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HomeMy WebLinkAboutItem 7.2 Fallon Sports Park Ph II Reject Bids or 19 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File #600-35 DATE: April 21, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Rejection of Bids for Fallon Sports Park Phase II - Contract 14-15 Prepared by Paul McCreary, Parks and Community Services Director EXECUTIVE SUMMARY: On April 8, 2015, the bids were publicly opened for Fallon Sports Park Phase II (Contract 14- 15). The City received only two bids for the project, both of which exceed the funding available for construction. The City Council will consider rejecting both bids and rebidding the project in the future. FINANCIAL IMPACT: The base-bid from the apparent low bidder, including a 10% construction contingency, is $2.4 million (20%) over the available funding for construction. If the alternates are included in the project the construction cost would be $3.1 million (26%) over the available construction funding as follows: Engineer's Estimate Base Bid + Contingency $11,881,540 Funding Available for Construction $12,185,965 Base Bid (including 10% construction contingency) $14,583,800 Funding Shortfall for Base Bid $2,397,835 Net Cost of Alternates (including 10% contingency) $718,596 Funding Shortfall for Base Bid + Alternates $3,116,431 RECOMMENDATION: Staff recommends the City Council adopt the Resolution Rejecting All Bids Fallon Sports Park Phase II, Contract Number 14-15; and, direct Staff to rebid the project in late 2015. Reviewed By Assistant City Manager Page 1 of 3 ITEM NO. 7.2 DESCRIPTION: On November 18, 2014, the City Council authorized Staff to advertise for bids the Fallon Sports Park Phase II Project (Contract 14-15). As directed by City Council the following amenities were included in the base bid for the project: • Entry Road and parking for 145 cars • Park Pedestrian Circulation • Utilities • Landscaping and erosion control • Two Synthetic Turf Soccer Fields (with conduits stubbed for future lighting) • One Lighted 90' Baseball Diamond • Scorekeeper's Booth and Scoreboard • Restroom and Concession Building • Site Furnishings • Park Identity and Direction Signs • Group Picnic Area for 100 People • Fallon and Central Parkway Landscape and Sidewalk In addition, the following additive and deductive alternatives were included in the bid package: • Additive Alternate #1 (Playground with Wood Chips) • Additive Alternate #2 (Playground with Rubberized Surfacing) • Additive Alternate #3 (Soccer Field Lights) • Additive Alternate #4 (Baseball Facility Enhancements) • Additive Alternate #5 (Soccer Facility Enhancements) • Deductive Alternate #1 (Owner Supplied Synthetic Turf) • Deductive Alternate #2 (Eliminate 4 Bocce Courts and Lighting) On April 18, 2015, the City publicly opened the bids for the project and only two bids were received, with Robert A. Bothman Construction being the apparent low bidder. Attachment 1 is a summary of the two bids received. The base-bid from the apparent low bidder, including a 10% construction contingency, is an estimated $2.4 million (20%) over the available funding for construction. If the alternates are included in the construction contract the construction cost would be $3.1 million (26%) over the available construction funding. The base bid from the second bidder was $4.0 million over the available construction budget. In discussions after the bid-opening with potential bidders that did not submit bids, the timing of this bid in the spring may have limited the bidder pool as many contractors had already committed to spring and summer work during the winter. Staff is recommending rejecting all bids and re-bidding the project to expand the bidder pool and hopefully reduce the cost of the improvements from the current bid. Attachment 2 is a Resolution rejecting all bids. Based on the fact that the City received only two bids, and the bids had significant differences in pricing, Staff is not confident that the City is getting the best cost possible at this time for construction. Additionally if the City were to award the contract a significant budget change from General Fund reserves would be required. Staff has concern with adding another $2.4 million to the potential loan from the General Fund to the Public Facility Fee program, which could leave the program over $8.0 million in debt at the end of the five-year CIP. Page 2 of 3 If the City Council were to reject all bids, Staff recommends re-bidding the project in late 2015 as the earlier timing prior to the spring grading season will potentially expand the number of bidders, which may result in a more competitive bid price. This would shift the opening of Phase II until mid-2017. Prior to rebidding, Staff will take time to analyze the current bid results and pricing to determine what modifications, if any, should be made to the scope of the base bid and alternate improvements. Any significant changes would be brought back to the Parks and Community Services Commission and City Council for consideration prior to rebidding. This nine-month delay may have some minor impacts on sports field user groups such as baseball and soccer. Staff reviewed actual field rental data for 2014 to determine current demand, and believes with the exception of a couple of tournaments, that the City's current fields can accommodate the demand. Staff will work with the School District and neighboring agencies to help accommodate tournament growth if needed. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of this Staff Report was sent to the Parks and Community Services Commission and Robert A. Bothman Construction. ATTACHMENTS: 1. Bid Results 2. Resolution Rejecting All Bids for the Fallon Sports Park Phase II Project, Contract No. 14-15 Page 3 of 3 D O O D Q C 'ko D Z ^ m Q N �T W N N m l0 N W W W Ln N Q W = W Q 0 O O O O N O m O I� QC O O0i 0 O O O O O 00 O 00 L N 00 J O �T Q � m C 0 0 O O o m o Ln O io Ln Ln ko 00 r, Q O O O O O ci O ci O In a N O Ol 00 Q O O O O O O O O O O O N M Ol Ol N m Q O O O O O 0) O �T O' G' N Ln N � n � J Q L? L? O O O O O N O Il O N O Ln ci N N � N N Q O O O O In O l0 O N O 0 n Ln m l0 N W cmi N H m � Y � D Y V yO_ (Q L d O Y Y U L !`I O u y Y a 0 0 x* o o Q. N F- 3 m N U v O Q - W ai C = w 00 - w Z O 0 ii Q d Ou C7 w RESOLUTION NO. XX - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * RESOLUTION REJECTING ALL BIDS FOR THE FALLON SPORTS PARK PHASE II PROJECT, CONTRACT NO. 14-15 WHEREAS, Staff prepared plans, specifications and bid documents for construction of the Fallon Sports Park Phase II Project; and WHEREAS, in accordance with the Municipal Code, California Public Contract Code Section 20162 and other applicable laws, City Staff solicited bids for the project; and WHEREAS, on April 8, 2015, two (2) bids were received and publicly opened in accordance with applicable laws; and WHEREAS, the lowest bid for the Project Base Bid was from Robert A. Bothman Construction for $13,258,000.00; and WHEREAS, the lowest bid received exceeds the amount of funding available for construction and Staff is recommending rejecting all bids and rebidding the project at a later date. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby, in accordance with the Municipal Code and California Public Contract Code Section 20166, reject all bids and directs Staff to re-advertise for bids. PASSED, APPROVED AND ADOPTED this 21st day of April, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT 1