REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW17-09 for the Roof Replacement for Fire Station #2 Re-Bid, Determination of Bid Non-responsiveness and Waiver of Minor Bid Irregularity, and Finding of California Environmental Quality Act (CEQA) Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $172,000 to Roofing & Solar Construction Inc. of Hayward. Approval is also requested for a 15% construction contingency in the amount of $25,800.
EXISTING POLICY
Section 1309 of the City Charter requires public works construction contract to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for the project is a categorical exemption pursuant to CEQA Guidelines Section 15301(d), for the restoration or rehabilitation of deteriorated or damaged structures.
BACKGROUND AND DISCUSSION
Capital Project 818100 (Public Safety Buildings - Roofs) provides for roof replacement at Public Safety Headquarters and the Fire Station Buildings. Replacement of the Headquarters roof (700 All America Way) was completed in FY 2011/12. The second phase of the project is the replacement of the tar and gravel for Fire Station Nos. 1-4 and 6. The second phase was divided into two sub-phases. The first sub-phase for the roof replacement of Station Nos. 1,3,4, and 6 was awarded by Council on April 21, 2015 (RTC No. 15-0352) and the project was completed in FY2015/16. The final phase of the project is to complete the roof replacement for Fire Station No. 2.
An Invitation for Bids was issued on April 2016 for Roof Replacement for Fire Station No. 2 with three bids received. On June 28, 2016, Council rejected all bids (RTC No. 16-0473). The lowest bid was determined to be non-responsive and the other two bids were substantially higher than the engineer’s estimate of $224,000. The project was re-advertised in the Sunnyvale Sun on December 16, 2016, with ten general contractors requesting bid documents. Sealed bids were opened on January 18, 2017, with six bids being received. The bid summary is contained in Attachment 1.
The lowest bid received contained two math errors, including an error which resulted in a total bid that was approximately $10,000 lower than the sum total of the bid line items. In accordance with the City’s bid instructions, the lower bid price must prevail (which is the accepted bid price of $172,000). The low bidder acknowledged the error and confirmed the $172,000 bid price via email. The second lowest bid was received from MP Roofing of San Ramon, in the amount of $197,020. This bid is considered non-responsive because the bidder did not provide the at least five projects with a contract amount higher than $180,000 completed within the last five years. For this reason, staff recommends that Council determine the bidder to be non-responsive.
It should be noted that the low bidder, Roofing & Solar Construction Inc., did not acknowledge two addenda (Addendum #3 and #4) issued by the City as due to a clerical error by City staff the low bidder did not receive Addendum #3 and 4. Depending on the factual circumstances, the failure to acknowledge addenda can lead to a bid rejection, or determination of non-responsiveness (such as the issuance of an addendum that materially changes the specifications and/or bid pricing). In this case, the two addenda resulted in no material impacts to the bid. Since the bidder was not aware of the addenda, and no changes were made to the specifications which impacted bid pricing, the Council may waive the omission as a minor bid irregularity.
A contingency higher than the customary 10% is recommended due to a higher risk of unknown and unforeseen conditions that are inherent to renovation of older facilities. Due to the age of the facility and the existing solar panels that need to be removed and reinstalled, there is potential for extra work required by the contractor once demolition begins.
FISCAL IMPACT
Project costs include the base bid of $172,000 and a recommended 15% contingency in the amount of $25,800, for a total of $197,800. Budgeted funds are available in Capital Project 818100 (Public Safety Buildings - Roof).
Funding Source
This project is funded by a General Fund transfer to the Infrastructure Renovation and Replacement Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Make a finding of California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines Section 15301(d) for the restoration or rehabilitation of deteriorated or damaged structures; 2) make a determination to waive the minor bid irregularity for Roofing & Solar Construction Inc. and award a contract in substantially the same form as Attachment 2 to the report and in the amount of $172,000 to Roofing & Solar Construction Inc. and authorize the City Manager to execute the contract when all necessary conditions have been met; 3) approve a 15% construction contingency in the amount of $25,800; and 4) make a determination that the bid received from MP Roofing is non-responsive.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Manuel Pineda, Director of Public Work
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract