A of the City Code, which all must be met to qualify for the preference:
Article III-A. - Local Purchasing Preference.
Sec. 12-28.010. - Purpose.
Loxal businesses contribute significantly to the economic health of the city and to the quality of life of the citys residents and visitors. the Satnas City Council encourages the growth of local businesses by means of increasing the pancipation of local businesses in the city's purchasing of goods and services through the adoption and the Implementation of loeal purchasing regulations. Current purchasing regulations maximize competition and alfov the city to obesin the best price and value for is purchases and contracts and atlow for efficent procurement of goods and sentes with a ninimum expenditure of administrative resources. Open competition is o fundamental component of the city's procurement process and this wal continue through implementation of the city local purchasing regulations. (Ord. No. 2552, 52. 10-21-2014)
Sec. 12.28.020. - Definitlons.
(a) "Bid" or "bids" shall Include any compelllive bid submitted at the invitation of the chy. (b) *Bidder shall mean any person, Including any corporallon or other business entity, wto submits a response to a competitive Invilalion from the city. ) "Chy" shall mean the city of selinas acting through the cily council, the city manager, the purchasing daent or such other parson who is authorized under the cily Code or othensise dusy destansted to procure and execute contracts on behalfof the city.
(d) "Local business enterprise" means a business enterprise, Including but not limiled to, a sole proprietorship. partnership or corporation, which has a legilmale business presence in the city of salinas.
Evkience cf a legitimate business presence in the city of salinas shall include:
(1) Having a current city of Salinas business license;
12) Having a business office writhin the city of satnas and employing at least one full-Ume employte within thie city of Salinas:
(3) Being current on at city of salinas faxes. fees, assessments, and Ones:
(4) Not subest to enforcement action by the city or in Migation with the city:
(5) Begun doing business within the city of soliss at least one year prior to the elys loving bids or quotations for the respective purchases or is a newty established business enterprise which is owned by an individusts) formerty employed by a local business enterprise, as denned in this subsection, for at least two years immediately prior to the issuance of elther a request for compettive bids or request for qualifications frem the city: and
6) Submitting a declaration of local business enterprise on a form prodded by the city. (e) "Public works) purchases" shall inelude any construction, reconstruction. structure or infrastructure Improvement. building, eteration, demoition, excavalon, refuse hauling, Instalaton, maintenance, or repalr of any publie work. including the supplying of materals. supples, end labor.
I certify under pénally of perjaxy thet the information contained in this form is true and correct, to the hest of my knowledge. (Please include this statement on all pages with an authorized signature.) Brian D. Hussar
Signature in bite Ink Name (Please Print)
Constructlon Manager May 28, 2026
Tite or Position (Pleese Printi Date
Number of Pages (including those attached) 3 pages total GRANITE
2. Remedy Recommended:
The 5% Local Business. Preference should not be applied to McKim Corporation's bid, which would result in Granite having the lowest responsive bid. See below for calculations.
McKim Corporation bid amount submitted: $4,780,122.31 with 5% preference: $4,541,116.19 Granite Construction bid amount submitted: $4,838,830.20 with 5% preference: $4,596,888.69 I certily under penalty of perjury that the information contained in this form is true and correct, to ié best of my kholvledge (Please include this statement on all pages with an anthorized signature.) Brian D. Hussar
Signature In blue ink Name (Pense Print)
Construction Manager May 28, 2026
Title or Poshilon (Please Print) Date
Number of Pages (including those attached) 3 pages total
GRANITE