HomeMy WebLinkAbout10 REJECTION OF ALL BIDS FOR THE SOUTH HANGAR RENOVATIONAgenda Item
Reviewed:
City Manager
Finance Director
AGENDA REPORT
MEETING DATE: AUGUST 15, 2023
TO: MATTHEW S. WEST, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT AND ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: REJECTION OF ALL BIDS FOR THE SOUTH HANGAR RENOVATION (CIP NO.
10076)
SUMMARY
Staff is recommending that the City Council reject both bid proposals received on July 11, 2023 for
the South Hangar Renovation, CIP No. 10076. The City received only two (2) bids for this project,
both higher than the engineer's estimate, with the lowest being approximately 13.7% over the
engineer's estimate. In addition, staff has determined that adding the limited civil work to the
Neighborhood D South Phase 2 - Package #1 bid set would allow the City to require a Class B
contractor's license instead of a Class A license, and further to split the structural work from the
electrical work, both in an attempt to provide flexibility for a determination of its approach to get more
bidders and more competitive bid numbers.
RECOMMENDATION
It is recommended that the City Council reject the two (2) bids received on the South Hangar
Renovation, CIP No. 10076 and direct the City Clerk to return all bid bonds.
FISCAL IMPACT
The City’s Capital Improvement Program (CIP) budget for South Hangar Renovation, CIP No. 10076
is $6,446,934, of which approximately $5,750,000 was allocated for construction which includes a
20% contingency. This project is funded through the Land Sale Proceeds Fund (Fund 189).
CORRELATION TO THE STRATEGIC PLAN
The South Hangar Renovation project contributes to the fulfillment of the City’s Strategy Plan Goal
A: Economic and Neighborhood Development. Specifically, the project implementation of Strategy
1, which among other items, is to develop critical phases of Tustin Legacy. The South Hangar
Renovation project also contributes to fulfilling Goal B: Public Safety and Protection of Assets,
specifically the project implementation of Strategy 5, which is to create and implement a plan to
protect the City’s public assets.
DISCUSSION AND BACKGROUND
City Council adopted Resolution No. 22-62 approving the plans and specifications and authorized
and directed the City Clerk to advertise for bids on November 15, 2022. The bids were opened on
July 11, 2023 and evaluated. The City received two (2) bids as follows:
•Nationwide Contracting Services, Inc. .................................. $ 6,528,709.00
•Metro Builders & Engineers Group, Ltd. ............................... $ 8,025,612.00
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Bid Rejection for South Hangar Renovation, CIP No. 10076
August 15, 2023
Page 2
Pursuant to the City Attorney's review and Public Contracts Code Section 20166, staff recommends
the City Council reject both bids. Staff will return to City Council with recommendations related to
next steps for this project at a later date.
Douglas S. Stack, P.E. Christopher Koster
Director of Public Works/City Engineer Director of Economic Development
Attachment 1: Location Map
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City of Tustin
Project Name: South Hangar Renovation Project, CIP No. 10076
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