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RPVCCA_CC_SR_2012_11_20_L_San_Ramon_Canyon_Project_Pre-QualificationCITY OF MEMORANDUM RANCHO PALOS VERDES TO: FROM: HONORABLE MAYOR AND CITY COUNCIL MEMBERS JIM HENDRICKSON,INTERIM DIRECTOR OF PUBLIC WORKS ~- DATE:NOVEMBER 20,2012 SUBJECT:SAN RAMON CANYON PROJECT PRE-QUALIFICATION REVIEWED:CAROLYN LEHR,CITY MANAGER ~ Staff Coordinator:Ron Drago~ RECOMMENDATION Adopt the attached Resolution No.2012-_,A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE APPEALS PROCESS REGARDING PRE-QUALIFICATION OF BIDDERS FOR THE SAN RAMON CANYON PROJECT BACKGROUND The City of Rancho Palos Verdes ("City")intends to bid out a project for the construction of a storm drain and related work,including but not limited to,tunneling,open trench pipe installations,shoring,bedding,backfill,construction of inlet and outlet structures,grading, construction of access roads,catch basins,manholes,junction structures,erosion control, movement monitoring devices,pavement rehabilitation,a temporary storage yard,water quality measures,miscellaneous surface improvement replacements,traffic control,and related appurtenances,all on or near the San Ramon Canyon ("Project").Because of the complexity and scope of the Project,staff has determined that it would be best to pre- qualify all contractors seeking to bid on the Project. Pre-qualification is a process whereby potential bidders answer questions and submit supporting documents regarding the history of their businesses,compliance with labor L-1 laws,completion of recent projects with similar complexities and quality of performance. Pre-qualification is intended to ensure that the contractor doing the work is qualified and competent to take on a particularly unique or complex project such as this one. The City is authorized to pre-qualify contractors on a specific project pursuant to California Public Contract Code Section 20101.To ensure the objectivity of the process,the statute requires the City to create a questionnaire and uniform system of rating the bidders.The State's Department of Industrial Relations ("DIR")was tasked with creating model prequalification forms,and City staff's questionnaire and uniform system of rating the bidders is substantially similar to the model forms.This system allocates points for particular responses,thereby yielding a pre-qualification rating.A minimum rating will be required for a contractor to be deemed pre-qualified to bid on the Project.The questionnaire will be due to the City by December 5,2012,and the City will send contractors their pre-qualification ratings by December 14,2012.If the City's determination is that th~application results in a rating below that necessary to pre-qualify,the City shall include in that notice the basis for the disqualification and all supporting evidence therefor. ~' DISCUSSION Public Contract Code Section 20101 also requires that the City establish a process that will allow prospective bidders to dispute their proposed pre-qualification ratings prior to the closing time for receipt of bids.Staff now proposes such an appeals process for the City Council's approval.The proposed process is substantially similar to the appeals process suggested by the DIR's prequalification model forms.Staff proposes that the City will not allow an appeal for the City's refusal of an incomplete or late application. Where a timely and completed application results in a rating below that necessary to pre- qualify,the contractor will be allowed to submit a written appeal by December 21,2012.If a contractor gives the required written notice of appeal and requests a hearing,the hearing will be conducted no earlier than January 7,2013,and no later than January 11,2013.A panel with the responsibility to hear such appeals (the "Appeals Panel")will then conduct a hearing.The Appeals Board will be comprised of the Interim Public Works Director and up to two (2)of his designees,who are individuals who have a professional understanding of the Project and can assess the responses of the applicants.No formal rules of evidence or similar procedures shall apply to the hearing,but the contractor will be given the opportunity to present information and reasons in opposition to the rating.The Appeals Panel will render its decision within three (3)business days after the conclusion of the hearing,and that decision will be final. The bid packets for the Project are expected to be advertised at the end of November, 2012 or early December,2012.The bid packets will be made available to anyone that requests one and pays the required fee,regardless of pre-qualification status.The bid opening is expected to occur on January 24,2013.The City will only accept the bids of those entities that have been prequalified. L-2 CONCLUSION Once the City Council approves the appeals process,staff will be able to advertise the pre- qualification application and proceed to objectively review the applications that are received.The City will be one step closer to completing the San Ramon Canyon Project. FISCAL IMPACT There is no direct fiscal impact arising from the approving the pre-qualification appeals process,other than the expenditure of time that is necessary to hold the appeal hearing and issue a decision. ADDITIONAL INFORMATION Thanks to the efforts of Joel Rojas,the Army Corps of Engineers (ACE)has received a letter that was needed from the US Fish and Wildlife Service concurring that the San Ramon project will not adversely affect the California gnatcatcher or its critical habitat.Our consultant (Saundra Jacobs)followed up with Mr.Daniel Swenson (of ACE),via e-mail, and asked if the letter was all that he needed before he could review the City's application. He replied in writing to her that this was the last piece of information that he needed,and that he should be able to get to the City's permit next week.Staff believes that it is quite significant,and encouraging,for him to make that statement in writing.Accordingly,Staff is hopeful that the City will receive the ACE permit by the end of the month. ATTACHMENT RESOLUTION NO.2012-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE APPEALS PROCESS REGARDING PRE-QUALIFICATION FOR THE SAN RAMON CANYON PROJECT L-3 RESOLUTION NO.2012-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING THE APPEALS PROCESS REGARDING PRE-QUALIFICATION OF BIDDERS FOR THE SAN RAMON CANYON PROJECT WHEREAS,the City of Rancho Palos Verdes ("City")intends to bid out a complex project for the construction of a storm drain and related work,including but not limited to tunneling,open trench pipe installations,shoring,bedding,backfill, construction of inlet and outlet structures,access roads,catch basins,manholes, junction structures,and erosion control,movement monitoring devices,pavement rehabilitation,a temporary storage yard,water quality measures,miscellaneous surface improvement replacements,traffic control,and related appurtenances,all on or near San Ramon Canyon ("the Project");and WHEREAS,due to the complexity and scope of the Project,and pursuant to the City's authority in California Public Contract Code Section 20101,the City will be pre- qualify all contractors seeking to bid on the Project;and WHEREAS,City staff has drafted a pre-qualification questionnaire and adopted a uniform system of rating the bidders;and WHEREAS,the City Council now wishes to approve a process that will allow prospective bidders on the Project that do not pre-qualify to dispute their pre- qualification rating prior to the closing time for receipt of bids; NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND,DETERMINE AND RESOLVE AS FOLLOWS: Section 1.The City Council hereby finds that the above recitals are true and correct and hereby incorporates them into this Resolution by this reference. Section 2.The prequalification application process shall be as follows: a.Contractors may submit pre-qualification applications during the City's regular business hours on any day that the offices of the City are open.All pre- qualification materials must be completed and submitted to the City by December 5, 2012. b.The City will send out the pre-qualification determinations for all contractors who submitted complete and timely pre-qualification applications by December 14,2012.If the City's determination is that the application results in a rating below that necessary to pre-qualify,the City shall include in that notice the basis for the disqualification and all supporting evidence therefor. L-4 Section 3.The Council hereby approves the following appeals process: a.There is no appeal arising from the City's refusal of an incomplete or late application. b.Where a timely and completed application results in a rating below that necessary to pre-qualify,the contractor may appeal the decision with respect to its pre- qualification rating by delivering written notice to the City of its appeal by December 21, 2012.Without a timely appeal,a contractor waives any and all rights to challenge the City's decision,whether by administrative process,judicial process or any other legal process or proceeding. c.If a contractor gives the required written notice of appeal and requests a hearing,the hearing shall be conducted no earlier than January 7,2013,and no later than January 11,2013. d.The hearing shall be an informal process conducted by the Interim Public Works Director and up to two (2)of his designees,who shall have the responsibility to hear such appeals (the "Appeals Panel").No formal rules of evidence or similar procedures shall apply to the hearing.The contractor will be given the opportunity at the hearing to present information and present reasons in opposition to the rating. e.Within three (3)business days after the conclusion of the hearing,the Appeals Panel will render its decision in writing.That decision shall be final. f.Regardless of the deadlines listed herein or any appeals procedure that occurs,the date for the submission and opening of bids will not be delayed or postponed. Section 4.This Resolution shall take effect immediately upon its adoption. PASSED,APPROVED AND ADOPTED,this __day of ,2012. Mayor ATTEST: City Clerk L-5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss. CITY OF RANCHO PALOS VERDES ) I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,certify that the foregoing resolution was adopted by the Council of the City of Rancho Palos Verdes at a regular meeting held on the _day of ,2012. AYES: NAYS: A!3SENT: ABSTAIN: CITY CLERK L-6