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HomeMy WebLinkAbout1985-05-21; City Council; 8119-2; Rejecting Bids Carlsbad Safety and Service Center Bid Package 3 Electrical Section 3006-3ECITA JF CARLSBAD - AGEND/ )ILL AR# ,py/9-*x MTG. 5/21/85 DEPT. CM TITLE: REJECTING BIDS FOR CARLSBAD SAFETY AND SERVICE CENTER BID PACKAGE NO. 3, ELECTRICAL SECTION 3006-3E HEPT HD *jy CITY ATTYV/^/^ niTY MGR. ^^ RECOMMENDED ACTION: Adopt Resolution No. gfo.3O rejecting all bids for section 3006-3E Electrical for the Carlsbad Safety and Service Center and authorize the Purchasing Officer and City Clerk to readvertise and rebid the aforementioned sections of Bid Package No. 3. ITEM EXPLANATION; On April 2, 1985 Council authorized the advertisement of bid package No. 3 for said project. As of May 2, 1985 sealed bids were received per Exhibit 2 provided by the Koll Company. Following the bid opening it was discovered that an addendum to the bidding instructions was incorrect through no fault of the bid administrators. Due to this problem and other considerations per Exhibit 3 from the Koll Company we are recommending that these bids be rejected for section 3006-3E Electrical of Bid Package No. 3 and that the Purchasing Officer and City Clerk should readvertise and request new bids on this item. FISCAL IMPACT: Funds are available in Account No. 332-820-1810-3006. ENVIRONMENTAL IMPACT: EIR and CUP are already approved. EXHIBITS; 1.Resolution No.rejecting the bids and authorizing the rebid of section 3006-3E Electrical. 2. Summary of Bids. 3. Koll Company letter of explanation. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8030 A-''RESOLUTION OF THE CITY COUNCIL OF THE CITY OP CARLSBAD, CALIFORNIA, REJECTING ALL BIDS FOR SECTION 3006-3E ELECTRICAL OF BID PACKAGE NO. 3 FOR THE CONSTRUCTION OF THE CARLSBAD SAFETY AND SERVICE CENTER, AND AUTHORIZING THE PURCHASING OFFICER AND CITY CLERK TO READVERTISE AND REINVITE BIDS FOR THIS BID PACKAGE SECTION. WHEREAS, the City Council of the City of Carlsbad, California, has determined that it is necessary and in the public interest to install electrical systems in the Carlsbad Safety and Service Center; and WHEREAS, bids have been received for contract 3006-3E Electrical; and WHEREAS, the Construction Manager recommends that all the bids be rejected; and WHEREAS, the City Council has determine that the public interest requires the Council to exercise its discretion under Section 3.28.120 of the Carlsbad Municipal Code and reject all bids. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the bids for section 2006-3E Electrical are hereby rejected. 3. That the Purchasing Officer and City Clerk are hereby authorized to proceed to publish in accordance with law, Notice to Bidders, inviting bids for section 3006-3E of Bid Package No. 3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Carlsbad, California, at a regular meeting held on the 21st ~ day of May , 1985, by the following vote, to wit: AYES: NOES: ABSENT: Council Members Casler, Lewis, Kulchin, Chick and Pettine None None y , ATTEST:MARY H. ^CASLER, Mayor ALETHA L (SEAL) UTENKRANZ, City Clerk tf rl Cu KOLL 7330 Engineer Road San Diego California 92111-1464 Koll Construction Company (619) 292-5550 May 13, 1985 Mr. Mike Brooks City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Re: Carlsbad Safety and Service Center Bid Package #3 Rejection of the Electrical Bids Received and Authorization to Rebid Dear Mike: On May 2, 1985 competitive bids were received for bid package #3 which included among other items the building electrical work. Excellent coverage was enjoyed by our receiving twelve bids for the specified work. Kolls estimate for this work was $573,224 with a low bid being received from Circle Electric in the amount of $678,950. Although the low bid is approximately 18$ over our estimate there are several items that were expanded or added during the final programming that could explain at least part of this overrun. We also note that the low bidder has an apparent irregularity in his bid submitted whereas he has not listed subcontractors for any portion of the electrical work and specifically the Fire Alarm System (Specification 16721) requires the installer to have a C-61 and C-16 contractors license. Additionally, the Security System (Specification 16727) requires that the installation be done by an authorized manufacturers representative. We have not determined that Circle Electric complies with either one of these specified requirements. The largest item of concern is that of the prevailing wage requirements for the project. The bid package addresses the legal requirement for prevailing wages but during the prebid conference the question regarding the electrical prevailing wage was raised since there has been an approved reduction effective June 1 of this year. We were not able to satisfy the question raised without contacting the State of California Department of Industrial Relations Division of Labor Statistics and Research. This was done on April 24 and in discussion with Mr. Bob Low we were erroneously informed that the prevailing wage at time of bid must hold throughout the duration of the contract. Mr. Low was questioned at that time since this did not seem Mike Brooks May 13, 1985 Page 2 logical plus since a reduced wage would be in effect we wanted to take advantage of this lower rate with correspondingly lower bids. We reflected this information in Addendum 1 to bid package #3 dated April 26, which states in part "All bidders are responsible for current wage determinations at the time of bid. Once established said wage rate shall be fixed for the duration of the project regardless of periodic increases and/or decreases in the quarterly rate.n On bid date approximately one hour prior to closing a call was received by the architects office from the National Electrical Contractors Association (NECA) protesting this provision stating that it was illegal. This is the first feedback of this sort we had received on our Addendum. Since it was too late to verify or modify the bid document we decided to proceed with the bid opening and resolve the problem in the best manner once validity of the complaint could be determined. On May 6, I placed another call to Mr. Bob Low at the State. This time he told me that the wage rate with a double asterisk adjacent to the contract expiration date could be incorporated in and adjusted after the bid date. I of course told him this was contrary to my previous conversation with him and I'm convinced that he did not realize that the modification to the expiration date exists. Based on the current analysis of the bids received and the problem with the bid package it is our recommendation that all of the electrical bids only be rejected, the bid bonds returned and a new bid date set as soon as possible. We additionally recommend that all contractors that have previously purchased the bid package for this work be supplied with any new bidding documents at no cost. Very truly yours, ROLL CONSTRUCTION COMPANY William D. Smith Senior Project Manager WDSrds cc: Bill Miller Dennis Allison Steve Mahoney Ruth Fletcher, City of Carlsbad, Purchasing