HomeMy WebLinkAboutItem 4b: Consent to Withdrawal Request from Apparent Lowest Bidder Morillo Construction and Award Contract to Avi-Con for City Hall Energy Efficiency Retrofits O FAU kIl .d
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STAFF REPORT
Public Works Services Department
DATE: June 21, 2011
TO: Mayor and City Council
FROM: Tom Tait, Public Works Services Director e
Prepared by: Dave McVey, General Services Superintendent
Phil Wray, Deputy Development Services Director/
City Engineer
SUBJECT: AUTHORIZE THE CITY MANAGER TO CONSENT TO THE
WITHDRAWAL REQUEST FROM THE APPARENT LOW BIDDER FOR
CONSTRUCTION OF THE ENERGY EFFICIENCY RETROFITS TO CITY
HALL, MORILLO CONSTRUCTION, INC.
Recommendation: Approve
AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT TO
THE NEXT LOWEST RESPONSIBLE BIDDER, AVI -CON, INC. DBA CA
CONSTRUCTION FOR CONSTRUCTION OF THE ENERGY
EFFICIENCY RETROFITS TO CITY HALL IN THE AMOUNT OF
$1,283,000 AND APPROVE A 10% CONTINGENCY.
Recommendation: Approve
SUMMARY
On August 28, 2009, the U.S. Department of Energy (DOE) approved the City of
Arcadia Energy Efficiency and Conservation Block Grant (EECBG) application and
awarded the City $534,700 to upgrade the HVAC system and windows at City Hall.
During the August 3, 2010 study session, the City Council approved staffs
recommendation to expand the scope of the project and include renovation work to
meet building code requirements and to enhance the functionality and aesthetics of City
Hall.
On June 6, 2011, the City Clerk opened sealed bids for the construction of the energy
efficiency retrofits and improvements to City Hall. In the process of reviewing the bids,
staff found that the apparent lowest bidder, Morillo Construction, Inc., made a clerical
formula error in adding data in their spreadsheet resulting in submitting a bid with an
incorrect bid amount. Consequently, Morillo Construction, Inc. submitted a letter of
withdrawal from the project. Therefore, staff recommends that the City Council approve
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Mayor and City Council
June 21, 2011
the following: (1) consent to the withdrawal request from the apparent low bidder for
construction of the energy efficiency retrofits to City Hall, Morillo Construction, Inc. and
(2) authorize the City Manager to execute a contract with Avi -Con Construction, Inc.
DBA CA Construction for construction of the Energy Efficiency Retrofits to City Hall in
the amount of $1,283,000 and include a 10% contingency.
BACKGROUND
The American Recovery and Reinvestment Act of 2009 appropriated $2.7 billion to the
U.S. Department of Energy (DOE) for the EECBG Program. Cities with a population of
at least 35,000 were eligible for EECBG direct formula grant funding and were given an
opportunity to submit an application. City staff determined through an analysis, that an
upgrade to the existing HVAC system and replacement of windows with energy efficient
windows and ceiling insulation at City Hall would have the most energy savings and
would qualify as a project that would meet all the requirements for EECBG funding. In
August 2009, the DOE approved the City of Arcadia's EECBG application and awarded
the City $534,700 for energy efficiency modifications to City Hall.
On January 19, 2010, a professional services Agreement was awarded to WLC
Architects Inc. for the design and development of the City Hall energy efficiency retrofits
project. As the design phase of the project progressed, staff determined that once the
space above the existing ceiling was disturbed, other improvements such as fire
sprinklers, asbestos removal, new t -bar ceiling and lighting fixtures as well as ADA
requirements needed to be addressed. During the August 3, 2011 City Council study
session, City Council approved staff's recommendation to include the additional work
and expand the scope of the project to include renovation work to meet building code
requirements and to enhance the functionality and aesthetics of City Hall.
DISCUSSION
Staff conducted a formal bidding process to award a contract for the construction of the
Energy Efficiency Retrofits to City Hall. Notices requesting proposals for the
construction of the Energy Efficiency Retrofits to City Hall were published in the
adjudicated paper and bid packages were distributed to construction firms. The
following six (6) proposals were received on June 6, 2011 with the following results:
Bidder Location Bid Amount
1. Morillo Construction, Inc* Pasadena, CA $1,244,000
2. Avi -Con, Inc. DBA CA Construction Riverside, CA $1,283,000
3. So. Cal Contractors, Inc. and
Castlerock Environmental, Inc. Huntington Beach, CA $1,369,200
4. Sea West Enterprises, Inc. San Dimas, CA $1,465,000
5. Vargas Olson Enterprises, Inc. Monrovia, CA $1,520,000
6. Ian Thomas Group Glendale, CA $1,987,000
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Mayor and City Council
June 21, 2011
*Non- responsive — incorrect bid amount due to clerical formula error resulting in
miscalculation of bid cost
Staff reviewed the bids for accuracy and carefully investigated the low bidders bid
documents and background on recent projects for competency. In the process, staff
found that the lowest bidder, Morillo Construction, Inc. made a clerical formula error in
adding data in their spreadsheet, whereby, they submitted the base bid in the amount of
$1,244,000 while they intended the bid to be in the amount of $1,409,000.
Consequently, Morillo Construction, Inc. submitted a letter of withdrawal from the
project. Staff reviewed the next lowest bid for accuracy and carefully investigated the
low bidder's bid documents and background on recent projects for proficiency. Staff
found that Avi -Con Construction, Inc. DBA CA Construction can satisfactorily perform
the work.
The project has been planned so that construction will not interfere with daily City Hall
operations and functions. Staff made sure that the project specifications require the
work to be performed at night and on the weekends so that there are no interruptions to
public counters and employee work stations. However, there will be periods where the
space above the ceiling will be exposed and other minor inconveniences, but business
will be conducted as usual.
Therefore, based on the careful review of bid submittals, staff recommends that the City
Council approve the following: (1) consent to the withdrawal request from the apparent
low bidder for construction of the energy efficiency retrofits to City Hall, Morillo
Construction, Inc. and (2) authorize the City Manager to execute a contract with Avi -Con
Construction, Inc. DBA CA Construction for construction of the Energy Efficiency
Retrofits to City Hall in the amount of $1,283,000 and include a 10% contingency.
ENVIRONMENTAL IMPACT
None.
FISCAL IMPACT
Sufficient funds for the City Hall Energy Efficiency Retrofits project have been budgeted
in the Capital Improvement Plan in fiscal years 2009/10, 2010/11 and funds are
budgeted in the budget for fiscal year 2011/12.
RECOMMENDATIONS
1. Consent to the withdrawal request from the apparent low bidder for
construction of the energy efficiency retrofits to City Hall, Morillo
Construction, Inc.
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Mayor and City Council
June 21, 2011
2. Authorize the City Manager to execute a contract with Avi -Con
Construction, Inc. DBA CA Construction for construction of the energy
efficiency retrofits to City Hall in the amount of 1,283,000 and approve a
10% Contingency
3. Waive any informality in the bid or bidding process
4. Authorize the City Manager and City Clerk to execute a contract in a form
approved by the City Attorney
Approved by:
Donald Penman, City Manager
TT:DM:PW
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