Sparks City Council Meeting 5/8/2017 2:00:00 PM

    Monday, May 8, 2017 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

General Business: 9.3

Title: Consideration, discussion and possible approval to reject all bids for the Municipal Court Security Entrance Remodel Project due to insufficient funding.
Petitioner/Presenter: John A. Martini, P.E., Community Services Director/Brian D. Cason, S.E., P.E., Capital Projects Manager
Recommendation: Staff recommends Council reject all bids due to insufficient funding.
Financial Impact: None.
Business Impact (Per NRS 237):
     A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

Staff advertised a formal bid for the Municipal Court Security Entrance Remodel Project and received six (6) bids on Wednesday March 29, 2017 at 2:00 p.m.  The low bid for the project was $269,500 submitted by Reyman Brothers Construction, which is 40% over available budget.  City staff recommends rejecting all bids due to insufficient funding.



Background:

A security entrance remodel project was approved by the City Council for the FY 17 CIP.  The scope of the project included a new storefront, security desk, flooring, ceiling, soffits, HVAC, and electrical work.  The engineers estimate was $195,000 with the low bid coming in at $269,500.  The low bid is 40% over the engineer’s estimate, which places the current low bid well over available funding to proceed with the project as designed. 



Analysis:

Six (6) bids were opened at City Hall on March 29, 2017 at 2:00 p.m.  Bid results ranged from $269,500 to $384,290 with the engineer’s estimate at $195,000.  Reyman Brothers Construction was the lowest responsive and responsible bidder for this project, with a total bid amount of $269,500, which included a force account of $20,000.

The primary reason for the overage appears to be a shortage of skilled labor and the significant amount of construction occurring in the area.  Prevailing wage was not included in the engineer’s estimate because it was less than $250,000; however, bid prices exceeded $250,000, therefore the contractor’s bid included prevailing wage, which contributed to the increase in the total bid amount.

City of Sparks Municipal Code and Nevada Revised Statutes require Council action to reject bids if the value of the bid exceeds $50,000.   A bid recap is provided below for Council’s review.  This FY 17 project will need to roll to FY 18 in order to allow staff enough time to re-evaluate the project.  This will enable staff to determine cost savings that will minimize the impact on the original intent of the project and remain within budget.  Staff recommends the City Council reject all bids due to insufficient funding.

Reyman Brothers Construction                                 $269,500

Truckee Meadows Construction                                $289,269

J&S Construction                                                       $292,597

Bruce Purves Construction                                        $298,995

Pellett Construction                                                    $308,270

Walker River Construction                                         $384,290



Alternatives:
  1. City Council could reject all bids as outlined by Staff.
  2. City Council could provide direction to the City Manager.


Recommended Motion:

I move to reject all bids for the Municipal Court Security Entrance Remodel Project.



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