The FY 15 Capital Improvement Plan (CIP) included the City Hall HVAC Upgrade Project and was split between two funding sources; one from fund 1404 in the amount of $700,000 and another from fund 1405 in the amount of $300,000.  Change Order #1 for the Alf Sorensen Natatorium Project was approved on August 11, 2014 which used $586,465 of the $700,000 allocated from fund 1404 for the HVAC Project.  In September 2014 the City received a reimbursement from TMWA for overbilling of the water service at Alf in the amount of $411,071.  On November 24, 2014 Council approved Change Order #2 for the Alf Sorensen Natatorium Project in the amount of $205,000 and used the TMWA reimbursement to fund this change order, which left $206,071 available for the HVAC Project.  In addition there was $143,939 of unspent appropriations available from the City Hall Electrical Upgrade Project (Fund 1404, CIP #13-1005).  The remaining budget available for the HVAC Upgrade project was $763,535 ($113,535 + $300,000 + $206,071 + $143,939), from all the remaining funds as noted above.  The engineers estimate for the project was $770,938, and was within 1% of the available budget.  The City Engineer made the decision to go forward with the bid and separate the bid into two parts; the BCS Control System and HVAC construction and installation.  The BCS Control portion of the bid is currently used in most City buildings and therefore was required to be sole sourced to allow for uniformity throughout the City.  By quoting the BCS portion separately we could realize savings within the project.

The construction and materials portion of the project was advertised in the Reno Gazette Journal on October 15, 2014 and digital copies were distributed to local plan rooms.   Two (2) bids were opened at City Hall on November 13, 2014.  Base Bid results ranged in cost from $629,500 to $699,000 and the bids have been evaluated and award recommendation made using the base bid amount only.  Fleet Heating and Air, Inc. was the lowest responsive and responsible bidder for this project with a base bid amount of $629,500 and a total bid amount, including Alternate #1, Alternate #2, Alternate #3, and Alternate #4, of $1,040,500.  A bid recap is given below for Councils review.

Contractor                                  Base Bid     Alt. #1      Alt. #2        Alt. #3       Alt. #4        Total                 

• Fleet Heating and Air, Inc.        $629,500   $91,000   $138,000   $92,000    $90,000     $1,040,500

• Mount Rose Heating and Air   $699,000   $110,000 $145,000      $100,000  $100,000  $1,154,000

The system also requires a BCS Control System to function properly which was directly quoted with BCS Controls with a total cost of $284,480 (attached).  The cost of the construction base bid of $629,500 along with the BCS quote of $284,480 equals a total project cost of $913,980, which is 20% over the available budget of $763,545.  Staff recommends rejecting all bids for the City Hall HVAC Upgrade Project, due to insufficient funding.  Rejection of construction bids, after they are received and opened, requires City Council action per NRS 338 and City Municipal Code, as the value of the project exceeds $50,000.

1. City Council could approve the recommendation to reject all bids for the City Hall HVAC Upgrade Project (Bid #14/15-008 / PWP #WA-2015-012) due to insufficient funding, as outlined by Staff.
2. City Council could reject the recommendation to reject all bids for the City Hall HVAC Upgrade Project (Bid #14/15-008 / PWP #WA-2015-012) due to insufficient funding, and provide direction to the City Manager.

“I move to reject all bids for the City Hall HVAC Upgrade Project (Bid #14/15-008 / PWP #WA-2015-012) due to insufficient funding.”