HomeMy WebLinkAboutC31880 - Reject All Bids Received and Re-advertiseCITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: AUTHORIZATION TO REJECT ALL BIDS RECEIVED FOR THE
PALM SPRINGS ART MUSEUM -PALM DESERT
IMPROVEMENTS PROJECT (CONTRACT NO. C31880), RE -
ADVERTISE A REVISED NOTICE INVITING BIDS/PROJECT
SPECIFICATIONS, AND SANCTION THE CITY MANAGER'S
EXECUTION OF RELATED CONTRACT DOCUMENTS.
SUBMITTED BY: Stephen Y. Aryan, Risk Manager
DATE: June 28, 2012
Recommendation
By Minute Motion,
Reject all bids received associated with Project No. 872-12 (Contract
No. C31880), Palm Springs Art Museum -Palm Desert Improvements.
2. Authorize the re -advertisement of a revised Notice Inviting Bids and
project specifications for Project No. 872012, Palm Springs Art
Museum -Palm Desert Improvements.
3. Authorize the City Manager to execute any contract documents for
Project No. 872012 (Contract No C31880), Palm Springs Art
Museum -Palm Desert Improvements, in an amount not to exceed
$150,000, plus 10% contingency.
4. Appropriate $145,000 from the Unobligated General Fund for Project
No. 872012, Palm Springs Art Museum -Palm Desert Improvements.
Backaround
On July 1, 2010, the City of Palm Desert entered into a lease agreement with the Palm
Springs Art Museum (PSAM) concerning the former Visitor Center (72-567 Highway 111).
Under this agreement the City is accountable for accomplishing all tasks and paying all
costs associated with sculptures located within the Eric Johnson Memorial (a.k.a. Sculpture)
and Multi -Sensory Gardens. Such responsibility includes the installation of
bases/foundations for the sculptures, lighting, cleaning, and ongoing maintenance.
Staff Report: PSAM-PD Improvements
June 28, 2012
Page 2 of 3
Staff recently advertised this project that included bid alternates for the Galen's security
system and installation of a sculpture pad/lighting on a vacant parcel located west of the
Museum. These alternate items are the financial responsibility of the Museum. The
City's responsibility only included the base bid amount and not any of the listed
alternates.
Sealed bids were due to the City on June 26, 2012. The City received only one bid that
was from Atom Engineering Construction, Inc. (Hemet, CA), in the following amount:
BASE BID (CITY'S RESPONSIBILITY) _ $189,398
ALTERNATE ONE (Museum's Responsibility) $47,500
ALTERNATE TWO (Museum's Responsibility) $21,500
ALTERNATE THREE (Museum's Responsibility) $107,398
The City's portion of the work per the lease agreement amounted to $189,398 based
upon this sole bid. The receipt of only one bid may have resulted from the fact that this
project is both privately and publically awarded. This uncommon circumstance likely
inhibited some firms from bidding the project.
Therefore, staff recommends rejecting the sole bid received, revising the project
specifications to include only the City's portion of this project, and re- advertise the bid.
Staff is optimistic that with such action, the quantity of bids received may increase.
The Museum indicated that this project is time sensitive and cannot wait to be awarded
when the Council concludes its summer hiatus. The Museum received various
donations from its patrons under the premise that they would have completed sculpture
installations. Such artwork cannot be placed until the proper foundation and lighting
systems are constructed. The Museum is also introducing a major new exhibit in the
2012 Fall Season and they wish to cross promote both internal and external exhibitions.
The external sculptures exhibited are also on loan with time sensitive agreements that
the Museum needs to honor concerning their installation.
The Museum anticipates that if a contract document is executed during the summer, the
project should be completed by the end of October. If the project is not awarded until
the end of August, the Museum indicated that it would likely not be completed until
2013, which conflicts with their obligations and strategic vision as indicated above.
Staff Report: PSAM-PD Improvements
June 28, 2012
Page 3 of 3
Fiscal Analysis
As this project is time sensitive to the Museum and the City Council will be on summer
hiatus commencing July 13, 2012, to August 23, 2012, staff respectfully recommends
that the City Manager be authorized to enter into a contract agreement, with the lowest
qualified bidder, in an amount not to exceed $150,000, plus 10% contingency. There is
currently $20,000 budgeted that can go towards funding this project. The City Council is
requested to appropriate the remaining balance of $145,000 from the Unobligated
General Fund account.
Submitted By;
Stephen'' Aryan, Risk anager
Paul S. Gibson, Director of Finance/City T
Approved By:
hn M. Wohlmuth, City Manager
CITY COVNCYLA(P ION
APPROVED DENIED
RECEIVED OTHER
AYES: [
NOES:
ABSENT: -P-
ABSTAIN:
&W an File with City
's Office