Loading...
11 Staff Report - Rejecting All Bids for Police Operations BuildingowN e< MEETING DATE: 8118108 ITEM NO: Nwc 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