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CITY COUNCIL AGENDA ITEM NO. 19

Meeting Date: November 18, 2008

Subject/Title: Adopt a Resolution Rejecting the Bid of A Quality Heating and Air for Bid Package No. 7 (Mechanical) as Non-responsive, Approving the Contract Documents, Awarding the Bid and Authorizing the City Manager or Designee to Execute Construction Contract and Necessary Documents to Skelton Heating and Air for the Library Relocation Project, CIP No. 337-37194, for Bid Package #7 in the Amount of $50,800, Plus a 10% Contingency of $5,080, for a Total Amount of $55,880 and Authorize the Director of Finance and Information Systems to Facilitate Internal Loans for the Library Relocation Package.

Prepared by: Gail Leech, Management Analyst

Submitted by: Karen Chew, Assistant City Manager

RECOMMENDATION
Adopt a Resolution Rejecting the Bid of A Quality Heating and Air for Bid Package No. 7 (Mechanical) as Non-responsive, Approving the Contract Documents, Awarding the Bid and Authorizing the City Manager or Designee to Execute Construction Contract and Necessary Documents to Skelton Heating and Air for the Library Relocation Project, CIP No. 337-37194, for Bid Package #7 in the Amount of $50,800, Plus a 10% Contingency of $5,080, for a Total Amount of $55,880 and Authorize the Director of Finance and Information Systems to Facilitate Internal Loans for the Library Relocation Package.

PREVIOUS ACTION
On November 13, 2007, by Resolution No. 2007-269, City Council 1) endorsed the Civic Center Conceptual Plans; 2) endorsed the City Hall and Community Center Building Plans; 3) endorsed the History Walk concept as one of the Required Art Components of the Civic Center; and 4) directed staff to proceed with this project to design development.

On February 26, 2008, LPA, Inc. gave a presentation to City Council on milestones and critical decision points for the Civic Center project. The purpose was to inform City Council of when they would be required to make decisions that will affect the progress of the project.

On May 13, 2008, by Resolution No. 2008-115, City Council approved the Swinerton Management and Consulting contract for Construction Management services for the Civic Center Project.

On May 13, 2008, by Resolution No. 2008-116, City Council approved Staff’s recommendation for the type of fountain and the trees for the Civic Center Plaza.

On May 13 2008, by Resolution No. 2008-117, City Council endorsed the City Park Master Site Plan.

On May 13, 2008, City Council continued the issue of consideration of a Resolution directing staff to Prepare Temporary Space for the Interim Library and Council Chambers at the Brentwood Education and Technology Center and directed staff to bring back a budget analysis for the costs associated with moving the library.

On May 27, 2008, by Resolution No. 2008-136, the City Council adopted the 2008/09-2012/13 Capital Improvement Program.

On June 10, 2008, City Council directed staff to pursue the temporary space for the interim library at the annex building.

On August 26, 2008, by Resolution No. 2008-219, City Council authorized the City Manager to execute an agreement with Devcon Construction Incorporated for construction management services related to the construction of the interim library at the Oak Street Annex.

On August 26, 2008, by Resolution No. 2008-220, City Council approved the Mitigated Negative Declaration for the Brentwood Civic Center project; by Resolution No. 2008-221, approved the General Plan amendment (GPA 07-02) to change the land use designation on a portion of the Civic Center site from Park to Downtown (mixed use); by Resolution No. 2008-222, approved a Downtown Specific Plan amendment to add the Brentwood Civic Center District Zone, create site development standards and permitted uses for the new district zone, and re-designate City Park, the adjacent Maple Street and Third Street and two City-owned parcels to the new district zone; and by Resolution No. 2008-223, approved a summary vacation for portions of Maple Street and Third Street.

On October 14, 2008, by Resolution No. 2008-249, City Council approved the contract documents, awarded the bid and authorized the City Manager to execute a construction contract and necessary documents with Enterprise Roofing Service, Inc. for Bid Package #1, Re-roofing work associated with the Library Relocation project, CIP No. 337-37194, and adopted Resolution 2008-251 amending the CIP Budget Sheet for the Library Relocation project.

On November 18, 2008, by Resolution No. 2008-268, City Council approved the contract documents, awarded the bids and authorized the City manager or designee to execute construction contracts and necessary documents for the Library Relocation Project, CIP No. 337-37194 for bid packages # 2 - # 9 for a total of $425,994.80 and authorized the Director of Finance and Information Systems to facilitate internal loans for the Library Relocation Package.

BACKGROUND
As directed by City Council on May 13, 2008, staff began the design work for the Interim Library at the Oak Street Annex. LPA has completed the design of this interim library and construction started in mid-October. The first major elements of the project were the re-roofing work over 104 Oak Street and the early work construction package in 118 Oak Street that were approved by City Council on October 14, 2008, and began on October 29, 2008.

The bid process was an informal process because the budgets on the bid packages were under the formal bid threshold. Project bids for bid packages # 2 through # 9 were opened on October 29, 2008. A total of 27 bids were received. Of these 27 bids, 16 were from Brentwood vendors. The other 11 were from Livermore, Tracy and Stockton areas. The bids were reviewed and the lowest responsible bids were selected. Due to a favorable bidding climate, the bids came in more than $100,000 under budget.

The bids for Bid Package # 7- Mechanical came in as follows:

1. A Quality Heating and Air $38,922.00
2. Skelton Heating and Air $50,800.00

Staff recommended the award of the contract for Bid Package # 7, to A Quality Heating and Air, in the amount of $38,922, plus a 10% contingency of $3,892.20 for a total amount of $42,814.20.

Upon Council approval of these contracts, after receipt of necessary paperwork and assurance of insurance and bonding capabilities, the contracts are then assigned to Devcon. During the compilation of the necessary paperwork, it was discovered that A Quality Heating and Air was unable to bond for the project. Civil Code Section 3247 requires a payment bond equal to 100% of the contract price for any contract over $25,000, and the City is directly liable to unpaid subcontractors and suppliers if it allows the contractor to perform without providing a bond. Since A Quality is unable to bond, as required by the contract, the City has to award the contract to the next lowest bidder. A Quality has been advised of this decision and has submitted a signed release statement waiving listing and contractual obligations for this mechanical work.

Therefore, staff recommends the award of the contract for Bid package # 7, Mechanical, to Skelton Heating and Air Conditioning, in the amount of is $50,800.00, plus a 10% contingency of $5,080.00, for a total amount of $55,880.00.

Because we wanted to allow for the maximum number of local vendors to bid during the informal bid process, the pre-qualification process was kept to qualifications and references only. Devcon did not ask for financials at the time of the bid.

Pursuant to our contract with Devcon Construction, Inc., the Construction Manager At-Risk on the project, the Skelton contract will be assigned to Devcon upon Council approval.

FISCAL IMPACT
The contract amount for bid package 7 is $50,800.00, plus a 10% contingency of $5,080, for a total amount of $55,880.00. The funds associated with this work are included in the adopted 2008/09-2012/13 Capital Improvement Program, which includes the Library Relocation Project, CIP Project #337-37194.

The funding of the Library Relocation project is contingent upon the issuance of bonds. The condition of the financial credit markets and the City’s ability to bond with reasonable interest rates will play a major role in determining the timing of the bond issuance. In the interim, staff will initiate the requisite internal loans to allow commencement of the Library Relocation project.


Attachments:
Resolution
Contract



RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD REJECTING THE BID OF A QUALITY HEATING AND AIR FOR BID PACKAGE NO. 7 (MECHANICAL) AS NON-RESPONSIVE AND APPROVING THE CONTRACT DOCUMENTS, AWARDING THE BID AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE CONSTRUCTION CONTRACT AND NECESSARY DOCUMENTS TO SKELTON HEATING AND AIR FOR THE LIBRARY RELOCATION PROJECT, CIP NO. 337-37194, FOR BID PACKAGE #7 IN THE AMOUNT OF $50,800.00, PLUS A 10% CONTINGENCY OF $5,080.00, FOR A TOTAL AMOUNT OF $55,880.00 AND AUTHORIZE THE DIRECTOR OF FINANCE AND INFORMATION SYSTEMS TO FACILITATE INTERNAL LOANS FOR THE LIBRARY RELOCATION PROJECT

