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Home My WebLink AboutItem 7.2 Area F Award Contract 07-03 CITY CLERK File # Dt6J[Q][O]-~[9 AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 3, 2007 SUBJECT: Award of Contract for Area F Neighborhood Square Contract #07-03 Report Prepared by Rosemary Alex, Parks and Facilities Development Coordinator ATTACHMENTS: 1) 2) Resolution of Award - Base Bid Resolution of Award - Base Bid with Alternates ,,) RECOMMENDATION: \t::~\ FINANCIAL STATEMENT: Determine whether to award bid and with or without Alternate # 1. Total Available Construction Budget $526,000 Construction Proposal for Base Bid Alternate # 1 Bid Total Bid Proposal Difference between Budget and Bid Proposal $698,555 $47,000 $745,555 ($219,555) 10% Contingency $74,555 Total Budget Shortfall ($294.110) In order to award the bid additional funding from the Public Facility Impact Fee Fund is needed. It will be necessary to increase the Neighborhood Park Improvement component of the fee in order to cover the increased costs of park development associated with future neighborhood parks. An update to the Public Facility Fee Study is currently underway. DESCRIPTION: As approved in the 2006-2011 Capital Improvement Program, construction of the 2-acre Neighborhood Square in Dublin Ranch Area F is scheduled to begin in Fiscal Year 2006-2007 and be complete in Fiscal Year 2007-2008. At its meeting of February 7, 2007 the City Council authorized Staff to advertise for bids for the Area F Neighborhood Square. As part of the bid package Staff included the trellis over the picnic area primarily to achieve some flexibility in meeting the project intent and budget. The trellis was not originally included in the design approved by City Council as it was shown to be cost prohibitive during the initial estimates prepared for the project. However, based on comments from the community meetings regarding the need for shade in ------------------------------------------------------------------------------------------------------------- co PY TO: Keller Mitchell and Company, Jensen Corporation and McGuire and Hester Page 1 of3 ITEM NO. 7.t C/ other picnic areas throughout the City it was included in the bid set of plans approved by City Council February 6,2007. BID RESULTS: After a nearly four week bid period, on March 20, 2007 the City received bids from Jensen Corporation and McGuire and Hester. The results are as follows: Company Jensen Corporation McGuire and Hester Base Bid $698,555 $974,774 Alternate # 1 $47,000 $38,037 Total Base Bid + Alt. #1 $745,555 $1,012,841 As discussed above in the financial statement, the low bid exceeds the available budget by $294,110 (including the alternate and a 10% contingency). Without the alternate, the low bid exceeds the available budget by $242,410. Based on the number of attendee's at the mandatory pre-bid meeting Staff had expected 4-5 bidders on the project. Subsequent to the bid opening, Staff has investigated the factors that limited the number of bids submitted and to understand reasons for the higher than estimated costs. In terms of the quantity of bids received, one company was focusing on more private work at this time and another did not have the supervisory staff available for the project. In regards to higher costs, upon review of the bid proposals it is apparent that the cost of the concrete is significantly higher than it has been for other projects. Part of the increase is due to the cost of energy to produce concrete has increased considerably. Other categories that were notably higher included storm drainage, electrical and picnic area trellis (Alternate #1). According to the City's cost estimator, the current bidding climate remains volatile and continues to increase. At this time the City Council can elect to proceed with one ofthe following options: 1. Reject all bids, revise plans and re-bid. Disadvantage: a) Timing for construction is delayed a minimum oftwo months. b) Costs for re-bidding. Advantage: a) Although not guaranteed, the bid price might be lower. 2. Award project with or without alternates and authorize Staff to appropriate additional funds to the proj ect. Disadvantage: a) Cost and impact on funding future projects. Advantage: a) Project starts on time. 3. Award project and authorize Staff to work with Contractor to determine options for value engineering in which improvements may be eliminated or design details modified so that the improvement is retained yet modified to achieve some cost reduction. Disadvantage: a) Possible reduction in quality and quantity of improvements. b) Need for additional funds. Advantage: a) Project proceeds as scheduled. b) Although full cost savings may not be realized, some cost savings will occur. Regarding Option 3, at this time the magnitude of cost savings that could be achieved through value engineering are unknown. However, Staff believes that there could be savings in the range of $25,000 to $50,000 depending on the areas chosen for value engineering. Potential areas to consider could include 1) !) 0'::" reduction in the amount of concrete seat wall; 2) elimination of rock within tot-play area; 3) elimination of sundial within play area; and 4) other modifications which would affect minor details of the project. Ifthe Council elects Option #3, the award is legally required to be in the full amount proposed in Jenson Corporation's submitted bid price. After award of contract Staff would then negotiate a deductive change order. If, the parties cannot come to a final agreement on the deductive change order, the City may cancel the contract at little or no additional cost. In reviewing the availability of funds in the Public Facility Fee Fund, it appears that there are sufficient funds available to award the bid and proceed with the project; however, unless the Public Facility Fee is updated to reflect the increased costs associated with neighborhood park development there will be an impact on the timing of future capital projects funded by the Public Facility Fee Fund. As noted previously, Staff is working on an update to the Public Facility Fee Study in order to provide for the increased costs in all areas of the Fee. RECOMMENDATION: Staff recommends that the City Council take the following action to proceed with one of the three options outlined above. If the Council is inclined to award the bid, Staff requests a determination from the Council on whether Alternate #1 should be included. Staff has prepared two resolutions. The first resolution in Attachment 2 is for the base bid without alternate. The second resolution in Attachment 3 is for the base bid with alternate. If the Council is interested in pursing Option 3, it will be necessary to award the bid and value engineering will be accomplished through deductive change orders negotiated by Staff. Adequate funds are appropriated for the portion of the work expected to be completed by June 30, 2007. Staff will include funding for the completion of the project as part of the 200712008 proposed budget. 3~.:3 RESOLUTION NO. - , ~6 ~z... A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********** AWARDING CONTRACT NO. 07-03 AREA F - NEIGHBORHOOD SQUARE TO JENSEN CORPORATION. WHEREAS, the City of Dublin did, on March 20th, 2007, publicly open, examine and declare all sealed bids for doing the work described in the approved Plans and Specifications for Contract No. 07-03, which Plans and Specifications 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 Engineer, who has reviewed the bids to determine the lowest bid which was responsive to the requirements of the bid documents. NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Dublin does hereby award Contract No. 07-03 to the lowest responsible bidder therefor, to wit, Jensen Corporation, at a base bid of six-hundred ninety eight thousand five hundred and fifty-five ($698,555) the particulars of which bid are on file in the office of the City Engineer. PASSED, APPROVED AND ADOPTED, this 3rd day of April, 2007. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ~ ..~, 01 7, (, ATTACHMENT #1 ~~a., RESOLUTION NO.- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********** AWARDING CONTRACT NO. 07-03 AREA F - NEIGHBORHOOD SQUARE TO JENSEN CORPORATION WHEREAS, the City of Dublin did, on March 20th, 2007, publicly open, examine and declare all sealed bids for doing the work described in the approved Plans and Specifications for Contract No. 07-03, which Plans and Specifications 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 Engineer, who has reviewed the bids to determine the lowest bid which was responsive to the requirements of the bid documents. NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Dublin does hereby award Contract No. 07-03 to the lowest responsible bidder therefor, to wit, Jensen Corporation, at a base bid of six hundred ninety eight thousand five hundred and fifty-five dollars ($698,555) and alternate #1 at forty-seven thousand dollars ($47,000) the particulars of which bid are on file in the office of the City Engineer. PASSED, APPROVED AND ADOPTED, this 3rd day of April, 2007. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT #2