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REJECT ALL BIDS FOR CONSTRUCTION OF THE FIRE STATION NO. 4 KITCHEN RENOVATION (PROJECT NO. PW1411)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion rejecting all bids received for construction of the Fire Station No. 4 Kitchen Renovation (Project No. PW1411) pursuant to Stockton Municipal Code (SMC) section 3.68.160(B).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Fire Station No. 4 is located at 5525 Pacific Avenue, and the kitchen needs renovation. The proposed renovation will bring the kitchen into compliance with Americans with Disabilities Act (ADA) regulations. The project will replace the cabinets and renovate the kitchen at Fire Station No. 4.
On December 22, 2016, the City received four bids. Art’s Construction, Inc., the apparent low bidder, submitted a bid that was non-responsive. The next apparent low bidder for the project was Desert West Contracting, with a bid in the amount of $86,970.18. This bid is 16.9 percent over the engineer’s estimate. Staff recommends Council approve a motion to reject all bids received. The project will be rebid utilizing a revised specification to better clarify expectations, and with improved marketing to increase bidder interest in the project.
DISCUSSION
Background
There are several items that need renovation at Fire Station No. 4, located at 5525 Pacific Avenue (Attachment A - Vicinity Map). The current kitchen is not ADA compliant, and many of the fixtures and finishes need repair or replacement. The counters and cabinets are over 50 years old. The cabinets and drawers are deteriorated beyond repair with many cabinet doors and drawers being loose or broken. The formica counter surfaces and the floor covering are damaged and need replacement. In addition, the kitchen storage closet is inadequate for the needs of Fire Department staff.
The Fire Station No. 4 Kitchen Renovation project was programmed in the FY 2014-2019 Capital Improvement Plan (CIP) to renovate the kitchen with new countertops, cabinets, and flooring, and to expand the cabinet storage area. The renovation also brings the kitchen into compliance with current ADA regulations.
The City hired WMB Architects, Inc. to prepare the plans and specifications, and estimates (PS&E) for the project. The project was advertised for bids on November 23, 2016.
Present Situation
On December 22, 2016, four bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
Art’s Construction Company, Inc. (Fresno, CA) |
$ 57,000.00 |
$ 57,000.00 |
|
Desert West Contracting (Stockton, CA) |
$ 86,970.18 |
$ 82,621.67 |
|
Garic Construction (Placerville, CA) |
$ 98,925.00 |
$ 98,925.00 |
|
Haggerty Construction (Stockton, CA) |
$255,916.17 |
$250,797.85 |
|
Engineer’s Estimate |
$ 74,410.00 |
|
The requirements of SMC section 3.68.090, Local Business Preference, apply to this project. Desert West Contracting is located within the city of Stockton and is entitled to a five percent bid preference. Haggerty Construction is located within San Joaquin County and is entitled to a two percent bid preference. There is no change in the outcome of the award or the bid order after applying the Local Business Preference.
Art’s Construction Company, Inc., the initial apparent low bidder, submitted a bid that was non-responsive. The contractor submitted an incorrect subcontractor’s list, which is a required bid form. The submitted subcontractor’s list was for a different project and contained subcontracted work that exceeded their total bid. The City Attorney’s Office reviewed the issue, and determined that Art’s Construction Company, Inc.’s bid is non-responsive.
The remaining three bids have unit price extension errors; however, these errors can be corrected in accordance with the Instructions to Bidders of the project. After correcting the errors, Desert West Contracting’s bid, in the amount of $86,970.18, is the apparent low and responsive bid for the project. However, this bid amount is 16.9 percent over the engineer’s estimate, which is a significant variance for a project of this type. In consideration of this variance and available project budget, staff recommends Council approve a motion to reject all the bids received and to rebid the project pursuant to SMC section 3.68.160(B). There is a significant spread in the current bids, and in the unit prices for higher cost items associated with cabinetry and countertops. Staff proposes to revise the specification to better clarify expectations, and actively market the project to increase bidder interest in the project. The objective of these actions is to lower the spread in bid results and yield total bids closer to the engineer’s estimate.
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funding in Account No. 301-3020-640 (PW1411 Fire Station No. 4 Kitchen Renovation) for the rebid process.
Attachment A - Vicinity Map