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REJECT ALL BIDS FOR CONSTRUCTION OF THE POLICE DEPARTMENT UNDER FREEWAY PARKING LOT IMPROVEMENTS (PROJECT NO. PW1621)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion rejecting all bids received for construction of the Police Department Under Freeway Parking Lot Improvements (Project No. PW1621) pursuant to Stockton Municipal Code 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
The Police Department (PD) utilizes parking lots under the State Route 4 Crosstown Freeway between Center Street on the west and San Joaquin Street on the east. Implementation of the Marshall Plan created a need for additional parking to accommodate new patrol vehicles, vehicle staging, and employee vehicles. The PD Under Freeway Parking Lot Improvements (Project No. PW1621) will resurface and reconfigure PD Parking Lots 2 and 3, as well as Parking Authority Lot N, which is contiguous with PD Parking Lot 3. Upgrades to fencing and parking lot access will also be performed.
On January 5, 2017, the City received three bids for this project. B & M Builders, Inc. submitted the apparent low bid of $1,072,962. This bid is non-responsive, as it subcontracts more than 70 percent of the work, which is prohibited by the bid specifications. The next apparent low bidder for the project was George Reed, Inc., with a base bid in the amount of $1,163,394. This bid is 44 percent over the engineer’s estimate. Staff recommends Council approve a motion to reject all the bids received. The project will then be rebid with a revised specification and improved marketing to obtain more competitive bids.
DISCUSSION
Background
The PD utilizes several parking lots under the Crosstown Freeway for equipment storage and staff parking. The parking lots are located under the State Route 4 Crosstown Freeway between Center Street on the west and San Joaquin Street on the east (Attachment A - Vicinity Map), and are under a long-term lease to the City from the State of California. Implementation of the Marshall Plan created a need for additional parking to accommodate new patrol vehicles, vehicle staging, and employee vehicles. The PD Under Freeway Parking Lot Improvements project was programmed in the FY 2016-2021 Capital Improvement Plan. This project will make improvements to PD Parking Lots 2 and 3, as well as Parking Authority Lot N, which are all located under the State Route 4 Crosstown Freeway. PD Parking Lot 2 is located between Center and El Dorado Streets. PD Parking Lot 3 and Parking Authority Lot N are located between El Dorado and San Joaquin Streets. The project includes the following improvements to all lots:
• All lots will be resurfaced, reconfigured, and restriped to accommodate more vehicle parking.
• All existing deteriorated six-foot chain link perimeter fencing at PD Parking Lots 2 and 3, and Parking Authority Lot N will be replaced with an eight-foot tubular steel fence.
• New eight-foot tubular steel fencing will be installed between PD Parking Lot 3 and Parking Authority Lot N.
• Six automatic vehicle gates and three pedestrian gates with key card readers will be installed.
• New electrical cabinets, cables, and conduits will be installed to facilitate the new vehicular gates, man gates, and electrical outlets.
Improvements proposed for Parking Authority Lot N were included in the project as an Alternate Bid at the request of the Parking Authority. The basis of award for the project is the Base Bid amount. The Alternate Bid improvements can be included in the overall award if the Alternate Bid received from the responsive low bidder is acceptable.
Present Situation
The project was advertised November 23, 2016. On January 5, 2017, three bids were received with the following results:
|
COMPANY NAME |
BASE BID AMOUNT |
ALTERNATE BID AMOUNT |
|
B & M Builders, Inc. (Rancho Cordova, CA) |
$1,072,962.00 |
$ 445,819.12 |
|
George Reed, Inc. (Modesto, CA) |
$1,163,394.00 |
$ 437,013.00 |
|
Asta Construction Co., Inc. (Rio Vista, CA) |
$1,289,255.00 |
$ 520,436.35 |
|
Engineer’s Estimate |
$ 805,969.00 |
$ 288,918.00 |
B & M Builders, Inc., the initial apparent low bidder, submitted a bid that was non-responsive. The contractor proposed to do less than 30 percent of the work directly. The 30 percent minimum prime contractor participation requirement was stipulated in the Instructions to Bidders for the project.
The bid from George Reed, Inc., in the amount of $1,163,394, is the apparent low and responsive bidder for the project. However, this bid amount is 44 percent over the engineer’s estimate, and there are insufficient funds to support awarding the project. Staff recommends Council approve a motion to reject all the bids received and to rebid the project pursuant to Stockton Municipal Code (SMC) section 3.68.160(B).
Staff surveyed contractors who bid the project to determine the reasons for the higher bid results and to obtain suggestions to reduce the project cost. Staff is reviewing these suggestions and evaluating other opportunities to reduce the project cost. The project will be rebid with a revised specification and actively market the project to increase the number of bidders and competition.
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funding in Account No. 301-3020-640 (PW1621 PD Under Freeway Parking Lot Improvements) for the rebid process.
Attachment A - Vicinity Map