CC - Item 7D - City Hall Heating, Ventilation, and Cooling System Replacement - Rejection of BidsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CICOUNCIL
FROM: JEFF ALLRED, CITY MANAGER Vl ► V "/
DATE: OCTOBER 25, 2011
SUBJECT: CITY HALL HEATING, VENTILATION, AND COOLING SYSTEM
REPLACEMENT/ ENERGY EFFICIENCY CONSERVATION BLOCK
GRANT (EECBG) — REJECTION OF BIDS
SUMMARY
As part of the City's 2010 -11 Capital Improvement Program budget, the City Council
approved a program titled Citywide Energy Efficiency Improvements, which consists of
several modernization projects of existing infrastructure and systems at City facilities.
This project includes the replacement the Heating, Ventilation and Cooling System
(HVAC) for the City Hall facility. The engineer's estimate for this project was $180,000
provided through the American Recovery and Reinvestment Act of 2009 (ARRA). On
October 19, 2011, bids were received and reviewed for the project.
Staff Recommendation
It is recommended that the City Council reject all bids received for this project and direct
staff to readvertise the project for bid.
DISCUSSION
At 11:00 AM on October 19, 2011, the City Clerk opened and read the following total bid
prices for this project:
Bidder Total Bid Price
1 Pardess Air, Inc. $ 372,000.00
2 Liberty Climate Control $ 399,000.00
3 Air -Ex Air Conditioning, Inc. $ 418,947.00
4 Allison Mechanical, Inc. $ 420,925.00
The City Hall facility HVAC project involves replacing the existing cooling tower,
furnace, and electrical accessory components with a more energy efficient system. The
existing HVAC system is considered a high energy consumer by today's standards.
The proposed project would replace the old ducting, cooling tower /heating units, and
electrical equipment with state -of- the -art, high Seasonal Energy Efficiency Ratio (SEER)
units. It is expected that energy consumption for City Hall would be significantly
APPROVED FOR CITY COUNCIL AGENDA: M NO,
City Council Meeting
October 25, 2011
Page 2 of 2
reduced, saving both energy and ongoing operating costs. The City's mechanical,
electrical, and plumbing consultant engineer designed the project on behalf of the City
and the estimated cost for the project was set at $180,000.
On October 12, 2011, a pre -bid meeting was held and eighteen (18) contractors were in
attendance. Of this number, only four (4) submitted bids for the project.
The lowest bidder, Pardess Air, Inc., submitted a bid of $372,000, which was well over
the engineer's estimate. After receiving high bid prices, staff further reviewed the bid
package and project specifications. Based on the review, it was determined that
language contained in the project specifications required that bidders use only one
specific type of HVAC equipment manufacturer. However, it is common practice to
include language that allows the use of "approved equals' or like products when
providing project bids, which in this case was unfortunately omitted. Providing greater
flexibility typically allows contractors to "shop around" for products that are similar in
quality, but are more competitive in price.
It is expected that rebidding this project with greater flexibility in the procurement of
equipment will allow the City to receive more competitive bid prices. Rebidding this
project will allow staff to clarify language in the project specifications and then
readvertise the project for a two -week period. Staff will also directly contact contractors
in the area and inform them of this project in order to receive additional bids.
In accordance with the contract bid documents reviewed by each contractor, the City
Council /Agency reserves the right to reject any or all proposal and readvertise bids.
FINANCIAL REVIEW
Funding for this project is provided for in the City's approved FY 2011 -12 Capital
Improvement Program Budget through the Energy Efficiency Conservation Block Grant
program.
ENVIRONMENTAL REVIEW
The project is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15301 (a) of the CEQA Implementing Guidelines. This
exemption covers building alterations involving partitions, plumbing, electrical, etc.
Submitted by:
Chris Marcarello
Public Works Director
Submitted by:
Farid Hentabli
Assistant Public Works Director
Attachments:
(1) Bid Summary /Comments
City of Rosemead
Public Works service DepartmentlEngineering Division
CITY OF ROSEMEAD
ROSEMEAD CITY HALL HVAC REPLACEMENT PROJECT
PROJECT No. 31002
BID ANALYSIS
Bid Opening: October 19, 2011 (d 11:00 am.
Base Bid Schedule
Pardess Air, Inc #1
Item
Description
Unit
Qty
Unit Price
Total
1
Clearinq & Grubbin
LS
1
$ 2,000.00
$ 2,000.00
2
Disposal of Waste Materials
LS
1
$ 1,000.00
$ 1,000.00
3
Remove and Dispose Existing AC Unit
Complete. Install new HVAC Unit as
indicated on the Plans and
Specifications Complete.
LS
1
$ 369,000.00
'
$ 369,000.00
Total Base Price -
$ 372,000.00
Libe Climate Control - #2
Item
Description
Unit
Qty
Unit Price
Total
1
Clearing & Grubbing
LS
1
$ 2,000.00
$ 2,000.00
2
Disposal of Waste Materials
LS
1
$ 500.00
$ 500.00
3
Remove and Dispose Existing AC Unit
Complete. Install new HVAC Unit as
indicated on the Plans and
Specifications Complete.
LS
1
$ 396,500.00
$ 396,500.00
Total Base Price
$ 399,000.00
Air -Ex Air Conditioning, Inc. #3
Item
Description
Unit
Qty
Unit Price
Total
1
Clearing & Grubbing
LS
1
$ 5,000.00
$ 5,000.00
2
Disposal of Waste Materials
LS
1
$ 500.00
$ 500.00
3
Remove and Dispose Existing AC Unit
Complete. Install new HVAC Unit as
indicated on the Plans and
Specifications Complete.
LS
-
1
$ 413,447.00
$ 413,447.00
Total Base Price
$ 418,947.00
Allison Mechanical, Inc. #4
Item
Description
Unit
Qty
c Unit Price
Total
1
Clearing & Grubbing
LS
1
$ 1,300.00
$ 1,300.00
2
Disposal of Waste Materials
LS
1
$ 1,100.00
$ 1,100.00
3
Remove and Dispose Existing AC Unit
Complete. Install new HVAC Unit as
indicated on the Plans and
Specifications Complete.
LS
1
$ 418,525.00
$ 418,525.00
Total Base Price
$ 420,925.00
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