HomeMy WebLinkAbout1997-10-21; City Council; 14386; Reject Bids Readvertise New Bids Library Project-
CITY OF
-4.
CARLSBAD - AGENDA BILL
AB# 153&h TITLE:
REJECTION OF BIDS AND AUTHORIZATION TO
MTG. /&?I - 9 7 READVERTISE FOR NEW BIDS FOR THE CONSTRUCTION
OF THE CARLSBAD CITY LIBRARY PROJECT
DEPT. CD
RECOMMENDED ACTION:
ADOPT Resolution No. 9 3 - lp 3 7 REJECTING all bids received on September 4, 1997 for
the construction of the Carlsbad City Library Project.
ADOPT Resolution No. 9 3 -6 38 APPROVING the plans and specifications and authorizing
the advertisement of new bids for the construction of the Carlsbad City Library Project and
APPROVING Amendment No. 4 to an existing agreement with the City’s project design team of
Cardwell - McGraw, Architects for construction phase architectural services.
ITEM EXPLANATION:
On July 22, 1997, the City Council approved the plans and specifications and authorized the
advertisement of bids for the construction of the Carlsbad City Library Project. On September 4,
1997, nine (9) sealed bids were received by the Purchasing Department and opened as follows:
FTR International
Taylor - Ball
SOLPAC, Inc.
Bernard Brothers
Douglas E. Barnhart
California IBA, Inc.
Roman ECD, Inc.
AR Willinger, Inc.
Lewis Jorg
Irvine, California
La Mesa, California
San Diego, California
San Fernando, California
San Diego, California
Inglewood, California
Los Angeles, California
Newport Beach, California
Orange, California
$ 9,240,OOO
$ 9570,000
$ 9,675,OOO
$ 9,885,OOO
$ 9,888,888
$10,086,000
$10,625,000
$10,742,000
$11,878,000
CITY’S FINAL DESIGN ESTIMATE: $10,600,000
The City received a formal letter of bid protest on September 12, 1997 from the second low
bidder Taylor - Ball addressing several alleged errors in the bid documents submitted by the
apparent low bidder and protesting the award of the contract to FTR International. The City
received a subsequent letter dated October 6, 1997 from the San Diego Chapter of the Associated
General Contractors of America supporting the Taylor - Ball bid protest. In consultation with the
City Attorney’s Office, on September 15, 1997 City staff requested written clarification and
substantial additional information from the apparent low bidder FTR International to address
several irregularities in the bid submittal, including issues articulated in the September 12, 1997
bid protest letter. On September 23, 1997, FTR International replied to the request for further
information and clarification. Over the last several weeks, all of this additional material has been
reviewed at length by City staff from the Community Development, Purchasing, and Library
Departments, the City Attorneys Office, the City’s consulting Construction Managers, and the
City’s Architect team for this project.
. PAGE 2 OF AGENDA BILL NO. )q; 3&
Because of the complexities of the issues and the wide range of potential interpretations of the
issues, staff is concerned for the potential for litigation that may arise from either of the disputing
low bidders if the current contract is awarded to either party. This direction could potentially
result in substantial delay to the City’s Library project and considerable litigation defense cost to
the City due to no fault of the City whatsoever. City staff strongly recommends against assuming
this risk.
Therefore, it is the recommendation of City staff that the City Council follow the provisions of
California Public Contracts Code Section 20166, et. seq., and reject all bids received on
September 4, 1997 and readvertise for new bids for the project. The California Public Contracts
Code empowers the City, in its discretion, to reject all bids without findings of fact or fault. The
legislative intent of this discretion is to enable public agencies to correct situations such as the one
before the City at this time with no resulting risk or cost to the public agency.
Readvertising for bids for the Library project will result in an estimated 90-day delay to the City’s
overall project schedule. Breaking ground on the new facility will be pushed back from October
to approximately January. However, the maintenance and operating funds for the new Library
are scheduled to be appropriated and available beginning July 1, 1999 (F.Y. 1999-2000). The
construction and outfitting of the new facility can still occur within the available 18 month time
period and be completed during the Summer of 1999 at the time when maintenance and operating
funds are available. Staff believes the 90-day delay as a result of the current bidder’s dispute will
have little effect upon the overall project schedule.
Staff recommends the City Council adopt the accompanying two (2) resolutions which will
formalize the rejection of the current bids and authorize the advertisement of new bids for the
Carlsbad City Library Project.
The question remains as to whether a similar bidding dispute will occur after bids are received a
second time for this project. There is no reasonable way for a public agency to assure that private
contractors will approach the public bidding process, and fill out all of the required
documentation, correctly. City staff has taken steps to even further clarify the specific
requirements in the bid forms and try and reduce the potential for dispute as well as exposure to
the City. These minor modifications and clarifications may assist the bidders this second time
around, however, in the end it is the individual bidders themselves that will determine if their
own approach to bidding the project will ensure the highest quality of finished product at the
fairest market value.
