HomeMy WebLinkAboutR25340 - RJCT BIDS - DW Lake RehabPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE REJECTION OF ALL BIDS RECEIVED FOR THE
REHABILITATION OF LAKE #3 AT THE DESERT WILLOW GOLF
RESORT
SUBMITTED BY: CATHERINE WALKER, SENIOR MANAGEMENT ANALYST
DATE: AUGUST 24, 2006
Recommendation:
By Minute Motion, that the Agency Board reject all bids (Contract No.
R-25340) for the rehabilitation of Lake #3 at the Desert Willow Golf Resort.
Discussion:
During the summer of 2005, three of the four lakes on the Desert Willow Firecliff course
were renovated to address water leakage, grading subsidence, and shoreline erosion.
Originally, all four of the lakes on the Firecliff course were scheduled for rehabilitation,
but due to unforeseen delays during construction, work on Lake # 3 was eliminated from
the overall scope of work.
The Agency planned for work to resume on this lake during the summer/fall of 2006. On
June 28, 2006, the Agency received two bids for the rehabilitation. The high bidder, at
$984,560 was the Mocon Corp. of Indio, CA, and the low bidder, at $532,928, was Cora
Constructors of Palm Desert, CA. The low bid in this case totals more than the cost to
perform the same work on all three lakes in the summer of 2004. Staff is requesting a
rejection of these bids for several reasons:
1. The present construction environment is such that cost of labor and materials is
extremely high, and exceeds all agency pricing expectations based on previously
performed work to Lakes 1,2,and 4 at the Desert Willow Golf Resort.
2. Material discrepancies were discovered in the engineering documents at the time
of bid presentation. These discrepancies could greatly impact the bid pricing.
G:\RDA\Cathy Walker\Word Data\STAFF REPORTS\Staff rejection of all bids for Lake #3 rennovabon.doc
Staff Report
Authorize Rejection of Bid for Lake #3 at the Desert Willow Golf Resort
Page 2of2
August 24, 2006
At this time, Lake #3 is functioning well and not showing further signs of water leakage
or deterioration. Since renovation is not needed immediately, staff recommends that all
bids be rejected, giving staff time to amend all bid documents and adjust the scope of
work to be performed.
Submitted By:
Catherine Walker
Senior Management Analyst
Approval:
• G
s in McCarthy, M edevelopment
Carlos L. OAlcItExecutive Director
Department Head:
`''have Y ' n
Direc f Redevelopment/Housing
Paul S. Gibson, Director of Finance
ON 4-0 6
VERIF(ED BY r
Original on file With City Clerk's Office
G:1RDA1Cathy Walker\Word Data1STAFF REPORTS1Staff rejection of all bids for Lake #3 rennovation.doc