HomeMy WebLinkAboutPW City Hall HVAC; Rejecting All BidsCITY OF��
Agenda Item No: 3 c.
Meeting Date: August 1, 2011
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: //GjG���i City Manager Approvals 1
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 Clerk 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:
FOR CITY CLERK ONLY
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BASE BID
NAME OF BIDDER
AMOUNT
Johnson Mechanical Contractors
$686,700.00 (requested to withdraw)
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
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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. 13215
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"' 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 Clerk 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 Clerk;
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 Clerk 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 I" day of August, 2011, by the following vote, to wit:
AYES: COUNCIL MEMBERS: Brockbank, Connolly, Heller & Mayor Boro
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Levine
File No. 06.01.191
CITY OF SAN RAFAEL
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
SRCC AGENDA ITEM NO.
FROM
DEPARTMENT
DATE:
Nader Mansourian
Public Works
July 27, 2011
DATE OF MEETING: August 1, 2011
TITLE OF DOCUMENT: REPORT ON BID OPENING FOR THE CITY HALL HEATING,
VENTILATION AND AIR CONDITIONING SYSTEM UPGRADE'S PROJECT, CITY PROJECT
#11154 (BID OPENING HELD THURSDAY, JULY 7, 2011) AND RESOLUTION REJECTING ALL
BIDS AND AUTHORIZING CITY CLERK TO CALL FOR BIDS
Department Head (signature)
J IJ 27 21,111,
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(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM:
AGET ITEM:
City Manager (signature) City Attorney (signature
NOT APPROVED
REMARKS:
File No.: 06.01.191