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Home My WebLink About8.1 Library, Ph1 01-03CITY CLERK FILE # 0600-35 AGENDA STATEMENT CZTY COUNCZL MEETZNG DATE: May 15, 2001 SUBJECT: Award of Bid - Contract 01-03, Dublin Public Library (Phase I) Report Prepared by: Herma Lichtenstein, Parks and Facilities Development Manager ATTACHMENTS: 1) Letter dated May 2, 2001 from West Bay Builders 2) Resolution Approving Request by West Bay Builders to Withdraw Bid 3) Resolution Awarding Bid to N.V. Heathorn RECOMMENDATION: 1) 2) 3) Adopt Resolutions Authorize Staff to initiate an Update to the Public Facilities Fee Study to increase the Public Facilities Fee related to the Library Authorize Staff to increase the General Fund contribution to the Library in the 2001-2002 Update to the CIP, see 4 at end of report. FINANCIAL STATEMENT: Ftmds Budgeted for Improvements: Engineers Estimate for Improvements: Improvements Low Bid 10% Contingency Subtotal Estimated Other Project Costs Total Project Cost Total Project Budget Short fall $ 9,329,700 $ 8,914,837 $11,852,182 $ 1,185,218 $13,037,400 $ 3,899,503 $i6,936,903 $13,042,735 $ 3,894,168 DESCRIPTION: At the meeting of February 6, 2001 the City Council authorized Staff to solicit bids for the new Dublin Public Library. The Library includes 38,500 square feet of building and approximately 6 acres of site work. The proposed schedule for construction of the project is 14 months. BID RESULTS A total of eight bids were received with the low bid of $11,058,000 being submitted by West Bay Builders. The bids were as follows: West Bay Builders NV Heathom Roebbelen DL Falk $11,058,000 $11,852,182 $11,985,000 $12,149,000 WA Thomas Sierra Bay Contractors McCrary Construction BBI Construction $12,231,000 $12,394,000 $12,675,000 $14,185,000 h:civiccentercip\cc9-7award2.doc COPIES TO: Bidders ITEM NO. On May 2, 2001, West Bay Builders, the low bidder, telephoned Staff regarding subcontract work listed in its bid. That same day Staff faxed West Bay a letter confirming the telephone conversation and requesting clarification of whether West Bay wished to withdraw its bid. Later on May 2 West Bay faxed a response confirming that West Bay would like to withdraw, and proposing in the alternative that West Bay value engineer the project under a "shared savings" clause (see Attachment 1). Staff faxed a response that same day, rejecting the value engineering proposal and accepting the withdrawal request subject to action by the Council at its May 15, 2001 meeting. Staff have concluded that the next apparent low bid of NV Heathorn is responsive. Checks of NV Heathorn's project references have disclosed no responsibility concems. Therefore Staff recommends that the Council accept the bid withdrawal of West Bay Builders without calling on West Bay's bid bond, and award the bid to NV Heathore. PROJECT FUNDING Staff recommends adding a 10 percent contingency, which brings the total funds needed to award the bid to $13,037,400. This exceeds the amount available for improvements by $3,707,700. This can be attributed to the following factors: The bidding climate and increases in fabrication and shipping due to the current energy situation. The overall increase in base bid cost is 27% (not including the 10% contingency). The 2000-2005 Capital Improvement Program includes $13,042,735 for the Phase I Civic Center Library Project. With the' increase in the construction costs along with slight increases in design, construction management and miscellaneous costs, the total estimated project budget has escalated to $16,936,903 resulting in a total shortfall of $3,894,168. A comparison between the approved budget for the project and the revised budget based on the estimated expenditures for the project is shown below. Design $ 966,000 $ 1,010,726 $ 44,726 Inspection $ 131,775 $ 107,000 $ (24,775) Construction Mgmt. $ 351,400 $ 507,503 $ 156,103 Improvements $ 9,329,700 $13,037,400 $ 3,707,700 Fumiture/Fixtures $ 860,000 $ 804,356 $ (55,644) Books $ 1,311,860 $ 1,311,860 $ 0 Miscellaneous $ 92,000 $ 158,058 $ 66,058 Total $13,042,735 $16,936,903 $ 3,894,168 The Library is being funded from the General Fund, Public Facility Fees, and a $2,000,000 contribution from the Lin Family. To date, the $2,000,000 contribution has been received and $1,783,857 has been reserved in the General Fund for the Library. Under the current Public Facility Fee Program, it is anticipated that approximately $8,647,710 will be generated for the Library (Phase 1) through Public Facility Fees. The shortfall in project funding can be made up in one of two ways. First, the General Fund could contribute the entire amount of the shortfall bringing the General Fund contribution to the project to $8,289,203 (including the Lin Family contribution). Altemately, both the General Fund and Public Facility Fund could contribute proportionately towards the shortfall based upon new development's fair Page 2 share of the increased cost. This would entail updating the 1998 Public Facilities Fee Study. Under this scenario, the increased contribution from the General Fund would be $2,241,029 for a total of $6,024,886 and the balance of $10,912,017 would come from the Public Facility Fund. REJECTING ALL BIDS AND REBIDDING The City has an express statutory right