Minutes of Special Meeting
April 21,
2008
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SPECIAL MEETING The
special meeting of the Cabrillo College Governing Board was held at Cabrillo
Community College District, It was moved and seconded (Garcia/Reece) to adopt the
agenda. The motion carried
unanimously. Chair Wildman asked for comments on non-agenda
items. There were no comments on
non-agenda items. |
CALL TO
ORDER |
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ACTION ITEM Item 1. Award of
Bid: Allied Health Complex President King presented the recommendation that the
Governing Board award the bid for the Allied Health Complex to Soltek
Pacific, the lowest qualified bidder, in the amount of $18,417,000. Vice President Ard reviewed the history of this Board
item. The bid proposals were presented
at the April 7th Board meeting and tabled for further review. The Board Facilities Committee subsequently
met, with Trustee Al Smith recusing himself.
District counsel was consulted regarding the issues involved. Trustee Leopold arrived at 12:25 pm. Vice President Ard stated that staff recommended
moving forward with the Soltek bid. Trustee Reece stated that some questions are
consistent and always of concern on projects, whether local contractors are
in the process and how bids are put out and awarded. In this case, he stated, the issue is one
company’s concern regarding technicalities, while the other company could
make the same claim if their bid is disallowed. Counsel has advised that although the
issues brought up by Local 505 have been studied, technical issues on both
sides could apply, and the listing of subcontractors involved less than 1.5%
of the work. Vice President Ard commented that the good news is
that there are local subcontractors that will obtain work from most of the
proposals. Chair Wildman stated that one of the questions put
forth from Trustee Spencer is in regards to reference checking. Vice President Ard responded that each of the
proposals were to present all of their projects from the last two years. Soltek presented 34 projects of similar
scope. The FDO checked with many of
the project owners, including PVUSD and the Defense Language Institute, and
they all suggested they would be comfortable with bringing Soltek back for
another project. Trustee Leopold stated that while he does not pretend
to know legal requirements, he is concerned about avoiding the types of
problems encountered with the Trustee Garcia asked if the college counsel had said the
college must go with Soltek. Vice President Ard stated that it was a possibility. Mr. Deaver added that the options are to award the bid
to Soltek, not award the bid to Soltek because they were not responsive, or
to re-bid the project. Chair Wildman asked about the ramifications of
re-bidding the project. Vice President Ard responded that time was the main
factor. She added that the college has
four reasonable bids right now; June would be the earliest possible Board
approval. Chair Wildman asked if Trustee Leopold’s questions
could be answered in a re-bid proposal. Mr. Deaver responded that no bid packages to date have
gone to that level of detail; minimum qualifications of experience pertain to
the prime contractor, not to second or third levels of subcontractors. Chair Wildman responded that this was the problem with
the SAC. Mr. Deaver stated that the particular issue with the
SAC was a prime contractor. Trustee Leopold clarified that the SAC project was
multiple prime contractors. Trustee Garcia asked if the college could decide at
what level the bids are responsive.
She noted her concern regarding the subcontractors and dollar values
being unknown. Mr. Deaver stated that counsel reviewed all the bids
and believed there were some irregularities in all of the bids. Trustee Garcia responded that for $18M, she wanted top
standards, not minimum standards. She
asked about the omissions. Mr. Deaver responded that the information omitted from
the Soltek bid was the size of some of the subcontractors’ bids and their
license numbers, which can be and was submitted subsequent to the bid
deadline. Vice President Ard stated that there was a discussion
regarding a performance concern with one of the subs. There was a brief discussion regarding the
steel subcontractor, who has provided references, has completed projects of
nearly the same size, and will have an independent steel inspector on site at
all times. Trustee Reece stated that he shared Trustee Leopold’s
concern regarding subcontractors, but he noted that a sub with a good record
can blow it and vice versa. He stated
that if the law says Soltek has a right, and the college has confirmed that
with their attorney, as much as the next company, Bogard, is fine, there are
rules to abide by. Trustee Reece
stated that he appreciated the union’s concern and considered it only just
that fair wages be paid, but he considered it a slippery slope if the college
begins to change processes without some significant legal issue. He stated that he wished he could see a
different outcome, but the college was in the position of taking its
attorney’s advice. He was prepared to
support staff and legal advice and support the award of bid, though he shared
the concern regarding the subcontractors and hoped Soltek would do a good
job. It was moved (Reece) to award the bid for the Allied
Health Complex to Soltek Pacific, the lowest qualified bidder, in the amount
of $18,417,000. There was no second. Trustee Garcia asked if all the unanswered information
was provided. Vice President Ard responded yes. There was a brief discussion regarding college control
over costs. Mr. Deaver explained that
change orders cover many things, such as change of design by owner or
contractor, and there is nothing to prohibit a contractor from requesting a
claim. Project Director Paul Anderson
added that research shows that Soltek is not in the habit of doing frivolous
change orders. He stated that the fact
that all four bidders are so close may mean that the drawings are good. Vice President Ard stated that it was hoped that not
doing multiple prime contractors would help. Chair Wildman opened the opportunity for public
comments. Ned Van Valkenburgh, Carpenter’s Union Local 505, took
issue with the college counsel’s interpretation of the kinds of errors and
omissions that can and cannot be waived in the bid process. He disagreed with the district’s
interpretation that subcontractor amounts could be provided after the bid
closing. He reviewed a 1998 Chair Wildman asked how long the bids would remain
good. Vice President Ard responded that they would be good
for 60 days. Chair Wildman suggested that another option would be
to have counsel review the cases sited by Mr. Van Valkenburgh and review them
at another meeting. Trustee Reece concurred with Chair Wildman, noting
that $18M is a lot of money. He added
that the college would be spending money to reject the bids and did not want
to rush the process. Mr. Deaver stated that one concern is to get as much
foundation work done as possible before the rainy season. Trustee Reece stated that there is enough concern
among the Board members to wait for counsel’s response. Trustee Leopold stated that Trustee Reece brought up
good questions and the trustees are not ready to take the step of putting
this forward to a vote. He felt it was
reasonable to wait as it was the responsibility of trustees to do right by
the college by getting the best price and the assurance of quality work. President King stated that information will be
coordinated through the Board Chair. It was moved and seconded (Reece/Garcia) to table this
item until further information is researched and reviewed. The motion carried unanimously. |
ACTION ITEM AWARD
OF BID: ALLIED
HEALTH COMPLEX |
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ADJOURNMENT
The open session of the
special meeting of the Cabrillo College Governing Board was adjourned at 1:04
pm. |
ADJOURNMENT |
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Respectfully
submitted,
Secretary