HomeMy WebLinkAboutC38330 Reject Bids Tenant Improvment of State Rehabilitation at Parkview Cmplx 774-18LC - )UL - q
CONTRACT NO. C38330
STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: August 22, 2019
PREPARED BY: Emily Roethler, Project Manager
REQUEST: Reject all bids submitted for the Tenant Improvements for the State
Department of Rehabilitation at the Parkview Office Complex
(Project No. 774-18).
Recommendation
By Minute Motion, that the City Council reject all bids submitted for the
Parkview Office Complex offices occupied by the State Department of
Rehabilitation (State) for Tenant Improvements.
Strateaic Plan
The Tenant Improvement Project for the State at the Parkview Office Complex is a
maintenance activity and, as such, does not contribute directly to the objectives of the
City's Strategic Plan.
Background Analvsis
The Tenant Improvements for the State at the Parkview Office Complex project was
advertised for bid in the Desert Sun on May 1, 2019 and May 8, 2019. On July 1, 2019,
sealed bids were received and opened by the Office of the City Clerk with the following
results:
Contractor Location Bid Amount
Sudweeks Construction, Inc. Canyon Lake, CA $ 149,356
Shipley Construction, Inc. Yucca Valley, CA $ 188,750
The bids received far exceeded the estimated cost of improvements. Originally, the State
had agreed to pay for a portion of the improvements that were in excess of those agreed
to by the City and based the reimbursement amount on their own estimates. The
reimbursement amount was estimated to be up to $30,000. When the bids were opened
and were significantly higher than expected, the State decided to change the scope for
those items that they would pay for.
As part of the existing lease agreement and the agreed upon lease extension, the City is
responsible for new paint and carpet to be installed as well as making the required ADA
improvements to the Suite.
August 22, 2019 - Staff Report
Reject All Bids for Project No. 774-18
Page 2 of 2
Staff would like to review and evaluate the proposed scope of work with the State and re -
advertise the improvements as soon as the new bid documents have been prepared. The
City will then enter into a cost sharing agreement with the State.
Fiscal Analvsis
When a contract is awarded, the City will pay for the costs of all the improvements. Upon
completion of the project, the State will reimburse the City for the State's share of costs
with their monthly rent, amortized over the initial term of the lease extension (normally 48
months), at an interest rate of approximately 6%. The anticipated gross rent during the
life of the lease and its extensions will be $899,907.
LEGAL REVIEW
Approved as to Form
N/A
Robert W. Hargreaves
City Attorney
DEPT. REVIEW FINANCIAL CITY MANAGER
REVIEW
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Tom Garcia, P.E.
Director of Public Works
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et M. Moore Lauri Aylaian
Director of Finance City Manager