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Home My WebLink About11/18/1996 B A K_ER S F IEL D Patricia J. DeMond, Chair Irma Carson Kevin McDermott Staff: Dolores Teubner AGENDA BUDGET AND FINANCE COMMITTEE Monday, November 18, 1996 12:15 p.m. City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF OCTOBER 21, 1996 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. REQUESTS FOR ECONOMIC DEVELOPMENT ASSISTANCE FROM SOUTHWEST CONTRACTORS, lNG. AND HAMMONS MEAT SALES, lNG. - Wager 6. NEW BUSINESS A. CDBG AMENDMENT FOR CENTENNIAL PLAZA - Wager B. CHESTER AVENUE STREETSCAPE FINANCING PLAN - Wager C. PROCEDURE FOR BID PROTESTS - Skousen D. CRITERIA TO FIND PUBLIC WORKS CONTRACTORS NONRESPONSIBLE BIDDERS - Skousen 7. ADJOURNMENT FILE COPY //-/~-- 94, BAKERSFIELD Economic and Community Development Department MEMORANDUM November 14, 1996 TO: Alan Tandy, City Manager [ ~,f~ FROM: Jake Wager, Economic Development Direclor ~ ' ,,,/ SUBJECT: Proposed assistance to Hammons Meats Sa~.~llh~ Contractors Based upon the direction from the Budget and Finance Committee at their October 21 meeting, the proposals to Hammons Meats and Southwest Contractors have been restructured. Staff is proposing that the amount of city assistance to each company be matched by an equivalent amount of equity from the business. In essence, for every dollar the borrower contributes, the city would make a similar dollar contribution to the project, up to a maximum amount. Each applicant has agreed to this arrangement and has provided documentation that details its respective equity injection, both actual expenditures that have been made and estimated project costs yet to be incurred. The source of assistance to both companies would be CDBG. Shown below is a summary of the two proposals: Hammons Meats Southwest Contractors Amount of city assistance maximum of $35,000 maximum of $150,000 Purpose of assistance equipment purchase land and building purchase Structure of assistance forgiveable loan forgiveable loan Because Southwest Contractors' proposal deals with real property acquisition, an appraisal is needed to verify the cost and value of the property. At the time this report was prepared, the company's lender had not completed the appraisal. It is my recommendation that should the committee recommend moving forward with assistance to Southwest Contractors, disbursement of city assistance should be contingent upon receipt of an appraisal that meets HUD requirements and reviewed by both this department and the city's real property agent. dl~unns.nwc2 New business Hammons Meat Sales Hammons Meat Sales, Inc., is seeking financial assistance to purchase equipment for an expansion of their facility they plan to build at 1700 South Union Avenue in the Incentive Area. Hammons Meats has requested $35,000 from the city toward the purchase of refrigeration equipment. Now in its 18th year, Hammons Meats has outgrown its present facility on Old Yard Road just north oft. he Bakersfield Municipal Airport. The company also leases a small cutting room in unincorporated east Bakersfield. After looking at a variety of locations throughout Bakersfield, the company has decided their preference is southeast Bakersfield near their present location and to consolidate their operations into one Incentive Area location. The company employs 23 people, plans to create another six positions, and transfer in two workers from the company's other location in the county. The terms of the assistance would be... 1. a loan not to exceed $35,000. 2. term of the agreement would be five years. 3. a personal guaranty from the owner and the owner's father would provide security for the loan. 4. the company would be required to have 51% of all new hires be low- and moderate- income individuals. 5. the company would be required to enter into a first source hiring agreement with Employers' Training Resource. 6. for each year the company meets the hiring goals, 20% of the loan, or $7,000, would be forgiven. 7. if in any year the company does not meet the hiring requirements, 20% of the loan would be due and payable. 8. funding for this assistance would be from CDBG. The Budget and Finance Committee expressed interest in equity participation by the company in this project. Hammons Meats has provided documentation that shows it has contributed or will contribute in excess of the $35,000 proposed to be loaned by the city; this mount includes both actual expenditures to date plus estimated project costs yet to be incurred, and is detailed on the following page.. This project would create a large investment in southeast Bakersfield and would eliminate a vacant piece of South Union Avenue property near the city's municipal airport. Its highly visible location would profile a business retention and expansion investment that proceeded with the city's assistance. Equity contributions by Hammons Meat Sales, Inc. Expenditures already incurred: Letter of opinion $ 100.00 Architectural services 275.00 Loan fee 1,750.00 Appraisal fee 3,000.00 Estimate of value of equipment 225.00 Delivery of electronic scale to meat 852.64 cutting room Legal and miscellaneous fees for loan 1,100.00 packaging Title fees 1 ~622.24 Total expenditures to date $ 8,924.88 Estimated costs yet to be incurred: Equipment (knives, saws, metal racks) $ 12,500.00 Forklif~ 5,000.00 Operating capital and furniture 5,000.00 Cooler equipment 68~702.26 , Total costs yet to be incurred: 917202.26 TOTAL EQUITY CONTRIBUTION ...................... $100,127.14 New business Southwest Contractors Southwest Contractors Inc. (SWC) is an existing Incentive Area business that is seeking financial assistance to purchase property they lease at 1500 South Union Avenue. The company's operations are divided into pipeline operations, manufacturing, and communications. The facility is being purchased from ARB, Inc., for $800,000. The seller has agreed to allow the company until December 31, 1996 to finance the purchase. Southwest Contractors has requested $150,000 from the city toward the purchase of the facility, with the remaining $650,000 to be financed by a private lender. SWC relocated to this facility from a site in unincorporated Bakersfield to provide additional space for its operations. The company currently employs 16 people in its fabrication business, approximately 90 in the pipeline division, and approximately 90 in the communications division, for a total of about 200 employees. The pipeline and communications employees are hired from all over the state of California and other western states, outside of Bakersfield. The fabrication employees are hired from the local area. SWC plans to create an additional nine positions during the next five years. In addition to the purchase of their facility, SWC is constructing a new 15,000 square foot fabrication facility on the site at a cost of about $500,000. This construction is separate and apart the proposed city assistance, assuring that prevailing wage requirements are not required for the city's portion of the project. Combined with the purchase of the leased facility, the total value of SWC's move into the Incentive Area will be approximately $1.3 million. ? The terms of the assistance would be as follows: 1. a loan not to exceed $150,000. 2. term of the agreement would be five years. 3. a personal guaranty from the owner would provide security for the loan. 4. the company would be required to haVe 51% of all new hires be low- and moderate- income individuals. 5. the company would be required to enter into a first source hiring agreement with Employers' Training Resource. 6. for each year the company meets the hiring goals, 20% of the loan, or $30,000, would be forgiven. 7. if the terms of the agreement are not met in year 1, the entire amount ($150,000) would be repaid. 8. if the terms of the agreement are not met during years 2 through 5, a portion of the loan would need to' be repaid. This amount woUld correspond to what percentage the company failed to meet the hiring criteria. 9. funding for this aSsistance would be from CDBG. 10. funds would not be disbursed until the company provides an appraisal of the property. The Budget and Finance Committee expressed interest in equity participation by the company in · this project. Southwest Contractors has provided documentation that shows it has contributed or will contribute in excess of the $150,000 proposed to be loaned by the city; this amount includes both actual expenditures to date plus estimated project costs yet to be incurred, and is detailed on the following page. This project would create additional investment and employment activity in southeast Bakersfield on a site that has been vacant for a while. This facility is adjacent to the former Freymiiler Trucking site. Equity contributions by Southwest Contractors, Inc. Expenditures already incurred: Labor charges to clean up site $ 15,604.38 Telephone system 15,000.00 Building permits 9,836.54 Water meter 9,141.00 Dump fees to dispose of trash 7,745.73 Materials for repairs 2,363.48 Plan check 2,034.64 Moving company fees 1,890.00 Engineer fire system 1,531.53 Equipment rental 1,469.32 Engineering fees 1,418.25 Electrical plan 1,200.00 Site plan review 560.97 Move radio base 528.68 Painting 170.00 Plan review 96.50 City alarm permit fees 90.00 Total expenditures to date $ 70,681.02 Estimated costs yet to be incurred: Purchase of property $ 90,000.00 Closing costs 3,000.00 Appraisal 4,000.00 Lef~ hand turn lane 20,000.00 Gas line 12,200.00 Fire system 177259.00 Total costs yet to be incurred _ 1467459.00 TOTAL EQUITY CONTRIBUTION ................ $217 B A K E R S F I E L D Economic and Community Development Department MEMORANDUM November 14, 1996 TO: Alan TandY, City M.anager FROM: Jake Wag~¢mic Development Director SUBJECT: Pending ClOG Amendment for the Centennial Plaza Park and Demolition Projects Detailed below are the proposed changes to the CDBG program to accommodate the Centennial Plaza Park and demolition projects. The proposed amendment in the amount of $651,000 will reallocate several slower moving projects designated from Fiscal Years 1993-94 1994-95, 1995-96 and FY 1996-97. Staff has identified the following slow-moving projects: The Business Incubator Project ($167,000); the Commercial Rehabilitation Assistance (URM) Program ($100,950); and the Economic Development Business Revolving Loan Program funds ($139,050). In addition to the slower moving projects, this amendment will reprogram a total of $122,774 of program savings from prior years Fair Housing, Looking Good Neighborhood Program, and miscellaneous carryover (First Time Homebuyers & general administration) funds. Funds would remain available for both Fair Housing and Looking Good Neighborhood as budgeted in the current year. Also to be considered for reallocation in this amendment is $121,186 which is currently budgeted for the next phase of the Lake Street Improvement Project. As you are aware, funding of the Lake Street improvements have been phased over the past few years. Staff will be recommending that the City Council consider additional CDBG funds from FY 97-98 for the Lake Street Improvement Project as well as the replenishment of the $121,186 which is part of the amendment. Staff will also be recommending that as part of the CDBG Program for FY 97-98 that funds be reallocated to the Commercial Rehabilitation Assistance (URM) Program ($100,950) and Economic Development Revolving Loan Program ($139,050). The proposed uses of the funds for reprogramming are outlined below. Acquisition and demolition of the Chamber of Commerce Building at 1033 Truxtun Avenue has been estimated at $575,000. Actual cost will be adjusted after an appraisal has been established by a certified MAI appraiser. This includes the Chamber Building demolition, estimated at $40,000, and the Chamber of Commerce relocation and reestablishment to their new location is projected at $35,000. Demolition of the building and improvements at 1431 "N" Street and 1601 18th Street are to be $91,000. Attached is a tentative timeline for the Public Notification and Environmental Review of the Centennial Plaza Park and Demolition Project. The Centennial Plaza Park project will require additional time for its federal (NEPA) environmental assessment. Additionally, we have attached a Public Notice for the proposed amendments. gg.cpp.memo.na PAX 505 525 1545 BFLD ECON & COMM DEV 4~ CITY MGRS OFFICE ~001 Tentative Timeline for Public Notilication and Environmental Review (NEPA only) Nov. 18, 1996 Budget and Finance Review of Proposed Amendment Nov. 19, 1996 Initiate Environmental Study on Demolition (3 sites) and Centennial Plaza Park Project Nov. 19, 1996 Publish Notice of Amendment and Proposed Use of funds (30 day review). Nov. 24, 1996 SHPO letter for 30 day review and comments Demolition (3 sites) and Centennial Plaza Park Project. Dec. 18, 1996 City Council Authorization to submit Amendment to HUD subject to expiration of 30 public day review. Dec. 19, 1996 Sub,nit Amendment to HUD Dec, 24, 1996 SHPO completes review of Demolition project Dec. 31, 1996 Environmental Reviewed Completed on Demolition Prqjects ("N," Tmxtun and 18th Streets) ,lan. 3, 1997 Publish FONSI/Release of funds public notice for Centennial Plaza Park Prqject ( 15 Day Public Notice). Jan. 22, 1997 Submit request for Release of Funds to HUD (15 days) - Centennial Plaza Park Project ,lan. 22, 1997 City Council approve agreement with Chamber for acquisition project subject to HUD release of funds authorization, Feb. 7, 1997 HUD approves Request of Funds for Centennial Plaza Park Project PUBLIC NOTICE This Public Notice is for residents of the City of Bakersfield to have the opportunity to comment on the following HUD Action Plan amendments: Amendment No. 7 (FY 93-94), Amendment No. 4 (FY 94-95), Amendment No. 5 (FY 95-96), and Amendment No. 2 (FY 96-97). In compliance with 24 CFR part 91.505 - Amendments, the'City is required to publicly notice an amendment when a HUD funded project is created, cancelled or an existing project has substantially changed in purpose or scope. The public comment period is for thirty days and citizens have until December 18, 1996 to provide the City with any comments regarding the proposed amendments. On or about this date, the City will be submitting the amendments to the Federal Department of Housing and Urban Development notifying them of the adopted changes. Comments can be addressed to: Community Development Coordinator at Economic and Community Development Department, 515 Tmxtun Avenue, Bakersfield, Ca., 93301 (PH. 805/326-3764; FAX 805/328-1548; or TDD 805/324-3631). The City is providing the following information as part of the proposed amended annual action plans. SOURCES Amendment No. ? FY 93-94 Action Plan CDBG Grant Year B93-MC-06-0151 Project Title & Description Project ID AVailable Budget Changes Revised Total Activity Code/ Amount of Funding Citations/Priority Funds 1. CommercialRehabilitation Program Local Code - LNE501 $184,050 ($100,950) $83,100 Financial assistance for exterior Activity Code - 14E rehabilitation of commercial buildings Rehab - Commercial and corrections of seismic safety hazards 570.202/ in targeted retail areas. (WARD #2) 570.208(a)(1) High Priority Amendment No. 4 FY 94-95 Action Plan CDBG Grant Year B94-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citations/Priority Funds 1.LooMng Good Neighborhood Program Local Code - LEZ506 $15,842 · ($15,842) $0 Initiate a neighborhood improvement Activity Code - 05 program in targeted neighborhoods Public Services involving neighborhood empowerment (General) and general public services activities - 570.201 (e)/ clean-up days, public health awareness 570.208(a)(1) and festival. (WARD #1) High Priority Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citations/Priority Funds 2. First Time HontebuyersAssistance Project ID - 23 $15,890 ($15,890) $0 Down payment and closing cost Activity Code - 13 assistance for low/moderate income Direct families to help purchase their first home. Homeownership (City-Wide) Assistance 92.205(a) 570.208(a)(3) 3. General Management Oversight and Project ID - 35 $65,082 ($65,082) $0 Coordination Activity Code - 21A Costs associated with overall program General Program management, budgeting, coordination, Administration monitoring and evaluation. (City-Wide) 570.206 SOURCES Amendment No. 5 FY 95-96 Action Plan CDBG Gant Year B95-MC-06-0151 Project Title & Description Project ID Original Budget Available Amount Revised Total Activity Code/ of Funds Funding Citations/Priority 1. Bakersfield Business Portlncubator Project ID - 11 $167,000 ($167,000) $0 Design and construction of a 20,000+ Activity Code - 17C sq.ft, building on City-owned property 570.203(a)/ in the Bakersfield Municipal Airport for 570.208(a) use as microenterprise incubator to Industrial Building - benefit start-up firms of 5 persons or Acquisition/ less. (WARD #1) Construction Rehab High Priority 2 Project Title & Description Project ID Original Budget Available Amount Revised Total Activity Code/ of Funds Funding Citations/Priority 2. Fair Housing Program Services Project ID - 12 $5,500 ($5,500) $0 Implementation of fair housing services. Activity Code- 05J Services to include outreach, Fair Housing educational and referral services, Activities complaint intake for potential housing 570.201(e)/ discrimination cases, testing, mediation 570.208(a)(2) and conciliation services. (City-Wide) High Priority 3. LooMng Good Neighborhood Project ID - 40 $20,500 ($20,500) $0 Program Activity Code - 05 Initiate a neighborhood improvement Public Services program in targeted neighborhoods (General) involving neighborhood empowerment 570.201 (e)/ and general public services activities - 570.208(a)(1) clean-up days, public health awareness High Priority and festival. (WARD #1) 4. Lake Street Area Reconstruction Project ID - 2 $121,186 ($121,186) $0 Project Activity Code - 03K Reconstruction of Lake Street from Street Improvements Owens to Williams Street on the east to 570.201(c)/ ihcilitate traffic flow and drainage of 570.208(a)(1) the area. (WARD #2) High Priority SOURCES Amendment No. 2 FY 96-97 Action Plan CDBG Grant Year B96-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citations/Priority Funds 1. Business Loan Program Project ID - 14 $139,050 ($139,050) $0 Financial assistance to qualified existing Activity Code - 18A private for-profit entities for acquisition ED Direct Financial and/or on-site commercial/industrial Assistance to For- improvements within the City to Profits stimulate private investment and job 570.203(b)/ creation/retention. (City-Wide) 570.208(a)(4) High Priority 4 USES Amendment No. 7 FY 93-94 Action Plan CDBG Grant Year B93-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citation/Priority Funds 2. Clearance attd Demolition Program Project ID - N/A $0 $60,158 $60,158 Demolition and clearance of structures Activity Code - 04 that are substandard, blighted, and/or 570.201 (d)/ abandoned that eliminate specific 570.208(b)(2) conditions detrimental to public health Medium Priority and safety. (WARDS #1 & #2) 3. Centennial Plaza Park Project Local Code - LCF701 $0 $40,792 $40,792 Acquisition and demolition of Activity Code - 03F commercial building at 1033 Truxtun to 570.201(c)/ facilitate park improvements (seating, 570.208(a)(1) decorative fences/lighting, landscaping, High Priority water element, and display/information areas.) Project includes relocation assistance. (WARD #2) USES Amendment No. 4 FY 94-95 Action Plan CDBG Grant Year B95-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citation/Priority Funds 3. Clearance attd Demolition Program Project ID - N/A $15,000 $15,842 $30,842 Demolition and clearance of structures Activity