11 Staff Report - Rejecting All Bids for Police Operations BuildingowN e< MEETING DATE: 8118108
ITEM NO:
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ios G, COI JNCIL/AGENCY AGENDA REPORT
DATE: August 14, 2008
TO: MAYOR AND TOWN COUNCIL
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR
SUBJECT: ADOPT RESOLUTION REJECTING ALL BIDS FOR POLICE OPERATIONS
BUILDING.
RECOMMENDATION:
Adopt a resolution rejecting all bids for the Police Operations building at 15900 Los Gatos
Boulevard.
BACKGROUND:
At the March 3, 2008 meeting, the Council approved a prequalification and appeals process for
construction of the Police Operations Building. This allowed the Town to utilize a process
established by the Legislature in 1999, which permits public agencies to pre-qualify contractors
that want to bid on public works construction projects. The Town received pre-qualification
information from five firms, all of which were qualified to bid on the project. On June 2, 2008,
the Town Council approved the plans and specifications for the Police Operations Building. The
building permit for the project was completed and bids for the project were initiated on June 30,
2008.
DISCUSSION:
The Town received four bids on August 4, 2008. One contractor's bid arrived after the closing
and could not be accepted. The bids, which range from $4.4 to 4.8, exceed the Town's
construction budget. Staff is reviewing the reasons for the higher than anticipated costs. At least
part of the reason the bids are higher than anticipated can be attributed to 1) the cost of materials,
2) higher feel costs, 3) the HVAC system, 4) a slight increase in the size of the building, and 5) a
less competitive and favorable construction environment than anticipated.
PREPARED BY: Bud N. Lortzz
Director of Co unity Development
4J~~
Reviewed by: Assistant Town Manager/Deputy Director --flf~,-Tawn Attomey/General
Counsel Clerk Administrator/Secretary-'r Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: POLICE OPERATIONS BUILDING
August 18, 2008
Because the bids exceed the available funding, staff recommends that the Council reject all of the
bids. Once the Council officially rejects all of the bids, staff can evaluate discrepancies in the
bids and revise the project so it can be re-bid.
NEXT STEPS
The next step is for the project team to refine the project to be in compliance with the approved
funding. Potential options to reduce costs include delaying construction of the EOC, redesigning
the sallyport, and reducing the HVAC system cost.
Once the plans have been revised, staff will return to the Town Council for approval of the
revised plans and specifications and will then re-bid the project.
FISCAL IMPACT:
At the meeting of June 18, 2007, the Town Council authorized a capital project budget
adjustment in the amount of $7,685,468 for the Police Operations Building using funding source
transfers to the Town's Capital Project Fund.
Attachments:
1. Resolution
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS AND THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENGY REJECTING BIDS FOR CONSTRUCTION OF THE
POLICE OPERATIONS BUILDING
WHEREAS, on June 2, 2008 the Town Council approved the plans and
specifications for the Police Operations Building prepared by the architectural firm of
Ross, Drulis and Cuesenbery; and
WHEREAS, the Town Council authorized the Clerk Administrator to initiate the
bid process for the project in the manner prescribed by Public Contract Code 20101 and
approved by the Town Council on March 3, 2008 and by the Town Municipal Code; and
WHEREAS, on August 4, 2008 the Town received bids from four contractors
that were prequalified to submit bids in accordance with Public Contract Code 20101 and
approved by the Town Council on March 3, 2008.
NOW, THEREFORE, BE IT RESOLVED THAT the Town Council and the
Board of the Agency hereby reject all bids received for the Police Operations Building
since the bids exceed the available funding for the project.
PASSED AND ADOPTED at a regular joint meeting of the Town Council and the
Board of Directors of the RDA held on the 18th day of August, 2008, by the following
vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
/ Chair of RDA Board
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR / SECRETARY
TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA