HomeMy WebLinkAbout2006-5 - Balboa Island Bayfront RepairsRESOLUTION NO. 2006- 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH REJECTING HIGHLAND
CONSTRUCTION, INC.'S BID FOR CONTRACT NO. 3796
BECAUSE HIGHLAND IS A NON - RESPONSIBLE BIDDER
AND AUTHORIZING THE MAYOR AND CITY CLERK TO
ENTER INTO AN AGREEMENT WITH FLEMING
ENVIRONMENTAL, INC., FOR CONTRACT NO. 3796
WHEREAS, on November 23, 2005, the City Clerk opened and read the bids for
the Balboa Island Bayfront Repairs, Contract No. 3796 ( "Contract ");
WHEREAS, the low bid was submitted by Highland Construction, Inc. ( "Highland ");
WHEREAS, Charter Section 1110 provides that contracts on public works that
exceed Thirty Thousand Dollars ($30,000.00) must be awarded to the lowest responsible
bidder;
WHEREAS, Public Contract Code Section 1103 defines a "responsible bidder' as
"a bidder who has demonstrated the attribute of trustworthiness, as well as quality,
fitness, capacity, and experience to satisfactorily perform the public works contract;"
WHEREAS, in assessing whether Highland's bid for the Contract should be
rejected on the basis that Highland is a non - responsible bidder, the City obtained the
following documents, without limitation, which have been provided for review to the City
Council and are deemed to be incorporated into the Administrative Record relating
hereto:
1. Letter of John C. McMillan to Highland dated March 21, 2005;
2. Letter of Mike Ahmadi to John McMillan dated March 29, 1995;
3. Reporters Transcript of Proceedings dated June 5, 2005;
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4. Binders 1 through 3, Bates Stamp Numbers CT HC 00001 — CT HC
01342 submitted by the California Department of Transportation at
the Office of Administrative Hearings ( "OAH ") proceeding on June 5,
2005;
5. Binders 4 through 6 submitted by Highland at the OAH Hearing on
June 5, 2005;
6. Letter of Bradley A. Raisin to Judge William O. Hoover, Closing Brief
of Highland; Declaration of Mike Ahmadi; Declaration of Kristi Stelle;
Declaration of Earl Fukomoto and Declaration of Craig A. Sorensen,
and supporting documents all submitted to the OAH on or about
June 13, 2005;
7. OAH Decision of Judge William O. Hoover dated July 29,1995;
8. Letter of John C. McMillan to Highland dated August 19, 2005;
9. Determination of Bidders Responsibility and Findings for Award of
Contracts No. 07- 1661A -4, 07- 4J2704 and 11- 266404 of Mark Leja
dated August 19, 2005;
10. Petition for Writ of Mandate dated August 31, 2005;
11. Bid submittal of Highland dated November 23, 2005;
12. Letter of Bill Patapoff to David Ahmadi dated December 5, 2005;
13. Letter of Kristi Stelle to Aaron C. Harp dated December 13, 2005;
and
14. Employee Policy Manual "Zero Tolerance" policy.
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WHEREAS, all of the information provided by Highland and Caltrans including,
without limitation, the bid, transactional documents, correspondence, briefs, declarations
and other information provided to the City and retained in the files of the City, its attorneys
and /or consultants, is hereby incorporated by reference into the Administrative Record
and is available upon request; and
WHEREAS, the City has determined that Highland's bid for the Contract should be
rejected because Highland is a non - responsible bidder and the Contract should be
awarded to Fleming Environmental, Inc.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: Highland's bid for the Contract is hereby rejected because Highland
is a non - responsible bidder, as defined by Public Contract Code section 1103, for the
following reasons:
A. On August 19, 2005, Caltrans determined that Highland is a non-
responsible bidder and rejected its bids for three separate contracts.
B. On July 29, 2005, the Honorable William O. Hoover of the OAH determined
that Caltrans' preliminary determination that Highland was a non - responsible bidder
should be upheld.
C. The only prior references submitted by Highland as part of Highland's bid
submittal for the Contract related to projects performed for Caltrans who has determined
that Highland is a non - responsible bidder.
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D. The City has a "Zero Tolerance" anti - violence policy when it comes to
violence in the workplace and Highland has shown a history of allowing its officers and /or
employees who have routinely verbally abused and intimidated Caltrans' employees.
E. Highland's conduct has resulted in increased administrative burdens to
owners of projects that have hired Highland.
F. Highland has a history of refusing to acknowledge the authority of the
owner's representatives and employees on projects which Highland has worked.
G. Highland does not comply with established procedures for resolving claims
and disagreements.
H. The Project entails replacement of sidewalk and drains along Balboa Island
walkway located in a residential neighborhood with access along narrow streets and
alleys. The Project will have to be accomplished in close quarters between the residential
property and a beach front bulkhead and will require the contractor to perform the work in
cooperation with residents and visitors to the area. Highland's only references are for
work with Caltrans and Highland has not performed work in areas with similar space and
location limitations.
I. Highland has not submitted evidence that it has become a responsible
bidder since it was found to be a non - responsible bidder by Caltrans and /or Judge
Hoover.
Section 2: This Resolution shall not prohibit Highland from bidding on future
projects.
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Section 3: The Contract shall be awarded to the second low bidder, Fleming
Environmental, Inc. and the Mayor and City Clerk are hereby authorized to execute the
Contract.
Section 4: This Resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the Resolution.
ADOPTED this 24th day of Janua ry_2006
Don Webb, Mayor
ATTEST:
LaVonne Harkless,
City Clerk
ff.Y
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is six [one vacant seat]; that the
foregoing resolution, being Resolution No. 2006 -5 was duly and regularly introduced before and
adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held
on the 24th day of January 2006, and that the same was so passed and adopted by the following vote,
to wit:
Ayes: Selich, Rosansky, Ridgeway, Daigle, Nichols, Mayor Webb
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 25th day of January 2006.
(Seal)
City Clerk
Newport Beach, California