Code - 04 that are substandard, blighted, and/or 570.201(d)/ abandoned that eliminate specific 570.208(b)(1) conditions detrimental to public health Medium Priority , and safety. (WARDS #1 & #2) 4. Centennial Phtza Park Project Local Code - LCF701 $0 $80,972 $80,972 Acquisition and demolition of Activity Code - 03F commercial building at 1033 Truxtun to 570.201(c)/ facilitate park improvements (seating, 570.208(a)(1) decorative fences/lighting, landscaping, High Priority water element, and display/information areas.) Project includes relocation assistance. (WARD #2) 6 Amendment No. 5 FY 95-96 Action Plan CDBG Grant Year B95-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citation/Priority Funds 5. Centennial Plaza Park Project Local Code - LCF701 $0 $314,186 $314,186' Acquisition and demolition of Activity Code - 03F commercial building at 1033 Truxtun to 570.201(c)/ facilitate park improvements (seating, 570.208(a)(1) decorative fences/lighting, landscaping, High Priority water element, and display/information areas.) Project includes relocation assistance. (WARD #2) 7 USES Amendment No. 2 FY 96-97 Action Plan CDBG Grant Year B96-MC-06-0151 Project Title & Description Project ID Available Budget Changes Revised Total Activity Code/ Amount of Funding Citation/Priority Funds 2. Centennial Plaza Park Project Local Code - LCF701 $0 $139,050 $139,050 Acquisition and demolition of Activity Code - 03F commercial building at Truxtun to 570.201(c)/ facilitate park improvements (seating, 570.208(a)(1) decorative fences/lighting, High Priority landscaping, water element, and display/information areas). Project includes relocation assistance. (WARD #2) FILE:CDAMENDM.VZ30 ORDINANCE NO. AN ORDINANCE ADDING 3.20.068 TO THE BAKERSFIELD MUNICIPAL CODE ESTABLISHING A PROCEDURE FOR DEALING WITH BID PROTEST. WHEREAS, the City of Bakersfield finds it necessary to establish a procedure for dealing with bid protests. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 3.20.068 is hereby added to Chapter 3.20 of the Bakersfield Municipal Code to read as follows: 3.20.068 Bid Protests Bid protests shall be reviewed, investigated and dealt with by the Public Works Director, or designee, as follows: A. The protest of the awarded bid must be received by the City Clerk within five (5) days of the bid opening by the City; B. The Public Works Director shall investigate said bid protest, determine its validity, and render a written decision. A notice . of decision shall be mailed by U.S. Mail to the bid protestor's last known address. If the Public Works Director's decision is adverse to the bid protestor said bid protestor shall have seven (7) days from the date of mailing of the notice of decision to request a hearing before the City Manager. C. The City Manager shall hear the bid protest. Within three (3) working days after the conclusion of the hearing a written notice of decision shall be mailed to the bid protestor by U.S. Mail. Said decision shall be effective upon mailing. D. If said decision on the heanng is adverse to the bid protestor, said protestor may file a written request for an appeal to the City Council within seven (7) days of the mailing of the notice of decision. A fee, adopted by the City Council in the annual fee schedule for appeals, shall be assessed for said appeal and must be paid to the City Clerk upon presentation of the request for appeal. The City Council shall hold a hearing on the bid protest appeal at the next regularly scheduled City Council meeting, or a special meeting called for the purpose of hearing the protest. The City Council's decision on said appeal shall be final. The decision of the City Council shall be issued in writing and mailed to the bid protestor by U.S. Mail within three (3) days after the conclusion of the hearing. SECTION 2. This Ordinance shall be posted in accordance with the provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. Page 2 of 3 Pages ORDINANCE NO. AN ORDINANCE ADDING SECTION 3.20.065 TO THE BAKERSFIELD MUNICIPAL CODE ESTABLISHING A PROCEDURE TO IDENTIFY AND LIST CRITERIA TO FIND PUBLIC WORKS CONTRACTORS NONRESPONSIBLE BIDDERS. WHEREAS, the City of Bakersfield desires the highest quality of work from contractors hired by the City to perform public works projects; and, WHEREAS, City has experienced less than satisfactory work from some public works contractors in the past; and, WHEREAS, it is necessary to establish a procedure to identify and list criteria to find public works contractors nonresponsible bidders; and, WHEREAS, the listing of contractor as a nonresponsible bidder should be handled in accordance with a set procedure. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF BAKERSFIELD AS FOLLOWS: SECTION 1. The following constitutes the findings of the City Council: A. The City and its residents deserve the highest quality work from contractors awarded public works contracts; 1. Past performance is important in determining a contractor's ability to achieve satisfactory results; 2. Contractors who have had their licenses suspended or revoked within the past five (5) years should be investigated before being accepted for City work; 3. Contractors who have been charged with or convicted of a crime should be investigated before being accepted for City work; 4. Contractors who have been sued by the City for unsatisfactory performance of any type should be investigated by the City before being accepted for City work; 5. Contractors who have been sued by any public or private entity for nonperformance of work, negligence, or similar items related to the quality of their work should be investigated by the City before being accepted for City work; 6. Contractors who have previously done work for the City but have had to have their work repaired by the City should be investigated by the City before being accepted before City work; 7. It is common for contractors to change their names or corporate status, but not their officers or personnel, to cover up past errors; 8. Nonresponsible contractors will attempt to become subcontractors to hide their identity and past performance in order to gain current public works contracts; and 9. The City must have the ability to exclude contractors from receiving a bid award if they are found to be nonresponsible. SECTION 2. Section 3.20.065 is hereby added to Chapter 3.20 of the Bakersfield Municipal Code to read as follows: 3.20.065 NonresDonsible Bidders A. If a question arises, or the City has reason to believe, that any contractor who may submit a bid to the City may be found nonresponsible and debarred from receiving the bid award the City shall, as soon as possible, cause a three person committee to convene composed of the Finance Director, the City Attorney and the Public Works Director, ("Committee" herein), or their respective designees, and investigate the facts concerning such contractors to determine if any of the following conditions exist: 1. The contractor has suffered the revocation or suspension of its contractor's license at any time during the past five (5) years; -2- 2. The contractor has been convicted of any crime under a state or federal statute or municipal ordinance relating to or arising from public works projects or contracting or any offense or action which indicates a lack of business integrity including, but not limited to, fraud, bribery, theft, falsification or destruction of records, receiving stolen property or any other similar crime; 3. The contractor has been sued by the City for breach of contract or negligence or nonperformance of any obligation owed to the City arising from or relating to a public works project; 4. The contractor has sued the City concerning any project involving a public work; 5. The contractor has been sued by any public or private entity for breach of contract, negligence or non-performance of any obligation relating to or arising from construction or supplying construction materials, services, or labor; 6. The contractor has had its bid bond or performance bond called by any contracting entity, or in the past five years had two (2) or more occasions within a two-year period of failure to submit bond or insurance documents acceptable to the City in the time periods required; 7. The contractor is currently in bankruptcy or is unable to pay its debts as they become due; 8. The contractor has performed a public works project for the City of Bakersfield in the past but said project has had to be repaired by the City because of poor workmanship, or poor materials, or substandard labor, supplied by said contractor and it has been determined by the Public Works Department that said repairs were related to the performance of the contractor; 9. The contractor has submitted two or more claims of computational or other error in bid submissions within a two years period; 10. Unjustified failure or refusal to provide or properly execute contract documents in a timely manner; -3- 11. Unjustified refusal to properly perform or complete contract work or warranty performance; 12. Unjustified failure to honor or observe contractual obligations or legal requirements pertaining to the contract; B. If it shall be determined any of the above listed reasons are true and apply to the contractor who has or may submit a bid, the Committee may deem that contractor to be a nonresponsible bidder and its bid shall be rejected, or the opportunity to bid refused, and the contractor (bidder) debarred from this project after notice and opportunity for a hearing as set forth below:' 1. Upon a finding by the Committee that a contractor is a nonresponsible bidder the Committee shall cause a notice of such finding together with the facts constituting the basis for such finding to be sent to the contractor by facsimile (fax) if available and by U.S. Mail, postage prepaid. Said notice shall be effective upon mailing. The contractor shall have five (5) days from the date the notice is mailed or faxed to submit a written request to the City Clerk for a hearing before the City Council to protest the finding and request the opportunity to bid or reinstatement to the bidder's list. At the next Council meeting, the City Council shall hold a hearing to determine if any of the above stated causes for debarment are true and apply to said contractor. 