Title
Recommendation to Reject All Bids for the Krusi Park Recreation Center Replacement. (Recreation 280)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth Warmerdam, Acting City Manager
Re: Recommendation to Reject All Bids for the Krusi Park Recreation Center Replacement.
BACKGROUND
The Krusi Park Recreation Center Renovation is a project funded by the East Bay Regional Park District's (EBRPD) Measure WW grant funding, in the amount of $1,365,489, including both design and construction costs.
On February 5, 2013, the City Council rejected all bids due to the lowest bid exceeding the construction budget by over 40%.
In May 2015, the City issued a Request for Qualifications for construction of a modular recreation building, but none of the firms were considered responsive. Based on staff review and discussions with the firms who submitted, staff engaged the architectural firm Group4 to re-design the recreation center with a modular design, which would provide more detailed direction for a subsequent bid.
DISCUSSION
To comply with California Public Contract and California Uniform Construction Cost Accounting Act (CUPCCAA) formal competitive bidding requirements in soliciting the maximum number of bids and the most competitive price, on February 7, 2018, a Notice Inviting Bids and project specifications was advertised in 12 separate builders’ exchanges throughout the Bay Area. The notice inviting bids was also published in the Alameda Journal and put on the City’s website. A pre-bid site walk and meeting was held. Two contractors submitted bids. Bids were publicly opened and read aloud on Tuesday, March 20. The list of bidders from lowest to highest for total project cost is as follows:
|
Bidder |
Location |
Bid Amount |
|
Ray’s Electric |
|
$1,641,020 |
|
Vila Construction |
|
$2,089,564 |
It is important to note that the lowest bidder, Ray’s Electric, misinterpreted the design intent of the project plans and specifications and therefore the City and Ray’s Electric agreed to respectively reject and withdraw their bid as being non-responsive.
The second bid from Vila Construction exceeds the project budget allocation of $1,500,000.
Therefore, staff recommends that City Council reject all bids. Staff is working quickly on an alternative plan that meets the plans and specifications. The City can directly contract for a turnkey project with Romtec, which is a state pre-bid contractor through the State of California Multiple Award Schedules (CMAS). CMAS offers a variety of commodities and services at prices that have been assessed by the State of California to be fair, reasonable and competitive. The use of CMAS is available to state and local government agencies. These contracts are considered to be issued using fair and open competition and therefore, the City does not need to go to bid but can order directly through Romtec. The City already utilizes this CMAS process for all playground products and installations. Romtec is a well-established company that provides restrooms and buildings for many government agencies, including installing several per year for the East Bay Regional Park District.
As opposed to a modular building, Romtec products are designed and pre-fabricated off-site using the existing project plans and specifications. Once complete, all building components are shipped and installed onsite. The City will need to issue a separate call for bids for the additional site work including the building demolition, utility work, pathway repair, and to prepare the site to get all utilities to the correct location and ready for the building installation. Staff is finalizing the cost for the Romtec turnkey installation. After detailed discussions with Romtec and review of the existing plans, the Romtec building is currently estimated to cost $700,000 for design, supplies and installation. The remaining project budget of $800,000 will then be available for demolition, utility and pathway work. Staff is optimistic that this will be enough available budget for the site work based on unit costs from the recent bids.
FINANCIAL IMPACT
The funds for this project are budgeted in the Recreation Department’s account for Capital Improvement Program (Project No. 91003) and is funded by Measure WW and Dwelling Unit Tax. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action has no effect on the Municipal Code.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (existing facilities), 15302 (replacement or reconstruction), and 15303 (new construction or conversion of small structures).
RECOMMENDATION
Reject all bids for the Krusi Park Recreation Center Replacement.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director