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1993 06 29 CC Minutes LA QUINTA CITY COUNCIL MINUTES 3JUNE 29, 1993 Special meeting of the La Quinta City Council was called to order at the hour of 7:00 P.M. on June 29, 1993 by Mayor Pena at La Quinta Middle School, followed by the Pledge of Allegiance PRESENT: Council Members Bangerter, Mccartney, Perkins, Sniff, Mayor Pena ABSENT: None PUBLIC COMMENT None PUBLIC HEARINGS CONTINUED CONSIDERATION OF FORMATION OF ASSESSMENT DISTRICT NO. 92-1. Mayor Pena announced that he and Council Member Bangerter would be leaving the dais and abstaining from this issue as they both have property within said proposed assessment district. Mayor Pro Tern Sniff called for the staff reports. Mr. Speer, Ass't. City Engineer, advised that staff has brought forward a revised plan as a result of a request made at the May 11th Council Meeting. Essentially, it's the same project as presented on May 11th except that an area has been added to include sewers and water lines and to overlay the streets without installing curb and gutter. Kenko, Inc. is the low, responsible bidder. He then detailed how staff intends to proceed with the project once construction begins. He anticipated construction to begin in late August or early September and as construction proceeds into the neighborhoods, property owners will receive notice from the contractor advising them of the improvements that are coming and on what dates to expect restriction of parking on the streets and how to get in and out of the neighborhood. The property owner will be receiving a green stake to be placed in front of the home where they wish to have the sewer lateral enter the property. Prior to closure of any streets or re-routing of traffic, the contractor must submit his plan to staff for approval and it will be made available to the public. Council Member Perkins asked what unimproved portion of the Cove will not be covered by the project and Mr. Speer advised that east of Eisenhower around the park and continuing easterly over to the Civic Center area and south of the park down to Sinaba. In further response to Council Member Perkins, Mr. Hunt, City Manager, advised that the City has a subsidy program to assist low-moderate income families with the cost of connecting to the sewer. To date, that program has assisted about 209 families at a total of more than $609,000. BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02 City Council Minutes 2 June 29, 1993 Information on that program is available in printed form at the door. In answer to Council Member McCartney, Mr. Speer advised that the streets south of Montezuma including Hidalgo, Sinaba, down to Durango will receive sewer and water line improvements and a one-inch overlay on the street, which has a service life approaching ten years. In the areas where trench-work is done, there will be a two-inch overlay. Mr. Joe Kicak, Assessment Engineer, advised that several bids were received with Kenko being the low bidder. In reviewing their proposal and applying all of the construction contingencies plus the incidental expenditures associated with the Assessment District, the assessments as proposed will be $1,738 on a 50' x 100' lot except in the area where undergrounding of electrical will be included. The final total cost is less than $2,000 of the original construction amount. Mayor Pro Tern Sniff noted that the public hearing was closed on May 11, 1993; however, anyone wishing to speak will be allowed to do so. PUBLIC COMMENT Audrey Ostrowsky, P.O. Box 351, La Quinta, urged that the work begin immediately and expressed concern that the construction of Phase IV begin in an orderly manner. Edna M. Zorn, 29-200 Pushawalla Road, Desert Hot Springs, spoke regarding awarding a contract to an out-of-State contractor. The employees of that firm will be taking our money to another State to spend. Maarten Couwenberg, 301 No. Lake Av. Pasadena, Calif. representmg the Southern California Labor and Management Operating Engineers Contract Compliance Organization, noted that his assistant has previously delivered a complete package to the City Council. Their organization represents both labor and management interests in assuring that in the public works arena, there is a level playing field in the competitive bid process. They vigorously opposed awarding of the contract to Kenko. The State Contracts Act specifically Section 10108) says that the awarding body shall award to the lowest responsible bidder. The documents submitted, shows violations by Kenko regarding prevailing wages. Additionally, there were more than 67 OSHA violations. Regarding performance, there are clear indications in northeast Perris Valley that a road is in disarray. He urged that the Council declare Kenko to be a non-responsible bidder and award the bid to the next responsible bidder. Bob Mcala, 51470 Carranza, thanked the Council for their efforts and said he is willing to wait for three years as long as he knows that it's going to get done. BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02 City Council Minutes 3 June 29, 1993 Lois Jeanne Paul, 51-825 Ave. Rubjo, thanked the Council for considering the residents concerns after the May 11th meeting. She then expressed concern over water main damage and asked how many pipes were broken in the previous phase and how they were dealt with. Paul Quill, resident of Yucatan Peninsula area, asked if the asphalt overlay is a part of the Assessment District cost. He thank the City staff for putting this project together. Jeff McGrand P.O. Box 831, Calimesa, representing Kenko, Inc. responded to the previous comments made, advising that they have been in business in California since 1985 and they pay taxes in California. He has provided the City with voluminous letters of recommendations and has responded to the Union's allegations. They are qualified to do the work and are anxious to begin as soon as possible. Jack Spool, 51-200 Carranza, asked if the City connects the sewer or can the property owner have it done privately. Robbie Stanford, 51-863 Obregon, asked which area of the project will begin first. Mr. Speer advised that the work will start at Bermudas and work westerly. Because there are two different trunk lines for the sewer, some work at Tampico may begin simultaneously. Joe Corseti, Calle Quito, advised that there are hundreds of people locally who work construction. He also advised that an overlay will not last ten years. He urged the City to look at jobs Kenko has done previously to see their quality of work. He preferred to see the work be done locally. John Walling, 51-260 Avenida Rubio, suggested that the City post the scheduling of construction in the community. ResDonses to uestions: Regarding Ms. Ostrowsky' S concerns, Mr. Speer reiterated the order of construction noting it's based upon logical construction of underground improvements, traffic safety, traffic mobility and including input from the contractor as to his ability to provide sufficient forces to work in more than one area at the same time if possible. Mr. MeGrand, advised that Kenko has been in business in California since late 1984 and their taxeS go to California cities and the State. The majority of their employees live in California and commute to work they do not live in trailers. He further advised that there are local subs, like Granite, who will be doing the paving. BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02 City Council Minutes 4 June 29, 1993 Regarding the broken water pipes, Mr. Speer advised that some lines do get damaged and they are repaired by the contractor. Additionally, if private irrigation lines are damaged, they too, are repaired by the contractor. Regarding the concern of Mr. Couwenberg, Mayor Pro Tern asked if the charges and allegations have been investigated. Mr. Reynolds, Public Works Director, advised that staff has checked out the references supplied by Kenko and have read the comments supplied by the Operating Engineers and have talked to some of the people who have had contracts with Kenko. Staff is satisfied that Kenko is a responsible bidder. Ms. Honeywell, City Attorney, advised that her office has reviewed all of the information given by both the protestors and Kenko and are satisfied that the Council could easily find that they are a responsible bidder. Regarding the cost of the asphalt cap, Mr. Speer advised that it will be paid for by the City and not through the Assessment District. The Assessments will cover sewer only in addition to the undergrounding of utilities in the Yucatan area. Regarding the life of the asphalt cap, Mr. Speer advised that City inspectors will be inspecting this work to insure that the City's standards are adhered to. The life of the overlay has a ten- year service life, but will normally begin to fail as it approaches ten years. He noted, however, that the City does not necessarily intend to leave it there that long. Mayor Pro Tern favored the suggestion made by Mr. Walling about posting the construction scheduling. Jeff Corkill, Member of the local Operating Engineers asked who will accept the responsibility when Kenko's work fails. Ms. Honeywell, City Attorney, advised that Kenko is responsible for any negligence on the job. In the contract agreement, the City is indemnified for any negligence that the contractor is responsible for, so anything that the City would be naaned in, it would be their responsibility to defend and indemnify the City should they be found to have been negligent on the job. So in no way, should the City be at risk for any negligence on the part of the contractor including any OSHA violation or any of the other things having been cited, which would clearly be seen to be negligent and it would be up to the Court to decide if indeed, it would be negligence. Joe WasselI, 51-775 Madero, questioned the overlay with Mr. Speer advising that there will be one inch layed over existing asphalt except in areas where the pavement is not good enough to save, there will be two inches of pavement over native soil. BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02 City Council Minutes 5 June 29, 1993 Ed Goress, Operating Engineers Compliance noted that 80% of Kenko's violations have been upheld by the Courts and asked how the City has had an opportunity to investigate Kenko. Ms. Honeywell, City Attorney, advised that the bulk of the material was submitted last week and has been reviewed. She noted that the most recent violation included in the documents was in April 1992. Therefore, Kenko had a prepared response for everyone of the violations. The materials submitted by both Kenko and the Operating Engineers were reviewed over the week- end. It is the staff's opinion that the Council has before it, sufficient evidence with which they can decide that Kenko is a responsible bidder. Council Member Perkins advised that the City is obligated by law to accept the lowest responsible bidder and that the City has been very supportive of an organization called Local Jobs for Local People. The City is supporting Assemblywoman Bornstein's Bill which will give local government authority to grant as much as S % to local contractors and give us an opportunity to select a local contractor. He noted that the last two bids let by the City, totalling almost $3 million was to a local contractor. He was pleased that Kenko is planning to use a lot of local labor. Council Member McCartney concurred, saying that this Council's intention has always been to utilize local people for local jobs and we are supporting the Bornstein Bill, but at this time, we must operate within existing laws. He complimented staff on an excellent job in completing a very complex project in a short arnount of time. Council Member McCartney referred to Page 4 of the staff report regarding a potential storm drain conflict and wished to see Council direct staff to report back on that matter. Council concurred. RESOLUTION NO.93-53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, MAKING DETERMINATIONS, CONFIRMING ASSESSMENTS AND PROCEEDINGS, AND ORDERING PROPOSED IMPROVEMENTS IN THE MATThR OF ASSESSMENT DISTRICT NO.92-i. It was moved by Council Members McCartney/Perkins that Resolution No.93-53 be adopted with staff to l in the appropriate dollar amount based upon the bids received June 23rd. Motion carried unanimously with Mayor Pena and Council Member Bangerter absent. BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02 City Council Minutes 6 June 29, 1993 RESOLUTION NO.93-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DESIGNATING THE CITY TREASURER TO COLLECT AND RECEIVE ASSESSMENTS AND DIRECTING THE CITY TREASURER TO ESTABLISH A SPECIAL FUND FOR ASSESSMENT DISTRICT NO.92-i. It was moved by Council Members McCartney/Perkins that Resolution No.93-54 be adopted. Motion carried unanimously with Mayor Pena and Council Member Bangerter absent. MOTION It was moved by Council Members McCartney/Perkins to award the bid for construction of Assessment District 92-1 to Kenko, Inc. in the amount of $4,994,673.00, as they're the lowest responsible bidder. Motion carried unanimously with Mayor Pena and Council Member Bangerter absent. MINUTE ORDER NO.93-153. CLOSED SESSION Closed Session was held at City Hall, 78-105 Calle Estado to discuss personnel pursuant to Government Code Section 54957 Meet and Confer Issues and Personnel Schedule. Council reconvened with no action being taken. There being no further business, the meeting was adjourned. Res tfiilly submitted, SAUNDRA L. JUHOLA, City Clerk City of La Quinta, California BIB] 01-22-96-U01 04:56:30PM-U01 CCMIN062993-U02