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Home My WebLink AboutRES NO 141-86RESOLUTION NO. 141-86 A RESOLUTION OF T~E COUNCIL OF THE CITY OF BAKERSFIELD MAKING FINDINGS, DECLARING EMERGENCY, DISPENSING WITH BIDDING, ALTERNATIVELY FINDING THAT BIDDING REQUIREMENTS OF CHARTER AND LAW HAVE BEEN MET AND CONDITIONALLY AWARDING CONTRACT TO KENKO, INC., FOR CONSTRUCTION OF THE BUENA VISTA TRUNK SEWER. WHEREAS, Section 136 of the Charter of the City of Bakersfield permits the award of contracts for public works pro- jects in excess of four thousand dollars without advertising for bids if such work is deemed by the City Council to be of urgent necessity for the preservation of life, health or property, and is authorized by resolution declaring the facts constituting such urgency passed by at least five affirmative votes of the City Council; WHEREAS, construction of the Buena vista Trunk Sewer (hereinafter the "Project") across the Kern River prior to March, 1987, is determined by the City Council to be of urgent neces- sity for the preservation of life, health or property based upon the following: 1. The City has completed annexation of and intends to provide sewer service to the Rancho Laborde Annexation area, encompassing approximately 3,000 acres located west of downtown Bakersfield and north of the Kern River, which area is separated from the City's Wastewater Treatment Plant No. 3 by said Kern River. 2. Construction of the Project necessitates excavation within the bed of the Kern River, which bed may be utilized to carry flood waters this coming spring, and agricultural water and water to be spread within groundwater recharge basins this coming spring and summer. 3. unless the Project is constructed under the Kern River before that river may be required to handle flood waters this coming spring, it is possible, even likely, that such work cannot be performed until the fall of 1987 at the earliest with- out exposing the Project, its workmen and their equipment, to the hazards of flood waters or the extraordinary expense of tun- neling. The City Council expressly finds that tunneling is eco- nomically infeasible and would constitute wastage of public funds and property. 4. Considering the time it would take for the city to advertise for bids for construction of the Project and award a contract in accordance with the City's usual procedures, for the contractor to order materials, and to have materials fabricated and delivered to the job site, it is unlikely that the contractor would be in a position to complete work within the Kern River channel prior to the time that that channel may be needed to han- dle flood waters. 5. Were the Project to be delayed until the fall of 1987 or later: A. The use of the existing "interim disposal faci- lity" in Rancho Laborde would have to be expanded to accommodate residential construction within Rancho Laborde, and individual septic tanks would be installed on more than one hundred parcels outside Rancho Laborde but within the Rancho Laborde Annexation area, both resulting in exacerbation of an already identified health risk from ground water degradation. The timely construction of the Project will serve to mitigate such near- and long-term environmental impacts which will result from continued and expanded utilization of septic systems. B. The diversion of funds to these short-term sew- age disposal alternatives would impact the economic fea- sibility of assessment district proceedings essential to the Project and to the oversizing built into that pro- ject to service properties outside the Rancho Laborde Annexation area and in need of sewer service; C. The development of Rancho Laborde is contingent upon approval of the Federal Bankruptcy Court and accep- tance of the Project by the secured creditors of the Bankruptcy Estate of Jean and Madonna Laborde. Such approval and acceptance has been a lengthy process and has been based upon current costs and financial burdens that will not persist should the Project be further delayed. Such creditors may demand that the Estate sell off its assets and immediately satisfy their claims unless the project now proceeds. Were the property to be wholesaled, the public interest, best served by a planned co~unity development, would be adversely impacted. Further, without Federal Bankruptcy approval and construction of the Project, prospects for sewer service to the Rosedale area within the next five to seven years are diminished to the point of non- existence. 