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Home My WebLink AboutHA28750 - Interior Rnvtn @ Taos Palms Apts PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AWARD OF CONTRACT NO. HA-28750 TO DESERT RANGER CONSTRUCTION, INC., IN THE AMOUNT OF $512,000 FOR THE INTERIOR RENOVATION AT TAOS PALMS SUBMITTED BY: JAMES CONWAY, PROJECT COORDINATOR CONTRACTOR: DESERT RANGER CONSTRUCTION, INC. 23 DARTMOUTH DRIVE RANCHO MIRAGE, CA 92270 DATE: SEPTEMBER 24, 2009 CONTENTS: CONTRACT NO. HA-28750 Recommendation: By Minute Motion, that the Housing Authority: 1. Reject the lowest bidder and bid as non-responsive; and 2. Award of Contract HA-28750 to Desert Ranger Construction, Inc., of Rancho Mirage, California in the amount of $512,000 for interior renovations at the Housing Authority property known as Taos Palms; and 3. Authorize the Director of Finance to combine the existing project funding available in the aggregate amount of $537,600 ($512,000 contract and $25,600 contingency) to the capital project budget account number 871-8690-466-4001 as follows: $323,000 in account no. 871-8690-466-4001; and $165,000 from 871- 8690-466-4050; and $49,600 from 871-8680-466-4001; setting aside $25,600 from the total as a 5% contingency (use of contingency requires additional action); and 4. Authorize the Executive Director to finalize and the Chairman to execute the contract. Executive Summarv: Approval of the request will facilitate the interior renovations at the Housing Authority property known as Taos Palms, a sixteen (16) unit complex near Las Palmas and San Pablo. Such renovations include upgrades for energy efficiency including windows, entry doors, interior/exterior lighting and insulation; upgrades for accessibility by enlarging doorways and reconfiguring kitchen/bathroom spaces; safety upgrades to the electrical and plumbing services as well as new phone and cable services. Staff Report Authorize Award of Contract No. HA-28750 to Desert Ranger Construction, Inc., for Interior Renovations at Taos Palms Page 2 of 3 September 24, 2009 Discussion: On July 22, 2009, City Clerk advertised and called for sealed bids for the Taos Palms Interior Renovation Project. Bids were opened on August 28, 2009 and the following nine bids were received: General Consolidated Contractors Inc. Corona, CA $476,500 Desert Ranger Construction, Inc. Rancho Mirage, CA $512,000 GHA Enterprises Inc. Cathedral City, CA $572,500 Doug Wall Construction Inc. Bermuda Dunes, CA $598,000 Desert Solutions Palm Desert, CA $628,644 F D Construction Inc. Palm Desert, CA $648,800 Quality Pacific Construction Lake Elsinore, CA $699,500 Alma Construction Inc. Colton, CA $705,000 L 4 Y Building & Design Big Bear, CA $1,108,587 Staff reviewed the bids submitted and determined the apparent lowest bidder, General Consolidated Construction Inc., ("GCCI") did not meet the requirements of the bid documents. Specifically, the apparent low bidder did not meet the minimum qualification/experience requirements set forth in the bid specifications for experience with multi-family residential renovation. GCCI confirmed in writing that they do not have extensive experience with multi- family renovation. For this reason, staff along with the city attorney determined General Consolidated Construction Inc., to be non-responsive. The second lowest bidder, Desert Ranger Construction, met the criteria set forth in the bid documents. Desert Ranger Construction has completed several projects of similar size and scope to the proposed Taos Palms renovation. Tl�e renovations will accomplish several long term sustainability goals, including upgrades to energy efficiencies such as windows, entry doors, interior/exterior lighting and insulation within each unit; upgrades to accessibility by enlarging doorways and reconfiguring kitchen/bathroom spaces to be more functional; safety upgrades to the electrical, and plumbing services as well as new phone and cable services. The project also requires the contractor to divert construction waste from the landfill by recycling construction debris. The completed project will be a turnkey product ready for tenant occupancy. Budqet: Funds are available in the 2009-2010 fiscal year budget for the Housing Authority Fund (871) and staff is requesting that the Director of Finance be authorized to consolidate the funds into one account, the Taos Palms Capital Project account, in order to encumber the funds appropriately: G:Vda\James Conway�Housing PropeRies\Taos Palms\StaffRptAwardlnteriorRenovation09240�nal.doc Staff Report Authorize Award of Contract No. HA-28750 to Desert Ranger Construction, Inc., for Interior Renovations at Taos Palms Page 3 of 3 September 24, 2009 Staff is requesting the following funds and budget dollars be consolidated: From: 871-8690-466-4001 $ 323,000. Capital Project for Taos Palms 871-8690-466-4050 $ 165,000. Deferred Maintenance for Taos Palms 871-8680-466-4001 $ 49,600. Cost Savings - California Villas Capital Project (now final) To: -------------- 871-8690-466-4001 $ 537,600. Total Capital Project Budget for Taos Palms Consolidation of these accounts in the amounts noted will not require an additional appropriations request. Conclusion: There are currently only 4 units occupied. The existing tenants have indicated their willingness to transfer to renovated units to allow for timely completion of the project. Staff, therefore recommends award of the contract in the amount of $512,000 to the lowest responsible bidder. A five percent (5%) contingency is being set aside for unforeseen conditions in this renovation project. Submitte r James Co y � Project Coordinator Department H � ...., �„� ' . ,�- � . _.