To: HONORABLE MAYOR From: Katy Allen
AND CITY COUNCIL Sara L. Hensley
Subject: ALMADEN WINERY Date: 12-09-03
COMMUNITY CENTER
SEISMIC RETROFIT PROJECT
Council District: 10
REASON FOR SUPPLEMENTAL MEMO
To provide additional information after bids were opened.
RECOMMENDATION
Report on bids and award of contract for
the Almaden Winery Community Center Seismic Retrofit Project
to the lowest responsive bidder, John Plane Construction, Inc. to include the
base bid and Add Alternate No. 1, in the amount of $1,764,000,
and approval of a contingency in the amount of $176,400.
CEQA: Exempt, PP03-10-328.
ANALYSIS
Bids were opened on November 25, 2003 with the following results:
|
Contractor |
Base
Bid |
Add
Alt. No.1 |
Total
Bid |
Variance Amount |
Over/ (Under) Percent |
|
Chegwin Construction, Inc. (San José) |
$2,280,000 |
$180,000 |
$2,460,000 |
$647,000 |
36 |
|
California Plus Engineering (San José) |
2,100,000 |
120,000 |
2,220,000 |
407,000 |
22 |
|
BRCO Construction, Inc. (Loomis) |
2,030,000 |
180,000 |
2,210,000 |
397,000 |
22 |
|
Aztec Consultants (San Ramon) |
2,042,000 |
65,000 |
2,107,000 |
294,000 |
16 |
|
Tinney Construction (Redwood City) |
1,848,000 |
40,000 |
1,888,000 |
75,000 |
4 |
|
Engineer’s Estimate |
1,813,000 |
--- |
1,813,000 |
--- |
--- |
|
Apex Construction Co. (Los Gatos) |
1,798,500 |
0 |
1,798,500 |
(14,500) |
(1) |
|
Garden City Construction (San José) |
1,784,025 |
0 |
1,784,025 |
(28,975) |
(2) |
|
John Plane Construction (Burlingame) |
1,764,000 |
0 |
1,764,000 |
(49,000) |
(3) |
|
Kudsk Construction, Inc. (Berkeley) |
1,755,000 |
0 |
1,755,000 |
(58,000) |
(3) |
|
Trident Builders, Inc. (San Mateo) |
1,707,000 |
10,000 |
1,717,000 |
(96,000) |
(5) |
The fourth low bidder, Garden City Construction, submitted a letter on December 3, 2003 protesting the award of a contract to any of the three lowest bidders, Trident Builders, Inc., Kudsk Construction, Inc. and John Plane Construction, Inc. The letter is attached. The reasons in summary for the protest are as follows:
1. Trident Builders, Inc. and Kudsk Construction, Inc. failed to list the value of work to be performed by subcontractors.
2. John Plane Construction, Inc. failed to identify all subcontractors.
Staff evaluated the protest letter and found that the protest regarding the first two low bids has merit. It does not have merit with regard to the third low bidder. The reasons are as follows:
1. The bid form used by the City required the bidders to identify the name and address of the subcontractors performing over a specified amount of work, the kind of work to be performed by the subcontractors, and the value of such work. The bid of the two lowest bidders failed to provide the value of the work to be performed by the listed subcontractors. Their respective failure to provide the information requested by the bid, results in their bids being nonresponsive. This failure to provide information expressly requested by the City cannot be waived as a minor irregularity. Accordingly, staff recommends rejecting these bids.
The bid protest also speculates that the third low bidder, John Plane Construction, Inc., failed to list all subcontractors that it intends to use. This is not obvious from the face of the bid. Furthermore, Section 2-1.15A.4 of the City’s standard specifications states that if the contractor fails to specify a subcontractor, the contractor agrees it is fully qualified to do the work and that it shall perform such work. Accordingly, for any work for which John Plane Construction, Inc. did not list a subcontractor, it agrees that it is qualified to do that work and that it will perform such work. Accordingly, staff recommends awarding the contract to John Plane Construction, Inc.
Based upon the above findings, staff recommends rejecting the bids from Trident Builders, Inc. and Kudsk Construction, Inc. and awarding this contract to the third low bidder, John Plane Construction, Inc. The bid submitted by John Plane Construction, Inc. is three percent under the Engineer’s Estimate. Staff considers this reasonable for the work involved.
In addition to the base bid, there is one add alternate that is recommended for award. The add alternate provides for a revised construction sequencing to allow for a faster completion date. Construction is scheduled to begin in January with completion in December 2004.
Council Policy provides for a standard contingency of 15 percent on public works projects involving the renovation of a building. However, a contingency of 10 percent is being requested because staff feels that on a project of this size, $176,400 will be sufficient to handle any unforeseen conditions that may arise during construction.
COORDINATION
This project and memo have been coordinated with the City Attorney’s Office and the Departments of General Services, Fire, Planning, Building and Code Enforcement, Information Technology, the City Manager’s Budget Office, Council District 10 and the County of Santa Clara, Department of Environmental Health.
COST IMPLICATIONS
1. AMOUNT OF RECOMMENDATION: $1,764,000
2. COST OF PROJECT:
|
Project
Delivery |
$
794,600 |
* |
|
Construction |
1,764,000
|
|
|
Contingency |
176,400 |
|
|
TOTAL |
$2,735,000 |
|
* A total of $408,209 was expended/encumbered in Fiscal Year 1999-2000 through Fiscal Year 2002-2003 for project delivery costs.
3. SOURCE OF FUNDING: 001 – General Fund
389 – Construction & Conveyance Tax Fund, Council District 10
4. FISCAL IMPACT: This project is consistent with the Council
approved Budget Strategy Economic Recovery section in that it will spur
construction spending in our local economy. $67,210 personnel cost and $40,000
non-personnel cost are estimated as the net annual operating costs for this
facility. The increase in expenditure
is not a significant amount since a portion of the additional staffing has
already been addressed, the existing facility is being maintained by the
General Services Department and increased anticipated revenue will offset
costs.
BUDGET REFERENCE
|
Fund # |
Appn # |
Appn. Name |
RC # |
Total Appn. |
Amt. for Contract |
Adopted Budget Page |
Last Budget Action (Date, Ord. No.) |
|
001 |
6980 |
Almaden Winery Center Conversion |
117543 |
2,164,000 |
1,764,000 |
Page 543 |
10/14/2003, Ord. No. 26997 |
|
389 |
4172 |
Almaden Winery Center Conversion |
106363 |
197,000 |
-- |
Page 543 |
10/14/2003, Ord. No. 26997 |
|
|
|
Total |
|
2,361,000 |
1,764,000 |
|
|
CEQA
Exempt,
PP03-10-328.
KATY ALLEN
SARA
L. HENSLEY
Director,
Public Works Department Director,
Parks, Recreation and
Neighborhood
Services