HomeMy WebLinkAboutC19250A Reject Bids for Corporation Yard Expansion 715-00CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Reject All Bids for Contract No. C19250A, for the
Construction of the Corporation Yard Expansion
(Project 715-00)
SUBMITTED BY:
DATE:
CONTENTS:
Recommendation:
Mark Greenwood, P.E.
City Engineer
June 23, 2005
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By Minute Motion, City Council:
1. Reject All Bids for Contract No. C19250A, for the
construction of the Corporation Yard Expansion
2. Direct Staff to review existing facilities for the short-
term needs.
Executive Summary:
Although there is much need, both in the short term and long term for corporation
yard expansion, staff recommends rejecting all bids for Contract No. C19250A,
because there is substantial difference between the available funds and bid
amount. Staff recognizes the need and is prepared to review the existing
corporation facilities for the short-term.
Discussion:
On January 13, 2005, City Council authorized staff to advertise and call for bids
for the Corporation Yard Expansion Project. Bids were duly advertised and
opened by the City Clerk on May 10, 2005 at 2:00 P.M. The results are as
follows:
Davis Reed Encinitas, California $5,142,425.00
W.D.L. Inc. Palm Desert, California $5,211,904.00
B.E. McMurray Ontario, California $5,292,900.00
Staff Report
Reject All Bids for Contract No. C19250A for Construction of the Corporation
Yard Expansion
Page 2 of 3
June 23, 2005
The apparent low bid was $1.54 million above the current engineers estimate.
The planned expansion of the Corporation Yard would have encompassed
approximately 3.3 acres and consisted of the following proposed improvements:
• Building (14,000 sq. ft.)
• Mezzanine (4,650 sq. ft.)
• Concrete material storage area (20' x 100')
• Debris transfer station (100' x 100')
• Vehicle washout facility (60' x 40')
• Covered shade structures for oversized equipment and personnel vehicles
• Refueling station, incorporating the CNG refueling station
• Workstations/shops for roadway maintenance technicians
Staff is asking Council to reject all bids for the following reasons:
During the past weeks, staff examined the bid results and the cost difference
between the budgeted amount of $2.6 million. Staff recommends rejecting the
bids because of the shortfall in the available funds for the project. This will allow
staff time to further evaluate the facility needs and how the existing facilities can
be utilized and improved to meet short-term requirements within the existing $2.6
million funds that are available. The short-term requirements would entail
increasing material storage/storage, a washout facility meeting Regional Water
Quality Control Board Standards, shade structures and additional
workstation/shops. These improvements would be done to the Joni Yard and the
vacant three -acre property adjacent to the existing corporation yard. This would
also provide a possible period of a better economic bidding climate and the
possibility of having additional construction funds.
Staff recognizes that we should continue with plans to improve our corporation
yard facilities, (Current Corporation Yard, Joni Yard and Annex Yard), beyond the
short-term. Several factors have been considered in reaching this conclusion.
The City of Palm Desert will reach build -out in a few years. At that time, a shift
from construction of new infrastructure to maintaining the existing system will
take place. There is therefore a necessity to provide corporation yard
maintenance area/storage improvements to meet the long -tern needs at the
current corporation yard facilities.
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Staff Report
Reject All Bids for Contract No. C19250A for Construction of the Corporation
Yard Expansion
Page 3 of 3
June 23, 2005
Therefore, staff recommends that City Council reject all bids for the construction
of the Corporation Yard Expansion, Contract No. C19250 and direct staff to
review existing facilities for the short-term needs.
Submitted By:
foR Mark Greenwood, P. E.
City Engineer
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Department Head:
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Michael Errante, P.E.
Director of Public Works
Finance Director
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