to reject all bids and rebid the project. This would permit the City to "value engineer" the project and make specification changes in the hope of reducing bid amounts. The project architect has identified potential bid items where design changes could reduce project costs by a total of $200,000 to $400,000. These design changes and an additional 4-8 weeks period to rebid the project would delay the project start until late July or early August. However, there is no guarantee that redesigning the project will necessarily result in lower bids. CONCLUSION In the current bidding climate, Staff does not believe that substantial cost savings could be achieved by rebidding the project even with the potential bid items identified by the project architect. Therefore, Staff would recommend that the City Council take the following action: RECOMMENDATION 1) 2) 3) 4) Adopt Resolution approving the request by West Bay Builders to withdraw their bid Adopt Resolution awarding the bid to NV Heathom Authorize Staff to initiate an update to the Public Facilities Fee Study to increase the Public Facility Fees related to the Library Authorize Staff to increase the General Fund contribution to the project by $2,241,029 as part of the 2001-2002 Update to the Capital Improvement Program Page 3 MAY. 2.2001 3:OEPM WEST BAY BUILDERS WE 'r BAY * May2,2ool C!TY O~F DUBLIN 100 Civic Plaza DUblin, CA 94568 RB: DublinLibrary . Thank you for your letter withdraw our bid. (415)459-0665 M0.002 P.1/1 FAX: (925) S33-6651 -VIay 2, 2001. In response, West Bay Builders would like to On another note if the City i[ willing to participate, West Bay Builders would be willing save the City money ~t il ']p.' eftset West Bay Builders' shortfall If you have interest ple~ase call me, ! [ ! - . ' General Contrmor License Number 626859 P.O. Box 3474. San KafaeI, California 94912-3474 Tel 415/456-8972 Fax 415/459,0665 PT:mc MAY-02-2001 04:01PM TEL)415 459 0665 ATTACHMENT 1 ID)DUBLTH CITY HGR OFFC PRGE:001 R=99~. RESOLUTION NO. -01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN CONSENTING TO WITHDRAWL OF BID OF WEST BAY BUILDERS FOR CONTRACT NO. 01-03 DUBLIN PUBLIC LIBRARY WHEREAS, On February 6, 2001, the City Council approved the construction documents and authorized the new Dublin Public Library to be advertised for bids; WHEREAS, the project was advertised as required by state law for bids; and WHEREAS, the City received eight bids prior to the close of bids on April 17, 2001; and WHEREAS, the lowest bid received was $11,058,000 from West Bay Builders; and WHEREAS, prior to staff completing it's evaluation of the bid of West Bay Builders on May 2, 2001, the City received a request from West Bay Builders to withdraw their bid and retttm their bond; and WHEREAS, the reason supplied by West Bay Builders for it's request was that one of it's listed subcontractors could no longer perform the work and that another listed subcontractor had failed to include an important component of the required work; and WHEREAS, after considering the reasons provided by West Bay Builders for it's withdrawal request staff concluded that to not allow West Bay Builders to withdraw it's bid would likely result in potential increases in construction costs and project delays; and WHEREAS, staff therefore has recommended that City Council release West Bay from their bid and remm their bid bond based on the information supplied. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin accepts the staff recommendation and consents to West Bay Builders withdrawal ofit's bid dated April 17, 2001, for the construction of the Dublin Public Library, Phase I and that the City Council Hereby releases the bid bond to West Bay Builders. ATTACHMENT 2 PASSED, APPROVED AND ADOPTED, this 15th day of May, 2001. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk ATTACHMENT 2 RESOLUTION NO. - 01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AWARDING CONTRACT NO. 01-03 DUBLIN PUBLIC LIBRARY TO NV HEATHORN, INC. WHEREAS, On February 6, 2001, the City Council approved the construction documents and authorized the new Dublin Public Library to be advertised for bids; WHEREAS, the project was advertised as required by state law for bids; and WHEREAS, The City received eight bids prior to the close of bids on April 17, 2001; and WHEREAS, The lowest bid received was $11,058,000 from West Bay Builders; and WHEREAS, On May 2, 2001, The City received a request from West Bay Builders to release them from their bid and remm their bond pursuant to section 5300 of the public contract code; and WHEREAS, The City Council has consented to West Bay' withdrawal ofit's bid; and WHEREAS, The next lowest bid received was $11,852, 182 from NV Heathom, Inc; and WHEREAS, the bid was evaluated by staff and determined to meet all requirements. . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby award Contract No. 01-03 to the lowest responsible bidder therefor, to wit, NV Heathore, Inc. at a base bid of Eleven Million eight hundred and fifty two thousand one hundred and eighty two dollars and no cents ($11,852,182) the particulars of which bid are on file in the office of the City Engineer. PASSED, APPROVED AND ADOPTED, this 15th day of May, 2001. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk ATTACHMENT 3