Administrative
Report
H.5., File # 24-1701 Meeting Date: 12/10/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
REJECT ALL BIDS FOR THE NORTH PIER PARKING STRUCTURE REPAIRS PROJECT, JOB NO. 70610 AND DIRECT STAFF TO REVISE THE SCOPE OF THE PROJECT AND RE-ADVERTISE
THE UPDATED CONSTRUCTION DOCUMENTS
EXECUTIVE SUMMARY
On July 30, 2024, the City Council approved plans and specifications for the North Pier Parking Structure Repairs Project, Job No. 70610 (Project). On October 30, 2024, four bids were received and publicly opened. The apparent low bid for the Project exceeds the available Project budget by roughly $1,200,000, without accounting for contingency and construction management costs. Therefore, staff recommends the City Council reject all bids, work with the designer to value engineer certain elements of the Project where possible, reduce the scope of the base bid by reclassifying some tasks as optional, and re-advertise the Project.
BACKGROUND
The Project includes improvements to the seismic strengthening and non-seismic rehabilitation of the North Pier Parking Structure, which is a three-level concrete structure built in the early 1960’s. During the design process, it was anticipated that construction costs to address all three levels of the North Pier Parking Structure would exceed budget. Although concrete structures like this are quite common, the cost for the Project has been difficult to predict using industry cost indices due to the site’s physical constraints, very limited access for equipment and materials to the area, and the overall volatility of construction inflation in the current market. With this uncertainty, the Project advertisement was structured for bidding to prioritize the seismic strengthening and non-seismic structural rehabilitation of the basin level and deck of the plaza level (the former Fun Factory and restaurant space). Work items on the remainder of the plaza level and the village level, which is adjacent to Kincaid’s restaurant, were included as additive bid items and, as the budget allowed, could be included in the contract depending on the bid results.
On September 19, 2024, the Project was advertised and the four bids received were publicly opened on October 30, 2024. The apparent lowest bidder’s base bid was reported as $2,826,700 at the time of the bid opening. However, after staff reviewed the bid, it was determined that the prospective vendor incorrectly tabulated the total cost of the bid, and the lowest base bid was actually $3,253,005. The funding available for construction of the Project totals only $2,096,000.
To address the funding shortfall, staff plan to review the overall scope of the Project and designate select work items as optional tasks in order to reduce the base scope, while still ensuring the Project advances the overall objectives of seismic and structural improvement to the Pier Parking Structure. If subsequent bids are favorable, the optional items can be added to the contract at the time of award.
Therefore, it is recommended the City Council reject all bids received and publicly opened on October 30, 2024, direct staff to value engineer and refine the Project’s scope of work for the base bid, and authorize the City Clerk to re-advertise the project.
COORDINATION
The Project has been coordinated by the Public Works and Waterfront and Economic Development Departments.
H.5., File # 24-1701 Meeting Date: 12/10/2024
FISCAL IMPACT
There is no fiscal impact associated with the recommendation to reject all bids. The amount of funding available for construction of the Project is $2,096,000.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Bid Transmittal - October 30, 2024