By Anthony (Tony) Morelli, Southwestern Regional Compliance Manager. -
Recently the City of Glendora had a bid opening for their Police Parking Lot Perimeter Security, Plan Project. The project’s scope included enlarging the parking lot footprint with a new eight foot high perimeter wall, fence with sliding gates, new wall mounted lighting, video vehicle intercom, vehicle and pedestrian entry key pads, Asphalt and slurry seal, re-striping of parking stalls and installing wheel stops in the parking lot.
Six companies submitted bid proposals that ranged in the amount of $345,500 to $803,850, however the city only had an adopted budget of $185,000 for this project.
In reviewing the City's Agenda, Morelli discovered that the public works director was making a recommendation to the city council to reject all bids and adopt a resolution requiring a four-fifths vote of the council recommending that they dispense with further complying with the Public Contract Code (PCC) or State Prevailing Wage requirements and declare that the project can be performed more economically by day labor, or the materials and supplies furnished at a lower price in the open market, or bid it out in-formally to a select group of contractors that they had previously worked with.
The director’s staff report and proposed resolution to the city council was incorrectly citing PCC’s 20166 and 20167. PCC 20166 does not indicate that they can dispense with bidding, but rather reject and re-bid and since they had received six bids, they must comply with this PCC requirement. Additionally, PCC 20167 as cited in the director’s staff report was partially correct, but PCC 20167 does not indicate, nor allow the ability to dispense with the paying of prevailing wages, as his staff report was incorrectly indicating they could do.
Morelli contacted the public works director and formally requested that he, One, Pull the agenda item due to improper interpretation of the two PCC’s and Two, Re-bid the project for move favorable bids. Morelli suggested to the director that generally when an agency rejects all the bids the first time around, they usually see more favorable pricing at the re-bid. Morelli additionally suggested that perhaps the city’s estimate and budget for the project could possibly be too low.
A few days later, in reviewing a video of that City Council meeting, Morelli observed that the City did in fact approve to in-formally re-bid the project and they also indicated that they would comply with the prevailing wage requirements.
OUTCOME: Due to CIFAC's investigation, Morelli observed on the City's January 8th, City Council Meeting Agenda, that the public works director did take his advice to re-bid the project and was now recommending the project be awarded to the lowest bidder in the re-bid for $257,000, Not only did CIFAC influence a positive outcome, but also saved the city $88,000 from the previous low bidder on this project. Clearly a win-win for all!