HomeMy WebLinkAboutItem 8.1 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