2. Notice of the time, date and place of such hearing shall be served by facsimile if available and by U.S. Mail on the protesting contractor.at the contractor's last known address or facsimile number at least three (3) days prior to the hearing. 3. The City Council shall announce its decision after the hearing on said matter. Not more than three (3) working days after said hearing the City Clerk shall issue the Council's decision on the matter. Said decision shall be served on the contractor by facsimile if available and by U.S. Mail and shall be effective upon mailing or sending by facsimile. If the decision is favorable to the contractor, reinstatement to the list or the opportunity to bid shall be effective immediately. If the decision shall be adverse to the contractor said contractor (bidder) shall not be placed on the bidder's list or shall not be given the opportunity to bid on the project. The City Council's determination shall be final. -4- 4. Bids on the relevant project shall not be awarded by the City until after such contractor has been afforded the opportunity to exhaust the appeals set forth in this ordinance. 5. The term "Contractor" shall mean the entity currently submitting a bid as the prime contractor or as a subcontractor and shall include former legal organizations of said entity in whatever form or name where the officers or personnel are the same or substantially similar to the entity submitting the bid. 6. Failure to file any required request for hearing or appeal shall be deemed a waiver of the right to protest the decision. C. The Public Works Director may require all potential bidders to submit a pre-bid qualification package to show they are, in fact, responsible bidders and qualified to accept the bid award on the project. The Public Works Director shall evaluate each pre- bid qualification package in accordance with the standards for.'identifying a nonresponsible bidder as set forth in this Code. Any questions concerning qualifications shall be referred to the Committee. SECTION 3. This Ordinance shall be posted in accordance with provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. ............... 000 .............. -5- BAKERSFIELD ~ndy, City Manager .,~r-z_~ Patricialrma Carson J' DeMond, Chair Staff: Dolores Teubner Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, October 21, 1996' 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:24 p.m. Present: Councilmembers: Patricia J. DeMond, Chair; Irma Carson; and Kevin McDermott 2. APPROVAL OF THE SEPTEMBER 16, 1996 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMfTTEE Monday, October 21, 1996 Page -2- 6. NEW BUSINESS A. REQUESTS FOR ECONOMIC DEVELOPMENT ASSISTANCE FROM SOUTHWEST CONTRACTORS, INC. AND HAMMONS MEAT SALES, INC. Staff presented information to the Committee on the requests made by two businesses for incentive funds. Hammons is currently located in the incentive area and is requesting funds for a business expansion. Southwest Contractors has recently relocated to the incentive area from the County and is requesting funds for relocation and expansion of the business at their new location. The project evaluations for each were distributed and are attached. Both companies have requested forgivable loans to purchase land, facilities and/or equipment. The Committee discussed the merits of a forgivable loan as an economic development incentive versus other types of incentives such as Iow- and no-interest loans. There was a consensus among members that the City had to be fair and consistent in granting incentives and encourage business retention/expansion just as aggressively as business attraction. The Committee directed staff to reassess each company's ability to contribute a percentage of their own capital to the request, as well as review the terms of the City's assistance. Staff will bring this information back at the next meeting on November 18. B. STRESS DISABILITY CLAIMS Staff indicated that all management disability retirements taken in the last three years had occurred under the old 10 percent disability guidelines. New guidelines require that an employee prove that 51 percent of his/her stress is job related. Staff was asked if there were any way to limit the ability of management employees to receive stress disability retirements. The City Attorney indicated that this was governed by State Law and benefits and eligibility for benefits could not be limited by the City. 7. ADJOURNMENT The meeting was adjourned at 1:20 p.m. cc: Honorable Mayor and City Council DBT:jp