2 D. Construction of the proposed Bakersfield Community Hospital, a 94-bed general care facility located within the Rancho Laborde Annexation, cannot feasibly proceed until availability of sewer service through the Project is assured. A Certificate of Need has been issued for that hospital by the California Department of Health Services, evidencing that any delay in its construction will adversely impact public health and safety. E. Delay in award of a contract for construction of the Project may result in that Project becoming finan- cially infeasible, with consequent loss of sewer ser- vice to the Rosedale area~ including the Rancho Laborde Annexation area. Further degradation of the area's groundwater and loss of the proposed Bakersfield Community Hospital, and an adjacent psychiatric in- patient hospital, may result. Each such result is a threat to life, health and property. 6. Laborde Community Development Company, Inc., ("Laborde") invited bids for the construction of the Project on June 4, 1986, in accordance with the Acquisition Agreement entered into between Laborde and the City, which Agreement pro- vides for the advertising for and award of the contract substan- tially in accordance with City procedures. Bids were subsequently opened on June 27, 1986, and the low bid received was that of KENKO, INC. in the amount of $4,530,745.96. The next low bid was in the amount of $5,830,321.00. The Acquisition Agreement provides that Laborde would contract for such work, that the same would be constructed, and that the City would, using proceeds from bond sales under Assessment District 86-2, purchase the completed Project. The City Public Works Department reviewed and approved the plans and specifications for the Project before bids were awarded and reviewed the KENKO, INC. bid and approved its award. A pending lawsuit, challenging actions taken by the City Council on May 7, 1986 (not approval of the Project for which the City adopted a Negative Declaration on April 2, 1986), has prevented Laborde from financing the con- struction of the Project. Accordingly, for the reasons stated above, the City should take over the KENKO bid and complete the Project, to be paid for with the proceeds of the above-referenced bond sale. WHEREAS, as a separate, independent and severable basis for the City's award of the contract to KENKO, INC. for the con- struction of the Project, this Council finds that the bid process 3 utilized by Laborde was so comprehensively complete that, despite failure to advertise in a newspaper for bidders, that process substantially satisfies the bid requirements of the City Charter and of law, and that process is hereby adopted and ratified as the City's own for this project. Such findings are based upon the following facts: 1. The recitals and findings set forth in Paragraph 6, above, are incorporated herein. 2. A pre-bid solicitation of interest in the Project was made by sending a letter to each pipeline contractor in Kern County known to be capable of handling this size project (Griffith Company, Granite Construction Company, HPS Plumbing Services, Inc., W. M. Lyles Company, ARB INC., J. L. Denio, Inc., D & $ Company, and Tejon Construction), to known trunk sewer con- tractors throughout the state, and to the builders' exchanges in Bakersfield, Tulare and Fresno. 3. A Contractor's Qualification Form was then sent to more than thirty major contractors. Eighteen completed and returned that form. Eleven were determined qualified and invited to bid. Five bids were received, that of KENKO, INC. being the lowest. 4. The bid specifications were substantially simi- lar to those that would have been utilized had the City invited bids for the Project, including requirements that prevailing wage rates be paid. 5. The purposes of competitive bid requirements, e.g. obtaining lowest responsible bid for a public project, prevention of bid-shopping, kickbacks, and favoritism, have all been sub- stantially met and the public interest would be served by the City's proceeding to award a contract for the Project to KENKO, INC. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: 1. That the recitals and findings set forth above are true and correct; 2. That a contract in the sum of $4,530,745.96 is hereby awarded to KENKO, INC. for construction of the Project, such award being expressly made subject to the following conditions: 4 A. The sale of bonds through Assessment District No. 86-2 to pay the City's costs under the contract; B. The written stipulation of KENKO, INC. that the contract include each and every provision required by law to be included in contracts of the City of Bakersfield, whether or not included in the specifica- tions; and C. The written stipulation of KENKO, INC. waiving any claim for damages for delay or failure of the City to complete the award and/or give a notice to proceed should Condition A, above, not be met. .......... o0o .......... I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on the 24~__ day of ~ept6~r____, 1986, by the following vote: CITY CLERK and Ex Officio Clerk of Council of the City of Bakersfield the APPROVED this 24th day of S_~_tember , 1986 ~.~'~.~ ~..~.._~.~ ~ ~ ..... ~AYOR of the City of B~ersfield APPROVED as to form: --~-~i~T~-RNEY of the Cl~y of Bakersfield AJS/bl 4 R.KENKO1 6