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HomeMy WebLinkAboutReso RDA 14-2006 RESOLUTION NO. 14-2006 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA RESOLUTION ADOPTING FINDINGS AND AUTHORIZING AND DIRECTING STAFF TO LET OUT CONTRA.CTS FOR THE OPEN MARKET PURCHASE OF MATERIALS AND SUPPLIES AND THE ENGAGEMENT OF DAY LABOR TO PERFORM THE 380 ALTA VISTA DRIVE REHABILITATION PROJECT, NO. 51-1323-0451 WHEREAS, in April 21005, the South San Francisco Redevelopment Agency acquired a dilapidated, single- family residential home, with five unpermitted, nonconforming rental units, at 380 Alta Vista Drive in the City of South San Francisco after its previous owner was found to have violated housing, health and fire safety laws; and WHEREAS, the Redevelopment Agency wishes to rehabilitate the home and utilize it for the provision of low income housing; and WHEREAS, the Redevelopment Agency has performed initial clean-up and remediation of the property, including the dismantlement and demolition of illegal units, the abatement of lead and asbestos, design plan review, the gutting of toxic bathroom and kitchen areas, and the removal of debris; and WHEREAS, to render the property habitable and appropriate for its use as low income housing, the home at 380 Alta Vista now requires basic remodeling work, such as landscaping, minor structural improvements, kitchen and bathroom remodeling, electrical and plumbing upgrades, HV AC upgrades, paint, and flooring work; and WHEREAS, the Redevelopment Staffs and Engineer's estimate for the conduct of such rehabilitation and remodeling work is $350,000; and WHEREAS, Staff solicitt~d competitive bids for the rehabilitation and remodeling work (the "Project") in April 2006 and only one bid was received, which significantly exceeded the Staff estimate for such work; and WHEREAS, accordingly, the Redevelopment Agency Board rejected all bids on May 24, 2006, and authorized Staff to rebid the project, in accordance with Calilfomia Public Contract Code Section 20166; and WHEREAS, Staff re-advertised the Project in publications of general circulation and made other efforts to inform single-family home remodeling contractors of the availability of the Project; and WHEREAS, at the bid opening day of July 14, 2006, the Redevelopment Agency again received only a single bid from the same contractor that had participated in the previous bid, with a total bid price (i.e., cost of base bid plus alternate bid work) of $457,079, thereby showing a bid price increase of$11,352; and WHEREAS, the Redevelopment Agency Board again decided to reject all bids pursuant to Public Contract Code Section 20166 on July 25, 2006, such bid being significantly in excess of the Engineer's and Staffs estimate for the project; and WHEREAS, Staff has obtained informal quotes from suppliers and laborers regarding the costs of materials and remodeling work needed for the rehabilitation of the 380 Alta Vista home, indicating that the Redevelopment Agency might achieve substantial cost savings through open market purchases and the use of day labor; and WHEREAS, California Public Contract Code Section 20167 provides that the legislative body of a public agency, after rejecting bids, may forego further competitive bidding of a project if the legislative body passes a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by day labor and that project materials or supplies may be furnished at a lower price in the open market; and WHEREAS, furthermore, a well recognized exception in common law to the competitive bidding requirement for public entities exists "where the nature of the contract is such that competitive proposals would be unavailing or would not produce an advantage, and the advertisement for competitive bid would thus be undesirable, impractical or impossible," (Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal. App. 3d 631, 636). NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Agency hereby: Section 1. Finds the foregoing recitals to be true and correct, and includes by reference herein such recitals as findings of the Board of Directors of the South San Francisco Redevelopment Agency. Section 2. Finds that Project work can be accomplished more economically and the project materials, services and supplies furnished at a lower price, on the open market, and that it is in the public interest that such project materials, servict$ and supplies be so obtained. Section 3. Finds that rebidding the Project yet again would work an incongruity and be unavailing as affecting the final result, would not produce an advantage to the public and would be undesirable, impractical or impossible; and Section 4. Finds that by taking advantage of the significant cost savings to be achieved by using Agency Staff for project site management and engaging in open market purchases of supplies and materials, the Redevelopment Agency will be able to prevent the waste of public funds and obtain the best economic result for the public, thereby resulting in a contract for the greatest public benefit. Section 5. Finds that award of supply, materials and day labor contracts is exempt from California Public Contract competitive bidding requirements pursuant to the established common-law doctrine: articulated in the Graydon case. Section 6. Authorizes and directs Staff, accordingly, to enter into contracts for materials, services and day labor in an amount not to exceed $350,000 in order to complete the Project. Section 7. Directs Staff to comply with all applicable legal requin:ments, including, but not limited to, California Labor Code requirements on prevailing wages. Section 8. This resolution shall take effect immediately. Section 9. Each portion of this resolution is severable. Should any individual portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The Board of Directors of the South San Francisco Redevelopment Agency hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase, and other portion thereof, irrespective of the fact that one or more section, subsection, clause, sentence, phrase, or other portion may be held invalid or unconstitutional. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a Regular meeting held on the 9th day of August 2006 by the following vote: AYES: Boardmembers Mark N. Addiego, Pedro Gonzalez and Karyl Matsumoto, Vice Chair Richard A. Garbarino and Chair Joseph A. Fernekes NOES: None ABSTAIN: None ABSENT: None ATTEST: c:B:a ~ Clerk /