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2011020703 - PPW Job No. 10-21- 123 Main Street building Improvements reject bidsp ow x a roe' as COUNCIL AGENDA REPORT DATE: TO: FROM: SUBJECT: JANUARY 31, 2011 MAYOR AND TOWN COUNCIL MEETING DATE: 02107/11 ITEM NO. 3 GREG LARSON, TOWN MANAGER PPW JOB NO. 10 -21 —123 MAIN STREET BUILDING IMPROVEMENTS REJECT BIDS FOR THE 123 MAIN STREET BUILDING IMPROVEMENTS, APPROVE PLANS AND SPECIFICATIONS, AND AUTHORIZE STAFF TO REBID THE PROJECT RECOMMENDATION Reject bids for 123 Main Street Building Improvements, approve plans and specifications, and authorize staff to rebid the project. BACKGROUND Los Gatos Saratoga Recreation Department (LGSR) leases the property located at 123 Main Street from the Town of Los Gatos, to utilize as their main office and operations building. As part of their lease agreement, and with approval from the Town, LGSR can elect to perform tenant improvements at their cost. LGSR had proposed to perform the following improvements to the above referenced building: removal and construction of new interior walls, repairs to the ceiling, new windows and doors, installation of new carpets, and painting. The project was bid by Town staff according to the Town informal bid policy. On January 18 2011, the Town Council awarded the construction contract to TI Management Group which was the low bidder for the project. PREPARED BY : TODD CAPURSO Director of Parks and Public Works Reviewed by- Assistant Town M er Town Attorney Clerk Administrator ✓F" nee Community Development N:\ PPW\ MANAGEMENnCOUNCIL \COUNCILREPORTS\2011 Repo ts\Febntary 7\PPWJobNo10- 21.123MainStreet.rej ectbids.readvertise.doex PAGE 2 JANUARY 31, 2011 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 10 -21 -123 MAIN STREET BUILDING IMP ROVEMENTS DISCUSSION After the contract's award and during the subsequent contract execution process, TI Management Group informed Town staff that they are not able to secure the required bonds for the project. Despite joint efforts by this firm and staff, an acceptable resolution could not be reached. TI Management Group then requested their bid be withdrawn from consideration. In preparation to rebid the project, Town and LGSR staff have further reviewed the project bid documents and made modifications to provide clarity and simplicity to the scope of work. It is anticipated that the new bid results will be less than $50,000. Therefore, the contract will be awarded by Town Manager according to his authority granted by the Town Council. Plans and Specifications for this project are complete and will be available for review in the Town Clerk's Department on the Friday before the Council meeting. CONCLUSION Staff recommends that Council reject the bids for 123 Main Street Building Improvements and authorize staff to re- advertise the project for bids. ENVIRONMENTAL ASSESSMENT This project is Categorically Exempt pursuant to Section 15308 of the State CEQA guidelines. FISCAL IMPACT While it is anticipated that the new bid results will be less than $50,000, approximately $55,950 is available for this project based on prior budge approval by the Town Council.