HomeMy WebLinkAbout1996-09-24 - AGENDA REPORTS - CREEKVIEW PARK PROJ 95 505 (2)City Manager
Item to be presented
Rick Putnam
PUBLIC HEARING
DATE: September 24, 1996
SUBJECT: CREEKVIEW PARK (PROJECT NO. 95-505)
REQUEST OF AMERICAN LANDSCAPE, INC. TO SUBSTITUTE ALL
PHASES CONSTRUCTION AS A SUBCONTRACTOR
DEPARTMENT: Parks, Recreation, and Community Services
On June 25, 1996, the City Council awarded a contract to American Landscape Inc., for
construction of the Creekview Neighborhood Park Site. The site is located at the easterly
terminus of 3rd Street near Race Street in the community of Newhall. The park will feature a
tot lot area geared towards children ages two through five, one and one-half acres turf area, a
basketball court, a prefabricated restroom structure, security lighting, picnic tables, and the
installation of trees.
This contract was awarded based on the formal bid opening held in the City Clerk's office on
June 11, 1996. As part of this proposal, American Landscape, Inc., listed All Phases
Construction as a subcontractor for construction of two restroom building options (a
prefabricated restroom facility base bid or a full-service restroom facility bid add alternate),
miscellaneous site improvements pertaining to the trash enclosure, and the installation of wet
utilities related to construction of the full-service restroom.
Although the above items of work were identified in the bid proposal, it is important to note that
the City elected to continue with the construction of a prefabricated restroom facility base bid
only. Therefore, the full service restroom facility and installation of wet utilities are not
included as part of the City's contract with American Landscape, Inc.
On August 9, 1996, the City received a letter from American Landscape, Inc., requesting
approval to substitute All Phases Construction as a subcontractor. The request was filed in
response to the fact that All Phases Construction has declined to enter into a contract for
various reasons (attached). Based on the requirements of the State Public Contracts Code
Section 4107, the City notified All Phases Construction via certified mail regarding the request.
All Phases Construction have filed written objections in response to American Landscape, Inc.'s
substitution request (attached).
R?p��El Agenda Item: -T
City Parks Planning Staff met with both All Phases Construction and American Landscape, Inc.
separately to gain additional clarification of the issue. Based upon these meetings, it appears
that the main issues stem from communications between the two contractors prior to the City's
project bid opening. However, under the requirements of the Public Contracts Code, because
All Phases Construction has filed a written objection to the substitution request, a portion of the
construction work related to the restroom facility and trash enclosure cannot be completed
which causes a delay to the overall construction schedule.
According to the City Attorney's office, the public hearing requirement for this item is met by
notifying All Phases Construction five (5) working days prior to the regularly scheduled meeting
of Septemeber 24, 1996. City Staff has satisfied the public notice requirement via written
correspondence to All Phases Construction.
RECOMMENDATION
City Council to receive public testimony, hear comments from both parties, and determine
whether All Phases Construction may be substituted as a subcontractor on the Creekview Park
Project,
ATTACHMENTS
American Landscape Substitution Request dated August 9, 1996
All Phases Construction Letter of Objection to Substitution Request
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council\mbcontr.ddp
Public Hearing Procedure
1. Mayor opens hearing
*States purpose of hearing
2. City Clerk reports on hearing notice
3. Staff report
4. Proponent Argument (30 minutes)
5. Opponent Argument (30 minutes)
6. Five-minute rebuttal (Proponent)
*Proponent
7. Mayor closes public testimony
8. Discussion by Council
9. Council decision
10. Mayor announces decision
City of
Santa Clarita
23920 Valencia J.
Suite 120
City of Santa Clanta
California 91355-2196
Phone
(805) 255-4910
Fax
(805)255-1996
September 16, 1996
Mr. George Almeida
All Phases Construction
5500 Pomona Blvd. #100
Los Angeles, CA 90022
Dear Mr. Almeida:
SENT OVERNIGHT MAIL
VIA FEDERAL EXPRESS
SUBJECT: NOTICE OF CITY COUNCIL PUBLIC HEARING RELATED
TO THE REQUEST OF AMERICAN LANDSCAPE TO
SUBSTITUTE ALL PHASES AS A SUBCONTRACTOR
CREEKVIEW PARK (PROJECT NO. 95-505)
As you are aware, on August 13, 1996, the City of Santa Clarita sent a certified
letter to All Phases Construction related to the request of American Landscape,
Inc., to replace All Phases Construction as a subcontractor on the Creekview
Park Project. In accordance with Section 4107 of the State Public Contract Code,
All Phases had five (5) working days within which to submit written objections
to the substitution request to the City of Santa Clarita.
As you are aware, in response to All Phases Construction's written objections, a
City Council Public Hearing has been scheduled for Tuesday, September 24,
1996, at 6:30 p.m., in the City Hall Council Chambers, 23920 Valencia
Boulevard, Santa Clarita, CA 91355. A copy of the City Council Agenda
Report will be sent to you once it is made available to the public.
If you have any questions regarding this administrative hearing, please contact
me at (805) 286-4062.
Sincerely,
Daniel D. Powers
Assistant Planner II
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plandeu \95505\iss_sb2a. ddp
cc: Michael R. Morales, Esquire
Robert Osterman, American Landscape, Inc.
PRINTED ON RECYCLED PAPER
AMERI
August 9, 1996
v�\
City of Santa Clarita,
Department of Parks, Recreation and Community Services
23920 Valencia Boulevard
Suite 120
Santa Clarita, California 91355
Attention: Mr. Dan Powers
Re: Newhall Neighborhood (Creekside) Park
Subject: Request for Substitution of Listed Subcontractor
Dear Mr. Powers,
INC.
