05 Staff Report - Chiller/Cooling Replacement ImprovementsE ~pW N 0
COUNCIL AGENDA REPORT
lpGA
MEETING DATE: 12/5/05
ITEM NO.
DATE: NOVEMBER 18, 2005
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: PROJECT 04-64 - INSTALLATION OF EQUIPMENT FOR THE
CHILLER/COOLING TOWER REPLACEMENT IMPROVEMENTS
ADOPT RESOLUTION TO REJECT BIDS FOR THE INSTALLATION OF
EQUIPMENT FOR THE CHILLER/COOLING TOWER REPLACEMENT
AND AUTHORIZE STAFF TO REBID THE PROJECT
RECOMMENDATION:
Adopt resolution (Attachment 1) to reject bids- for the installation of the equipment for the
Chiller/Cooling Tower Replacement and authorize staff to rebid the project.
BACKGROUND:
During the Council legislative recess in July, the Town Manager approved the plans and
specifications for the installation of equipment for the Chiller/Cooling Tower Replacement and
authorized staff to advertise the project for bids.
On August 31, 2005, sealed bids were received from Therma, Ray L. Hellwig Plumbing, and O. C.
McDonald Companythat produced one properly completed bid package. The Council, at its meeting
of September 6, 2005, rejected the bid that was deemed unacceptable on the basis of cost far in
excess of the project budget.
Staff rebid this project, and only one bid was received by the Clerk Administrator on November 16,
2005 from Foothill Heating and Air Conditioning in the amount of $448,000.00. This bid was
deemed unacceptable on the basis of cost far in excess of the project budget.
t,L L."
PREPARED BY: HN E. CURTIS
~fiirector of Parks and Public Works
Reviewed by: 'Assistant Town Manager _QYZAttorney Clerk Administrator
Finance Community Development Revised: 11118105 11:35 am
Reformatted: 5/30/02 N:\B&E\COUNCIL REPORTS\reject.bids.04-64.installation of chiller-coolenwpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PROJECT 04-64 - INSTALLATION OF EQUIPMENT FOR THE
CHILLER/COOLING TOWER REPLACEMENT IMPROVEMENTS
NOVEMBER 18, 2005
DISCUSSION:
The project involves the installation of the replacement Chiller and Cooling Tower purchased by the
Town under the Federal GSA purchase program. The project will also include the removal and
replacement of the existing main air handling unit, domestic hot water storage tank, associated
asbestos, abatement, and the removal of inoperative and unused HVAC components.
Staff contacted a number of other HVAC contractors and inquired as to why they did not bid on this
project. It appeared that most contractors are doing large projects which had to be completed by the
end of December and that theywouldbe bidding on our project after December. Staff has determined
that it would be more prudent to rebid this project again to receive a better cost.
If authorized by the Council, further proj ect scope assessment will be accomplished by staff and the
consulting engineer and a recommendation will be made and re-advertised for a contract to be
awarded on January 17, 2006. Staff anticipates the actual installation to start in February 2006 and
be completed by April 2006.
ENVIRONMENTAL ASSESSMENT:
This projectis Categorically Exempt pursuant to Sections 15301(c) and 15304(b) ofthe State CEQA
guidelines.
FISCAL IMPACT:
None at this time.
CONCLUSION:
Staff recommends that the Council reject the bids for the installation of equipment for the
Chiller/Cooling Tower Replacement.
Attachments:
Resolution to reject bids for the installation of equipment for the Chiller/Cooling Tower
Replacement
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
TO REJECT BIDS FOR PROJECT 04-64
INSTALLATION OF EQUIPMENT FOR THE
CHILLER/COOLING TOWER REPLACEMENT
WHEREAS, bids were sought in conformance with State and Town law for Project 04-64
Installation of Equipment for the Chiller/Cooling Tower Replacement; and
WHEREAS, Therma, Ray L. Hellwig Plumbing, and O.C. McDonald Company submitted
bids to the Clerk Administrator on August 31, 2005; and
WHEREAS, the bids submitted produced one properly completed bid package and was
deemed unacceptable on the basis of cost far in excess of the project budget;
WHEREAS, Foothill Heating and Air Conditioning submitted a bid to the Clerk
Administrator on November 16, 2005; and
WHEREAS, the one bid submitted was deemed unacceptable on the basis of cost far in
excess of the project budget;
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California, that Council reject the bid and authorize staff to
rebid Project 04-64 - Installation of Equipment for the Chiller/Cooling Tower Replacement.
PASSED AND ADOPTED, at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the day of 2005 by the following vote:
COUNCIL MEMBERS:
AYES :
NAYS :
ABSENT:
ABSTAIN:
SIGNED: MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA