Recreation and Park Commission, Capital Committee

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1 DATE: March 25, 2011 TO: THRU: FROM: Recreation and Park Commission, Capital Committee Philip A. Ginsburg, General Manager Dawn Kamalanathan, Capital Program Manager Meghan Tiernan, Project Manager McCoppin Square Renovation project Agenda Item Wording: Discussion and possible action to approve substitution of a subcontractor with Bauman Landscape and Construction Company, Inc. and A. Ruiz Construction Company and Associates, Inc for the McCoppin Square Renovation project. Background / Description: Bauman Landscape and Construction Company Inc., the general contractor, is requesting to replace the concrete subcontractor, M.H. Construction Management Company ( MH ), because they could not agree on the terms of MH s subcontract. Under the terms of Bauman s substitution request the majority of MH s work will be self performed by Bauman, and A. Ruiz Construction Company and Associates, Inc. Section 6.21(A)(9) of the City and County of San Francisco Administrative Code incorporates the California Subletting and Subcontracting Fair Practices Act, at Public Contract Code Section 4100 et seq. California Public Contract Code Section 4107(a)(3) allows for a prime contractor to substitute for a subcontractor listed in the original bid when the subcontractor refuses to perform his or her subcontract. MH originally objected to Bauman s substitution request, however, MH and Bauman were able to reach an agreement and MH ultimately withdrew its objection. Recommendation: RESOLVED, that this Commission does approve the substitution of a subcontractor with Bauman Landscape and Construction Company, Inc. and A. Ruiz Construction Company and Associates, Inc. for the McCoppin Square Renovation project. People to Contact: McCoppin Square Mailing List Attachment(s): Letter from Contract Administration to Bauman dated Letter from Bauman to Contract Admin dated 2/18/11 Letter from MH to Contract Admin dated

2 March 21, 2011 Bauman Landscape and Construction, Inc Battery Street, Suite 400 San Francisco, CA Attention: Mr. Mike Bauman Via Subject: Contract No. 3031V, ID No. FCP10010 McCoppin Square Renovation Decision on Request to Substitute for MH Construction Management Co. Dear Mr. Bauman: I am writing in response to your request to replace MH Construction Management Co. ( MH ) as a subcontractor for the subject project. You requested to replace MH because Bauman Landscape and Construction, Inc. ( Bauman ) and MH could not agree to the terms of MH s subcontract. MH was listed to perform $419,870 of concrete work. Under the terms of Bauman s substitution request the majority of MH s work would be self performed by Bauman, and A. Ruiz Construction Co. and Associates, Inc. ( A. Ruiz ) would perform some partial street work. Section 6.21(A)(9) of the City and County of San Francisco Administrative Code incorporates the California Subletting and Subcontracting Fair Practices Act, at Public Contract Code Section 4100 et seq. California Public Contract Code Section 4107(a)(3) allows for a prime contractor to substitute for a subcontractor listed in the original bid when the subcontractor refuses to perform his or her subcontract. MH originally objected to Bauman s substitution request, prompting DPW to schedule a public hearing to address the issue. However, MH and Bauman were able to reach an agreement prior to the public hearing taking place, and MH ultimately withdrew its objection. MH is a certified Local Business Enterprise ( LBE ) and is contributing to the LBE subcontracting goals for the project. The San Francisco Human Rights Commission must review the request and ensure that Bauman will meet the LBE subcontracting goals under the proposed substitution. A. Ruiz has an active contractor s license (#427657) with A- General Engineering Contractor and B- General Building Contractor classifications, and its San Francisco Business Tax Certificate (#132354) is valid through June 30, If the substitution is approved, A. Ruiz will need to provide Documents (CERTIFICATE OF SUBCONTRACTOR REGARDING APPRENTICESHIP TRAINING PROGRAM) and (CERTIFICATION OF SUBCONTRACTOR, LOWER-TIER SUBCONTRACTOR OR SUPPLIER REGARDING DEBARMENT AND SUSPENSION), and a copy of a valid workers compensation insurance certificate. A decision by the awarding authority as to whether to approve the substitution is requested. San Francisco Department of Public Works Making San Francisco a beautiful, livable, vibrant, and sustainable city.

3 Decision on Substitution Request March 25, 2011 Page 2 of 2 The Recreation and Park Commission, the awarding authority for Contract No. 3031V, the McCoppin Square Renovation project, hereby approves denies (check-mark the decision box issued on this matter) the substitution of Bauman Landscape and Construction, Inc. and A. Ruiz Construction Co. and Associates, Inc. for MH Construction Management Co. Signature Date Printed Name Title Yours truly, Gordon Choy Division Manager GC:tu cc: Meghan Tiernan, PM Albert Ko, BCM Fuad Sweiss, DDE and City Engineer Sheryl Bregman, DCA Finbarr Jewell, HRC MH Construction Management Co. San Francisco Department of Public Works Making San Francisco a beautiful, livable, vibrant, and sustainable city.

4 BAUMAN LANDSCAPE CONSTRUCTION GENERAL SITEWORK February 18,2011 Gordon Choy 875 Stevenson St. San Francisco, CA Contract No. 1576J & 3031 V Eddy Street & Ellis Street Pavement RenovationlMcCoppin Settlement Agreement_Substitution Request Agreed Upon Square Renovation Dear Mr. Choy, Bauman Landscape and Construction Inc. (BLC) & MH Construction Inc. have come to a settlement agreement in regards to projects, 1576J Eddy & ElIis and 3031 V McCoppin Square. The terms of the settlement are outlined in the attached from Ed Campos, HRC department dated 2/16/2011. BLC withdraws its substitution protest on the Eddy & Ellis project per our agreement; MH will pay Bauman's outstanding vendor invoices on the project and release Bauman of any claims on the project, and in exchange, Bauman will release its Stop Notice. MH, in return, releases its protest to substitution on the McCoppin project. This is complete and a final settlement agreement. projects. Neither party will have the right to file claims on these ;r~o to call ODd! 0' with.n.y questions. ~Bauman.. Project Manager 572 RUGER ST.- SUITE A, SAN FRANCISCO, CA PH: FAX: An Equal Opportunity Employer Page 1 of 1

5 CONSTRUCTION MANAGEMENT CO. MH CONSTRUCTION MANAGEMENT CO., INC. License A & B February 18, 2011 Mr. Gordon Choy 875 Stevenson Street San Francisco, CA Contract No. 1576J and 3031 V Eddy Street & Ellis Street Pavement RenovationiMcCoppin Settlement Agreement-Substitution Request Agreed Upon Square Renovation Dear Mr. Choy, MH Construction Management Co., Inc. & Bauman Landscape and Construction, Inc. (BLC) have come to a settlement agreement in regards to projects 1576J Eddy Street & Ellis Street Pavement Renovation and 3031 V McCoppin Square Renovation. The terms of the settlement are outlined in the attached from Ed Campos, HRC department dated MH Construction withdraws its substitution protest on the McCoppin Square Renovation project per our agreement. Bauman Landscape, in return, releases its protest to substitution on the Eddy Street & Ellis Street Pavement Renovation Project; whereas as agreed upon, MH will pay Bauman's outstanding vendor invoices on the project, and in exchange, Bauman Landscape will release any claims on the project, forego claims to any further direct payments from MH Construction, and release its Stop Notice on the Eddy & Ellis Project. This is a complete and final settlement agreement. Neither party will have the right to file claims on these projects except under the following conditions: MH reserves the right to back charge Bauman Landscape for any Liquidated Damages fined by the City for the delays caused by Bauman on the Eddy & Ellis Project. Bauman Landscape guarantees that all union dues, fees and all other insurances related to the Eddy & Ellis Project are paid to date. This is predicated on Bauman Landscape releasing its Stop Notice and file with the City by the end of the day of February 22,2011,5:00 P.M. Please feel free to call and/or me with any questions../ Matthew Hue ~ President th Street, San Francisco, CA Ph.: Fax

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