Also included for the City Council’s review and approval is Amendment No. 4 to the existing
City agreement with the City’s design team, Cardwell - McGraw, Architects, to provide the
considerable construction phase architectural services needed for the project. In coordination with
the City’s retained construction management representatives, the architect team will receive and
process countless individual equipment and materials submittals during the construction of the
project. The architects will review and evaluate all contractor requests for substitutions, requests
for information, and proposed change orders. Cardwell - McGraw will oversee all of the
subconsulting members of the design team, such as civil, structural, mechanical, electrical,
signage, audio-visual, landscaping, and interior design. The Seattle, Washington based half of
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PAGE 3 OF AGENDA t3lLL NO. ) ‘-/; 386
the City’s architect team (Cardwell - Thomas, Architects) will make a total of four (4) site visits
during key points in the construction sequence to evaluate conformance with the project plans and
specifications. The architects will be present during the delivery and installation of the interior
furnishings and will also oversee the incorporation of the public art pieces into the building. The San Diego based half of the City’s architect team (McGraw - Baldwin, Architects) will be present
during the weekly project status meetings with the contractor and construction manager. The architects will also produce the official record set of project drawings of the completed project
which is of critical importance to the City’s long term maintenance of the building.
Two (2) recent recommendations from the architect team are included in this scope of services.
The first is the incorporation of minor modifications to the specified electric lighting equipment
and dimming control system in the auditorium to take advantage of technology advances in this
area since the project plans were first prepared in 1990. The proposed auditorium lighting
modifications will increase the lighting wattage and coverage on the stage and provide more
flexibility for dimming control within the entire room. The result will be a much better quality of
lighting on the stage area and improved quality of all Library activities in the auditorium.
Secondly, the architects have recommended a minor up-sizing of the cooling tower and chiller
mechanical equipment to take advantage of available space in the outdoor equipment yard and the
very favorable bidding climate for the project. What is proposed is the addition of another ton of
cooling capacity in the mechanical equipment which will enable the building to more efficiently
regulate temperatures. As data technologies advance, the number of computers, both fixed units
in the Library and portable personal units brought into the building by the public, are expected to
increase dramatically over time. Computer hardware is one of the major heat producers in the
building. The architects are also recommending the slight increase in cooling capacity to extend
the long term life of the mechanical equipment. The up-sized mechanical equipment will work
more efficiently during the peak demand periods when the facility, and in particular the
auditorium, is operating at full capacity and, therefore, require less long term maintenance.
Both of these recommendations from the architects are items of work the City likely would have
sought to incorporate during construction of the building through the owner (City) initiated
change order process. However, it is much more efficient and, ultimately, far less expensive to
the City to incorporate these modifications now and have them included in the plans and
specifications for bid this second time.
This Amendment No. 4 would have been a part of the award of construction contract agenda bill
had the current bids proceeded to award. Staff recommends the approval of Amendment No. 4 at
this time.
FISCAL IMPACT:
The City Council has appropriated a total of $17.5 million for the development of the Carlsbad
City Library Project in the fiscal 1997-98 Capital Improvement Program budget. This budget
includes the substantial City provided furnishings, equipment, and systems to be installed in the
building.
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PAGE 4 OF AGENDAiLL NO. 14; 3 %(o
The total value of Amendment No. 4 with Cardwell - McGraw is $457,160 and is also a
component of the overall project budget.
Staff wishes to point out there is no guarantee that the new bids received will be the same as those
received on September 4, 1997. However, given the current construction bidding climate, staff
believes they may be very similar.
EXHIBITS:
1. Resolution No. 9 3 - 63 ‘) rejecting bids for the construction contract for the
Carlsbad City Library Project.
2. Resolution No. 9 7 e 6 38 approving the plans and specifications and authorizing the
readvertisement of bids for the Carlsbad City Library Project and approving Amendment
No. 4 with Cardwell - McGraw for construction phase architectural services.
3. Amendment No. 4 with Cardwell - McGraw, Architects.
4. Plans and specifications on file with the Community Development Department.
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RESOLUTION NO. 97-637
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
,.CAR&SBAD, CALIFORNIA, REJECTING ALL BIDS FOR THE
CARLSBAD CITY LIBRARY PROJECT. PROJECT NO. 32441
WHEREAS, the City Council of the City of Carlsbad, California, on July 22, 1997
approved the plans and specifications and author&d the advertisement of bids for the
construction of the Carlsbad City Library Project, Project No. 32441; and
WHEREAS, the City received nine (9) sealed bids on September 4, 1997 which the City
subsequently opened and thereafter has reviewed for said project; and
WHEREAS, with respect to said bids, the City hereby finds it necessary, desirable, and in
the public interest to follow the provisions of California Public Contracts Code Section 20166,
et. seq., whereby the City, in its discretion, may reject all bids and elect, in its further discretion,
to seek new bids for said project.
NOW, THEREFORE, be it resolved as follows:
1. That the above recitations are true and correct.
2. That the City Council of the City o.f Carlsbad, California, does hereby reject all
bids received on September 4, 1997 for the Carlsbad City Library Project in accordance with the
provisions of California Public Contracts Code Section 20166, et. seq.
