HomeMy WebLinkAboutAgenda Statement 1980/10/07 Item 6
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COUNCIL AGENDA STATEMENT
Item .6
Meeting Date 10-7-80
ITEM TITLE: Resolution //):1fl Rejecting bids for the construction of
improvements in Memorial Park from Third Avenue to Fourth
Avenue and from Madrona Street to Parkway in the City of
Chula Vista, California
SUBMITTED BY: . . (}A, 11.
Cl ty Eng Ineer j/ l /
At 2:00 p.m. on September 3, 1980, in the Public Services Building, the
City Engineer received sealed bids for the "Construction of Improvements
in Memorial Park from Third Avenue to Fourth Avenue and from Madrona
Street to Parkway in the City of Chula Vista, California". The scope of
the project includes relandscaping portions of the park, installation
of new walkways, benches, lighting, tables, remodeling of existing
restaurant structure for a Senior's center, etc. It is my
(4/5ths Vote: Yes
No~)
RECOMMENDATION: That the City Council reject the bids and direct staff
to readvertise the project.
BOARD/COMMISSION RECOMMENDATION: Not applicable.
DISCUSSION:
Bids were received from two contractors as follows:
Contractor
Alt. 1
Alt. 2
Alt. 3
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L.R. Hubbard - San Diego
T.B. Penick & Sons, Inc. - San Diego
$350,100
390,646
$339,000
381,721
$294,950
359,496
The difference between alternates 1, 2, and 3 was basically in the scope
and size of the project. The type of work being done was similar in all
three alternates.
Alternate 1 was the entire project. Alternate 2 deleted work at the
southeast corner of the park (Third and Parkway) and Alternate 3 in
addition deleted work at the northeast corner of the park (Third and
Mad rona) .
The low bid of $350,100 submitted by L.R. Hubbard, which was a total
lump sum bid, was 37.6% or $95,670 above the consulting architects
estimate of $254,430.
Since the low bid nearly exceeded the architect's estimate by $100,000,
City staff (from Engineering, Planning, Building & Housing) prepared an
independent cost estimate based upon item quantities of the work
furnished by the architect. The purpose of this independent estimate
was to verify whether or not the low bid was a reasonable bid.
City staff's estimate for the total project was $235,000 which compares
with the architect's estimate. As a result of their analysis of the
102? I
Form A-113 (Rev. 11/79)
Continued
EXHIBITS
Agreement____ Resolution~ Ordinance Plat
Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached
Submitted on
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Page 2, Item
Meeting date
6
10-7-80
bids, the architect and City staff recommend that the bids be rejected
and the project be readvertised.
We feel that the bids received may be high due to the fact that the
total project was bid as a lump sum bid, which is normal procedure for
this type of project. Contractor's had to estimate the various items of
work and quantities from the plans in preparing their lump sum bid.
We believe that a lower bid may be obtained by bidding the project
for each item of work, similar to the way street, sewer and storm drain
projects are bid. In rebidding the project this way, the City will be
receiving unit prices for the various types of work. Staff will also be
reviewing the plans to see where further cost savings may be possible
prior to readvertising project.
FINANCIAL STATEMENT:
$83,000 has been budgeted for the park and senior center. $125,000 has
been set aside from the proceeds of the tax allocation bond sale,
Bayfront Town Centre for this project. If additional funds are required
at time of awarding contract, Community Development Department intends
to recommend the use of local option block grant funds and transfers
from completed projects.
FISCAL IMPACT:
In rebidding any project, there is always the risk that the cost could
increase. We believe that since the bid price is considerably higher
than the estimate and since we plan to modify the bidding package,
the City will receive lower bids.
SLH:fpw/J0007
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