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HomeMy WebLinkAbout2011-08-01_cityofsanrafael_d53bef88c79745c9a859d5c7c07db1a4CITY OF�� Agenda Item No: 3 c Meeting Date: August 1, 2011 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works � 1 Prepared by: City Manager Approval: Director of Public Works (LB) File No.: 06.01.191 SUBJECT: REPORT ON BID OPENING FOR THE CITY HALL HEATING, VENTILATION AND AIR CONDITIONING SYSTEM UPGRADES, PROJECT NO. 11154 (BID OPENING HELD THURSDAY, JULY 7, 2011) AND RESOLUTION REJECTING ALL BIDS, AND AUTHORIZING CITY CLERK TO CALL FOR BIDS. RECOMMENDATION: Adopt resolution BACKGROUND: On December 21, 2009 the City secured a federal grant for $575,400 from the Department of Energy for its Energy Efficiency and Conservation Block Grant (EE&CBG) program. The amount of money granted was based on the current population of the City and not the actual project improvements needed. On March 15, 2010, the City Council approved a contract with Lefler Engineering to design the replacement of the main heating and cooling system within City Hall and reconstruct the first floor duct system. The actual Heating, Ventilation and Air Conditioning (HVAC) units were purchased previously and are now stored in the Public Works Corporation Yard. On May 16, 2011 the City Council adopted the plans and specifications and authorized the City Cleric to call for bids. The project was advertised in accordance with San Rafael's Municipal Code on May 24, 2011 and bids were publicly opened on July 7, 2011 at 2:00 PM and read aloud. The engineer's estimate was $600,000 which included reroofing. The following five bids were received: Council Meeting: Disposition: (requested to withdraw) BASE BID NAME OF BIDDER AMOUNT Johnson Mechanical Contractors $686,700.00 BEST Contracting Services $785,000.00 Trahan Mechanical, Inc. $840,000.00 Bangar Contractors Corp. $963,000.00 Bell Products, Inc. $1,000,200.00 FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: (requested to withdraw) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 Johnson Mechanical Contractors of Davis submitted a bid for this project; however on July 11, 2011, the Department of Public Works received notification that they made an error in their addition of subcontractor prices and wish to withdraw their bid. ANALYSIS: Although the engineer's estimate was above the grant amount, staff decided to bid the project in the hopes that the actual bids received would fall within the original grant amount. Based on recent previous experience, the current bidding climate has provided the City with construction costs much less than engineer's estimate. However, because of the specialty services required for this type of construction, the bids did not come in lower than the estimate and are outside the funding limits for the grant. After receiving the bids, staff attempted to get additional funding from the EE&CBG grant. This request was denied. Due to lack of adequate funding for the construction of the project, staff recommends rejecting all bids. Staff is currently evaluating the project to see if a reduction in the improvements can be made so that the project can be constructed within the amount of money available. In addition, staff is seeking other funds to supplement the existing EE&CBG grant, and if found, will adjust the construction scope accordingly. Staff requests authorization to rebid the project once project modifications have been evaluated and additional funding has been secured. FISCAL IMPACT: At this time there is no fiscal impact for rejecting the bids received. ACTION REQUIRED: At this time we recommend rejecting all- bids based on current fiscal constraints and instructing staff to rebid the project with modifications to the specification to facilitate a lower cost for the work. Enclosure: Resolution RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL REJECTING ALL BIDS FOR THE CITY HALL HEATING, VENTILATION AND AIR CONDITIONING SYSTEM UPGRADES, PROJECT NO. 11154, AND AUTHORIZING CITY CLERK TO CALL FOR BIDS. WHEREAS, on the 7 1 day of July, 2011, pursuant to due and legal notice published in the manner provided by law, inviting sealed bids for proposals for the work hereinafter mentioned, as more fully appears from the Affidavit of Publication thereof on file in the office of the City Cleric of the City of San Rafael, California, the City Clerk of said City did publicly open, examine, and declare all sealed bids or proposals for doing the following work in said City, to wit; "CITY HALL HEATING, VENTILATION AND AIR CONDITIONING SYSTEM UPGRADES" PROJECT NO. 11154 in accordance with the plans and specifications therefore on file in the office of said City Cleric; and WHEREAS, the City has secured a federal grant in the amount of $575,400 from the Department of Energy for its Energy Efficiency and Conservation Block Grant program for the design and construction of this project; and WHEREAS, the base bid amounts for the project exceed the engineer's estimate and the Department of Energy's grant amount; and WHEREAS, the San Rafael Municipal Code section 11.50.100 states that the awarding authority has the sole discretion to reject all bids. NOW, THEREFORE, IT IS HEREBY ORDERED AND RESOLVED that all bids received for the City Hall Heating, Ventilation and Air Conditioning System Upgrades be rejected in accordance with the San Rafael Municipal Code section 11.50.100, and authorize City Cleric to call for bids. RESOLVED FURTHER, that the Public Works Director is hereby authorized to take any and all such actions and make changes as may be necessary to accomplish the purpose of this resolution. I, ESTHER C. BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the Is'day of August, 2011, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ESTHER C. BEIRNE, City Clerk File No. 06.01.191