3. That the City Council does hereby author& the Purchasing Officer to return all
bid bonds received for this bid to the respective bidders.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City
Council held on the 28th day of October , 1997, by the following vote,
to wit: -*
AYES: Council Members Nygaard, Kulchin and Hall
NOES: Council Members Lewis and F'innlla
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk \
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RESOLUTION NO. 97-638
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAB, CALIFORNIA, APPROVING THE PLANS AND
SPECIFICATIONS, AUTHORIZING THE ADVERTISEMENT OF
BIDS, AND APPROVING AMENDMENT NO. 4 TO AN EXISTING
AGREEMENT FOR THE CONSTRUCTION OF THE CARLSBAD
CITY LIBRARY PROJECT. PROJECT NO. 32441.
WHEREAS, the City Council of the City of Carlsbad, California, has previously
appropriated funds in the 1997-98 Capital Improvement Program budget for the construction of
the Carlsbad City Library Project; and
WHEREAS, the plans, specifications, contract documents, and integrated public art
components have been designed and are ready for advertisement of con&uction bids; and
WHEREAS, a scope of work and fee schedule have been prepared for the City’s project
architect team of Cardwell - McGraw, Architects to provide extensive construction phase
services for said project; and
WHEREAS, the City Council hereby finds it necessary, desirable, and in the public
interest to proceed with the advertisement of construction bids for the Carlsbad City Library
Project.
NOW, THEREFORE, be it resolved as follows:
1. That the plans and specifications as modified for the Carlsbad City Library
Project are hereby approved.
2. That the public art components to be integrated within the building are hereby
approved.
3. That the City Clerk is hereby author&d and directed to publish, in accordance
with State law, the “Notice to Contractors Inviting Bids” for the construction of the Carlsbad
City Library Project.
4. That Amendment No. 4 to an existing agreement with Cardwell - McGraw,
Architects is hereby approved. Following the Mayor’s signature of this amendment, the City
Clerk is directed to forward copies of this resolution and the signed amendment to McGraw-
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City of Carlsbad
City Clerk Office
1200 Carlsbad Village Dr.
Carlsbad. CA 92008
Attention: Honorable City Council
-
ti AGENDA ITEM # J
a Mayor
city council
city Manager
City Attorney
City Clerk
October 24, 1997
Reference: Carisbad City New Library / Agenda Item (5)
Subject: Indemnity Agreement
Please find enclosed our indemnity agreement as 1 have proposed to you on October 14,1997 during
the City Council Meeting.
I hope you would find it acceptable and would proceed in awarding the project to our company. If
you have any questions, please do not hesitate to call me at (714) 263-8170.
Thank you, Thank you,
President President
NK:yb
cc: Claude Lewis, City Major
Ramona Finnilia, Mayor Pro Tern
Julienne Nugaard, Council Member
AM Kulchin, Council Member
.Llatc Hall, Council Member
Ron Ball, City Counsel
Brad Raisin, Esq.
FTR INTERNATIONAL INC. JAMBOREE CENTER. 5 PARK PLAZA, SUITE 1240, IRVINE CA 92714 (714) 263-8170 FAX (714) 263-8176
.
AGREEMENT
This agreement between FTRIntemational, Inc. (“FTR”) and the City of Carlsbad (the “City”)
is entered into with reference to the following facts:
-4. FTR in a general contractor and was the low bidder on the City’s Library Project (the
“Project”).
B. Taylor-Ball is a general contractor that was the second low bidder on the Project.
Taylor-Ball’s bid was $330,000 higher that FTR’s bid. Taylor-Ball mailed a letter to the
City Protesting FTR’s bid.
c. The City would like to obtain the $330,000 savings and award the Project to FTR., but
the City is concerned that if it awards the Project to FTR, Taylor-Ball will initiate
litigation. In that event, the City might suffer a delay in the Project an incur legal
expenses and potential liabilities.
D. FTR believes that the protest by ‘Taylor-Ball is frivolous and that there is no reasonable
chance that Taylor-Ball will succeed in court if it files a legal action. FTR therefore desires to eliminate the City’s concerns about the potential risks of litigation in order to
induce the City to award the Project to FTR as the low bidder.
THEREFORE, the parties hereby agree as fohows:
1. The City will award the Project to FTR as low bidder and execute a contract forthwith.
_)
-. WR agrees to defend and indemnitjr the City against all claims, suite actions or other
proceedings brought by Taylor-Ball relating to the bid or the award of the Project. In particular, FTR
will do all of the following:
(a) FTR will hi counsel at its expense to defend the City. The Ciry will never incur
litigation expenses of any kind.
awards. (b) FTR will fully indemnify the City against any claims, demands, judgments or
cc> If for any reason the progress or’tie construction is s&ayed or enjoined by a court
for a period longer than 45 days, FTR agrees to withdraw its bid and permit the City to rebid the Project.
FIR sprees to this provision so that the Ciry will not have to worry about a long delay in the
construction of the Project. FTR rherefore ensures that the progress of the Project will be uninterrupted
because oi the protest by Taylor-Ball.
Dated: October 23, 1997
Dated: