MEETING DATE:
OCTOBER 28, 2014
SUBJECT:
Title
RESOLUTION NO. 2014-7997 - CREEKSIDE MARKETPLACE BUILDING "A" CONSTRUCTION CONTRACT.
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract to Richard & Richard Construction Company, Inc. for the Creekside Marketplace Building "A" Construction Improvements and authorize City Manager to finalize and execute necessary contract documents.
Body
Board or Commission Action
Relevant Council Strategic Theme
Quality of Life
Economic Development
Relevant Department Goal
Professionally manage the City's extensive real estate portfolio
Introduction
After a competitive bid process, the City received bids from two contractors for the necessary construction improvements at Creekside Marketplace. These improvements will modify the exterior of Building "A" (former Lowe's building) and demise the space to create two storefronts, with one space leased to Winco Foods and the other to Hobby Lobby. Those executed leases require the improvements currently before the City Council. At the bid opening, Richard & Richard Construction Company was the apparent low bidder with a bid price of $2,488,122, or $211,878 below the estimated bid price. After reviewing the bid for responsiveness and the qualifications of the bidder, staff recommends the City Council waive minor irregularities and award the contract to Richard & Richard Construction Company.
Discussion
At the September 23, 2014 City Council meeting, the City Council authorized the release of a Request for Bids for the construction of improvements at Creekside Marketplace's Building "A". The Request for Bids was released on September 25 and posted on the City's bid/proposal site within CIPList.com. A mandatory pre-bid meeting was held at the project site to ensure all bidding contractors were familiar with the existing conditions and the scope of the project. Ten companies attended the mandatory pre-bid meeting. All bids were due on October 16, 2014 and two bids were received. The bidders and bid price are as follows:
1) Richard & Richard $2,488,122
2) Dempsey Construction $2,721,352
After reviewing the submitted bids, the City determined that Richard & Richard Construction Company was the lowest responsible and responsive bidder for the Creekside Marketplace Building "A" Improvements Project.
The project contains several milestone targets that the contractor must achieve. Missing these milestone dates will trigger liquidated damages equal to the damages the City would experience because of the delays. Based on the bids received and the qualifications of the bidder, staff recommends the City Council award the contract to Richard & Richard Construction Company.
Fiscal Impact
At the October 14, 2014 Council Meeting, staff proposed using excess unassigned general fund reserves to fund the acquisition of Building "A" and the necessary tenant improvements and construction costs. Before the City Council tonight, as a separate agenda item, is the formal request for authorization to use reserves for Creekside Marketplace Building "A" Construction Improvements, which will provide appropriations for this contract award.
Attachment(s)
Resolution
Prepared by: Geoffrey Foster, Senior Management Analyst
Reviewed by: Ellen Hegarty, Director of Real Property Services
Approved by: Jack Griffin, City Manager