__ �`--� artin Alva Ja et M ore Redevelopment Manager Director of Hou ing A roval: . ` ��S� sti McCarthy, ACM R elopment Paul S. bso , irector of Finance �lL�'') Joh . Wohlmuth, Executive Director � BY }�A �J—� ON C�— �� VERIFIED BY ��- rYl(. Original on file with City lerk's OfFfce G:\rda\James Conway�Housing Properties\Taos Palms\StaffRptAwardlnteriorRenovation09240�nal.doc CONTRACT NO. HA-28750 SECTION 00500 AGREEMENT THIS AGREEMENT is made and entered into this day of , 2009, by and between the PALM DESERT HOUSING AUTHORITY, hereafter called "AUTHORITY," and DESERT RANGER CONSTRUCTION, INC., hereinafter called "CONTRACTOR." WITNESSETH RECITALS: WHEREAS, CONTRACTOR has submitted to AUTHORITY its CONTRACTOR's Proposal for the construction of AUTHORITY's Project, WHEREAS, TAOS PALMS INTERIOR RENOVATION PROJECT, ("PROJECT") CONTRACT NO. HA-28750, in strict accordance with the Contract Documents identified below and AUTHORITY has accepted said Proposal, WHEREAS, THE PALM DESERT REDEVELOPMENT AGENCY, as Owner, has duly authorized the PALM DESERT HOUSING AUTHORITY to carry out terms of such Project, and WHEREAS, CONTRACTOR states that it has re-examined its CONTRACTOR's Proposal and found it to be correct, has ascertained that its subcontractors are properly licensed and possess the requisite skill and forces, has examined the site and Contract in accordance with the Contract Documents for the money set forth in its Proposal to be paid as provided in the Contract Documents. AGREEMENT: IT IS AGREED BY THE PARTIES AS FOLLOWS: 1. Contract Documents: The entire contract consists of the following: (a) List of Drawings [Section 00015]; (b) Notice Inviting Sea/ed Bids (Section 00200]; (c) /nstructions to Bidders [Section 00300]; (d) Bid Schedule [Section 00410J; (e) Bid Guaranty Bond�Section 00420]; (fl Designation of Subcontractors�Section 00430J; (g) Schedule of Equipment, Manufacturers and Supplies, Major Equipment and Material /tems [Section 00440]; (h) Non-Col/usion Affidavit (Section 00450]; (i) Certification of Bidder and Qualifications �Section 00470J; (j) Agreement [Section 00500]; (k) Liability and Insurance Requirements �Section 00600]; (1) Special Insurance Endorsement �Section 00610]; (m) Faithful Performance Bond [Section 00620]; (n) Payment Bond (Section 00630]; (o) Workers' Compensation Insurance Requirements (Section 00640]; (p) Genera/ Conditions [Section 00700J; (q) Modifications to General Conditions �Section 00810]; (r) The Plans; (s) Addenda Nos. 1 and 2; (t) Any Change Orders issued; (u) Any additional or supplemental specifications, notices, instructions and Palm Desert Housing Authority Agreement Taos Palms Interior Renovation Project 1 Section 00500 G:\rdaUames Conway\Housing Properties\Taos Palms\Desert Ranger Contract HA 28750.doc CONTRACT NO. HA-28750 drawings issued in accordance with the provisions of the Contract Documents. All of said Documents presently in existence are by this reference incorporated herein as if here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. In the case of inconsistencies or conflicts within the Contract Documents, the document precedence shall be: Contract Specifications Plans Instructions to Bidders 2. CONTRACTOR shall commence the work within ten (10) calendar days after the date of the Notice to Proceed and will do all things necessary to construct the work generally described in Section 00300 in accordance with the Contract Documents and will complete said work within One Hundred Twenty (120) consecutive calendar days from the Notice to Proceed date to the satisfaction of the Authority's Representative. 3. That the CONTRACTOR agrees to indemnify, defend, and hold harmless the AUTHORITY, and its officers, and employees, the ARCHITECT and Authority's Representative from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, material men, laborers, and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Agreement. 4. Attention is directed to Section 00700-6.5, "Liquidated Damages" of the General Conditions. Liquidated damages shall be 1 500.00 per calendar day of delay. 5. Should any litigation or arbitration be commenced between the parties concerning the works of improvements as referenced herein, the prevailing party in any such litigation, being the AUTHORITY or the CONTRACTOR, should be entitled to a reasonable sum for attorney's fees and costs incurred in any such litigation relating to this Contract. 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 7. CONTRACTOR shall be paid in the manner set forth in the Contract Documents the amount of its proposal as accepted by AUTHORITY, subject to such additions and deductions as may be made pursuant to the Contact Documents and applicable law. 8. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes CONTRACTOR's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes CONTRACTOR's certification as follows: "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for worker's compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract." Palm Desert Housing Authority Agreement Taos Palms Interior Renovation Project 2 Section 00500 G:\rdaWames Conway\Housing Properties\Taos Palms\Desert Ranger Contract HA 28750.doc CONTRACT NO. HA-28750 IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. PALM DESERT HOUSING "CONTRACTOR" AUTHORITY (signature to be notarized) BY: BY: Robert A. Spiegel, Chair Title Attest: Attest: Rachelle D. Klassen, Secretary Title Approved as to Form: Dave Erwin, City Attorney ***END OF SECTION*'� Palm Desert Housing Authority Agreement Taos Palms Interior Renovation Project 3 Section 00500 G:\rda\James Conway\Housing Properties\Taos Palms\Desert Ranger Contract HA 28750.doc CONTRACT NO. HA-28750 SECTION 00620 FAITHFUL PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS, THAT, WHEREAS, the Palm Desert Housing Authority, hereinafter designated the "Authority," has, on this day of , 2009, awarded to DESERT RANGER CONSTRUCTION, INC., hereinafter designated as the "Principal," a Contract for the construction of Taos Palms Interior Renovation Proiect. WHEREAS, said Principal is required under the terms of said Contract to furnish a bond for the faithful performance of said Contract: NOW, THEREFORE, WE, the Principal, and , as Surety, are held and firmly bound unto the Authority the penal sum of FIVE HUNDRED TWELVE THOUSAND Dollars 512 000 , plus reasonable attorney fees and costs, lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal, it or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and faithfully perform the covenants, conditions, and agreements in the said contract and any alterations made as therein provided, on it or their part to be kept and perFormed, at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless, the Authority, its officers and agents as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue. It is acknowledged that the Contract provides for a one-year warranty period, during which time this bond remains in full force and effect. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or to the specifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California. ***THIS SPACE INTENTIONALLY LEFT BLANK*** Palm Desert Housing Authority Faithful Performance Bond Taos Palms Interior Renovation Project 4 Section 00620 CONTRACT NO. HA-28750 IN WITNESS WHEREOF, the above bounden parties have executed this instrument under their seals this day of , 20 , the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body. Principal (Seal) Signature of Principal Title of Signatory Surety (Seal) Signature for Surety Title of Signatory ***END OF SECTION*** Palm Desert Housing Authority Faithful PerFormance Bond Taos Palms Interior Renovation Project 5 Section 00620 CONTRACT NO. HA-28750 SECTION 00630 PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS, THAT, WHEREAS, the Palm Desert Housing Authority, hereinafter designated as the "Authority," has, on this day of , 2009, awarded to DESERT RANGER CONSTRUCTION, INC., hereinafter designated as the "Principal," a Contract for the construction of Taos Palms Interior Renovation Proiect, and WHEREAS, said Principal is required to furnish a bond in connection and with said Contract, providing that if said Principal, or any of it or its subcontractors shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, the Surety of this bond will pay the same to the extent hereinafter set forth: NOW, THEREFORE, we, the Principal, and as Surety, are held and firmly bound unto the Authority the penal sum of FIVE HUNDRED TWELVE THOUSAND Dollars 512 000 lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, and successors jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal, it or its heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the perFormance of the work contracted to be done, or for any work or labor thereon of any kind or for amount due under the Unemployment Insurance Act with respect to such work or labor, or for any amounts due, or to be withheld pursuant to Sections 18806 of the Revenue and Taxation Code of the State of California with respect to such work or labor, then said surety will pay the same in or to an amount not exceeding the amount hereinabove set forth, and also will pay in case suit is brought upon this bond, such reasonable attorney's fees to the Authority as shall be fixed by the court. This bond shall insure to the benefit of any and all persons, companies, and corporations named in Section 3181 of the Civil Code of the State of California so as to give a right of action to them or their assigns in any suit brought upon this bond. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition of the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations of this bond, and it does hereby waive notice of any change, extension of time, alteration, or addition to the terms of the contract or to the work or to the specifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California. Palm Desert Housing Authority Payment Bond Taos Palms Interior Renovation Project 6 Section 00630 CONTRACT NO. HA-28750 IN WITNESS WHEREOF, the above bounded parties have executed this instrument under their seals this day of , 20 , the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body. Principal (Seal) Signature of Principal Title of Signatory Surety (Seal) Signature for Surety Title of Signatory ***END OF SECTION*** Palm Desert Housing Authority Payment Bond Taos Palms Interior Renovation Project 7 Section 00630