HomeMy WebLinkAbout1978-11-07; City Council; 3652-8A; Harding St. Community Ctr. - Contract No. 1049CITY OF CARLSBAD
Initial :
Dept. Hd. (;2 AGENDA BILL NO.
DATE :
3652 - Supplement #8-A
November 7, 1978 C. Atty. va -
DEPARTMENT : Pub1 ic Works C. Mgr. \>
Subject: HARDING STREET COMMUNITY CENTER
CONTRACT NO. 1049
Statement of the Matter
Bid opening for the subject contract was held at 3:OO p.m. on October 18, 1978.
This date was an extension from the original October 4, 1978 bid date due to
lack of interest. No bids were received within the prescribed time. One late
bid was received, but its figure of $390,733 greatly exceeded the architect's
estimate of $295,319. $298,723,which is comprised of $203,758 grant funds and
$94,965 City funds, are available.
Staff had several discussions with contractors who had taken out plans on the
job in an effort to determine why no responsive bids had been submitted. It
appears as if the nature of the work, remodeling, was a restricting factor.
Those qual if ied and able to be bonded are very busy and, therefore, did not
submit bids. Additionally, we were able to verify an earlier conclusion that
all construction costs within the last six months have experienced a tremendous
inflation rate, usual ly exceeding 20%.
The Harding Street Community Center could be readvertised, but it is-unl ikely
the results would be more satisfactory and we would suffer further the results
of inflation.
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The Government Code allows Council the discretion of rejecting all bids. It
also allows Council, by the passage of a resolution by 4/5 vote, to complete
the project without further compliance with the bidding requirements.
It is staff's opinion that the use of competitive negotiation would allow the
City to obtain the most advantageous contract, would allow for some modifica-
tions without the jeopardy of losing grant funds and would minimize the further
impact of cost escalation. At such time as a contract is awarded, it will be
necessary that additional funds be made available.
Exhibits
I. Memo to City Manager dated October 23, 1978
2. Resolution No.j.(;.()b
Recommendation
If Council concurs, adopt Resolution No.SGb by a 4/5 vote; and authorize
staff to competitively negotiate the contract in an amount not to exceed 125%
of the architect's original estimate.
See Page 2 for Council action
Agenda Bill No. 3652 - Supplement #8-A Page 2
Council action:
11-7-78 Council rejected all bids and directed staff to readvertise for bids on the Harding Street Community Center - Contract
No. 1049.
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RESOLUTION NO. 5596
1.
\,A, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
I FORN I A, REJECT I NG BI DS AND AUTHOR I Z I NG COMPET I T I VE
OTlATlONS FOR CONTRACT NO. 1049 FOR HARDING STREET
MUNITY CENTER IMPROVEMENT
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WHEREAS, b,ids have been received by the City of Carlsbad for improvement
\ of Harding Street Community Center, Contract No. 1049; and
WHEREAS, the bld received for this construction, in the amount of
'i $390,733, substantial Ijexceeds the funds avai lable for the project in the
1978-79 budget; and \
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WHEREAS, the City Couhci I has determined that the pub1 ic interest requires
that Council exercise its discretion under Section 37904 of the Government Code
and reject all bids; and
WHEREAS, the City Counc i I has determi ned that the pub I i c interest requ i res
the Counci I to further exercise its 'discretion under Section 37905 of the Gov-
ernment Code and authorize competitive'pegotiations for the completion of
i mprovements of Hard i ng Street Commun i ty'$enter;
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NOW, THEREFORE, BE IT RESOLVED by the* City Counci I of the City of Carlsbad
as follows:
1. That the above recitations are true and correct.
2. That the bid for Contract No. 1049 for'improvement of Harding Street
Commun i ty Center is hereby rejected.
3. That the improvements of the Harding Street'Community Center can be
performed more economical ly by competitive negotiations:,
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PAShq, APPROVED AND ADOPTED at a regular meeting of the City Counci I of
the City of '9.1 sbad he1 d the
following vote,'to wit:
day of , 1978, by the
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AYES:
NOES : '\
ABSENT:
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ATTEST :
'\\ ,,\ RONALD C. PACKARD, Mayor
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\ ALETHA L. RAUTENKRANZ, City Clerk
i (SEAL)
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