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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 Vicinity Map 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. G:%PubWorksWROUECTS1715OOISfa1/Repo tsV*ject all bids 2 doc 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 Services City MG:ar:cls Department Head: 9� - Michael Errante, P.E. Director of Public Works Finance Director G: ftb Wa/uWRQ/ECTS1715gQD►SmfRepcfbVeysO all bids 2.60C GERALD FORD DRIVE \ w m Z 7< 0O FRANK SINATRA DRIVE o w z V 'c COUNTRY CLUB DRIVE Np w Ir 79 HOMLEY LANE Y VICINITY MAP I.T.S. It 7w Y O U