HomeMy WebLinkAbout7.3 AwardContract 89-1CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February
13, 1989
SUBJECT :
EXHIBITS ATTACHED
RECOMMENDATION
Shannon Center Renovation,
Contract 89-1 - Report by
Recreation Director
Resolution Awarding
for Shannon Center
Construction
Diane Lowart,
Contract No. 89-1
Remodel to Hodgson
Adopt the Resolution in Exhibit A
awarding the Contract to Hodgson
Construction for $674,475.
Authorize a transfer of funds in
the amount of $275,000 from CIP
Projects No. 9637 and 9697 to CIP
Project No. 9546, Shannon Center
Renovation.
Authorize a transfer of funds in
the amount of $67,500 from the
City's unallocated reserves to CIP
Project No. 9546, Shannon Center
Renovation.
FINANCIAL STATEMENT :
Low Bid Received - $674,475
Architects Estimate - $505,202
Budgeted Construction Costs
$400,000
The approximate $274,475 shortfall in
funding could be recouped from other
public works projects or transferred
from the City's unappropriated reserves.
DESCRIPTION : At the January 9, ~989 meeting of the
Dublin City Council, the Council authorized staff to advertise
Contract 89-1, Shannon Center Renovation, for bids. Four bids
were received by the February 7, 1989 closing date as follows:
Hodgson Construction
Carl Banke
Red Feather Construction
Echo West, Inc.
$674,475
$693,462
$7~3,234
$780,000
The low bidder, Hodgson Construction, is $169,273 over the
architects estimate of $505,202 and $274,475 over the funds
available in the 1988-93 Capital Improvement Program.
Consequently staff has identified the following options for
consideration by the City Council.
~ption 1 Reject all bids, reduce the
the project.
scope of work and rebid
Utilizing the bid information received, it is apparent that the
scope of work would need to be substantially reduced in order to
realize any cost savings and fall within the $400,000 budget.
Although cost savings could be realized in construction,
~ · ' 1 will be incurred to revise the plans and rebi~
a~dztzona costs
the project.
The time delay resulting from rebidding the project would have
major implications on the operation of Shannon Center. Currently
we have cleared the calendar for rentals of the Center through
June of 1989. Between July and October of 1989, there are "17"
private rentals which would have to be cancelled or relocated.
The project could be delayed until November with rentals not
accepted from November through March. However this would result
in a net loss of revenue of approximately $12,600 from February-
June 1989 and $11,250 for November 1989-March 1990.
ITEM NO.~
AGENDA STATEMENT - Shannon Center Renovation
February 13, 1989
Page Two
Option 2 - Award the bid to Hodgson Construction and direct staff
to negotiate a 10% reduction in the scope of the work.
The City can negotiate a reduction in the scope of work by no
more than 10% without having to rebid the project. A 10%
reduction would reduce the amount of the contract by
approximately $67,500 bringing the cost for construction to
$607,030. However it should be noted that by negotiating a
reduction in the scope of work after the contract has been
awarded, it may be difficult to realize the full dollar value of
the work that is deleted.
Option 3 - Award the bid to Hodgson Construction as submitted.
Staff has reviewed the 1988-89 projects in the Capital
Improvement and determined that surplus funds are available from
the following projects:
CIP Project No. 9637 San Ramon Road, Phase 3 $200,000
CIP Project No. 9697 Traffic Signals _ 75,000
$275,000
TOTAL
These funds would cover the approximate $274,475 shortfall in
funding in the Shannon Center renovation budget. However this
would not provide a contingency for the project. The recommended
contingency, 10% or $67,500, would have to come from the City's
Reserves if, in fact, it was needed.
It is the recommendation of staff that the City Council take the
following action:
Adopt the Resolution in Exhibit A awarding the contract
to Hodgson Construction for $674,475.
2. Authorize a transfer of funds in the amount of $275,000
from CIP Projects No. 9637 and 9697 to CIP Project
No.9546, Shannon Center Renovation.
3. Authorize a transfer of funds in the amount of $67,500
from the City's unallocated reserves to CIP Project
No.9546, Shannon Center Renovation.
RESOLUTION NO. -89
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
A RESOLUTION AWARDING CONTRACT 89-1
SHANNON CENTER REMODEL TO HODGSON CONSTRUCTION
Wt~EREAS, the City of Dublin did, on February 7, 1989,
publicly open, examine, and declare all sealed bids for doing the
work described in the approved Plans, Specifications, and
Modifications for Contract 89-1 Shannon Center Renovation,
authorized by the City Council on January 9, 1989, which Plans,
Specifications, and Modifications are hereby expressly referred
to for a description of said work and for all particulars
relative to the proceedings under the request for bids; and
WHEREAS, said bids were submitted to the City Public Works
Director, who has recommended that the bid hereinafter mentioned
is the lowest and best bid for doing said work.
NOW THEREFORE, BE IT RESOLVED THAT THE City Council of the
City of Dublin does hereby award City of Dublin Contract 89-1 to
the lowest responsible bidder therefor, to wit Hodgson
Construction, at a bid of $674,475, the particulars of which bid
are on file in the office of the City Public Works Director.
PASSED, APPROVED AND ADOPTED this 13th day of February,
1989.
AYES:
NOES:
ABSENT:
ATTEST:
Mayor
City Clerk