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REJECT ALL BIDS FOR THE HVAC AND ROOF REPLACEMENT PROJECT AT THE PUBLIC WORKS MUNICIPAL SERVICE CENTER
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RECOMMENDATION
It is recommended that the City Council approve a motion to reject all bids received for construction of the Public Works Municipal Service Center - Street Paving and Maintenance, Locker/Break Room, and Central Stores Buildings HVAC and Roof Replacement (Project No. PW1320) 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 Public Works Municipal Service Center (MSC), also known as the City corporation yard, located at 1465 South Lincoln Street, is the main maintenance facility for the Public Works Department. The MSC contains buildings used for a variety of purposes ranging from material and equipment storage to engineering offices. Roofs, heating, ventilation and air conditioning (HVAC) equipment for several of the buildings are in need of replacement.
This project will re-roof and upgrade antiquated HVAC systems for the Street Paving and Maintenance Building, Locker/Break Room Building, and Central Stores Building. The project is funded from the Roof Replacement and Construction Program, an ongoing program that receives regular funding in the Capital Improvement Plan (CIP). Replacement of the roofs at the MSC is identified as a top priority for the program in the FY 2016-2021 CIP. Project design was completed by HMR Architects, Inc. in March 2017 and advertised for bids.
On April 27, 2017, the City received one bid for this project. The low bid received was from Saboo, Inc. in the amount of $796,000. This bid is 40 percent higher than the engineer’s estimate, and there are insufficient funds to award the project. Because the proposed costs were too high, staff interviewed contractors to evaluate cost reduction opportunities and determine if the bid specifications unnecessarily reduced competition. Stockton Municipal Code (SMC) section 3.68.160 (B) provides that the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids. It has been determined that rejecting the current bids and readvertising the project with revised specifications and additional outreach could possibly result in a more favorable outcome. It is recommended that Council approve a motion to reject all the bids received.
DISCUSSION
Background
The MSC, also known as the City corporation yard, located at 1465 South Lincoln Street, is the main maintenance facility for the Public Works Department. The MSC contains buildings used for maintenance purposes as well as storage, equipment, offices, and other uses. The following buildings have roofs and/or HVAC equipment that have passed their useful life or are inoperative and in need of replacement:
1. Street Paving and Maintenance Building: The Street Paving and
Maintenance Building is where the City’s heavy equipment and supplies are stored. The existing roof has passed its useful life and needs to be replaced.
2. Locker/Break Room Building: The Locker/Break Room Building includes showers, restrooms, lockers, and a break room for use by MSC staff. Both the existing roof and HVAC system have passed their useful life and need to be replaced.
3. Central Stores Building: The Central Stores Building houses the maintenance shop where City owned vehicles are repaired and maintained, along with vehicle parts and accessories storage. Both the existing roof and some of the HVAC systems have passed their useful life and need to be replaced.
On September 12, 2016, the City Manager approved a Professional Services Contract with HMR Architects, Inc. to prepare the plans and specifications for the construction of the project. The project design was completed in March 2017.
Present Situation
The project was advertised on March 30, 2017. On April 27, 2017, one bid was received with the following result:
|
COMPANY NAME |
BID AMOUNT |
|
Saboo, Inc. (Brentwood, CA) |
$796,000 |
|
Engineer’s Estimate |
$566,882 |
Saboo, Inc., the apparent low and responsive bidder, submitted a bid in the amount of $796,000, which is 40 percent over the engineer’s estimate. There are insufficient funds to award the project at this price. Staff recommends Council approve a motion to reject all bids received. SMC section 3.68.160 (B) provides that the City Council shall award a contract to the lowest and best regular responsible bidder, or reject all bids.
Staff surveyed Saboo, Inc., as well as other contractors who expressed an interest in the project but did not submit a bid, on the reasons for the low participation and higher than expected bid result. The contractors provided suggestions regarding timing, scope, and materials specifications. Staff is reviewing these suggestions and evaluating other cost saving or phasing opportunities. The project plans and specifications will be revised before rebidding to incorporate these suggestions as appropriate, and outreach to potential vendors will be increased during the rebid process.
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funding in the Roof Replace and Construction Project (PW1320; Account No. 301-3091-640) for the rebid process.