WHEREAS, On November 13, 2007, by Resolution No. 2007-269, City Council 1) endorsed the Civic Center Conceptual Plans; 2) endorsed the City Hall and Community Center Building Plans; 3) endorsed the History Walk concept as one of the Required Art Components of the Civic Center; and 4) directed staff to proceed with this project to design; and

WHEREAS, on February 26, 2008, LPA, Inc. gave a presentation to City Council on milestones and critical decision points for the Civic Center project. The purpose was to inform City Council of when they would be required to make decisions that will affect the progress of the; and

WHEREAS, on May 13, 2008, by Resolution No. 2008-115, City Council approved the Swinerton Management and Consulting contract for Construction Management services for the Civic Center Project; and

WHEREAS, on May 13, 2008, by Resolution No. 2008-116, City Council approved Staff’s recommendation for the type of fountain and the trees for the Civic Center Plaza; and

WHEREAS, on May 13 2008, by Resolution No. 2008-117, City Council endorsed the City Park Master Site Plan; and

WHEREAS, on May 13, 2008, City Council continued the issue of consideration of a Resolution directing staff to Prepare Temporary Space for the Interim Library and Council Chambers at the Brentwood Education and Technology Center and directed staff to bring back a budget analysis for the costs associated with moving the library; and

WHEREAS, on May 27, 2008, by Resolution No. 2008-136, the City Council adopted the 2008/09-2012/13 Capital Improvement Program; and

WHEREAS, on June 10, 2008, City Council directed staff to pursue the temporary space for the interim library at the annex building; and

WHEREAS, on August 26, 2008, by Resolution No. 2008-219, City Council authorized the City Manager to execute an agreement with Devcon Construction Incorporated for construction management services related to the construction of the interim library at the Oak Street Annex ; and

WHEREAS, on October 14, 2008, by Resolution No. 2008- 249, City Council approved the contract documents, awarded the bid and authorized the City Manager to execute a construction contract and necessary documents with Enterprise Roofing Service, Inc. for Bid Package #1, Re-roofing work associated with the Library Relocation project, CIP No. 337-37194, and adopted Resolution 2008-251 amending the CIP Budget Sheet for the Library Relocation project; and

WHEREAS; On November 18, 2008, by Resolution No. 2008-268, City Council approved the contract documents, awarded the bids and authorized the City manager or designee to execute construction contracts and necessary documents for the Library Relocation Project, CIP No. 337-37194 for bid packages # 2 - # 9 for a total of $425,994.80 and authorized the Director of Finance and Information Systems to facilitate internal loans for the Library Relocation Package; and

WHEREAS, the bid process was an informal process. Project bids for bid packages # 2 through # 9 were opened on October 29, 2008. A total of 27 bids were received. The bids were reviewed and the lowest responsible bids were selected; and

WHEREAS, staff recommended the award of the contract for Bid Package # 7, to A Quality Heating and Air, in the amount of $38,922, plus a 10% contingency of $3,892.20 for a total amount of $42,814.20; and

WHEREAS, upon Council approval of these contracts, after receipt of necessary paperwork and assurance of insurance and bonding capabilities, the contracts are then assigned to Devcon. During the compilation of the necessary paperwork, it was discovered the A Quality Heating and Air was unable to bond for the project. Civil Code Section 3247 requires a payment bond equal to 100% of the contract price for any contract over $25,000, and the City is directly liable to unpaid subcontractors and suppliers if it allows the contractor to perform without providing a bond;

WHEREAS, since A Quality is unable to bond, the City has to award the contract to the next lowest bidder; and

WHEREAS, staff recommends the award of the contract for Bid package # 7, Mechanical, to Skelton Heating and Air Conditioning, in the amount of $50,800.00, plus a 10% contingency of $5,080.00, for a total amount of $55,880.00; and

WHEREAS, pursuant to our contract with Devcon Construction, Inc., the Construction Manager At-Risk on the project, the contract with Skelton Heating and Air Conditioning will be assigned to Devcon upon Council approval.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby”:

1. Authorizes the City Manager or designee to execute a construction contract and necessary documents with Skelton Heating and Air Conditioning in the amount of $50,800.00, plus a 10% contingency of $5,080.00, for a total amount of $55,880.00; and

2. Authorize the Director of Finance and Information Systems to facilitate internal loans for the library relocation project.


PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9th day of December 2008 by the following vote:
 
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