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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 2 h h 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. 3 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. 4 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. 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. Ill Ill Ill /I/ Ill Ill Ill Ill i 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 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 \ (SEW -2- , t c 1 I 5 1C 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 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- 7 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: