SR 12-12-2023 5E
City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.E
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street
Services
Subject: Award RFP and Enter into Agreements with GCAP Services, Inc. and
GAFCON for Prevailing Wage and Certified Payroll Monitoring Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.
2. Award RFP# 366 to GCAP Services, Inc. as the primary consultant, and
GAFCON, Inc. as the secondary consultant, to provide prevailing wage and
certified payroll monitoring services for public works projects for all City
Departments.
3. Authorize the City Manager to negotiate and execute an agreement with GCAP
Services Inc., in an amount not to exceed $1,632,306, (including a $148,391
contingency) (for five years and rate increases of 5% in years 3, 4, and 5) for a
total amount not to exceed $1,632,306 over a 5-year period with future year
funding contingent on Council budget approval.
4. Authorize the City Manager to negotiate and execute an agreement with
GAFCON, Inc., in an amount not to exceed $1,396,356 (including a $126,941
contingency) (for five years and rate increases of 3% in years 2,3,4, and 5) for a
total amount not to exceed $1,396,356 over a 5-year period with future year
funding contingent on Council budget approval.
Summary
The City of Santa Monica is required to comply with California law SB 854 which states
that municipalities must monitor and enforce prevailing wage compliance for public
works projects. The City has contracted with a professional labor compliance firm to
provide certified payroll monitoring services for City projects subject to prevailing wage
requirements since this law went into effect. Services generally consist of performing
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certified payroll compliance monitoring, on-site interviews of workers, electronic certified
payroll reporting (eCPR), verification of apprenticeship reporting, and enforcement if
needed. City staff do not possess the required expertise and do not have capacity to
conduct such monitoring. Staff recommends executing an agreement with GCAP
Services, Inc. for an amount not to exceed $1,632,306 over five years as the primary
consultant. The basis for the first year's cost of $279,450 is 3,000 consultant hours, then
increased in year’s 3,4, and 5 by 5% annual rate increases. Concurrently, staff
recommends executing an agreement with GAFCON, Inc. as the secondary consultant
for an amount not to exceed $1,396,356 over five years to facilitate the transition to the
primary consultant and to act as a backup consultant in the event the primary consultant
is unable to fulfill its contractual obligations. The basis for the first year’s cost of
$239,100 is 3,000 consultant hours, then increased annually by 3% in year’s 2,3,4, and
5. Staff intends to use the services of one consultant, except for an initial transitional
period during which both consultants would work together to transition services from
GAFCON, Inc., our current prevailing wage consultant, to GCAP Services, Inc. Staff
does not anticipate expending the full contract authority of the secondary vendor.
Discussion
Under California law SB 854 the City is required to pay prevailing wages for Public
Works Projects that exceed $15,000 for repair/maintenance and $25,000 for new
construction. SB 854 defines prevailing wage requirements and establishes
responsibilities for prevailing wage payments. This law requires prevailing wage
payment for certain labor categories identified in the State of California Labor Code
(commencing in Section 1770 et seq.) when employed for any work on or in the
execution of a Public Works project. The City must 1) award public works bids in
compliance with the law and report these bid awards to the California Department of
Industrial Relations (DIR); and 2) ensure contractors/subcontractors register with the
DIR and provide certified payroll records to the Labor Commissioner.
City prevailing wage projects include construction and maintenance of public buildings,
parks, public work infrastructure, and other City facilities, and would include projects
funded in part or in whole by Federal or State grants. Each public works project varies in
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size and scope, from large projects with over 80+ subcontractors to smaller scale
projects with one or two subcontractors. The City does not have the staff capacity and
expertise to manage the over 145 active citywide projects which require monitoring via
the State of California’s Department of Industrial Relation’s database.
The selected consultant(s) would ensure that prime contractors and subcontractors
comply with all California Labor Codes as outlined by California State Department of
Industrial Relations (DIR). During the span of a project, GCAP Services, Inc. would
assist with the following:
• Review and audit of certified payroll records to assure compliance with
laws/regulations.
• Compliance with apprenticeship laws/regulations and training fund contributions.
• Identifying labor compliance violations and resolving issues and calculating
applicable penalties/fines.
• Conducting on-site inspections and worker interviews.
• Hosting pre-construction labor compliance meetings with City contractors.
• Providing the City progress payment and withholding recommendations based on
the contractor’s compliance with labor laws/regulations through project close-out.
• Monitoring Federal Davis-Bacon Act prevailing wage compliance requirements,
as necessary. The Davis-Bacon Act requires all public works projects that are
funded partially or wholly with federal funds pay local prevailing wage rates.
The City typically has five to seven active large, multi-million dollar federally or state-
funded grant projects which require adherence to federal and state prevailing wage
laws. Additionally, larger projects that require continual monitoring include: the Arcadia
Water Treatment Facility Expansion, the Annual Water and Wastewater Main repair and
replacement projects, and numerous Mobility Division projects. These are larger
projects that require significant labor compliance and monitoring. The selected firm(s)
would also manage the City’s labor compliance program for Prop 84 state-funded
projects which includes annual reporting to the DIR. Prop 84 is a state-bond program
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that funds water quality, supply, waterways, flood control, and water pollution capital
projects.
Anticipated future large-scale projects include improvements to water reservoirs, the
Santa Monica Pier capital improvements, and the pier bridge replacement.
A formal solicitation was conducted and staff recommends GCAP Services, Inc. as the
primary consultant to provide prevailing wage and certified payroll monitoring services
under a five-year contract. Staff also recommends awarding a contract to GAFCON, Inc.
to allow for the smooth transition of labor compliance functions from the incumbent
consultant to the new consultant, and from paper copies of certified payroll records to
an industry standard electronic certified payroll software. The redundancy in consultants
would also ensure a continuity of mandated labor compliance monitoring if, for any
reason, GCAP is unable to continue providing the services. The City currently has 145
citywide projects that are registered with the California Department of Industrial
Relations (DIR) for labor compliance monitoring. Staff intends to use the services of one
consultant (GCAP), except for an initial transitional period of up to three months during
which time both consultants would work to ensure the successful transition of services
from GAFCON, Inc. to GCAP Services, Inc. and does not expect to expend the full
authority with both vendors.
Environmental Review
The agreement is exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA
Guidelines. The agreement is covered by the commonsense exemption which states
that CEQA does not apply, “where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment.”
The agreement would provide the City with payroll monitoring services. Therefore, it can
be seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment.
Vendor Selection
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Bidder Recommendation
Best Qualified
Person/Firm
GCAP Services, Inc., primary vendor
GAFCON, secondary vendor
Evaluation
Criteria
Training/credentials/experience, competence/skill, capacity/ability to
perform services promptly, sufficiency of financial/other resources,
character/reputation, ability to provide future services as needed and
price.
Municipal Code SMMC 2.24.190
RFP Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
07/11/2023 City's Online
Bidding Site
Santa Monica Daily
Press
22 09/07/2023
Best Bidder Justification
An evaluation committee comprised of staff from the Public Works Department
evaluated the proposals received. GCAP Services, Inc. was deemed the best qualified
consultant (primary) to provide prevailing wage and certified payroll monitoring
services based on receiving the highest scores on the overall proposal, experience,
and references. Scoring for this solicitation was based on the best qualified firm and
not solely based on the lowest bid. They have provided quality services to other
agencies and cities, including City of Anaheim, Los Angeles County Metropolitan
Transportation Authority (Metro), and Southern California Regional Rail Authority
(Metrolink). GCAP’s ability to closeout prevailing wage projects in a timely manner,
respond to contractors’ labor compliance questions, provide technical assistance, and
conduct labor compliance audits as needed, are all reasons they are recommended as
the best qualified and primary consultant.
Staff recommends GAFCON, Inc. as secondary vendor based on overall qualifications
and scoring criteria that were listed in the solicitation, including understanding of work,
qualifications, references and fee. GAFCON has competitive labor rates and has
Submittals Received
Autocene, Inc. Destination
Enterprises
GAFCON GCAP Services,
Inc.
Pacific Resources
Services The Headcount TSG, Enterprises Willdan Engineering
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experience with cities and agencies of similar size including City of Santa Monica, City
of Beverly Hills, City of San Marcos, and San Diego Association of Governments.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with GCAP Services, Inc. as primary
consultant and GAFCON, Inc. as secondary consultant to provide prevailing wage and
certified payroll monitoring services for public works projects for all City departments.
Funds are available within existing budgets and would be charged to the appropriate
Division or project account based on request for oversight and labor compliance
services.
Contract Requests (Primary – GCAP, Secondary – GAFCON)
Vendor FY 2023-24
Request
Amount
Future
Year’s
Amounts
Department/CIP Account
#
Total
Contract
Amount
GCAP
Services, Inc. $279,450 $1,352,856 Various based on projects $1,632,306
GAFCON,
Inc. $239,100 $1,157,256 Various based on projects $1,396,356
Future year funding is contingent on Council budget approval.
Prepared By: Steven Hull, Principal Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Form - GCAP
B. Oaks Initiative Form - GAFCON
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CITY OF SANTA MONICA
OAKS INITI ATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benef its include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
5.E.a
Packet Pg. 120 Attachment: Oaks Initiative Form - GCAP (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
ABC Corporation
Name(s) of trustees, directors, partners, and officers:
Name(s) of trustees, directors, partners, and officers of the ABC Corporation
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Name(s) of persons with more than a 10% equity, participation, or revenue interest
in ABC Corporation
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
5.E.a
Packet Pg. 121 Attachment: Oaks Initiative Form - GCAP (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll
5.E.b
Packet Pg. 122 Attachment: Oaks Initiative Form - GAFCON (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll
5.E.b
Packet Pg. 123 Attachment: Oaks Initiative Form - GAFCON (5995 : Award Agreements to GCAP and GAFCON for Prevailing Wage and Certified Payroll