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HomeMy WebLinkAboutAgenda Statement 1978/06/13 Item 15~~ CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No. 15 For meeting of 6-13-7 8 ITEM TITLE SUBMITTED BY ITEM EXPLANATION Resolution Rejecting Bids for the Construction of 1 3 ~ Parkway Gymnasium Rehabilitation and Pool Auxiliary Solar Heating System Director of Public Works/City Engineer fc~~ (4/5TH'S VOTE REQUIRED YES NOxX ) At 11:00 a.m. on May 25, 1978, in the Engineering Planning Conference Room, the Director of Public Works received sealed bids for the construction of Parkway Gymnasium Rehabilitation and Pool Auxiliary Solar Heating System. The scope of the project includes: 1. Removal of roof gravel and installation of replacement roofing over the existing membrane. 2. Sheet metal work which relates mainly to stabil- izing the eaves trough on both the east and west sides of the building. 3. Installation of solar heating panels which will serve as auxiliary pool heating elements. 4. Replacement of electrical fixtures within the Gymna- sium area. Bids were received from two contractors as follows: 1. Masters Construction $74,762.10 2. Caster Development Corp. $f39,500.00 The low bid submitted by Masters Construction exceeds the Archi- tect's estimate by $14,762.10. This low bid exceeds the Archi- tect's estimate of $60,000 by 24.60. (continued on supplemental page) sLH:vt:JO-oo5 EXHIBITS Agreement Resolution xx Ordinance Plat Notification List Other ~ ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT STAFF RECOMMENDATION 1. City Council adopt resolution rejecting all bids received on May 25, 1978 for the Construction of Parkway Gymnasium Rehab- ilitation and Pool Auxiliary Solar Heating System. 2. Direct staff to re-advertise for bids for this project as three separate contracts as recommended by the Project Archi- BOARD/COMMISSION RECOMMENDATION techt. AP~'R~VED by t's1e COUNCIL ACTION ~ Cc;~ancil C .'c J ai Chula Vita. Cali-~o~ia ~ , i3 ._.~Y.W..~- ...... gat ........ e .................. ..., AGENDA ITEM N0. 15 Supplemental Page 2 June 13, 1978 It is the staff recommendation that the City reject all bids received on May 25, 1978 and re-bid the construction as three separate projects instead of one. This recommendation is based on a review of the bid results by Victor Wulff, the Project Architect retained by the City to design the project. The reasons for this recommendation are as follows: 1. The unit price bid for the solar heating was in line with the estimated cost. However, the unit price bid for the roofing and electrical wor}c greatly exceeded the Architect's estimate. Mr. Wulff has checked with his electrical consultant as well as his roofing advisor and neither of them can find any way to support the extreme overage in those two items of the bid. 2. Mr. Wulff recommends that the bids be taken on roofing and sheetmetal as one project; electrical as one project; and the solar installation as a separate project. He believes that there will be a fair reduction in total costs. The Director of Building and Housing has agreed to coordinate the work if the project is let as three separate contracts. A copy of the Architect's letter to staff on evaluation of the bids and recommendations is attached for City Council information. P a. Box 7 .. .~; ~ ~~ - Fa.. WARREN BAF~NHAK~ ~~-r~it~:C~~'%a ,_ ,.. 26 MAY X978 MR. SHALE HANSON CITY OF CHULA VISTA ENGINEERING DEPARTMENT P.O. Box 1087 CHULA VISTA, CALIFORNIA 92012 :~ ~~. ~~~~, Q~~ ., . . SUBJECT: PARKWAY GYM REHAB AND POOL SOLAR HEATING DEAR MR. HANSON: YOU HAVE 'G'IVEN ME A BR B I D OF $7~+,76O.CX) JUST ROOFING SHEETMETAL SOLAR ELECTRICAL a; ~~~ # J ~ ooh EAKDOWN FOR THE SUBJECT PROJECT FOR THE LOW RECEIVED THURSDAY, 25 MAY: - ABESTOS ROOFING CO. - $21,000.00 - KEARNY SHEETMETAL - $ 2,600.00 - GREAT WESTERN - ~35,1Q9,Oo - PULGHAM - $16,0 1.00 TOTAL ,7 0.00 WE HAD ORIGINALLY ESTIMATED ~35,35o.OG FOR SOLAR WORK ANO THAT IS CERTAINLY IN KEEPING WITH THE BID RECEIVED. THE ROOFING HAD BEEN ESTIMATED AT $12,SO~+.OO AND THE ELECTRICAL AT ~~®,890.00. THOSE THREE ITEMS TOTAL ~59,o4~+.O0. WE HAp NOT INCLUDED ANYTHING FOR SHEETMETAL AS WE FELT THAT IT MIGHT BE INCLUDED WITHIN THE ROOFING WORK AS THE TWO ARE QUITE CLOSELY ASSOCIATED ON THIS PROJECT. WE DID ESTIMATE TO YOU THAT THE PROJECT OF APPROXIMATELY 60,000.00 WOULD 8E i N LINE . TO FIND THAT THE ROOFING AND THE ELECTRICAL ARE SO MUCH ABOVE OUR ESTIMATE IS AMA2iNG AT FIRST GLANCE. WE HAVE CHECKED WITH OUR ELECTRICAL CONSULTANT AS WELL AS OUR ROOFING ADVISOR AND NEITHER OF THEM CAN FIND ANY WAY TO AGREE WITH APPARENT EXTREME OVERAGE IN THESE TWO DEPARTMENTS. WE HAVE KNOWN FROM PAST BIDDING EXPERIENCE HOWEVER, THAT THESE SMALL AND PECULIAR PROJECTS ARE OFTEN TIMES, TARGETS FOR CONTRACTORS TO CONSIDER AS FAIR PIGEONS FOR A HEALTHY RETURN. IN SUCH GASES IT HAS BEEN DIfFICULT TO BRING IN LOWER BIOS UNLESS WE ARE BIDDING IN A "HUNGRY" PER100. 3S. _.~ • THIS IS CERTAINLY NOT THE CASE A5 OF TODAY. MOST CONTRACTORS ARE QUITE BUSY AND NOT SHOPPfNG FOR WORK. IF YOU CAN POSSIBLY FUND THIS PROJECT I WOULD RECOMMEND THAT IT BE DONE IN AN EFFORT TQ ACCOMPLISH YOUR ORIG{NAI. PLAN. FIOWEVER~ THE NEW RE-ROOF MUST BE ACCOMPLISHED BEFORE THE SOLAR WORK IS STARTED. OTHERWISE I WOULD SAY DO THE SOLAR WORK AND PUT THE OTHER DIVISIONS BACK OUT FOR BID AGAIN. DOUBT IF YOU WI IL DO ANY BETTER UNLESS YUU WERE TO WAIT FOR A MORE LEAN BIDDING PERIOD. THAT IS WHYS UNDER ALL CONSIDERATIONS i RECOMMEND THAT YOU FUND THE PROJECT IF POSSIBLE ANO PROCEED. M.O~S~T/RESPECTFUILY~ .4 f, CTOR WULFF~ A,I,A. 0/W~JW PS: ON REFLECTION I MAKE THIS ALTERNATIVE SUGGESTION. THERE ARE THREE MAIN DIVISIONS ON THIS WURK ALL OF WHICH HAVE BEEN BID TOGETHER UNDER A PARENT GENERAL CONTRACTOR SINCE' APPARENTIY~ NONE OF THE SUB-CONTRACTORS WANTED TO ASSUME THE ROLE OF PRIME CONTRACTOR. I CAN WELL BELIEVE THEREFORE' THAT THE GENERAL CONTRACTOR WHO HAS BEEN INVITED TO SERVE AS THE PRIME BIDDER WOULD ONLY DO SO iF HE FELT THAT HE COULD DRAW AT LEAST ~5-20~ TO COVER HIS OVER- HEAD AND A HEALTHY PROFIT. TMEREFORE~ I REGOMMEND THAT YOU CONSIDER REJECTING ALL BIDS AND PLACING IT OUT TO BID AGAIN WITH NO CHANGES IN PLANS OR SPECIFI- CATIONS EXCEPT ON THE BID FORM. ( RECOM~IEND THAT THE BIDS BE TAKEN ON ROOFING AND SHEETMETAL AS ONE PROJECT, ELECTRIC AS ONE PROJECTS AND THE SOLAR INSTALLATION AS A SEPARATE PROJECT. I BELIEVE THAT Wf WOLL BE PLEASED WITH A FAIR REDUCTION IN TOTAL COSTS 3S