title
REJECT BIDS FOR THE FIRE STATION NO. 2 KITCHEN IMPROVEMENTS
recommended action
RECOMENDATION
It is recommended that the City Council approve a motion rejecting all bids received for construction of the Fire Station No. 2 Kitchen Improvements (Project No. PW1618) 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.
body
Summary
The Fire Station No. 2 Kitchen Improvements project includes the renovation of the existing 58-year-old kitchen with new countertops, cabinets, flooring, and updating the existing plumbing and electrical subpanel to meet current building code requirements. The project was included in the Fiscal Year (FY) 2016-21 Capital Improvement Plan (CIP).
On May 3, 2018, the City received two bids for this project. The bid from the apparent low bidder, Top Estate Construction, Inc., was deemed non-responsive. The second bidder, Eagle Solutions, Inc. dba as Eagle Builders, submitted a bid of $246,450.00 which is approximately 80 percent over the engineer’s estimate. Pursuant to Stockton Municipal Code (SMC) section 3.68.160(B), staff recommends Council approve a motion to reject the bids received and rebid the project.
DISCUSSION
Background
Fire Station No. 2, City of Stockton’s Central Fire Station, is located at 110 West Sonora Street (Attachment A - Vicinity Map). The kitchen at Fire Station No. 2 is approximately 58 years old, with deteriorated and damaged counters, cabinets, limited storage for pots and pans, and outdated plumbing and electrical systems.
The Fire Station No. 2 Kitchen Improvements project was programmed in the FY 2016-21 CIP to renovate the kitchen with new countertops, cabinets, and flooring, and to expand the cabinet storage area.
A request for proposals (RFP) was advertised for the Fire Station No. 2 Kitchen Improvements project to obtain professional design services of a licensed architect. The City hired WMB Architects, Inc. to prepare the plans, specifications, and estimates for the project. The project was advertised for bids on April 4, 2018.
Present Situation
On May 3, 2018, two bids were received with the following results:
COMPANY NAME BID AMOUNT
Top Estate Construction, Inc. $145,756.16 (corrected amount)
(Stockton, CA)
Eagle Solutions, Inc. dba Eagle Builders
(San Ramon, CA) $246,450.00
Engineer’s Estimate $136,927.04
The requirements of SMC section 3.68.090, Local Business Preference, apply to this project. Top Estate Construction, Inc., the apparent low bidder, is located within the city of Stockton and is entitled to a five percent bid preference. However, Top Estate Construction, Inc.’s bid was deemed non-responsive due to its lack of current registration with the Department of Industrial Relations (DIR). California Labor Code section 1771.1 and the “Instructions to Bidders” document for the project, require contractors and their subcontractors to be registered with DIR at the time of bid.
Labor Code section 1771.1(a) provides that a contractor or subcontractor is not considered to be qualified to bid on a project unless currently registered and qualified to perform work pursuant to Labor Code section 1725.5.
The second bidder, Eagle Solutions, Inc. dba as Eagle Builders, submitted a bid of $246,450.00. This bid amount is approximately 80 percent over the engineer’s estimate, a significant variance for a project of this type. 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. In consideration of the cost variance and available project budget, staff recommends Council approve a motion to reject the bids received. The project will be re-advertised for bids with additional marketing to increase bidder interest.
FINANCIAL SUMMARY
The recommended action has no financial impact. There is sufficient funding in Account No. 301-3020-640 (PW1618 Fire Station No. 2 Kitchen Improvements) for the rebid process.
Attachment A - Vicinity Map