Via Mail & Facsimile
805/255-1996
The purpose of this letter is to request approval from the City of Santa Clarita for the substitution of
subcontractors for the restroom building construction portion of the above referenced project.
On July 26, 1996, a subcontract was issued to All Phases Construction, Inc. for construction of the
restroom building in the amount of $55,894.00. Subsequently, a letter was received from All Phases
declining to accept the subcontract for various reasons. We then scheduled a meeting with All Phases,
which took place today. We were unable to resolve our differences and it is apparent that All Phases
declines to proceed with the construction of the restroom building.
If the project schedule stipulated by the City is to be maintained, we have no alternative at this time but
to proceed with another subcontractor, Consolidated Construction Group, to perform the restroom building
construction. Please proceed with the required procedures to effect this change.
Please advise on your intended follow-up as soon as possible. If you should have any questions, please do
not hesitate to call.
Sincerely,
CAN LANDSCAPE, INC.
Bob Osterman
Project Manager
cc: Mr. George Ahneida, All Phases Construction, Inc. Facsimile 213/887-5012
7949 DEERING AVENUE, CANOGA PARK, CALIFORNIA 91304 • (818) 999-2041 • FAX (818) 999-2056
I.
Michael . orales
At=ome a"aw
August 13, 1996
Via Telecogy & First Class Mail
(805) 255-1996
City of Santa Clarita
Dept, of Parks, Recreation.
and Community Services
23920 Valencia Blvd., Suite 120
Santa Clarita, CA 91355
Attn: Dan Powers
Compliance Officer
Re: My Client: All Phases Construction, Inc.
Newhall Neighborhood Park Site
Project No. 95-505
Dear Mr. Powers:
This letter shall serve to advise you that my office
represents All Phases Construction, Inc. (hereinafter, "All
Phases"), with respect to the above -captioned matter. As you are
aware, my client was a subcontractor listed by the prime
contractor, American Landscape, Inc. (hereinafter, "American
Landscape"), which was awarded the contract on the aforementioned
project.
This letter shall serve to notify you that All Phases
Construction, Inc., hereby files a formal protest with respect to
the awarding of the prime contract for said project by the City
of Santa Clarita (hereinafter, "City") to American Landscape,
Inc. The factual and legal basis for this protest is set forth
below:
. The bid which was submitted by American Landscape to
the City misrepresented the terms of the bid which was submitted
by All Phases to American Landscape;
e:\MM\1043-01.230
21311 Hawthorne Blvd., Suite 101, Del Amo Business Plaza, Torrance, CA 90503 Phone: (310) 543-4490 Fax: (310) 543-4629
City of Santa Clarita
Dept. of Parks, Recreation
and Community Services
Attn: Dan Powers
Compliance Officer
Re: My Client: All Phases Construction, Inc.
Newhall Neighborhood Park Site
Project No. 95-505
August 13, 1996
Page 2
... The bid submitted by All Phases to American Landscape,
which was accepted by American Landscape was thereafter
unilaterally and materially changed by American Landscape,
without the consent of or notice to All Phases. American
Landscape thereafter attempted to force All Phases to accept
additional material terms and perform work at a reduced cost and
contrary to the terms of the bid submitted by All Phases which
was accepted by American Landscape;
... American Landscape has threatened retaliatory action
against All Phases if the unilateral changes in the price and
scope of work were not accepted by All Phases;
... All Phases attempted to meet with American Landscape to
discuss and work out the differences of the respective parties
which meeting was unsuccessful;
... American Landscape has demonstrated bad faith herein
and has attempted to take advantage of the DBE status of All
Phases in the solicitation and awarding of the subject contract;
... American Landscape has violated various provisions of
local, state and federal Equal Opportunity compliance regulations
and statutes;
American Landscape has failed to take required
affirmative action measures and has falsely certified that such
affirmative action has taken place with respect to the contract
herein;
... Contrary to representations made by American Landscape,
American Landscape has attempted to secure an advantage against
All Phases and the City in the awarding of this contract;
e:\m \1043-01..230
City of Santa Clarita
Dept. of 'Parks, Recreation
and Community Services
Attn: Dan Powers
Compliance Officer
Re: My Client: All Phases Construction, Inc.
Newhall Neighborhood Park Site
Project No. 95-505
August 13, 1996
Page 3
... American Landscape has violated, inter alfa, Executive
Orders 10925, 11114, 11246; 41CFR60-1.7(b)1); and the City of
Santa Clarita Affirmative Action Plan as set forth in Section 3
of the Contractor's Affirmative Action Plan submitted by American
Landscape in connection with the successful bid herein.
All Phases reserves the right to provide additional
information and supporting documentation to the City and/or any
other interested party with respect to All Phases' contentions
set forth herein and to supplement this notice of protest.
Thank you for your attention to this matter. Please contact
the undersigned if additional information is required. All
Phases stands ready, willing and able to provide the work herein
as set forth in the bid submitted by All Phases to American
Landscape. American Landscape has previously advised All Phases
that American Landscape is unwilling to allow All Phases to
undertake the work as set forth in the bid submitted by All
Phases to American Landscape which was accepted by American
Landscape.
Please advise the undersigned at your earliest convenience
what action, if any, will be taken on this protest herein.
ery 0tru y o rs,
C
MI HAEL R. MORALES
MRM:esy
CC: All Phases Construction, Inc.
e;\m=\1043-01.230